Amazon Ad Automation: Friend or Wallet Thief?

Let me tell you a story that might sound familiar…

Kevin is one of my coaching students. A solid guy—husband, father of two, trying to build his Amazon business at night after putting the kids to bed. He had just launched his first product: a clever kitchen gadget in a low-competition niche. Exciting stuff.

He did his research, got his listing up, and then came to the part everyone dreads: running Amazon ads.

Kevin, being cautious with a limited budget, thought, “Amazon knows what it’s doing. I’ll just turn on this new ad automation and let it do its thing. They wouldn’t build it if it didn’t work, right?”

Wrong.

Fast forward two weeks: Kevin had spent $500.

The results?

• 2 sales.

• A click-through rate that looked like a sad decimal.

• Ads showing up for terms like “kitchen storage bins” and “metal chopsticks.”

His product? A garlic press.

It was like watching a car veer off a cliff in slow motion—and Kevin was sitting in the passenger seat.

🤖 What Exactly Is Amazon Ad Automation?

Amazon’s been rolling out more “helpful” automation features under the Sponsored Products and Sponsored Display umbrellas. Here’s what they’re pitching:

• Auto-targeted Sponsored Products (let Amazon pick keywords & ASINs)

• Suggested bids and budgets (based on competitors & auction data)

• Dynamic Bidding (up & down) (Amazon adjusts bids in real-time)

• Sponsored Display auto audiences (retargeting & competitor cross-sells)

• Suggested campaign creation (Amazon sets up campaigns for you)

Sounds dreamy, right? Especially if you’re juggling kids, a job, and trying to learn the ins and outs of FBA while half-asleep.

But here's the thing: automation isn’t the shortcut it pretends to be.

🎯 Automation Is a Tool, Not a Strategy

Look—I’m not here to bash automation outright. I love tools that save time.

But trusting automation to grow your business without supervision is like giving a toddler the car keys because they played Mario Kart once.

Amazon’s automation is designed to do one thing really well: spend your money.

Sure, it’ll get you impressions and maybe some clicks. But it has no clue about:

• Your margins

• Your break-even ACOS

• Your actual customer intent

• Whether a keyword is relevant or just a shot in the dark

I’ve seen automated campaigns burn through $1,000 with zero sales… all while the Amazon dashboard keeps patting sellers on the back with messages like “Great job! Increase your budget!”

😑 Yeah… no thanks.

💡 Real Talk: When Automation Can Help

Okay, now that I’ve ranted like an uncle at Thanksgiving… here’s where automation can be actually useful:

• During product research – Let an auto campaign gather keyword data for 7–10 days. Great for mining gold you didn’t expect.

• For retargeting – Sponsored Display auto audiences can bring back warm traffic. But only if your listing is dialed in.

• To scale a proven winner – Once you’ve got a manual campaign crushing it, you can try layering in auto campaigns to catch overflow.

So yes, it has a place. But it’s not the driver. You are.

🧰 Andy’s Anti-Burnout Ad Strategy

If you want to avoid Kevin’s garlic-press disaster, here’s the step-by-step I recommend:

1. Start with Auto — on a Leash

   • Set a tight daily budget ($5–$10).

   • Run for 7–10 days.

   • Don’t expect sales. Expect data.

2. Mine the Search Terms

   • Go to Reports > Search Term Report.

   • Look for keywords with clicks AND conversions.

   • Highlight the “weird” stuff too—Amazon loves irrelevant matches.

3. Move Winners to Manual

   • Create a manual campaign with exact match for converting terms.

   • Set custom bids.

   • Now you’re in control.

4. Block Losers

   • Use negative keywords like your business depends on it.

   • Spoiler: It does.

5. Monitor Your ACOS Like a Hawk

   • Target breakeven or better.

   • Kill anything that doesn’t show promise in 30–40 clicks.

Remember: Amazon’s automation is like cruise control. It can be helpful, but it doesn’t mean you can take a nap in the backseat.

💬 The Big Takeaway

Automation can support your ad efforts. It should never replace your strategy.

Because the algorithm doesn’t know that your garlic press is premium or that your target customer is a health-conscious mom in her 30s. It just knows who clicked.

And that ain’t good enough.

💡 Proverb Worth Repeating:

“Don’t let Amazon drive blindfolded with your money.”

🗣️ I Want to Hear From You

Have you ever let Amazon run wild with your ad budget?

Drop a comment below if you’ve been there 👇
Or better yet—forward this to a seller friend before they make the same mistake 💌

Keep clickin’ smart,
Andy Splichal
Founder & Managing Partner of True Online Presence & Author of the Make Each Click Count Book Series