Ad audits find wasted spend in 81% of Amazon accounts

An advertising audit program reports finding wasted spend in 81% of the Amazon accounts it examines, with irrelevance the most common leak: budgets pushing toward revenue targets at the expense of targeting shoppers likely to buy.

One case involved a medical supplies brand generating $1 million a month in revenue at a 4% net margin, meaning just $40,000 in monthly profit. After the audit's recommendations were applied, the following month's revenue actually fell to $890,000, but profit jumped to $94,000, an 11% revenue decline paired with a 138% profit increase.

The mechanics were straightforward. Removing spend from irrelevant targets raised click-through and conversion rates, and the brand returned to revenue growth the following months with far healthier margins.

The auditor behind that case has opened a limited number of the same audits to outside sellers, showing where spend is being wasted and prescribing specific fixes. A first block of twenty slots filled within days, prompting additional openings this week.