Ad Sales Tripled, Organic Dropped: Decoding Amazon PPC Cannibalization

Have you ever scaled your Amazon PPC campaigns only to watch your organic sales completely drop off? In this episode, Michael and Amazon advertising expert Brent Zahradnik tackle a fantastic listener question where a brand's ad sales tripled, but their organic sales actually decreased year-over-year.

They dive deep into the real reasons behind this frustrating scenario, exploring whether aggressive ad spend is truly cannibalizing organic placements or if there are other hidden factors at play, such as shrinking overall search volume or overspending on highly dominant branded keywords.

It is a common fear for Amazon sellers and PPC managers alike, but the reality of how the algorithm balances paid and organic traffic is rarely straightforward. To help you navigate this exact problem, the guys break down the actionable strategies and metrics you need to measure true ad incrementality.

We’ll see you in The PPC Den!

🦡 Highlights ​​

• 00:00 - Intro

• 01:50 - Listener Question: Ad Sales Tripled, Organic Dropped

• 04:05 - What is a "Healthy" Organic vs. Paid Sales Ratio?

• 06:00 - Defining PPC Cannibalization & Incrementality

• 08:10 - Scenario A: Overspending on Branded Keywords

• 10:20 - Scenario B & C: Did PPC Save the Brand or Did the Market Shrink?

• 15:30 - How to Fix It Step 1: Track Organic vs. Paid Percentage

• 16:44 - Why Historic Rank Tracking Still Matters

• 19:10 - Step 2: Using Search Query Performance Data

• 22:15 - Step 3: Running a Holdout Test with AMC

• 26:24 - Final Verdict: Does PPC Actually Cannibalize 100% of Sales?

• 27:50 - Where to Find Brent

🦡 Resources & Links

• 🦡 GET AD BADGER ➡️

• Find Michael Erickson Facchin — Ad Badger’s CEO and soul, PPC whisperer, and your go-to guide through the wild world of Amazon advertising

• Where to find Brent Zahradnik of SellerPlex

• Managing Amazon Ads in Tough Times to Protect Your Organic Sales

• How to Find Products That Sell Organically

• How Can I Grow My Organic Sales Percentage For Amazon PPC Campaigns?

• 📚 Unlock our FREE comprehensive Amazon Marketing Playbook

• Subscribe to our newsletter

• Transform your workflow with our comprehensive Amazon Advertising checklist

• Review all our show notes

-

Host and Executive Producer: Michael Erickson Facchin

Guest Co-Host: Brent Zahradnik

Senior Producer: Nancy Lili Gonzalez

Podcast Coordinator & Graphic Designer: Sofiia Podash

Video and Audio Editor: Pedro Moreno