Redefining Amazon Advertising: The Myths Limiting Profit, Visibility And Growth

Amazon’s latest Q4 advertising guide highlights several myths that still influence brand decision-making, often at the expense of profitability and growth. Even well-established brands can be limited by outdated thinking, relying on surface-level metrics or narrow advertising approaches that overlook the full commercial impact of their campaigns.

Misconception 1: Rising ACOS Means Poor Performance

A temporary increase in ACOS during high-traffic events doesn’t necessarily indicate inefficiency. When visibility increases, organic sales typically follow, reducing TACOS and improving long-term efficiency. Brands that evaluate advertising through TACOS, rather than ACOS alone, better understand how ads contribute to total business growth.

Misconception 2: Sponsored Products Are Enough

Relying solely on Sponsored Products means missing the broader customer journey. Sponsored Brands and Sponsored Display are key for getting your brand noticed and considered. They help you reach shoppers earlier in their journey and make your brand more memorable. Brands using a combination of ad formats achieve higher visibility and conversion consistency during peak events.

Misconception 3: You Must Raise Bids To Compete

Blanket bid increases rarely deliver sustainable results. Strategic bid placement, targeted keyword segmentation, and conversion optimisations are far more effective. The objective isn’t to spend more but to spend intelligently – prioritising visibility while protecting profitability. This approach is more effective than simply increasing overall expenditure.

Misconception 4: Automation Reduces control

Automation, when combined with manual campaigns, significantly boosts efficiency. Especially during periods of high traffic, automated targeting can reveal new search behaviours and long-tail keywords that manual methods might overlook. Sophisticated advertisers leverage automation to complement their precise manual efforts, thereby securing incremental sales opportunities.

Misconception 5: Traffic Surges Guarantee Higher Conversion

During Black friday and Cyber Monday, increased visibility is not an automatic guarantee of sales. Shoppers frequently browse and compare before committing to a purchase. The most successful brands account for this delayed decision-making by deploying remarketing. The campaigns employ distinct creative elements and implement sophisticated post-event strategies to convert delayed purchase intents.

Successful brands on Amazon understand that accuracy, not assumptions, drives performance. By challenging common misconceptions and taking a data-led approach to advertising, it’s possible to achieve growth that strengthens both short-term results and long-term brand equity.

Want to see your Amazon performance skyrocket? Book a call with our team or email us at amazon@marketrocket.co.uk to take your brand to the next level.