Updated AEG Team
Ads buy attention. They do not decide the brand.
An agency that starts with the ad console is answering the wrong question. The question is what the brand is for in the United States, what it costs to deliver that promise, and which searches deserve the money. Advertising is how you buy attention against that decision. It is not the decision. How to read ACoS against total sales is the ACoS essay. Questions about path and repeat purchase, which a ratio cannot answer, are Amazon Marketing Cloud.
AEG runs marketplace advertising for partners as part of a brand engagement, not as a detached media account. This essay is the operating stance. It does not publish a target ACoS. A target that ignores your margin is a slogan.
What has to be true before the first campaign
Spend amplifies the page you already have. If the page is wrong, spend makes the mistake more expensive.
Before a campaign is anything other than a small test, confirm:
- The brand owns the listing, or has a dated plan to. Brand Registry and the trademark behind it are in the Registry essay.
- The main image, title, and price match the product a customer will receive. Image rules are in the image essay.
- The unit economics cover referral fees, fulfillment, returns, and a click. Amazon lists Professional selling at $39.99 a month and Individual at $0.99 an item, plus a category referral fee, on sell.amazon.com/pricing. The 2026 fee letter says FBA fees rise by an average of about $0.08 a unit and that no new FBA fee types were added. Use the Revenue Calculator on your ASIN. Do not use a category average from a newsletter as your margin.
- Inventory will still be received when the campaign is scheduled to run. A stockout during a paid push is a donation.
If any of those is missing, the honest recommendation is to fix it and keep spend small. That is a brand decision. It is not a failure of nerve.
Where the money should go first
Start with queries that already contain the brand name, and with the exact product terms a buyer uses when they have decided to purchase this kind of item. Those searches tell you whether the page can convert. They also defend the name against another seller who is willing to bid on it.
Add broader terms only after the exact terms convert at a contribution you can accept. Broad discovery is how you learn the language customers use. It is also how a new brand pays for clicks from people who wanted a different product. Read the search-term report and negate what does not belong. This is ordinary account hygiene. It is not a secret.
Sponsored Brands and a Brand Store are available once the brand is in Registry. Use them when you have more than one product to show and a sentence that is actually yours. A Store that repeats the bullets from the detail page does not need a budget.
Amazon DSP and video are later tools. They make sense when you already know the contribution of the search campaigns and you have a reason to reach people who are not typing the query. They are a poor first dollar for a brand that does not yet have a stable featured offer. Amazon’s public description of the featured offer is in the protection essay.
Price and ads are the same conversation
A coupon that exists to make the ad look efficient is the brand training its customer. If the only way the campaign hits a target is a discount, the target is wrong or the price is wrong. The pricing essay is the longer version. The short version: set a floor that survives fees, and do not let a weekly ACoS review talk you through it.
Promotions have a place. A launch, a genuine end of a season, a bundle that raises the order value. They are planned. They are not the default state of the buy box. Amazon’s featured-offer article notes that a price which is too low can make an offer ineligible, just as a price which is too high can. The floor and the ceiling both matter. Source: Amazon’s Featured Offer explanation.
What to report
Report contribution, not a single ratio.
- Spend, sales the ad console attributes, and the contribution after fees and the cost of goods. Say which attribution window you are using. Do not change it mid-quarter to make a chart look better.
- The share of attributed sales that came from branded queries versus generic queries. A rise in branded share is the brand getting stronger. A rise that is only generic, at a worse contribution, is rented demand.
- In-stock rate on the advertised ASINs. An efficient week that ends in a stockout was not efficient.
- The consumer price versus the floor. If ads only work below the floor, stop and reprice or rewrite the page.
We do not publish a “good” ACoS. Anyone who does, without your cost, is selling a benchmark.
1P and 3P spend differently
On Vendor Central, the retail price and the purchase order are Amazon’s. A vendor-funded ad campaign is buying demand for a price you may not control. On a seller account, you set the price and you pay the fees. A target copied from the vendor era will overspend if the contribution has changed. The transition itself is the 1P-to-3P essay.
What we will not pretend
We will not claim a ranking factor, a bid strategy, or a daypart that “the algorithm” universally rewards. Amazon does not publish that formula, and it changes. We will not quote another brand’s ROAS as yours. The work is to know your contribution, to buy the searches that match the position, and to stop when the page or the stock cannot support the click.
Book a strategy call
If the ad account is busy and the brand is not getting clearer, send a brief or Book a strategy call.