Why most Amazon brands overspend on PPC. After managing Amazon accounts across t
By Pratyay Amritt · February 23, 2026 · Curated by George's Blog
Why most Amazon brands overspend on PPC.
After managing Amazon accounts across the US, UK, and EU markets for more than 6 years, I have seen a consistent pattern.
First, many brands optimize only for ACOS and ignore profit :
They celebrate when ACOS drops below a certain percentage, but they do not track TACOS, contribution margin, or organic rank growth.
You can have a healthy-looking ACOS and still lose money at the bottom line.
Second, campaign structure is often messy :
Branded and non-branded keywords are mixed. Broad, phrase and exact are layered without logic. Search term harvesting is inconsistent. Negative keywords are not maintained properly.
When structure is weak, scale becomes expensive.
Third, brands rely too heavily on branded traffic :
If most of your ad revenue comes from people already searching your brand name, you are not truly scaling. You are defending existing demand.
Growth comes from ranking and converting on non-branded, high-intent keywords.
Fourth, many accounts ignore placement strategy :
Top of search and product pages behave differently, but most brands do not adjust bids strategically. They either increase bids blindly or reduce them aggressively without understanding incremental impact.
Finally, pricing and PPC must align :
If your unit economics are weak or your pricing is not competitive, your ads will always look inefficient. Sometimes the issue is not advertising. It is positioning.
Scaling on Amazon is not about increasing ad spend.
It is about building a system where advertising drives organic growth and protects profitability.
#amazon #amazonads #amazonppc #amazonseller #amazonmarketing