How to Diagnose Amazon Ads Performance Deterioration Step by Step

What You'll Need

• Amazon Negative Keyword Tool by Todoza: A tool designed for managing and reducing wasted spend on Amazon Ads by analyzing search terms data.
• Amz Ad Waste Detector - Amazon Ads Analytics Module: A system for performance optimization that detects issues in Amazon Ads search terms and recommends actionable improvements.
• Amazon Ads Dashboard by Todoza: A tool for Amazon sellers and agencies to track ad performance and waste through a unified dashboard.

Visualizing Campaign Health

Monitoring your Amazon Ads performance visually helps spot trends and outliers quickly. Use dashboards to compare account, campaign, and ad group data across time, making it much easier to act on insights and prevent major issues from going unnoticed.

Step 1: Collect Campaign Data and Performance Reports

Start by gathering all available data on your Amazon Ads campaigns, including recent performance reports, change logs, and historical KPIs. Focus on the metrics that matter most, such as ROAS (Return on Ad Spend), ACoS (Advertising Cost of Sale), conversion rates, and impressions. Make sure to export data over multiple time frames to spot sudden or gradual shifts.

Using the Amazon Ads Dashboard by Todoza here will help you visualize trends across accounts and marketplaces, making it easier to find out when and where performance dips began.

Step 2: Check for Sudden Changes and Anomalies

Review your timeline for any abrupt drops or spikes in your key metrics. Compare week-over-week and month-over-month data to see if the decline is isolated or part of a pattern. Sudden drops often have specific triggers, like budget caps, a major listing change, or new competitors entering the auction. If you spot an outlier, investigate corresponding changes to bids, budgets, target keywords, or even product ratings and stock status.

Step 3: Analyze Performance by Campaign, Ad Group, and Keyword

Drill into campaign and ad group breakdowns to locate which areas contribute most to wasted spend or falling returns. Look for trends in ROAS, ACoS, and wasted spend at each level. Identify which keywords or search terms are generating high spend with low sales.

The Amz Ad Waste Detector - Amazon Ads Analytics Module can aggregate and analyze these stats, creating a detailed map of where budget inefficiencies exist within your structure.

Step 4: Identify Ineffective and Wasted Spend

Evaluate negative keyword lists and search term data for patterns. Overlap or poor targeting causes unnecessary spend on irrelevant queries or products. Look for high-impression search terms with extremely low conversion rates, and flag them for exclusion.

The Amazon Negative Keyword Tool by Todoza helps prioritize which terms consistently pull budget away from performing keywords, making negative keyword management straightforward and data-driven.

Step 5: Review Recommendations and Apply Controlled Changes

With the root causes identified, generate focused action items—either by adjusting bids, expanding negative keywords, or reallocating budgets. Test small adjustments and monitor their direct impact before scaling changes across your campaigns for larger impact.

Tips and Mistakes to Avoid in Troubleshooting Amazon Ads

Stay methodical and pace your changes. Never rush to implement every recommendation at once—instead prioritize actions with the highest potential return and revisit metrics after each adjustment. Avoid neglecting seasonality and external factors, which can also cause short-term dips that don’t warrant major intervention. Keep an audit trail of changes and always run before/after comparisons.

Making the Most of Analytics Tools

Specialized analytics tools are essential for diagnosing and tracking campaign performance. They enable deep dives into wasted spend, negative keyword impact, and enable team-based corrections for continuous improvement.