The Truth About Amazon PPC Ads and Maximising Profits!

Most sellers spend too much, see poor returns, and think Amazon ads don’t work. The truth? It’s not the platform, it’s the setup. Amazon PPC doesn’t need to be overly complex or expensive, it’s a simple as that. This video breaks down how to run Amazon PPC campaigns that actually drive profit, with a real client case study showing 6x revenue growth and lower ad spend.

Most Brands Are Overspending (and Underdelivering)

Almost every brand that comes to us is wasting money on ads. Campaigns are messy, budgets are either too low or spread too thin, and results never justify the spend. One client was running £5/day campaigns with over 200 keywords jammed into one ad group. That structure made it impossible to track what was working. After working with us, their monthly revenue jumped from £4,000 to £27,583 — and we actually spent less per sale.

One Product. One Campaign. One Clear Strategy.

The fix? Keep it simple. Start with auto campaigns and one ASIN per ad group. That’s how we find the keywords that actually convert. Once you have data, you can build manual campaigns based on proven terms, but only after optimising the listing first. Poor listings don’t convert, and no ad structure can save them. A sponsored ad is only as good as the product page behind it.

Sponsored Brands Waste Budget Too Soon

Display ads and sponsored brand banners look flashy, but most brands jump in too early. These ads target shoppers higher in the funnel which are people still browsing, not buying. If you start here, you’ll burn through your budget without return. Always build strong momentum with sponsored products first. Only expand once you’ve nailed your conversion rate and proven your listings are working.

TACoS Is the Only Metric That Matters

Forget ACoS. We track TACoS, which is your total advertising cost of sale. Why? Because that’s what shows true profitability. In our case study, we dropped the client’s TACoS from 11% to 8.6% while scaling revenue by 6x. That means for every £860 they spent, they got £10,000 back in sales. You don’t get numbers like that by guessing. You need structure, margin awareness, and ongoing optimisation.

Final Thoughts

The biggest PPC mistake sellers make is assuming more spend = more sales. It doesn’t. What works is clarity, structure, and data. Start with your best products, keep campaigns focused, and build from there. Ads can absolutely scale your brand, but only if you’re smart about how and where you spend.

Chris is the managing director of Ecommerce Intelligence, a full service Amazon agency. He has over 13 years experience selling on Amazon and other marketplaces. Follow Chris on LinkedIn for daily tips and advice.

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