Think Twice Before Labeling “Wasted Spend” in Ad Audits
By George Barnett Reid 👀 · November 11, 2024 · Curated by George's Blog
Think Twice Before Labeling “Wasted Spend” in Ad Audits
Based on real client data.
1️⃣ Context Matters in Wasted Spend Analysis
An audit recently claimed one of our clients "wasted" $3,000 in ad spend last month alone, forecasting a $36,000 loss over a year. But here’s the issue: they flagged *every* keyword without a sale as wasted, even those with just one click and a $0.60 cost. 📉 A blanket approach like this lacks nuance.
2️⃣ One Size Doesn’t Fit All for Wasted Spend
Defining wasted spend isn’t as simple as “no conversions.” The right threshold depends on account goals, industry, and budget. A more realistic measure? Look at keywords with 10-15 clicks and around $20-$25 spent (scaled to product price) before labeling them as wasted. 📊
3️⃣ Strategic Bids Have Value Beyond Immediate ROI
For many clients, it’s not just about immediate sales—securing keyword positions can be key to visibility and long-term performance, even if conversions aren’t instant. This strategy, when viewed without context, might look like wasted spend but is actually part of the bigger picture. 🎯
Bottom line: "Wasted spend" needs context; in advertising, every dollar has a role.
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