Top 10 myths about Amazon advertising in Q4 - Busted for maximum holiday sales

TL;DR

• Rising ACOS during Q4 doesn’t indicate failure; overall sales growth shows ads are working.

• Relying only on Sponsored Products limits reach; mix ad formats like Sponsored Brands, Display, and TV for full-funnel coverage.

• Smart bidding and precise keyword targeting outperform simply increasing ad spend.

• Post-Cyber Monday advertising remains crucial; shoppers continue buying through December.

• Automated campaigns and seasonal optimizations uncover trending keywords and save time.

• Well-optimized Brand Stores and creative ads build trust, boost conversions, and capture both early and last-minute holiday shoppers.

The holiday season is prime time for Amazon sellers, but it’s also a minefield of myths that can hold your campaigns back. From assumptions about ad spend and traffic to beliefs about which tools really drive conversions, sellers often miss opportunities simply by following outdated thinking. 

During Q4, every click, every impression, and every ad dollar counts, and the wrong strategy can mean lost sales amid fierce competition.

In this guide, we break down the most common advertising myths and show sellers how to cut through the noise. You’ll get actionable insights to optimize Amazon advertising PPC management, reach the right shoppers, and turn holiday browsing into real purchases. 

Myth 1: If your ACOS spikes during holiday sales, it means your ads aren’t working 

This is one of the biggest Q4 mistakes Amazon sellers can make. A rising ACOS during peak events like Black Friday or Cyber Monday doesn’t signal failure; it often means your ads are doing exactly what they should. With more shoppers browsing and competitors bidding aggressively, costs naturally rise. 

But remember, ACOS only reflects ad-attributed efficiency, not the full impact of your ads. That’s where TACOS (Total Advertising Cost of Sales) gives the real picture. If your overall sales, both organic and paid, are increasing alongside spend, your ads are driving momentum.

Pro tip: 

• Instead of cutting budgets, set smart automation rules to control bids and monitor performance over 7–14 days. During Q4, sales often happen after the initial click. 

• Shift some spend from branded to category keywords, even if ACOS rises temporarily. Because that’s how you capture new customers when demand peaks. 

• You can also find a step-by-step roadmap for BFCM 2025 on Amazon to maximize holiday sales. 

Myth 2: Sponsored Products alone can drive all your Q4 sales

While Sponsored Products are the backbone of any Amazon advertising strategy, relying on them alone during the holiday rush can limit your reach. In Q4, shoppers don’t just search and buy; they explore, compare, and return before making a decision.  To truly capture these moments, sellers need a mix of ad formats that work together like a team.

Pro tip: 

• Use Sponsored Brands video ads a few weeks before peak events to showcase your upcoming deals and grab attention from early gift shoppers. 

• Then, keep your Sponsored Products running strong to convert high-intent buyers. Add Sponsored Display and Sponsored TV to re-engage browsers who viewed your products but didn’t purchase.

• Think of your Q4 advertising as a relay race; each ad format passes the baton at a different stage of the shopper’s journey, ensuring your brand stays visible from discovery to checkout.

Myth 3: You need to keep increasing bids to win during Q4

Many Amazon sellers assume that outbidding competitors is the only way to win the holiday rush, but in reality, a smart strategy beats high spending. Blindly increasing bids can quickly drain your budget without guaranteeing better results. The key is precision, not pressure.

Pro tip: 

• Focus on high-performing keywords, optimize placement bidding for top-of-search and product page visibility, and make data-driven adjustments instead of across-the-board hikes. 

• Plan and identify which products have strong stock and profit margins, and allocate your spend strategically toward those.

One top-performing brand saw a 30% increase in ROI simply by refining bid timing and focusing on ads that convert when shoppers are most active. With the right bid strategy, every click can bring you closer to your best holiday season yet.

Myth 4: After Cyber Monday, holiday ads don’t matter

Many Amazon sellers hit pause after Cyber Monday, but that’s a costly mistake. The truth is, 31% of shoppers keep buying between Cyber Monday and New Year’s, making December one of the most valuable months for sales. 

With Thanksgiving arriving late this year, shoppers are extending their buying spree well into the final weeks of the year, searching for last-minute gifts, replacements, and self-reward purchases. Instead of going dark, keep your ads active and agile. 

Pro tip: 

• Use Sponsored Products and Sponsored Display to maintain visibility and capture ongoing demand. Check your advertising console recommendations for personalized insights to refine bids, optimize placements, and target high-intent audiences.

• The post-Cyber Monday period isn’t the end of Q4; it’s the final stretch where consistent visibility can secure your biggest wins of the holiday season.

Myth 5: Automated campaigns don’t perform well during the holiday rush

Many Amazon sellers hesitate to rely on automation during peak Q4, assuming manual control is the only way to win. But here’s the truth: automated targeting can be your secret weapon when shopper behavior becomes unpredictable and search patterns shift daily. 

Pro tip: 

• Automated campaigns in Sponsored Products help uncover long-tail, trending, and seasonal keywords that manual setups often miss, especially when thousands of new shoppers flood Amazon searching for unique gifts and deals.

• To get the most out of automation, balance it with strategy. Use negative targeting to filter out irrelevant searches and guide traffic toward your high-converting campaigns. This keeps your ad spend efficient while letting Amazon’s algorithm work in your favor.

When used smartly, automation doesn’t replace your strategy; it enhances it, helping you stay agile, discover new opportunities, and create a brand on Amazon. 

Myth 6: Brand Stores aren’t worth your time during the Q4 rush

Think your Brand Store doesn’t matter during the busy holiday season? Think again. Your Brand Store is your very own mini storefront on Amazon, and during Q4, it can become one of your biggest sales drivers. 

Shoppers browsing for gifts want a curated, trustworthy, and easy-to-navigate experience, and a well-optimized Brand Store gives them exactly that.

Pro tip: 

• Create seasonal-themed pages that highlight your bestsellers, limited-edition products, and ready-to-gift bundles. 

• Use Sponsored Brands ads to lead shoppers directly to these pages so they find what they’re looking for faster and buy more. When done right, your Brand Store doesn’t just showcase products; it builds your brand story, increases conversions, and encourages multi-item purchases. 

• In a season packed with choices, your Brand Store can be the difference between a one-time sale and a loyal customer.

Brand Stores refreshed within the last 90 days saw 9% more repeat visitors and a 10% increase in sales per visitor, proving that regular updates keep shoppers engaged and drive stronger results.

Myth 7: Amazon Ads only work for shoppers ready to buy

That’s far from the truth. During the Q4 holiday rush, smart Amazon sellers know that visibility isn’t just about conversions; it’s about connection. Amazon Ads aren’t limited to lower-funnel sales tactics; they’re powerful tools for building awareness, trust, and long-term loyalty. 

Pro tip: 

• From Sponsored Brands that showcase your story to Streaming TV ads that introduce your products to new audiences before they even start shopping, every format plays a role in shaping the buyer’s journey. This season, go beyond last-click thinking. 

• Use Sponsored TV or Sponsored Display to stay in front of potential customers early, then guide them smoothly toward purchase. 

• When you nurture awareness before the buying moment, you don’t just win a sale, you win a customer who remembers your brand long after the holidays.

Myth 8: You need a big budget to win during peak shopping events

Not true at all, even small budgets can deliver big results when used smartly. During Q4, success on Amazon isn’t just about how much you spend, but how strategically you spend it. By focusing on targeted campaigns and Amazon ranking optimization. 

Pro tip: 

• Focus on high-intent, long-tail keywords that bring in ready-to-buy shoppers, and use portfolio budgets to manage your spend efficiently across campaigns.

• Leverage Amazon’s cost controls in Sponsored Brands and Sponsored Display to automatically optimize bids and prevent overspending. 

• Every click should count, so cut irrelevant traffic with negative keywords and double down on the placements that truly convert. 

When you target smart and optimize continuously, even a modest budget can keep your brand visible, competitive, and profitable throughout the busiest shopping season of the year.

Myth 9: If my conversion rate drops, my targeting must be wrong

Not necessarily. During Q4, fluctuations in conversion rates are common, and they’re not always about poor targeting. With more shoppers browsing, comparing, and waiting for deals, even great campaigns can see dips.

Pro tip: 

• Check that your product detail pages have titles, images, and Amazon A+ content strong enough to compete.

• Review your pricing strategy your offers still appealing next to competitors? And don’t forget your creative testing of fresh visuals or ad copy can instantly boost engagement.

• Think of conversion drops as signals, not setbacks. A quick audit and a few smart tweaks can turn those temporary dips into long-term gains, keeping your Amazon store thriving all season long.

Myth 10: Black Friday and Cyber Monday traffic automatically means big conversions

High traffic doesn’t always equal high sales,  especially during Q4. Shoppers flood Amazon during these events, but many are in discovery mode, browsing, comparing, and holding off for the perfect deal. Even with impressions spiking, conversion rates can stay flat or dip.

Pro tip: 

• The secret to winning isn’t just showing up; it’s standing out. Amazon sellers can capture attention with eye-catching Sponsored Brands video ads that clearly showcase holiday deals and product benefits.

• Pair this with smart remarketing to re-engage shoppers who’ve interacted with your brand.

By combining memorable creatives with timely follow-ups, you can turn busy browsers into buyers, ensuring your campaigns don’t just attract clicks but deliver meaningful conversions throughout the peak holiday season.

Final insights

The Q4 holiday season is full of opportunities and pitfalls for Amazon sellers. According to eStore Factory, separating fact from myth is key to making smarter decisions, maximizing every ad dollar, and connecting with shoppers at the right moment. 

Success isn’t just about spending more or chasing clicks; it’s about strategy, timing, and understanding the audience. From using diverse ad formats to optimizing Brand Stores, leveraging automation, and incorporating insights from Amazon brand consultants, the right approach turns browsers into buyers.

Apply these insights thoughtfully, and Q4 campaigns can thrive like never before.