A clear campaign structure is the foundation of profitable Amazon advertising. Here is the approach we use for most of the accounts we manage.
Most Amazon accounts we audit have the same problem: too many campaigns doing the same job. Keywords overlap, budgets compete with each other and nobody can say with confidence which campaign is driving profit.
We separate campaigns by purpose. Research campaigns use automatic and broad targeting to discover new search terms. Performance campaigns use exact match on proven keywords, with bids set against a break-even ACoS for each product. Brand defence campaigns protect your own branded searches at a low cost.
Each week, converting search terms move from research into performance campaigns, and non-converting terms are added as negatives. Over time, this keeps spend focused on what works and steadily lowers wasted budget.
Finally, judge success by TACoS as well as ACoS. Total advertising cost of sale shows whether advertising is helping organic sales grow, which is what builds a profitable Amazon business in the long run.