How to Fix Your Zero ROI Amazon Sponsored Display Ads

How to Fix Your Zero ROI Amazon Sponsored Display Ads

26 June, 2023

Amazon Paid Advertising

Last updated on 27 March, 2024

Written by Content Team

Improve Amazon Display Ads: How to Fix Your Zero-ROI Sponsored Display Ads

Learn how to improve Amazon display ads and optimize ROI with display ad optimization techniques. Fix zero-ROI sponsored display ads effectively with these strategies.

Amazon Sponsored Display Ads, zero ROI

Content team

26 June, 2023

4 min read

How to Fix Your Zero ROI Amazon Sponsored Display Ads


Are you one of those who fails to create a return on investment (ROI) from Amazon-sponsored display ads? Don't worry; you're not alone in facing this issue. Many Amazon sellers are dealing with the same problem of zero-ROI display ads. However, there is some good news for all sellers: with the correct methods, you can turn things around and improve Amazon display ads.

In this blog, we will look at how to avoid zero-ROI sponsored display ad optimization in your advertising strategy. You may improve ad performance, increase ROI, and maximize the success of your Amazon-sponsored display ads by employing these strategies. Let's get started and discover how to make the most of your Amazon advertising efforts.

Revive your Amazon sponsored display ads with expert tips to boost ROI. Learn how to target keywords strategically and choose the right Amazon Advertising Services for maximum impact and profitability.

Reasons Your Display Ad Optimization Has Low ROI

1. Inadequate Targeting: Inadequate targeting causes your advertisements to be seen by the incorrect people, resulting in low conversion rates and wasted expenses. It is critical to correctly target the right demographic in order for your adverts to effectively convert into Amazon purchases. This can be accomplished by taking demographics, interests, and browsing behaviors into consideration. Understanding your target audience and adapting your adverts to their tastes allows you to attract their attention and convince them to take the desired action, significantly improving, Increasing ad ROI.

2. Optimizing Bids for Maximum ROI: To balance visibility and cost-effectiveness in your advertising initiatives, keyword bid optimization is essential. Setting bids too high results in excessive costs, while setting bids too low restricts the reach of your advertisements. It's critical to experiment with various bids in order to identify the one that maximizes outcomes while requiring the least amount of advertising. When choosing your bids, consider factors such as keyword difficulty and search volume. Less competitive keywords may present more cost-effective choices, whereas highly competitive keywords may necessitate greater spending to get favorable ad placement.

3. Insufficient Ad Design: The importance of ad design in ensuring sales generation through your adverts cannot be overstated. Making the wrong design choice could cause your advertising to blend in with the competition, fail to engage your target audience, or fail to properly communicate your intended message. Spending money on expert graphic design increases brand recognition and sales potential. Consider the following suggestions when you create your advertisement:

You can produce commercials that stand out, effectively convey your message, and boost the likelihood of driving sales and brand recognition by sticking to these design guidelines.

a. Use Relevant, High-Quality Photos: Use photos that are specifically related to your product or service to attract attention and visually reinforce your message.

b. Clear and Impactful Language: Make sure your ad language adequately expresses the main advantages or dalign="justify" differentiating characteristics of your offering.

c. Visual Appeal with Color and Contrast: Use colors and contrast to give your advertisement a pleasing visual appeal that will make it stand out and pique the interest of viewers.

4. Engaging Ad Copy: It is crucial to write attention-grabbing ad copy. Create headlines and descriptions that make readers want to learn more about your goods in order to draw in customers. The poor copy won't encourage clicks. How can you make your advertising copy unstoppable?

a. Utilize persuasive language's ability to arouse interest and desire.

b. Ensure your descriptions are brief but informative, with just enough mystery remaining.

c. Add a strong call to action that will inspire viewers to take the next thrilling step.

Effective Amazon Advertising Tips for Increasing Ad ROI

Before knowing the tips, you need to know how to use Amazon's Sponsored Brands. When combined with suitable category keywords or branded searches, sponsored brands are a great option for top-of-the-funnel advertising. Use this format to showcase ASINs, display your logo, and generate bespoke headlines to increase brand visibility.

Additionally, sponsored brands allow consumers to click through to both your storefront and product listing page, enticing them to continue connecting with you. Following are the effective tips to Increase Ad ROI:

1. Boost brand awareness and increase ROI with Amazon's Sponsored Brands.

With sponsored brands, formerly known as headline search advertisements, you can successfully raise brand awareness. A Cowen & Co. survey found that about 18% of consumers interact with sponsored brands. These advertisements, which appear above the results of an Amazon search, provide an excellent chance to advertise various above the results of an Amazon search, provide an excellent chance to advertise a variety of goods and build brand recognition.

2. Shift your focus toward the profitability of each specific product.

Evaluating product-level profitability and getting into detailed data are essential for optimizing your advertising campaigns on Amazon. Prior to implementing paid advertising, it is essential to understand the gross profit on an individual product basis because each SKU has a different profit margin. The items that stand to benefit the most from a paid advertising boost can be identified by looking at this data while minimizing the risks involved. Let's use a candle as an example from an Amazon product page to show how maximizing product-level profitability might save costly ad spend.

3. Keep your Advertising Cost of Sale (ACoS) goal flexible.

Despite how desirable it may seem, it may not always be the best strategy to aim for a lower ACoS. The ACoS metric is the ad expenditure to revenue ratio. While manual campaigns offer ACoS at the product level, automatic campaigns offer ACoS at the group level. Your target, whether it be a product launch, liquidation, or sustained profitability, will determine the right ACoS goal.

Focus on lowering advertising expenses for high-selling products since they are already well-known and available. In contrast, a higher ACoS during product openings may be beneficial in the short run. Utilizing the Flywheel effect we previously explained, aids in traction and review generation. You may optimize performance and maximize the advantages of ACoS by adjusting your goals to specific campaign objectives.

4. Enhance ROI with Effective Bid Optimization Strategies for Display Advertising.

Optimizing your bids is one important step in raising the ROI of your Display ad targeting strategies. When it comes to keyword bidding, avoid taking a set-it-and-forget-it strategy. For every keyword, ad group default bids might not be the best option. Set your default bid depending on your affordability per click rather than at the keyword level. Keep an eye on your conversion rates and change your bids as necessary. When conversion rates drop, failing to modify your bids can cost you money. To maximize your returns, keep an eye out and tweak your bidding tactics.


Display ad optimizations and removing zero-ROI sponsored display ads are critical for maximizing your advertising efforts and getting a higher return on investment (ROI). You may drastically improve the performance of your display ads by addressing typical issues such as poor targeting, inefficient ad design, and weak calls to action.

From fine-tuning your audience targeting and generating aesthetically attractive designs to crafting interesting ad copy and optimizing bids, optimizing your ads demands careful attention to detail. Furthermore, monitoring and analyzing campaign data, modifying your plans depending on performance metrics, and utilizing tools such as Amazon's Sponsored Brands can all help improve, Increasing ad ROI.

Are you ready to improve the performance of your Amazon display ads? Unlock the full potential of your advertising campaigns with proven strategies for resolving zero-ROI sponsored display ads and increasing your return on investment (ROI). Visit GoNukkad to get experienced advice and boost your Amazon advertising success.

Q. How can I better target my Amazon display ads?

A. Improve your targeting by refining demographics and interests and analyzing data to gain a deeper understanding of your audience.

Q. What are some efficient ad design optimization tactics for display ads?

A. For visual impact, use high-quality pictures, intriguing ad language, and appealing colors and contrast.

Q. How can I write more compelling ad copy to increase conversion rates?

A. To attract viewers and encourage action, use compelling language, clear details, and forceful calls to action.

Q. How can I use Amazon Sponsored Brands to boost brand recognition and ROI?

A. Make use of Sponsored Brands to highlight various goods, employ relevant keywords, and route visitors to your shop and product pages.

Q. What role does bid optimization play in display advertising?

A. Optimize bids to strike a balance between visibility and cost-effectiveness, and check conversion rates on a frequent basis to alter offers as needed.

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