Amazon’s Hidden Ad Setting Could Be Wasting Your Budget – Here’s How to Fix It

Amazon recently rolled out a quiet update in Sponsored Products campaigns — and it’s catching sellers off guard.

🔍 What’s New?
A new option labeled “Settings for ads served off Amazon” now appears in campaign settings. This feature controls how Amazon uses your ads across off-Amazon placements, including:

Third-party websites

Mobile apps

Partner blogs and media sites

By default, the setting is switched to Maximize Reach.

💸 Why It Matters
This default setting can lead to a significant portion of your budget being spent on placements that don’t convert. Many sellers are now asking:

➡️ Why am I getting more impressions but fewer conversions?
➡️ Why is my ACoS suddenly increasing?

The answer might be off-Amazon ad placements that aren’t driving sales.

⚖️ Two Setting Options:
Maximize Reach (Default)

Higher visibility

Higher spend

Less control

Questionable return on off-Amazon clicks

Minimize Spend

Focuses budget on Amazon placements

Better ROAS

Lower waste

Ideal for tight budgets or high-converting campaigns

📊 Real-World Example
A mid-sized beauty brand saw a 27% increase in ad spend with no proportional rise in sales. After switching to Minimize Spend, their ACoS dropped from 43% to 28% within two weeks. 🔥

✅ Action Steps
Go to your Sponsored Products campaign

Click Campaign Settings

Locate Settings for ads served off Amazon

Switch to Minimize Spend if off-site traffic isn’t converting

🚀 Pro Tip
Review Placement Reports to measure off-Amazon performance. If CPC is high and conversions are low, you’re likely losing money.

Don’t let Amazon decide where your ad dollars go.
Audit your campaigns, take back control, and optimize for what actually works.

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