Why Your Amazon Ads Don’t Work (Yet)
Keren Dinkin, Copywriter
5 min read -
Updated:If you’ve ever run Amazon ads only to see little to no return, you’re not alone. Many sellers put money into campaigns and walk away convinced that, “Amazon ads don’t work.”
However, the truth is that ads usually do work. They show your product to shoppers, they bring people to your listings, and they drive visibility. What often doesn’t work is everything that comes after the ad appears. Somewhere between the search results and the checkout button, buyers drop off.
The key to fixing that isn’t guesswork; it’s understanding where your funnel is breaking down. And, that’s exactly what Amazon’s Search Query Performance (SQP) data helps you do.
What is Search Query Performance?
Search Query Performance is part of Amazon’s Brand Analytics, and available only to Brand Registered sellers. It’s essentially a magnifying glass over your customer journey. Instead of just showing sales totals, it breaks the path into four clear stages:
- Impressions: how often your product shows up in search results for a query
- Clicks: how many people choose your listing from that search
- Add-to-Carts: how many decide they’re interested enough to save it for later
- Purchases: how many actually complete the order
What makes SQP unique is that it also shows your share of the market. For example, you can see what percentage of clicks or purchases for a keyword your product is capturing compared to competitors.
This creates a clear map of the funnel. Instead of guessing why ads aren’t converting, you can see exactly where shoppers drop off.
Making SQP Data Work for You with SQP Insights
Amazon’s Search Query Performance reports are incredibly powerful. However, raw SQP data isn’t always easy to act on. The endless rows of keywords, percentages, and ratios don’t immediately tell you what action to take.
That’s why many sellers never go beyond surface-level use.
This is where SQP Insights adds real value.
Instead of forcing you to decode spreadsheets, it transforms Amazon’s funnel data into clear, visual stories. You can see, at a glance, whether the problem lies at the impression stage, the click stage, the add-to-cart stage, or the purchase stage.
More importantly, it doesn’t just highlight numbers; it gives those numbers context.
For example:
- You can spot exactly where drop-offs are most severe. Maybe impressions are high, but clicks are weak, pointing to an image or title issue. Or clicks are strong, but adds-to-cart collapse, signaling a product page gap.
- You can benchmark against category averages. A 0.5% CTR may look fine in isolation, but if competitors in your niche are averaging 1.2%, you’re leaving market share on the table.
- You can track lost and gained keywords. If a once-valuable keyword falls off, you can investigate whether it’s because of seasonality, pricing, or competitor activity. Gained keywords, on the other hand, show where opportunity is emerging.
- You can connect trends to changes you’ve made. Maybe you updated your bullet points, or your review rating dipped. By overlaying those events with SQP data, you see their direct impact on shopper behavior.
In a marketplace where small changes can swing performance dramatically, that clarity is often the difference between scaling confidently and wasting ad spend in the dark. And if you’ve ever felt like “Amazon ads don’t work,” tools like SQP Insights show you where the funnel is really breaking down. If you haven’t explored it yet, it’s worth giving it a try.
Why Funnel Analysis Matters
Amazon is where the majority of shoppers now begin their product search. As per the numbers, 56% of consumers start their shopping journey on Amazon, compared to just 42% on search engines. That means if you’re not visible here, you’re already behind.
However, visibility doesn’t equal sales. The real story plays out as shoppers move (or don’t move) from one stage of the funnel to the next. You might be racking up impressions but struggling to win clicks. Or perhaps clicks are strong, yet few shoppers add your product to their cart. Sometimes, everything looks good until the very last step, and then the purchase doesn’t happen. Each stage is a checkpoint and a potential leak.
This is why funnel analysis matters so much. When you can see where shoppers are dropping off, the mystery of “why your Amazon ads don’t work” disappears.
Let’s break down the problems you might encounter at each stage and how to interpret drop-offs through SQP.
Stage 1: Impressions
Impressions are the very top of the funnel. They measure how often your product appears in search results for a query. If impressions are low, your ads simply aren’t getting the chance to work, because shoppers never see them.
Why impressions might be low:
- Campaigns target too few or too broad keywords
- Low bids or tight budgets cause Amazon to prioritize competitors
- Listings aren’t indexed for relevant search terms
- Relevance scores drop if your ad hasn’t been performing historically
Why it matters:
Without impressions, the rest of the funnel can’t exist. And, if they are low, it usually points to a targeting a visibility problem.
Think of it like showing up to a trade fair with your booth hidden behind a wall. Nobody sees you, so of course nobody engages.
Expanding keyword coverage, adjusting bids, and ensuring your listing is indexed are often the first fixes here.
Stage 2: Clicks
Once your ad shows up, you need shoppers to click. This stage is all about first impressions. Industry research suggests the average click-through rate (CTR) on Amazon ads ranges between 0.3% and 0.5%, depending on category and placement. If yours is significantly lower, it’s a sign that shoppers see you but aren’t convinced to click.
What can cause low clicks?
- A main image that doesn’t stand out in crowded search results
- Titles stuffed with keywords but not written for humans
- Price that feels out of line with competitors
- Weak review count or star rating
Interpreting the drop-off
If impressions are strong but clicks are weak, the problem is appeal. Improving images, tightening titles, and ensuring your offer looks competitive are the strategies you should be trying here.
Stage 3: Add-to-Cart
The Baymard Institute estimates that nearly 70% of online shopping carts are abandoned. While Amazon performs better thanks to Prime and one-click checkout, the principle stands: getting people to commit is hard.
Why shoppers may not add to cart:
- Listing copy focuses on features, not customer benefits
- Secondary images lack detail, context, or professionalism
- The price feels too high once they evaluate the offer
- Too few reviews to build trust
What the drop-off means:
If clicks are high but adds-to-cart are low, your ad has done its job. The issue lies in the product page not persuading shoppers to commit. Stronger copy, richer visuals, and clearer value are what turn curiosity into intent.
Stage 4: Purchases
The final and most crucial stage is the purchase. Even after items make it to the cart, many don’t make it past checkout.
Why shoppers abandon at purchase:
- Non-Prime shipping or unexpected fees appear
- Competitors undercut you with discounts or bundles
- Shoppers are browsing but delaying the final decision
- Lack of trust in returns or seller policies
Interpreting the drop-off:
If carts are full but purchases remain weak, the issue usually lies in fulfillment or competitiveness. Prime eligibility, transparent costs, and confidence-building policies are often the deciding factors that can push your buyers over the finish line.
