How to Optimise Amazon Ads for Better ROAS

The world of Amazon advertising is lucrative but often challenging to navigate. For professionals in e-commerce, retail, and supply chain management, running ad campaigns that actually deliver a high Return on Advertising Spend (ROAS) can feel like solving a complex puzzle. Many businesses spend heavily on advertising only to see minimal returns, leaving them frustrated and uncertain about their approach.

In this guide, we’ll break down key strategies to optimise your Amazon ad campaigns, from keyword targeting to bid adjustments, and how leveraging tools such as negative targeting and manual campaigns can transform your results. Based on expert advice from Amazon account representatives, this article equips you with actionable insights to refine your ad performance and drive profitability.

What Is ROAS and Why Does It Matter?

ROAS (Return on Advertising Spend) is a critical metric for measuring the effectiveness of your Amazon campaigns. It’s the ratio of revenue generated to the amount spent on ads. Achieving an optimal ROAS means not just increasing sales but ensuring your ad spend aligns with your business goals - whether that’s maximising profitability, clearing surplus inventory, or expanding market reach.

Poorly managed campaigns can lead to wasted budgets, low sales, and lost opportunities. With the busiest sales season around the corner, now is the time to fine-tune your strategy.

The Building Blocks of Amazon Ad Optimisation

1. Keyword Targeting: Discovering the Right Customers

Effective keyword targeting is the cornerstone of a strong advertising strategy. Rather than randomly choosing terms to bid on, focus on precise, data-driven keyword selection.

• The Recommendations Tab: Amazon’s AI-powered recommendations tool analyses your campaigns 24/7, offering tailored suggestions for improving performance. With one-click implementation, you can quickly integrate these enhancements into your strategy.

• Types of Keyword Matches:

  • Exact Match: Target customers who know exactly what they want, e.g., "400 thread count cotton sheets". These terms often yield higher conversion rates, so aggressive bidding is recommended.

  • Broad Match: Capture a wider audience with terms like "soft queen bed sheets". While these searches are less specific, they help attract shoppers who might eventually convert.

  • Substitutes: These are searches for your competitors’ products, e.g., "Cloudwave bedding". Strategic bidding here can help convert undecided shoppers.

  • Compliments: Bid on related terms such as "down comforters" to cross-sell or bundle products.

Pro Tip: Monitor and adjust bids based on the performance of each match type. Strategic bidding ensures you’re maximising returns without overspending.

2. Negative Targeting: Eliminate Ad Spend Wastage

Negative targeting allows you to exclude keywords or search terms that fail to convert, ensuring your budget is spent only where it matters. Think of this as a ‘spring cleaning’ for your campaigns.

• Block irrelevant or underperforming keywords.

• Remove poorly matched ASINs (Amazon Standard Identification Numbers) that don’t align with your product offerings.

• Continuously review search term reports to identify wasteful spending.

By cutting the clutter, you allow high-performing ads to flourish, ultimately improving overall campaign efficiency.

3. Manual Campaigns: Taking Control of Your Ad Spend

While automatic campaigns are ideal for discovery, manual campaigns provide the control needed to scale effectively. This approach allows you to focus on high-performing keywords identified in your auto campaigns and refine your strategy for precision.

• Steps to Set Up Manual Campaigns:

  1. Analyse auto campaign performance data to identify top-performing search terms.

  2. Move these terms into a manual campaign with tailored bids.

  3. Regularly adjust bids based on performance metrics like ROAS and conversions.

Why It Works: Advertisers who combine keyword and product targeting in manual campaigns see more impressions, clicks, and conversions than those relying on keywords alone.

4. Bid Adjustments: Fine-Tuning for Maximum Impact

Strategic bid adjustments are powerful yet often underutilised. By analysing placement performance and keyword success, you can allocate your budget more effectively.

• Bid Placement Optimisation:

  • Increase bids for top-performing positions like "Top of Search" to improve visibility.

  • Reduce bids in underperforming areas to minimise wasted spend.

• Match Type Optimisation: Shift spend to match types (e.g., exact match) that consistently deliver results, while pulling back on less effective options.

This dynamic approach ensures your campaigns remain agile and responsive to market trends.

5. Leveraging Data for Continuous Improvement

Amazon’s data tools, such as the Brand Analytics Portal for registered sellers, provide invaluable insights into search term performance and customer behaviour. For non-registered sellers, auto campaigns and search term reports serve as essential resources for identifying new opportunities.

• Keep testing new terms regularly to maintain campaign freshness.

• Use performance reports to identify gaps in your strategy and uncover untapped potential.

• Prioritise high-volume, high-conversion terms for maximum ROI.

6. Owning the Top of Search Position

The "Top of Search" placement is the prime real estate of Amazon advertising. Ads in this placement are more likely to attract clicks and conversions, delivering an impressive 146% lift in sales for advertisers who dominate these spots.

To secure the top position:

• Invest in high-performing keywords with strong ROAS.

• Monitor competitor performance to defend your ranking.

• Use bid adjustments strategically to maintain visibility in competitive categories.

Key Takeaways

• Keyword Targeting: Leverage Amazon’s AI-powered recommendations to identify high-converting keywords and implement them seamlessly into your campaigns.

• Negative Targeting: Exclude irrelevant search terms to maximise budget efficiency and focus on what works.

• Manual Campaigns: Transition top-performing keywords from auto campaigns into manual campaigns for greater control and precision.

• Bid Adjustments: Dynamically adjust bids based on keyword performance and placement success to maximise ROI.

• Match Types: Use exact, broad, substitute, and complementary match types strategically to engage customers at different stages of intent.

• Data Utilisation: Continuously analyse performance metrics to refine your campaigns and discover new opportunities.

• Top of Search Optimisation: Prioritise securing this prime placement for maximum visibility, clicks, and conversions.

Conclusion

Optimising Amazon ads is not a one-and-done process but a continuous effort to fine-tune and adapt. By targeting smarter, reducing waste, and leveraging insights from Amazon’s powerful tools, advertisers can achieve remarkable improvements in ROAS and overall sales performance.

For e-commerce professionals and decision-makers, the strategies outlined here provide a roadmap to success in a competitive marketplace. As the busy holiday season approaches, there’s no better time to take action, refine your campaigns, and maximise your advertising ROI.

Stay committed to testing, adjusting, and evolving your approach - because in the world of Amazon advertising, the rewards are well worth the effort.

Source: "Amazon Accelerate 2025: Smarter Budget Utilization: Optimize Your Ads for Maximum Efficiency" - Amazon Seller University, YouTube, Sep 29, 2025 - https://www.youtube.com/watch?v=3cJQRGP5IhU

Related Blog Posts

• 5 Signs Your Shopify Store Needs Automated Reorder Alerts

• Demand Forecasting: Essential Steps for E-commerce Stores

• Service Level Optimization: Best Practices

• SKU Performance Metrics: What to Track