Why Your Amazon Ad Spend Is Not Working – And What to Do About It

May 25, 2026

Cash Riley Jr.
Founder & CEO, The Machine Agency, Dallas, Texas

High spend, low returns. If your Amazon advertising is underperforming, the problem is almost never the platform. Here are the most common reasons campaigns fail for pet brands – and how to fix each one.

You are spending money on Amazon ads. You are not seeing the results you expected. You are not alone – this is one of the most common situations TMA encounters with pet brands coming to us for the first time. And in the overwhelming majority of cases, the problem is not the platform. It is how the campaigns are structured.

Here are the most common reasons Amazon advertising underperforms for pet brands, and what to do about each one.

Problem 1: No Campaign Structure

Random collections of keywords thrown into broad match campaigns are not a strategy – they are noise. Without a deliberate campaign structure that separates brand keywords from category keywords, competitor targeting from product targeting, and awareness objectives from conversion objectives, you cannot understand what is actually working.

Fix: Build a three-tiered campaign structure: brand campaigns to protect your own keywords and brand name, category campaigns to capture customers searching for products like yours, and competitor campaigns to intercept shoppers looking at alternatives. Each tier requires different bids, different budgets, and different success metrics.

Problem 2: No Negative Keywords

If you are not actively adding negative keywords to your campaigns, you are paying for irrelevant traffic. Amazon’s broad match will serve your ads against searches that have nothing to do with your product, and you will pay for every click whether it converts or not.

Fix: Run a search term report weekly. Any search term that has generated spend without a sale – especially after a reasonable number of impressions – should be added as a negative keyword. This alone can improve campaign efficiency significantly within the first 30 days.

Problem 3: Bids That Do Not Match Objectives

Setting one bid for all keywords across all placements is one of the most expensive mistakes Amazon advertisers make. Keywords at different stages of the purchase funnel have fundamentally different conversion rates, and your bids need to reflect that.

Fix: Adjust bids based on historical conversion data for each keyword. High-converting, high-intent keywords warrant higher bids. Exploratory keywords warrant lower bids until you have data showing they convert. Use placement bid modifiers to increase or decrease bids for top-of-search versus product page placements based on where you see the best performance.

Problem 4: Listings That Cannot Convert the Traffic

This is the most overlooked issue in Amazon advertising. You can build perfect campaigns, but if your listing does not convert the traffic those campaigns deliver, you are pouring money into a leaky bucket.

Fix: Before scaling ad spend, audit your conversion rate. If your listing is converting below the category average, invest in your listing first – better primary images, stronger bullet points, more compelling A+ Content. Every percentage point of improvement in conversion rate makes your ad spend more efficient.

Problem 5: No Performance Cadence

Amazon advertising is not something you set up and check monthly. Campaigns drift. Bids become outdated. Keywords that were profitable stop performing. New opportunities emerge that you are missing entirely.

Fix: Establish a weekly performance review cadence. At minimum, check your search term reports, adjust bids on significant keywords, and review your campaign-level ACoS against your break-even targets. Monthly reviews are too infrequent to maintain meaningful campaign performance.

    The Bottom Line

    Underperforming Amazon advertising is almost always a fixable problem. The platform works – but it rewards structure, discipline, and active management. Brands that treat advertising as a set-it-and-forget-it function consistently leave money on the table.

    TMA manages Amazon advertising for pet and consumer brands with a data-driven, actively managed approach. Schedule a free audit at themachineagency.com/free-amazon-audit to see exactly where your campaigns can improve.