👉 Is your Amazon Ad setup aligned with your Ad Budget?

We've come across Brands having a limited budget but they spread it thin across too many targets/strategies. Recently, we audited an account and found the Brand was targeting a large number of competitor products. This approach simply diluted their ad spend.

Here’s where things went wrong:

➡️ Low Spend Per Target
Each product target received minimal spend ($1–$4), offering little exposure or room for experimentation. Collectively, these low-spending targets consumed over 20% of the total ad budget—while generating almost no sales.

➡️ Missed Opportunities with High Performers
High-performing competitor targets were underfunded because the budget was spread too thin. To make matters worse, over 30 product targets were grouped into a single campaign, restricting control over ad spend for the most effective keywords.

By reallocating the budget to high-performing targets, the brand could have significantly improved ROI.

Further, here are 5 Steps can help drive much better Results:

1. Focus on High-Impact Targets
Limit each campaign to 10–15 product targets. This lets you closely monitor and prioritize the products that convert, minimizing wasted ad spend on underperformers.

2. Launch a Few Campaigns at a Time
Based on your budget, start with a few campaigns. Set a testing period (1–3 weeks) and wait until each product target reaches a certain number of clicks. Use the average clicks it typically takes to make a sale as your benchmark. After the trial, you’ll have a clear idea of what works.

3. Replace Non-Performers with New Targets
Swap out low performers with new product targets from your waiting list or move them to a lower-bid campaign if they still generate some conversions.
This focused approach allows you to maximize your budget and improve your ROAS.

4. Avoid Expanded Targeting
Exact match targeting is generally much more effective than expanded targeting, as it keeps your ads aligned with highly relevant product searches.

5. Structure Campaigns with Defined Budget Allocation
Well-structured campaigns with specific budgets assigned to high-impact targets can significantly boost overall performance.

By keeping your product list small and targeted, you’ll be better equipped to make the most of your budget and drive meaningful results.