Amazon advertising can be one of the most powerful tools in your arsenal, but only if you’re spending strategically. Without the right approach, ad spend can quickly spiral out of control, leading to wasted budget and low returns. The key to maximizing your Amazon ad ROI (Return on Investment) is data-driven decision-making, and that’s where Seller Labs’ tools come in.
In this guide, we’ll break down how to improve your ad optimization strategy using insights from Ad Genius, the Dayparting Heatmap, and SKU Economics to ensure you’re making informed decisions about ad spend.
Identify Your Most Profitable Campaigns & Keywords
Not all campaigns and keywords deliver the same results. The first step to improving your ROI is identifying which ads are working and which ones need adjustments.
How to Do It with Ad Genius:
✅ Use the “Top Campaigns & Keywords” feature on your Ad Genius Dashboard to analyze performance over the last 60 days.
✅ Look at ACoS (Advertising Cost of Sales) and TACoS (Total Advertising Cost of Sales) to determine profitability.
✅ Pause or refine underperforming campaigns while increasing budget allocation to high-performing ones.
Pro Tip: High ACoS isn’t always bad! If a keyword has high sales volume but a slightly higher ACoS, consider adjusting bids instead of cutting it completely.
Reduce Wasted Ad Spend with Hourly & Daily Optimization
Many sellers unknowingly overspend on ads during low-converting hours. If your ads are running 24/7 without adjustments, you may be burning through your budget inefficiently.
How to Do It with the Ad Genius Dayparting Heatmap:
✅ Analyze impression and sales data by hour and day to find when conversions are highest.
✅ Turn off or reduce bids during low-converting hours to prevent wasted spend.
✅ Increase bids during peak performance times to maximize exposure when shoppers are most active.
Pro Tip: Amazon’s conversion reporting can take up to days to finalize, so always analyze historical trends over multiple weeks before making drastic bid changes.
Optimize Ad Spend Based on SKU Profitability
Spending money on ads is only worth it if you’re making a solid profit on the products you’re promoting. Before you scale an ad campaign, analyze how much profit you actually earn per sale.
How to Do It with SKU Economics:
✅ Calculate true profitability by considering COGS, Amazon fees, ad spend, and storage costs.
✅ Compare SKU profitability against ad performance to determine if increasing ad spend will yield positive ROI.
✅ Adjust ad budgets accordingly—if a product has high ACoS and low profitability, rethink your strategy.
Pro Tip: If a SKU has low profitability but strong sales, consider adjusting your pricing strategy or product sourcing cost instead of cutting ad spend completely.
Leverage Long-Term Ad Performance Trends
Successful PPC strategies aren’t just about day-to-day performance—you need to evaluate your strategy over time.
How to Do It with the Ad Genius Dashboard:
✅ Track ad performance over 7, 30, 180, and 365 days to spot seasonal trends.
✅ Compare ad sales year-over-year to determine which campaigns perform best at certain times of the year.
✅ Plan for peak seasons by gradually increasing ad budgets before big sales events (e.g., Prime Day, Q4 holiday shopping).
Pro Tip: If you see spikes in ACoS before peak sales periods, don’t panic! Customers often click ads in advance but complete purchases, so factor in delayed conversions before making adjustments.
Automate & Simplify Ad Optimization
Manually monitoring your ads can be time-consuming, but Seller Labs helps automate key optimizations to save time and improve efficiency.
How to Do It with Seller Labs’ Ad Tools:
✅ Monitor campaign performance in Ad Genius to track trends and make informed decisions.
✅Enable Suggestion Automation to automatically adjust bids and refine targeting based on performance insights.
✅ Leverage AI-powered recommendations to refine targeting, optimize spend, and improve performance without constant manual adjustments.
Pro Tip: Instead of manually adjusting bids daily, review your ad performance weekly to allow Amazon’s algorithm to optimize in between changes.
Smarter Advertising, Stronger Performance
Amazon advertising is a powerful tool—but only if used strategically. By leveraging the Ad Genius Dashboard, Dayparting Heatmap, and SKU Economics, you can gain deeper insights into your ad performance and make more informed decisions that may help reduce wasted spend, improve profitability, and enhance your return on investment.
Ready to take control of your ad performance?
Start using Seller Labs’ tools today and watch your Amazon business thrive!
