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Expert Amazon PPC Audit: 6 Costly Fails of Most Amazon Sellers

Amazon PPC is a game of complexity and experience. As a full-service Amazon agency we have helped more than 45 sellers successfully navigate the complexities of Amazon Product Ads Management and the starting point have often been an in-depth and use case specific Amazon PPC Audit.


✔Even experienced sellers struggle to manage search term overlap, leading to wasted ad spend.

✔Setting the right bids means optimizing not just for ACoS, but for incremental ACoS to maximize profit.

✔Sustainable performance requires the ongoing elimination of underperforming search queries - based on statistically significant insights.


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What Should be Included in an Amazon Ads Audit?


  • Product Listings Selected, Campaign Structure & Ad Formats
  • Targeting Strategy: Automated vs Manual Campaigns
  • Keyword Targeting, Keyword Match Types & Bidding Strategy
  • Ad Landing Page Audit (Product Listing Page or Amazon Store)

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Top 4 Reasons Why Even Advanced Sellers Waste Amazon Ad Budget

When it comes to Amazon PPC, figuring out the basics is easy. Opting for manual campaigns instead of automatic campaigns, avoiding broad match keywords and pushing top-sellings SKUs in ads, most sellers got this covered. But what do the top 1% Amazon sellers focus on when reviewing their Amazon advertising campaigns?

Not Optimizing for Incremental ACoS

Optimizing for ACoS isn’t sufficient — what truly matters is optimizing for incremental ACoS. If you spend $1,000 and generate $4,000 in sales (= 25% ACoS), that’s great. But imagine you spent another $1,000 on the same campaing increasing total sales to $5,000. In that case your incremental ACoS is on the additional $1,000 ad spend is just 100% — meaning you're likely losing money on the added ad budget.

Not Managing Ad Bids Dynamically

Amazon bid management is complex. On the one hand you want to bid high enough to ensure sufficient exposure for top-performing search queries, but on the other hand setting bids too high can take a deep bite out of your profits. To navigate these complexities we have developed a proprietary Amazon PPC software that dynamically optimizes your bids 24/7.

Ignoring Statistical Significance

At what point should you negative out an underperforming keyword? Even with a strong 25% conversion rate, you’d need at least 25 clicks for one sale. To reach a reliable decision more clicks are likely needed. But high CPCs make testing expensive. We analyze millions in ad spend across multiple accounts, which allows us to spot patterns faster and to help you make data-driven decisions without the costly trial & error period.

Discounting the Amazon Flywheel Effect

The Amazon flywheel is a powerful self-reinforcing cycle that maximizes the exposure and sales performance of best-selling Amazon products listings. In simple terms, Amazon products that sell well, accumulate reviews faster, rank higher for competitive keywords and thus - sell even better! In our Amazon PPC Audits, we strategically identify keywords that have the potential to accelerate this virtuous sales cycle.



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The 6 Most Costly Mistakes we Find in Amazon Advertising Audits

Inefficient Campaign Structures

Common structure inefficiencies involve having a targeting approach that is too broad and that fails to prioritize high-performing keywords, not segmenting out brand searches and running different ad types (i.e. Sponsored Products and Sponsored Brands ads) for the same SKUs without proper guardrails in place.

Missing out on Negative Keyword Opportunities

Not regularly weeding out irrelevant keywords is a costly mistake that can end up eating a big chunk of your ad budgets (with no real chance of driving sales). Being on top of your search term report is key.

Overbidding on Low-Converting Terms

Bidding for converting keywords makes sense, but what is the right amount? Getting conversions at any cost is often not worth it because cheaper and thus more economical conversion opportunities can often be found elsewhere.

Sending Traffic to Unoptimized Product Listings

Many times performance issues are not actually linked to advertising campaigns, but can be traced back to non-optimized listing copies, poorly written. product titles or inefficient listing images (more about our Amazon Listing Optimization Services).



Not Utilizing all Amazon Ad Formats

Most sellers start out with Sponsored Products Ads. And that usually makes a lot of sense. These standard text based ads can deliver strong results and don't require any creatives. But especially when you manage your own brand, there comes a time when you need to also invest in Sponsored Brands ads and Amazon display ads to keep growing by building a strong and differentiated brand.

Not Reviewing Ad Performance Frequently Enough

While there are many keywords that tend to perform well over time, responding fast to seasonality and behavioral shifts is key to outsmarting the competition. So rather than just relying on the one-off results of an Amazon Ads performance review, we set up automated dashboards for all our clients to constantly have a finger on the pulse and to stay ahead of algorithm swings.

Relying Only on Auto Campaigns

This is a mistake we mostly see with less experienced sellers. We have found that automatic campaigns can be helpful when scaling accounts and also in the initial keyword discovery period of sellers new to amazon advertising. However, in the long-run performance is often inferior to well-managed manual campaigns (Amazon automatic vs manual campaigns).

Missing Out on External Traffic Opportunities

While this is not technically a component of an Amazon PPC effectiveness assessment, it is something we always evaluate. To succeed on the Amazon marketplace, you need to figure out how to drive traffic to your Amazon listings in the most cost effective way. This often involves optimizing Google Ads for Amazon listings or running Meta Ads Management for Amazon listings.



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Free Amazon Advertising Health Checklist


To get started reviewing your Amazon PPC performance, review the checklist below.

✅ Campaign Naming & Structure: Are your campaigns organized clearly by goal, match type, or product group? A clean structure helps avoid data confusion and ensures better control over budget and bidding strategies.

✅ Auto to Manual Search Term Harvesting: If you do run auto campaigns (🫣) please make sure to regularly move high-performing search terms from Auto campaigns into Manual campaigns with Exact match targeting.

✅ Use of All Relevant Ad Formats: Are you leveraging Sponsored Products, Sponsored Brands, and Sponsored Display where appropriate? Each format serves a unique role in the funnel, and ignoring one can mean missed visibility and sales.

✅ Negative Keyword List Optimization: Are your campaigns organized clearly by goal, match type, or product group? A clean structure helps avoid data confusion and ensures better control over budget and bidding strategies.

✅ Placement-Based Bid Adjustments: Have you set bid multipliers for top-of-search, product pages, and rest-of-search placements based on past performance? Adjusting bids by placement can improve ACoS without increasing total spend.

✅ Product Listing Optimization for Advertised ASINs: Do your listings have compelling images, keyword-optimized titles, clear bullet points, and A+ Content? Ads can drive traffic, but only a fully optimized listing can convert that traffic into sales.

✅ Bid Optimization Strategy in Place: Are your bids being adjusted based on ACoS, conversion rate, or placement-level performance—not just guesswork or impressions? A strong bidding strategy aligns your spend with profitability thresholds.

Testimonials from our clients


We switched to SellerMetrics for Amazon PPC management after 6 months of flat sales. With their help, we are back to growing 5–10% each month while keeping our TACOS below 15%. We have a dedicated account manager, and if we need more help, Rick is always available

Janelle M

I've been enjoying working with SellerMetrics for almost a year now. The SellerMetrics team goes above and beyond. They make it easy and stress-free, which is exactly what you want from an agency. It's nice to have someone on your side who knows everything there is to know about advertising on Amazon. If you're looking for a great Amazon PPC company, I really like SellerMetrics.

Nick Jackson

Using SellerMetrics Amazon PPC managed service allows me to free up my time for the other things that matter. I have been impressed with the team’s data-driven approach. Unlike other Amazon PPC agencies, their methods are cutting edge, transparent and it works!

Jessica Brandt

SellerMetrics is the one-stop shop for all your Amazon Advertising needs. Whether you’re a first-time user, who simply wants to press a single button to create a high performance fully automated campaign structure or a veteran of PPC who wants to manage their campaigns directly but save time using SellerMetrics’ intelligent bulk and filtered changes, this is the platform for you.

Ralph Kern

Three Reasons to Choose us as Your Amazon Ads Management Agency


Founded by Sellers

Our agency was founded by Rick Wong, a former Amazon Seller who achieved a 7-figure brand exit.

Results Focused

We look at your FBA business holistically. Starting with the lowest hanging fruits to boost sales.

Proven Track Record

Since 2001 we have helped our 30+ clients generate more than $600M in sales on Amazon.




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Case Studies


Improving Keyword Rankings to Grow Sales by 60%
($2.6M to $4.2M ARR)

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KDP Author increases his KENP Reads increase 200% for Sci Fri fiction series

Advance low bid strategy to help a Yoga brand launch in Amazon Canada and UK

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FAQ: Amazon PPC Audit


What is an Amazon PPC audit?

An Amazon PPC audit is a comprehensive review of your Amazon advertising campaigns—specifically Sponsored Products, Sponsored Brands, and Sponsored Display. It identifies inefficiencies, wasted ad spend, and missed opportunities by analyzing campaign structure, keyword performance, targeting strategies, bids, and listing quality.

Why should I audit my Amazon PPC campaigns?

Regular audits help you uncover hidden issues like keyword overlap, irrelevant targeting, poor bid allocation, or underperforming listings. Auditing ensures your ad spend is aligned with your profitability goals and allows you to scale high-performing campaigns while cutting out what’s not working.

How often should I run an Amazon PPC audit?

A thorough audit should be carried out at least once per quarter (in addition to more high-level monthly performance reviews). We also suggest leveraging automated Amazon PPC performance dashboards to spot performance changes faster.

What’s included in a professional Amazon PPC audit?

A complete Amazon PPC audit typically includes:

How do I know if I need an Amazon PPC audit?

If you’re experiencing rising ACoS, flatlining sales, poor conversion rates, or confusion about which keywords are truly profitable, it’s time for an audit. Audits are also essential if you’re preparing to scale, launching new products, or haven’t reviewed your PPC data in over a month.

Can I do an Amazon PPC audit myself?

Yes, you can. It however requires a solid understanding of Amazon Ads, keyword data, bidding strategies, and campaign structure. Most sellers benefit from using an experienced Amazon PPC agency that has visibility across multiple accounts and benchmarks, allowing for deeper insights and faster action. If you want us to conduct a free and comprehensive audit of your account with no strings attached, get in touch with us!

How long does a PPC audit take?

A manual Amazon PPC audit typically takes anywhere from 4 to 10 business days, depending on the size and complexity of the account. Automated tools can provide faster results, but they often lack the contextual judgment that a human expert provides and provide advice may not always lift performance.

Will an audit improve my ACoS?

An audit itself won’t directly improve performance, but it provides the insights you need to take targeted action. By identifying where your spend is inefficient and what’s working well, you can implement changes that lower ACoS, and improve overall ad profitability.

Do you offer a free Amazon PPC audit?

Yes. At SellerMetrics, we offer a complimentary Amazon PPC audit snapshot that highlights key opportunities and red flags in your account. It’s a fast, low-risk way to gain clarity on your ad performance and see if a full-scale optimization is needed. Contact us to get started!