Running contextual ads but not seeing results? Learn how to switch from views to value using Amazon’s “Optimized for Conversions” setting in Sponsored Display.

What Are Contextual Ads on Amazon?

Contextual targeting in Amazon Sponsored Display allows you to place ads on product detail pages and categories relevant to your offer. It’s powerful because it targets shoppers already browsing products like yours.

But here’s the kicker: just running contextual ads isn’t enough anymore. If you’re not using the “Optimized for Conversions” option, you’re likely burning budget and missing high-intent buyers.

“Advertisers who shift from ‘page visits’ to ‘conversion optimization’ typically see a 15–20% improvement in ROAS.”
Tinuiti Amazon Ads Guide 2024

Mistake 1: Assuming Views = Results

If you’re only optimizing for page views, you’re leaving revenue on the table.

That’s like showing up to a race but forgetting to train for the finish line.

Instead, enable ‘Optimized for Conversions’this tells Amazon to prioritize actual sales, not just visits.

“Amazon’s algorithm improves performance over time when you train it with the right conversion signals.”
Amazon Ads Learning Console

Optimization Comparison Table

Mistake 2: Letting Amazon Guess Placements

Without conversion data, Amazon’s engine guesses where your ad should show—and often gets it wrong.

That leads to low-intent impressions, high ACoS, and wasted budget.

Use conversion optimization to give Amazon specific feedback about what converts. It stops guessing and starts learning.

“Machine learning systems like Amazon’s need quality feedback signals to improve targeting efficiency.”
AdExchanger, 2024 Programmatic Trends

Mistake 3: Confusing Clicks with ROI

Lots of clicks but no purchases?

That’s what happens when you’re optimizing for activity, not outcomes.

Conversion-optimized targeting helps Amazon prioritize high-buyer-intent placements, which means better margins, lower ACoS, and increased profitability.

“High CTR means nothing if it’s not followed by conversion.”
HubSpot State of Marketing Report, 2024

Mistake 4: Ignoring the Data Feedback Loop

Amazon’s algorithm gets smarter with data.

But if you’re not optimizing for conversions, you’re not feeding it the right signals and that stalls growth.

When you switch on ‘Optimized for Conversions’, you unlock Amazon’s real-time learning engine. That means compounding performance improvements across your campaigns.

“Feedback loops in programmatic advertising enable platforms to continually refine based on purchase behavior.”
eMarketer, 2024 Amazon Ads Insights