• High ACoS, low ROAS, and rising TACoS indicate your Amazon ads may be wasting budget and need expert management.

• Low click-through rates (CTR) show your ads aren’t engaging shoppers effectively, reducing traffic and sales.

• A low percentage of new-to-brand sales means your campaigns aren’t reaching fresh customers, limiting growth potential.

• Expert PPC management optimizes ad spend by focusing on profitable keywords, precise targeting, and smarter campaign structures.

• Actionable reporting from professionals helps you understand performance data and make informed decisions to boost profitability.

• Outsourcing PPC management saves time, reduces stress, and ensures your Amazon ad campaigns drive real business growth.
  
  
  

Are you spending more on Amazon ads than you're getting back?  Struggling to understand why your sales aren’t keeping up with your ad costs? 

In 2024, Amazon’s advertising business hit a major milestone—surpassing $50 billion for the first time, with total revenue reaching $56.2 billion from sponsored ads, display, and video advertising. Sellers are investing more than ever, but not everyone is seeing a return.

If your ACoS keeps rising, ROAS is dropping, or your TACoS won’t improve no matter what you try—these aren’t just numbers. They’re signs that your campaigns may be bleeding cash due to poor targeting, weak structure, or a lack of strategy.

Here are five clear signs your Amazon ads need professional help before they drain your profits. Watch for overlooked performance indicators, identify what's holding your campaigns back, and see how expert PPC management can fix inefficiencies and unlock real growth.

If you’re serious about making every ad dollar count, this is where to start with smart Amazon ad spend optimization strategies.

Is your Amazon ad spend delivering ROI?

As an Amazon seller, it’s easy to feel frustrated when you’re spending more on ads but not seeing a real return. Maybe your ACoS is too high, your ROAS is dropping, or your sales just aren’t where you expected them to be. You’ve tried adjusting bids, testing keywords, and launching new campaigns—but nothing seems to make a lasting difference.

Managing Amazon ads takes time, attention, and a clear strategy. Without that, even a healthy budget can be wasted. Further, with Amazon’s advertising platform getting more competitive each year, simply running ads isn’t enough—you need them to convert and deliver strong Amazon advertising ROI to truly grow your bottom line.

Many sellers reach a point where they feel stuck. You’re investing in ads, but the results don’t justify the cost. If you're constantly guessing, struggling to optimize, or unsure what’s actually working, it could be time to get expert support.

Here are five important signs that show you may need professional Amazon PPC management services  to help turn things around and make your ad spend truly profitable.

5 signs you need expert PPC management

#1 ACoS is too high 

A consistently high ACoS (Advertising Cost of Sales) is one of the clearest signs that your Amazon advertising strategy needs a closer look. While some fluctuation is normal depending on your category and goals, a high ACoS usually means you’re spending more on ads than you’re making back in sales—reducing your profit margins and overall growth.

Let’s say you're an Amazon USA seller in the home & kitchen category. You're running Sponsored Product ads for your best-selling air fryer accessory kit. You’re spending £400 a week on ads, but your sales from those ads only bring in £800. That's 50% ACoS. If your profit margin is 30%, you're losing money on every sale made through ads.

This can happen for a few reasons: you might be bidding too high on popular keywords like “air fryer accessories,” competing with bigger brands with deeper ad budgets. Or your product listing might not be convincing enough to convert clicks into purchases. Sometimes, sellers forget to separate branded and generic campaigns or fail to regularly remove underperforming keywords.

Fixing a high ACoS requires more than just lowering bids. It’s about understanding what’s driving poor performance—whether it’s weak targeting, poor listing quality, or inefficient campaign structure.

If your ACoS has stayed high despite your best efforts, it's a strong signal that your campaign needs a deeper strategy overhaul—one focused on performance data, not guesswork, to effectively lower ACoS Amazon sellers struggle with and improve overall profitability.

#2 Lower ROAS (Return on Ad Spend)

As an Amazon USA seller, one of the most telling signs that your PPC strategy needs attention is a consistently low ROAS (Return on Ad Spend). ROAS is a key metric that shows how much revenue you're generating for every pound spent on advertising. 

When this number drops, it means your ads are costing more than they’re bringing in—a clear signal that something isn’t working.

Several factors can lead to lower ROAS. Poor keyword targeting is a common one. If your ads are being shown for irrelevant search terms or attracting the wrong audience, your clicks may increase without any actual sales. 

Overbidding on competitive keywords without tracking their performance closely can also drain your budget quickly. Even your product listings themselves—images, titles, and bullet points—can impact ROAS, as they directly influence whether a shopper converts after clicking.

It’s not always easy to pinpoint the exact cause. Many sellers try to fix it by adjusting bids or pausing keywords, but without a data-backed approach, these changes often don’t solve the root problem. What’s really needed is a structured review of your campaign performance, keyword strategy, and listing optimization.

You don’t always need to spend more to get better results. Often, it’s about refining where and how you spend. If your ROAS has been declining and your adjustments aren’t improving it, that’s a sign your current strategy may have reached its limit—and that it’s time to consider a more focused, expert-driven approach.

#3 High TACOS

A consistently high TACoS is one of the clearest signs your Amazon ad strategy needs attention. TACoS measures your total ad spend as a percentage of total sales (not just ad-driven sales). When this number is high, it means your ads are eating into your overall profitability—even if your ACoS looks fine.

Why does this matter? 

Because TACoS gives you a bigger picture. A high TACoS often indicates that your organic sales aren't growing alongside your ad efforts. In other words, you're relying too much on paid ads to generate sales—and that's not sustainable in the long run.

For Amazon USA sellers, this often shows up when you’re constantly running promotions or increasing ad budgets to keep up with competitors, but your organic ranking doesn’t improve. Let’s say you're selling a kitchen organiser and spending heavily to stay on page one. 

If your TACoS stays high even after weeks of ads, it suggests those sales are only happening because of constant ad pressure—not because your product is gaining natural traction.

Fixing this doesn't always mean cutting back on ad spend. It may involve adjusting your campaign structure, improving your listing quality, or refining targeting to boost organic visibility. Sometimes, sellers keep increasing spend without improving conversion or visibility, which leads to waste.

If you're seeing high TACoS month after month, it’s a sign your ads aren’t supporting long-term growth. A more strategic, data-driven approach is needed to balance spend and sales—whether that’s in-house or through expert help.

#4 Low CTR

Click-through rate (CTR) is one of the most important performance indicators for any Amazon PPC campaign. A low CTR means people are seeing your ads—but not clicking on them. And if they’re not clicking, they’re not buying.

For Amazon USA sellers, this can be a major issue. You may have strong products and competitive pricing, but if your ads aren’t catching the shopper’s eye, you’re losing out on valuable traffic. A low CTR often points to issues with your title, main image, keyword relevance, or even your product’s star rating.

For example, imagine you're selling reusable water bottles in the USA market. If your ad is targeting the right keywords but your product title is vague, or your main image doesn’t clearly show key features like the lid or size, users may skip your listing in favour of a more visually appealing or informative option.

It’s also worth considering competition. In busy categories, shoppers compare listings in a split second. If your ad isn’t compelling enough to stand out, your CTR will stay low, no matter how much you spend.

Improving CTR means refining your targeting, testing new creatives, and understanding buyer behaviour. These are areas where expert PPC management can make a difference, but even without hiring help, reviewing CTR trends and testing variations is essential. 

#5 Low new-to-brand sales % (PPC metrics)

One of the key goals of advertising—especially on Amazon—is to attract new customers. While repeat purchases are valuable, sustained growth often comes from expanding your customer base. That’s where the “new-to-brand” (NTB) sales metric becomes important.

A low NTB sales percentage means your ads are mostly being clicked by returning customers rather than new ones. This can be a red flag if you're trying to grow your brand on Amazon USA, especially in a competitive marketplace. If most of your ad sales come from people who already know your product, your campaigns might not be reaching new audiences effectively.

For example, imagine you’re a USA-based seller offering a range of eco-friendly kitchen cleaners. You’ve launched Sponsored Brand ads to build awareness. But after a month, your NTB percentage is only 15%. This suggests that the ads aren’t capturing new shoppers, and your campaign might just be serving current or previous buyers.

This issue can stem from targeting too narrowly, reusing audiences, or failing to highlight what sets your brand apart. You might be bidding on the wrong keywords or not tailoring your creatives to first-time buyers.

To fix this, sellers often need a deeper look at targeting, keyword strategy, and ad placement. It’s not just about spending more—it’s about spending smartly. Improving NTB sales means adjusting your approach to reach fresh eyes and convert them.

If your NTB rate stays low over time, it may be a sign that your current ad strategy isn’t enough to drive brand growth—and that it's time to re-evaluate your campaign direction.

How expert PPC management can help for delivering ROI

1. Optimize ad spend for profit

For Amazon USA sellers, every pound spent on advertising should contribute to measurable profit—not just clicks. That’s where expert PPC management makes a difference. Instead of simply increasing ad budgets, professionals focus on allocating your spend strategically to maximize return.

This involves identifying your most profitable keywords, removing underperforming ones, and adjusting bids based on performance, not guesswork. For example, if a Sponsored Product campaign is driving traffic but with low conversions, an expert will analyze whether the issue lies in targeting, bidding, or even listing quality—and fix it accordingly.

Experts also know when to scale successful campaigns and when to cut losses early, preventing unnecessary spend. They continuously monitor ACoS, ROAS, and TACoS to ensure campaigns are aligned with your profit goals.

The result? A more efficient ad strategy that focuses on smart spending—so you grow sales without overspending on clicks that don’t convert.

2. Build smarter campaigns

Running ads on Amazon isn’t just about launching campaigns—it’s about launching the right ones. Expert PPC management helps Amazon USA sellers build smarter campaigns by focusing on data-backed decisions, not guesswork.

Smarter campaigns start with a clear goal: whether that’s improving visibility, lowering ACoS, or increasing new-to-brand sales. Professionals dig into your product data, customer behavior, and keyword performance to design a strategy that fits your brand’s growth stage and budget.

Instead of spreading your budget thin across random keywords, a skilled PPC manager ensures every pound spent targets high-converting search terms. They also help structure campaigns with the right balance of Sponsored Products, Brands, and Display ads to reach different types of shoppers at every stage of the buying journey.

The result? 

Better performance, fewer wasted clicks, and more control over your advertising outcomes. For sellers who want results without trial and error, working with an Amazon PPC agency USA gives a key advantage: you can build smarter campaigns right from the start. 

Instead of wasting time and money guessing what works, expert support helps you set up strategies that are proven to deliver results.

3. Cut wasted spend with precise targeting

Cutting wasted ad spend is one of the fastest ways to improve your Amazon PPC performance—and expert management makes a big difference here. Many Amazon USA sellers lose money simply because their ads are targeting the wrong audience or bidding on broad, irrelevant keywords. 

Without close monitoring and refinement, even a well-funded campaign can burn through the budget with little return. Precise targeting helps focus your ads on shoppers who are more likely to convert. This means using data to identify high-intent keywords, refining match types, and excluding poor-performing search terms through negative keyword strategies.

For example, if you sell premium leather wallets, expert PPC management would avoid wasting budget on generic terms like “wallet” and instead target specific, buyer-intent phrases like “men’s leather wallet USA.”

By reducing irrelevant clicks and focusing on high-converting audiences, you protect your budget and get more value from every pound spent—ultimately driving better results with less waste.

4. Deliver actionable reports

Understanding your Amazon ad performance goes beyond looking at numbers—it’s about knowing what those numbers mean and what to do next. Expert PPC management provides clear, actionable reports that highlight not just performance metrics like ACoS, ROAS, CTR, and TACoS, but also what steps to take based on those insights.

For Amazon USA sellers, this can be the difference between guessing and growing. Instead of sifting through endless data, you receive focused reports showing which campaigns are working, which keywords are draining the budget, and where adjustments are needed to improve results.

For example, if your Sponsored Products campaign is driving clicks but not conversions, a report should tell you why—and what to do about it. Should you change the targeting, adjust bids, or update your product detail page? Actionable reports save time, reduce confusion, and allow sellers to make informed decisions that directly impact profitability. 

5. Save your time and reduce stress

Managing Amazon PPC can quickly become overwhelming—especially when you're already handling inventory, listings, customer service, and growth strategy. For Amazon USA sellers, every minute counts, and wasting time on underperforming ad campaigns only adds to the pressure.

Expert PPC management helps lift that burden. Instead of spending hours tweaking bids, analyzing reports, or figuring out why your ACoS is climbing, a professional team handles it all for you. They know what to look for, how to act on the data, and how to get your campaigns back on track—fast.

This means you can focus on running your business, not worrying about clicks and conversions. You stay informed with clear reports, without getting bogged down in the technical details. For busy sellers, the value isn’t just in better results—it’s in peace of mind. With expert support, your ad strategy becomes one less thing to stress about.

Make your ad spend work smarter

If your Amazon ads aren’t delivering the results you expect, you’re not alone—and you’re not stuck. From high ACoS to low new-to-brand sales, the signs are often clear, but fixing them takes time, expertise, and a data-driven strategy. As the Amazon USA marketplace becomes more competitive, the cost of trial and error is simply too high.

That’s where an experienced Amazon marketing agency can make a real difference—helping you turn underperforming campaigns into profit-driving assets. With expert support, you can focus on growth while your ads are handled with precision.