Amazon sellers are measuring advertising performance too narrowly, and it could
By Brandon Young · October 15, 2026 · Curated by George's Blog
Amazon sellers are measuring advertising performance too narrowly, and it could be costing them growth opportunities.
For years, Amazon has talked about the impact of advertising across multiple touchpoints.
A customer sees your brand outside Amazon.
They encounter your product again on Amazon.
And according to figures Amazon has discussed, that combination can make shoppers up to six times more likely to convert.
The problem has always been attribution.
How do you know which advertising actually influenced the sale?
And how do you justify spending money outside Amazon when you cannot clearly connect that investment to revenue?
That is why Amazons new AI driven full funnel advertising capabilities caught my attention.
The idea is that advertisers can establish ROAS targets while AI helps optimize campaigns across different stages of the customer journey.
And with improved attribution, brands may have a much clearer picture of how those campaigns contribute to sales.
But I would not recommend every Amazon seller immediately move their budget into full funnel advertising.
This is where understanding your business model becomes critical.
For larger brands with repeat purchase behavior, strong customer lifetime value, or high average order values, the economics may make sense.
You can justify a higher acquisition cost when the long term customer value supports it.
For smaller sellers operating on tight margins, the additional advertising investment may be harder to justify.
The opportunity is significant, but the strategy still has to fit the business.
And theres another interesting part of this.
A lot of sellers are skeptical about Amazons AI managing advertising decisions.I understand that skepticism.
But in our experience, weve seen strong results when we give Amazons AI room to optimize.
That doesnt mean abandoning oversight.
It means understanding where automation can make better decisions at scale while still holding the campaigns accountable to profitability.
The real question isnt whether AI can spend your advertising budget.Its whether it can allocate that budget more efficiently than your current strategy.
For sellers looking to better understand their Amazon advertising data, start here: https://lnkd.in/e2h4mCJ2
Would you trust Amazons AI to manage your full funnel advertising, or would you rather maintain direct control over your campaigns?
#AmazonFBA #AmazonSeller #AmazonAdvertising #AmazonDSP #AmazonAI #DataDive #Ecommerce