Why Your Amazon Ads Don't Lead to Sales Without Using AMC
Did you know that most brands spend up to 80% of their Amazon advertising budget on shoppers who never make a purchase?
The challenge is not spending too little, but spending without knowing who actually converts. That’s exactly where Amazon Marketing Cloud (AMC) comes in. AMC helps you understand which ad exposures and shopper behaviors lead to sales, so you can pinpoint where budget is being wasted and reallocate spend toward what truly drives revenue.
If you’re new to Amazon Marketing Cloud, start with our AMC introduction & best practices to get the fundamentals and quick wins. And if you want a forward-looking view of how AMC is shaping Amazon Advertising in 2026, that deep dive is worth a read too.
In this post, we’ll assume you know the basics and go deeper on how to target the right shoppers using AMC cohort analysis.
AMC Cohort Analysis: How to Target High-Intent
Amazon Shoppers
One of the key features of AMC is its ability to segment your audience into distinct cohorts. These segments are based on shopper behavior, such as whether they clicked on an ad but didn’t convert or if they went on to make a purchase. With an understanding of these cohorts, you can optimize your ad spend and target high-value shoppers.
Essentially, AMC cohort analysis helps you separate high-intent shoppers from those who browse, click, and never purchase – so your targeting and budget align with what actually drives sales.
Across most brands, the majority of ad spend goes to shoppers who never convert. AMC shows you who actually drives sales, so you can focus investment on the highest value customers who generate a disproportionate share of ad revenue.
Reduce Wasted Spend and Find High-Value Shoppers
With AMC, we can reveal the share of your ad sales that comes from your top 20% of shoppers – those most likely to convert – which can be as high as 50%.
Focusing on these high-value customers is crucial for improving your ROI. Rather than casting a wide net, AMC allows you to target these top performers with precision.
AMC Lookalike Audiences: Activate Insights in Amazon DSP and Sponsored Ads
Another perk AMC provides is letting you build lookalike audiences based on the behaviors of your best customers. These lookalikes share similar attributes and shopping behaviors, making them ideal targets for your ads.
By using Amazon DSP (Demand-Side Platform), you can reach these high-value audiences directly, while Sponsored Ads enables you to set bid boosts for these specific cohorts, ensuring you capture their attention.
Turn AMC Data into Optimization Opportunities
For us, AMC’s true value comes from its ability to turn quite complex data into concrete and actionable insights. Catapult, our analytics solution, simplifies AMC’s insights by automatically generating reports, providing clear explanations, and offering recommendations on how to optimize your ad spend. This makes it easier to make data-driven decisions without the need for manual data manipulation.
With AMC, you can:
- Identify non-converting cohorts and low-value impressions so you can reduce wasted spend.
- Prioritize high-intent audiences with smarter budgeting, targeting, and bid decisions.
- Measure the full path to purchase across touchpoints to understand what’s actually driving conversion.
Improve ROI With Smarter Targeting and Measurement
AMC helps you make smarter targeting and measurement decisions – so more of your budget goes to the shoppers and tactics that actually drive sales.
At Front Row, we help brands unlock AMC’s full potential. Reach out today to see how we can turn AMC data into smarter decisions and stronger performance for your brand.