If you’ve been running ads on Amazon, chances are you’ve experienced a drop in performance at some point. One day your campaigns are humming along—driving impressions, clicks, and conversions—and then suddenly, things slow down. Maybe your ACOS (Advertising Cost of Sales) spikes, or your sales tank. It’s frustrating, especially if you’re not sure what’s causing the change.
The good news? You can fix it. But first, you need to diagnose the issue. In this blog post, we’ll walk you through the common reasons Amazon ad performance drops and exactly how to troubleshoot and correct them.
Step 1: Identify the Symptoms of Ad Performance Drop
Before you can fix anything, you need to pinpoint what exactly is going wrong. Start by answering these questions:
- Have impressions dropped suddenly or gradually?
- Are you seeing fewer clicks or a lower click-through rate (CTR)?
- Has your conversion rate decreased?
- Is your ACOS increasing without a rise in sales?
Use the data in Amazon Campaign Manager to compare your metrics over time. Select a time range that includes the period before and after the performance dip.
Pro Tip: Look at week-over-week or month-over-month comparisons for clearer trends.
Step 2: Audit Your Budget and Bids
One of the most common reasons for a sudden drop in impressions or clicks is budget exhaustion or bids that are too low.
Check Your Budgets:
- Are your campaigns running out of daily budget early in the day?
- Have you recently reduced your budget manually or via rules?
Review Your Bids:
- Are your bids still competitive in your category?
- Has CPC (cost-per-click) increased recently for your target keywords?
Solution:
- Increase your daily budgets if you’re running out early.
- Adjust bids upward on high-converting keywords.
- Use dynamic bidding strategies like “Down Only” or “Up and Down” to stay competitive.
Step 3: Analyze Search Term Performance
Search term shifts can dramatically impact your campaign. Amazon’s algorithm may show your ads for less relevant queries over time if not monitored.
Here’s what to check:
- Go to your Search Term Report for the affected campaigns.
- Identify terms with high spend but low sales.
- Look for irrelevant or low-converting queries.
Solution:
- Add poor-performing or irrelevant search terms as negative keywords.
- Double down on high-converting search terms by creating exact match campaigns.
- Refresh your keyword strategy every 2–4 weeks.
Step 4: Evaluate Product Listing Quality
Even the best ads won’t convert if your product listings are lacking. If you’ve seen a drop in conversion rate, it could be due to:
- Outdated or poor-quality images
- Weak titles or bullet points
- Missing A+ Content
- Negative reviews or low ratings
- Pricing that’s no longer competitive
Solution:
- Update your images and make sure they clearly show product benefits.
- Rewrite bullet points to highlight differentiators.
- Use A+ Content to boost trust and engagement.
- Monitor and respond to reviews, and aim for 4.3+ star ratings.
- Use tools like Keepa to track competitor pricing.
Step 5: Check for Buy Box Ownership
If you lose the Buy Box, your Sponsored Products ads won’t be eligible to appear, even if everything else is set up correctly.
Causes of Buy Box loss:
- Higher pricing than competitors
- Low seller rating
- Inventory issues (e.g., out of stock or slow delivery times)
Solution:
- Adjust pricing to be competitive.
- Improve fulfillment and delivery options.
- Monitor Buy Box status using tools like Helium 10 or SellerApp.
Step 6: Examine Ad Type Strategy
Different ad types perform differently—and what worked yesterday may not work tomorrow.
Ask yourself:
- Are you relying solely on Sponsored Products?
- Have you tested Sponsored Brands or Sponsored Display?
- Are your campaigns organized by product category, theme, or goal?
Solution:
- Diversify your ad portfolio.
- Use Sponsored Brands for brand awareness.
- Use Sponsored Display to retarget shoppers or reach relevant audiences.
- Create campaigns with clear segmentation (e.g., bestsellers vs. new launches).
Step 7: Optimize for Seasonality and Trends
Sometimes a performance drop isn’t your fault—it’s the market.
Check for:
- Seasonal fluctuations in demand
- External market trends (Google Trends can help)
- Changes in customer behavior
Solution:
- Adjust expectations during off-peak periods.
- Shift budget toward trending products.
- Use historical data to forecast future performance.
Step 8: Refresh Creative Elements
Sponsored Brands and Sponsored Display campaigns rely on visuals. If your creative is stale or underperforming, it can lead to lower CTRs and conversions.
Solution:
- A/B test different headlines and images.
- Use lifestyle photography and benefit-driven messaging.
- Refresh creatives every 30-60 days for Sponsored Brand ads.
Step 9: Run a Competitor Analysis
Have new competitors entered your niche? Are others outbidding you or offering better deals?
Check:
- New product launches in your category
- Sponsored product placements in search results
- Ad copy and pricing of top-ranking competitors
Solution:
- Adjust your positioning and pricing.
- Improve your ad copy and targeting.
- Use competitive research tools to stay one step ahead.
Step 10: Review Backend Technical Issues
Sometimes technical glitches can affect performance:
- Product variations not properly grouped
- SKU errors
- Disapproved ads or keywords
Solution:
- Check your Ad Status in Campaign Manager.
- Resolve any suppressed listings in Manage Inventory.
- Contact Seller Support if you suspect a backend issue.
Final Thoughts: Monitor, Adjust, Repeat
Fixing a performance drop on Amazon ads isn’t about a single silver bullet—it’s about methodically reviewing every part of your strategy.
Here’s a quick checklist recap: ✅ Audit budgets and bids
✅ Analyze keyword/search term performance
✅ Optimize product listings and images
✅ Ensure Buy Box ownership
✅ Diversify your ad types
✅ Account for seasonality
✅ Refresh creatives regularly
✅ Watch competitors
✅ Check for technical issues
Consistency and optimization are the keys to long-term ad success. Keep monitoring your campaigns, testing new approaches, and learning from your data.
📈 When you’re proactive and data-driven, you can turn ad performance drops into valuable learning experiences—and come back stronger than ever.
Need help troubleshooting your Amazon ads? Drop a comment or reach out—I’d love to hear what’s working (or not) for you!
#AmazonFBA #AmazonAds #PPC #AdvertisingStrategy #EcommerceMarketing #AmazonSellers #SponsoredProducts #ACOS #OnlineBusiness