Tighter Budgets in 2023: How to Cut Amazon Ad Costs Without Losing Sales

Many brands are starting 2023 with tighter budgets. Costs went up last year, consumers are more careful and investors want profit, not just growth. For Amazon sellers, the ad budget is often the first line to get cut.

Cutting ad spend does not have to mean cutting sales. Most accounts have plenty of room to save without touching what actually works. Here is where to look.

1. Cut the obvious waste first

Download your search term report for the last 60 days. Filter for terms with lots of clicks and no orders. In most accounts, these add up to a meaningful share of spend. Add them as negatives. It is the fastest saving with the least risk to sales.

2. Lower bids on keywords above target

Find keywords with an ACoS well above your target. Lower their bids step by step instead of pausing them. Many will still convert at a lower cost per click. Our guide on ACoS targets by product explains how to set the right target for each product.

3. Protect your best keywords

Do not cut evenly across the board. Your exact match keywords that convert well are the last place to save. Cutting them can lose rank you spent a long time building. Shift money from weak areas toward these, not away from them.

4. Trim discovery spend

Auto and broad campaigns are useful for finding new terms, but in a tight year they can be scaled back. Lower bids and budgets on discovery campaigns and focus on what is already proven.

5. Review placements

Check how your ads perform at top of search, rest of search and on product pages. If one placement converts poorly, lower its bid adjustment.

6. Pause ads on weak products

Some products simply do not earn their ad spend. Low margins, poor reviews or weak conversion. Pause or reduce ads on these and put the money behind products that can win.

7. Fix conversion, not just bids

The best way to make ad spend go further is to improve the listing. A higher conversion rate lowers ACoS at the same bid. Refresh main images, sharpen bullets and test changes with Manage Your Experiments.

8. Watch TACoS, not just ACoS

As you cut spend, watch total sales and TACoS. If total sales hold steady while ad spend falls, you are cutting waste. If total sales drop sharply, you may have cut too deep in the wrong places.

A simple order of work

1. Negatives for wasted search terms.
2. Lower bids on keywords far above target.
3. Trim discovery campaigns.
4. Adjust placements.
5. Pause ads on weak products.
6. Improve listings to lift conversion.

The bottom line

A tighter budget is a good reason to clean up an account. Cut waste first, protect what works and improve conversion. Many brands end up with leaner, more profitable ads. If you want help finding savings, see our Amazon PPC management service or request a free audit.

FAQs

How can I lower Amazon ad spend without losing sales?

Start by adding negatives for search terms that get clicks and no sales, lower bids on keywords far above target and keep your best converting keywords fully funded.

Should I pause auto campaigns to save money?

Usually not completely. Lower their bids and budgets so they keep finding new terms at a smaller cost.

What is the safest place to cut Amazon ad spend?

Wasted search terms with clicks but no orders. Cutting them saves money with little risk to sales.