Amazon PPC Advertising: Tips, Strategies & Best Practices

Want to be successful on Amazon and stand out among 1.1 million sellers? Amazon PPC (Pay-Per-Click) advertising is a great way for sellers to get noticed and drive sales.

In this comprehensive guide, we’ll explore Amazon PPC advertising, including its definition, types, creative strategies, and more. 

What Is Amazon PPC Advertising?

Amazon PPC is pay-per-click advertising that’s done via Amazon Advertising, which is Amazon’s ad platform. With PPC, advertisers pay only when someone clicks on their ad, not just when it’s seen. Amazon Advertising helps sellers boost brand awareness, sales, and visits to their Amazon Store.

Importance of Amazon PPC for Sellers

For sellers, Amazon PPC helps improve product visibility and increase sales on a highly competitive platform like Amazon. Without ads, your products can easily get lost among thousands of similar items.

With PPC, your products:

• Appear directly in front of interested shoppers, giving them a reason to click and buy.
• Gain better placement in search results, ensuring more potential customers see your listings.
• Benefit from increased brand visibility, more targeted traffic, and higher sales.
• Help generate valuable data on shopper behavior, allowing you to refine your marketing strategies and optimize ad performance.
• Support organic ranking by driving sales, which improves your product’s position even outside paid campaigns.

Types of Amazon PPC Ads

• Sponsored Products: Sponsored Products are cost-per-click (CPC) ads that help promote individual product listings on Amazon and across select premium sites and apps. 
• Sponsored Brands: These ads promote your brand and can showcase multiple products in a static or video format. 
• Sponsored Display: Sponsored Display ads work for all businesses, whether or not they sell on Amazon. It uses machine learning and a variety of ad formats to help brands reach customers across the Amazon platform and on thousands of other apps and websites.
• Understanding these ad types and how they work together will help you create a strategy that fits your business goals. Let’s dive deep into each type:

Understanding these ad types and how they work together will help you create a strategy that fits your business goals. Let’s dive deep into each type:

Sponsored Products Ads

Amazon Sponsored Products are cost-per-click ads that promote individual product listings and drive traffic to product listings.

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When shoppers search for products, your ad will appear and boost visibility in the process. Essentially, these ads help get your products in front of potential buyers who are already looking for items like yours. They typically show up:

• In Search Results: They appear alongside organic listings, labeled as “Sponsored.” When a shopper searches for a product related to yours, your ad will show up. This gives you a chance to capture their attention right when they are looking to buy.
• On Product Detail Pages: Your ad can be placed near competitors’ listings, which encourages shoppers to consider your product a better alternative, as shown here. Searching for Insignia TV yields TV results for Toshiba, too:

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Targeting Options

• Keyword Targeting: Amazon provides several keyword match types to help sellers control how their ads appear in customer searches:
• Broad Match: This match type gives your ad wide exposure by matching it to a variety of search queries, even if the search terms differ slightly from your keyword. It can include variations such as plurals, synonyms, or related terms. For example, “sneakers” could trigger searches like “athletic shoes” or “trainers.” 
• Phrase Match: Here, the search must include your exact keyword phrase, though it can be expanded with additional words. This type narrows your targeting compared to broad match and results in more focused ad placements. For example, “curtain rods” would match “pole for curtains for bedroom.” 
• Exact Match: This is the most targeted match type, where the search query must exactly match your keyword or a very close variation. It’s useful for highly specific ads. For instance, “outside lights” would only match searches for “outside lights.” 
• Product Targeting: You can also target specific categories, brands, products, or other product features by using ASINs (Amazon Standard Identification Numbers). If you want to target your competitor’s product, you can select their ASIN to show your ad on their product page. This is a great way to get noticed by shoppers already interested in similar products.
  

Bidding Strategies

• Dynamic Bids – Down Only: Amazon reduces your bid for clicks less likely to convert, like on less relevant searches or underperforming placements.
• Dynamic Bids – Up and Down: Amazon adjusts bids up to 100% for top-of-search placements or 50% for other placements when conversions are likely. It also lowers bids for less likely conversions, balancing ad spend and results.
• Fixed Bids: Your bid stays constant without real-time adjustments. This may yield more impressions but fewer conversions.
• Rule-Based Bidding: Adjusts bids based on your set Amazon return on ad spend (ROAS) guardrails to maximize conversions while maintaining profitability.

How to Create Sponsored Products Ads? 

1. Go to Campaigns and click Create campaign.
2. Select the country for the campaign using the country selector and choose Sponsored Products.
3. Enter information in the Settings section:
   • Campaign name: A name for your campaign (visible only to you).
   • Portfolio: Select or create a portfolio to organize your campaigns.
   • Daily budget: Set your average daily budget for the campaign.
   • Start and End date: Choose when to start and end your campaign.
4. Choose your targeting type: Select Keyword or Product targeting (automatic or manual).
5. Select Ad format: Choose Standard (quick setup) or Custom (personalized copy).
6. Create an ad group: Enter a title for your ad group (not available for custom text ads).
7. Select products to advertise in your campaign.
8. Enable launch to additional countries (optional), if you want to run campaigns in multiple countries.
9. Set your keyword and product targets and bids. Add negative targets if necessary.
10. Review your campaign: Check all details to ensure accuracy.
11. Submit your campaign or save it as a draft if you want to finish it later.
12. Wait for approval: Your campaign will typically go live in 1-2 hours, with performance data available after up to 12 hours.

Tip: Use the Cross-channel planner to explore audience options and target effectively.

(Note: Don’t create multiple campaigns for the same ASIN with the same targeting type.)

Performance Metrics to Monitor

• ACoS (Advertising Cost of Sales): ACOS (Advertising Cost of Sale) represents the percentage of sales generated from your sponsored ads. It’s calculated by dividing your total ad spend by the total sales resulting from those ads.
• ROAS (Return on Ad Spend): ROAS (Return on Advertising Spend) is calculated by dividing total product sales by total advertising spend. It is expressed as a multiplier, not a percentage, reflecting the revenue generated for each dollar spent on ads.
• CTR (Click-Through Rate): CTR (Click-Through Rate) measures how often customers click your ad when it’s displayed. It’s calculated by dividing the number of clicks by the number of impressions and is provided for each campaign and keyword.
• Conversion Rate: Conversion Rate is the percentage of clicks that result in a sale. It is calculated by dividing the number of conversions (sales) by the number of clicks, then multiplying by 100.

Sponsored Brands Ads

Sponsored Brands campaigns on Amazon help increase brand awareness and drive customer engagement by showcasing customizable ads in prominent shopping results. These ads can feature your brand logo, a custom headline, and products, and can link to a product detail page, a custom landing page, or a brand Store.

The formats include Product Collection (promotes products with a landing page), Store Spotlight (directs traffic to your Store), and Video (promotes a product or brand with video). These ads appear on both desktop and mobile, and are purchased on a CPC or vCPM basis with no minimum budget required. 

Seller and Vendor Account Requirements
To run Sponsored Brands campaigns, you must meet the following requirements:

• Be a registered brand owner through Brand Registry
• Have an active Amazon account in good standing
• Be able to ship to the targeted country
• Have a valid payment method
• Have product listings in eligible categories

Note: If your Brand Registry status is approved but you encounter errors when creating a campaign, contact Amazon support.

Targeting Options

• Broad Match: Captures variations of your keyword, like synonyms or related terms. For example, targeting “headphones” may match searches like “wireless earbuds.” Use modifiers (e.g., +“running shoes”) to include relevant queries.
• Phrase Match: Shows ads for searches containing your exact keyword or close variations, like “coffee makers” matching “best coffee makers under $100.” Balances reach and relevance.
• Exact Match: Targets searches that exactly match your keyword or close variants. For example, “organic skincare” only shows ads for similar terms, ensuring highly focused targeting.

Note:

• Ads may not run for restricted keywords/products, even if added during campaign setup.
• Targets must align with the promoted product and avoid offensive or undesirable terms.
• Restrictions include prescription drugs, offensive/vulgar terms, and prohibited items (e.g., e-cigarettes, adult content).

Product Targeting

ASIN-Level Targeting allows you to target specific competitors or related products directly. For example, you can place your ad on a competitor’s product page to attract comparison shoppers. Amazon automatically updates your targeted products daily and provides recommendations under the Product Targeting section.

You can refine your targeting further by excluding irrelevant brands or ASINs. Options like filtering by price range, customer reviews, or product variations help align with shopper preferences. Performance data for these targets is available in the Search Term report, helping you optimize campaigns effectively.

Bidding Strategies

• Your bid is the maximum amount you’re willing to pay for a click. Choose a bid type that aligns with your campaign goals:
  
  • Suggested Bid: Uses Amazon’s recommendations based on recent winning bids. Ideal for new advertisers.
  • Custom Bid: Allows manual bids for each target without overriding existing amounts.
• For Sponsored Brand campaigns, Amazon may adjust bids dynamically:
  
  • Increase bids by up to 300% for high-performing opportunities.
  • Decrease bids for less relevant opportunities.

Start with suggested bids or higher for better competitiveness. Adjust your bids regularly based on impressions and clicks to optimize performance.

Cost Considerations

• Daily Budget: Set a maximum daily spend, adjusting for low and high traffic days. Ads stop once the daily budget is exhausted. Sponsored Products and Sponsored Display use daily budgets, while Sponsored Brands can use daily or lifetime budgets.
• Lifetime Budget: Total campaign spend, divided evenly across campaign days. Never exceeds the set amount, offering controlled investment for campaigns with end dates.

How to Create Sponsored Brands Ads?

Here’s how you can set up a Sponsored Brands ad:

1. Access the Console

   • Go to Campaigns in the advertising console and select Create Campaign > Sponsored Brands.

2. Set Campaign Details

   • Enter a campaign name for internal reference.
   • Choose start and end dates (or select “No end date” for ongoing campaigns).
   • Set your budget: daily or lifetime (cannot switch later).

3. Choose a Goal

   • Acquire new customers: Attract first-time buyers to your brand.
   • Drive page visits: Increase traffic to your Store or product pages.
   • Grow brand impression share: Strengthen visibility at the top of search results.

4. Select Ad Format

   • Product Collection: Feature products with a brand logo and headline.
   • Store Spotlight: Promote specific Store subpages (minimum 3).
   • Video: Showcase a single product or brand with a video.

5. Define Targeting

   • Choose Keyword Targeting (e.g., related to your brand or landing pages).
   • Use Product Targeting for specific products or categories.

6. Add Negative Targeting (Optional)

   • Exclude irrelevant keywords or product pages to optimize performance.

7. Provide Ad Creative

   • Add a brand name, logo, and headline.
   • Include product images, Store subpages, or videos based on your format.

8. Submit for Review

   • Ensure the ad complies with Amazon’s advertising guidelines.
   • Submit for moderation (approval typically within 24-72 hours).

9. Monitor and Edit

   • After approval, edit the campaign or creative details as needed.
   • Track performance metrics in the campaign manager (updated within 12 hours).

Setting Up Brand Logo, Headline, and Custom Pages

• Logo: Your brand’s logo must be used in Sponsored Brands ads so that customers can easily identify your business. The logo must:
• Fill the entire image or be placed on a solid background that does.
• Clearly represent the brand or product being promoted.
• Not be complex or cluttered.
• Not be a product image, ASIN, custom image, or lifestyle image.
• Not be combined with other logos or additional text.
• Be visually appealing and not overly complex.

Headline: Headlines should be relevant to the products being advertised. Amazon advises that the headlines:

• Be focused on branding or non-product-specific messaging
• Must relate to products in the same category

Headlines making health-related claims, unless applicable to all products in the ad, are prohibited. Amazon recommends using sentence cases for headlines and custom text, avoiding ALL CAPS, random capitalization, or camel case.

• Custom Pages: Sponsored Brands ads can direct customers to the following destinations:

For Brand Store Spotlight ads, you can:

• Feature up to three sub-pages of your Brand Store.
• Customize the headline, sub-page image, and labels.
• Modify which sub-pages are included in your ad.

Keyword Targeting: Choosing Auto vs. Manual Targeting

While you can only select one targeting type—keyword or product targeting—per campaign, Amazon recommends using both in your overall strategy to maximize reach.

You can choose either auto or manual targeting per campaign, but Amazon recommends using both for maximum reach.

Best Practices:

• Manual Targeting:

  • Include at least 25 keywords with a mix of broad, phrase, and exact matches.
  • Use broad match modifiers (+) for specific word inclusion (e.g., “+men shoes” triggers ads only for queries with “men”).
  • Target both category and branded searches to stay competitive.

• Auto Targeting:

  • Automatically targets relevant keywords based on product content and performance.
  • Use negative targeting to filter out irrelevant results.

Regularly review your search term report to adjust bids on high-performing keywords.

The Role of Video Ads in Sponsored Brands

• When to Use Video Ads: Video ads work best for high-impact branding and visually demonstrating product features. 

Recommended Formats and Creative Tips

• Keep videos concise—under 20 seconds.
• Video dimensions: 1280×720, 1920×1080, or 3840x2160px
• Highlight unique selling points within the first 5 seconds to catch attention.
• Add captions for sound-off browsing.
• Use clean visuals and clear messaging to build trust.
• In the video safe area, avoid placing text or important information in the lower right corner of the video.
• Ensure your videos are in the language of the marketplace where they are being displayed.

Performance Metrics to Monitor

• Impressions: This metric measures the total number of times your ad is displayed to shoppers, providing an indication of your campaign’s reach and visibility. Monitoring impressions alongside the click-through rate (CTR) helps assess how effectively your ad is engaging users and driving them to click..
• New-to-brand metrics: These metrics help you track first-time customers and sales in the past 12 months, giving you insights into customer acquisition and helping you grow your brand’s consumer base.
• Return on ad spend (ROAS): ROAS measures the revenue generated for each dollar spent on advertising. It helps evaluate the effectiveness of a campaign. For Sponsored Brands, which focus on discovery, it’s important to also track new-to-brand metrics. These metrics show how well your campaigns are attracting new customers, providing valuable insights for optimizing bids, targeting, and keywords.

Sponsored Display Ads 

Sponsored Display is Amazon’s solution for display advertising, accessible to businesses with or without products on Amazon. It uses machine learning to connect with customers across the Amazon store and other apps and websites. These ads are available to brand-registered sellers and vendors.

Managed via the Amazon Ads console and API, Sponsored Display helps with retargeting, cross-selling, and boosting product visibility. For example, if you sell eco-friendly plates, you can target customers searching for “eco-friendly lunchbox” to cross-sell your products effectively.

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Targeting Options

• Audience Targeting:  With Sponsored Display ads, you can effectively target users both on and off Amazon:
  • Using exclusive audience insights derived from shopping and streaming behaviors. These insights help you reach relevant audiences across Amazon, Twitch, IMDb, and thousands of other websites and apps. 
  • By refining your targeting by specifying locations such as postal codes, cities, DMAs (Designated Market Areas), or states that are most relevant to your business. 
  • By driving specific actions, like collecting leads, increasing website visits, or boosting visibility, with eye-catching creative formats. Simply provide your brand logo, headline, and lifestyle image, and Amazon Ads will generate optimized ads for various placements, sizes, and devices

Tip: Look at “Customers who viewed items in your browsing history also viewed” section and target shoppers who have already viewed similar items:

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• Product Targeting: You can choose to target specific ASINs (Amazon product listings) or entire categories. This works well for both competitive targeting and cross-selling opportunities.

Tip: Avoid targeting direct competitors unless you’re confident your product offers better value or features. Instead, target complementary items. For instance, if you sell a leather handbag, target other accessories such as wallets or scarves to cross-sell.

Bidding Strategies

Just like Sponsored Brand campaigns, Sponsored Display ads use cost-per-click (CPC) bidding to determine placement. Your bid is the maximum amount you’re willing to pay for a click, but the actual CPC may be lower.

Here’s how bidding works:

• Suggested Bid: Uses Amazon’s recommendations based on recent winning bids for similar ads, ideal for new advertisers.
• Custom Bid: Allows you to manually adjust bids for specific audiences or categories to align with your goals.

Amazon may also adjust your bids dynamically to maximize outcomes: increasing bids for high-potential opportunities or decreasing them for less relevant ones.

How to Create Sponsored Display Ads?

Here’s a step-by-step setup guide on how to create a Sponsored Display ad:

1. Create Campaign: Go to the Campaign Manager, click “Create Campaign,” and select “Sponsored Display.”
2. Campaign Settings:
   • Campaign Name: Choose a name for internal use (it won’t appear in your ads).
   • Daily Budget: Set the average amount you want to spend per day, applied over a month.
   • Start/End Date: Select your campaign’s start and end dates. You can pause and resume it anytime.
3. Targeting Options: Choose one of the available targeting options for your campaign.
4. Optimization Strategy: Select your preferred optimization strategy for the campaign.
5. Select Product: Choose the product you want to advertise.
6. Creative Assets:
   • For Image ads, add a custom headline, brand logo, and image.
   • For Video ads, add a video (you can also add a headline and brand logo).
   • Ensure your assets comply with the creative policies.
7. Bidding: Enter your bid, using the suggested bid based on similar recent ads.
8. Review and Submit: Double-check all campaign details before submitting your ad.

Choosing Auto vs. Manual Targeting: 

• Auto Targeting: Great for retargeting. Amazon automatically shows your ads to shoppers who’ve looked at similar items. Perfect if you’re just starting and need quick results.
• Manual Targeting: Ideal if you know which products/categories to focus on. For example, you can target competitor items like travel mugs or hydration bottles to appear on their product pages and attract their audience.

Best Practices for Creative Assets:

• Images: Use high-resolution images (at least 1000 x 1000 pixels). Showcase your product in lifestyle settings. Sponsored Display supports static images and videos for Amazon sellers; non-Amazon sellers can only use static images.
• Call to Action (CTA): Align CTAs like “Learn More” with campaign goals to boost engagement.
• Brand Logo: Include a clear, visible logo to enhance credibility and recognition.
• Headline: Write simple, impactful headlines that pose questions or solve problems.
• Body Copy: Highlight key features concisely, supporting your headline’s message.
• Design Simplicity: Limit creatives to 1–4 objects to improve CTR.
• Contrast & Size: Use strong contrast and make primary objects larger for better focus.
• Text Clarity: Use fewer words and break text into readable lines.
• Video Specs:
• Max File Size: 500MB
• Aspect Ratio: 16:9
• Duration: 6–45 seconds (e.g., 6s, 15s, 20s, 30s)
• Min Dimensions: 1920 x 1080
• Formats: H.264, MPEG-2/4 (video), PCM/AAC (audio)
• Shorter videos (6s) drive higher Video Completion Rates (VCR)
  

Retargeting Strategies with Sponsored Display Remarketing Purchases 

Here are a few tips for maximizing retargeting impact: 

• Frequency: Too many impressions can annoy potential buyers, so aim for 1-3 exposures per week for better results.
• Choose Your Audiences: Combine up to 20 different audience types in a single Sponsored Display ad group, including remarketing based on views, purchases, and broader Amazon audience segments.
• Refine Your Targeting: Reach shoppers who have bought from specific categories or browse nodes on Amazon, with advanced filters like brand, price, and ratings.
• Customize Your Lookback Window: Define the time period for remarketing based on views or purchases to tailor your ad exposure.
• Optimize Ad Placements: Display ads on Amazon’s detail and home pages, and extend your reach to Twitch, ensuring visibility throughout the shopper’s journey across Amazon and beyond.
• Select Products for Promotion: Choose one or more products to feature in your ad campaign.

Performance Metrics to Monitor

• Conversion Rates:

  • What to Track: Percentage of ad clicks that lead to purchases.
  • Action Tip: If it’s below 10%, test different headlines, images, or product pages.

• ROAS (Return on Ad Spend):

  • Formula: Ad revenue ÷ ad spend. For example, spending $15 on ads that bring $60 in sales equals a 4:1 ROAS.
  • Tip: Allocate more budget to campaigns with a ROAS above 4:1.

• View-Through Rate (VTR):

  • What It Measures: This is calculated by dividing the views by the impressions.
  • Action Tip: A high VTR means your ad visuals or messaging are effective—double down on similar creatives.

Cost Analysis Across Amazon PPC Ad Types

As per estimates, the average CPC is $0.95 for 2024 on Amazon.

Ad Type	Pricing Model	Typical Costs
Sponsored Products	Cost-Per-Click (CPC)	Pay for each click. Costs depend on bid amount and competition for targeted keywords or products.
Sponsored Brands	CPC as well as Cost Per 1,000 Impressions (vCPM)	Flexible pricing. Costs vary based on ad visibility and the level of competition. vCPM stands for “viewable Cost Per 1,000 Impressions”. It is a bidding model used in online advertising where you pay for every 1,000 times your ad is viewed, but only when the ad is considered “viewable.”
Sponsored Display	CPC as well vCPM	Pricing changes depending on your targeting options and chosen bidding strategy. There are no minimum campaign spend requirements. You can set your daily bid and budget, and adjust your bid or pause your campaign at any time.

Here’s how CPC varies for each ad type:

• Sponsored Products: Lower CPC, best for direct sales. The competition here is driven by individual products and keywords.
• Sponsored Brands: Higher CPC due to its broad brand visibility goals. These ads often target broader keywords and reach new customers.
• Sponsored Display: Generally falls between Sponsored Products and Sponsored Brands in terms of CPC. Sponsored Display is effective for retargeting previous customers, and its cost can vary based on how tightly or broadly you define your targeting.

Note: This CPC variation is a general estimate and is not fixed. Costs can fluctuate based on factors such as targeting, bidding strategies, and other campaign settings.

Pro tip: Remember that Sponsored Products, Brands, and Displays are cost-per-click ads, meaning you only pay when someone clicks your ad, and you control your campaign budget. The cost of display and video ads can vary based on the format and placement.

Budget Allocation and Forecasting

When allocating your Amazon PPC budget, distribute it based on your campaign objectives: brand awareness, conversions, and retargeting:

Brand Awareness (Sponsored Brands & Sponsored Display)

• Recommended Budget: The ‘rough and ready’ rule advises allocating about 10% of your forecasted revenue to Amazon PPC advertising. 
• Why: It helps increase the visibility of your brand, especially if you have multiple products. They also target relevant audiences to boost awareness, even if they haven’t interacted with your product yet.

Conversion (Sponsored Products)

• Recommended Budget: 50-60% of your total PPC budget
• Why: It drives conversions. This is where you can target high-intent customers who are already looking for products like yours. 

Retargeting (Sponsored Display)

• Recommended Budget: 10-20% of your total PPC budget
• Why: It helps bring back shoppers who have already shown interest but didn’t make a purchase. They allow you to stay at the top of your mind and push for conversions.

Long-Term Cost Management Tips

Here’s how to adjust your budget across ad types as your campaign matures:

• If your goal is immediate sales, focus on Sponsored Products. Allocate the bulk of your budget here, especially for high-conversion products.
• Once you’ve established sales momentum:
  • Start shifting a portion of your budget to Sponsored Brands to promote your brand and increase visibility across multiple products
  • Prioritize category or keyword targeting to attract customers who are browsing products in your niche
  • Use dynamic keyword targeting to target a wide set of keywords, then refine it as you gather performance data
• Use views remarketing to re-engage customers who viewed but didn’t purchase, especially on high-conversion pages like product detail pages.

Bid Optimization Techniques Across Ad Types

Amazon offers three bidding strategies:

Bidding Strategy	Description	Best For	Key Adjustments	Key Placements
Dynamic Bids – Down Only	Reduces bids for clicks less likely to convert.	Sponsored Products	Automatically lowers bids for less relevant searches or poorly performing placements.	Search results (Rest of Search), Product Detail Pages.
Dynamic Bids – Up and Down	Adjusts bids up to 100% for high-conversion opportunities and lowers them for low-conversion scenarios.	Sponsored Products, Sponsored Brands	Bids can increase by up to 100% for top search placements or up to 50% for other placements. Increases to 100% for rest of search during Black Friday events.	Top of Search, Detail Pages, Home Page, Product Detail Pages.
Fixed Bids	Uses the exact bid without any adjustments, regardless of conversion likelihood.	Sponsored Products	Maintains set bids, offering more impressions but potentially fewer conversions.	Search results (Rest of Search), Sponsored Brands Top of Search.
Rule-Based Bidding	Automatically adjusts bids to maximize conversions while staying within Return on Ad Spend (ROAS) guardrails.	Sponsored Products	Amazon uses ROAS rules to increase or decrease bids dynamically based on campaign performance.	Sponsored Products across all placements.
Suggested Bid	Provides bid recommendations based on recent winning bids for similar ads. Recommended for new advertisers.	Sponsored Brands, Sponsored Display	Bid ranges calculated using winning bids from the past 7 days.	Top of Search, Detail Pages, Off-Amazon placements for Sponsored Display.
Custom Bid	Allows manual bid adjustments for individual targets.	Sponsored Brands, Sponsored Display	Offers greater control over bidding for specific keywords, categories, or placements.	Product Detail Pages, Sponsored Brands Top of Search, Sponsored Display Home Page.

When you advertise on Amazon, where your ad shows up matters. The three main placements are:

• Top of Search Placement: Sponsored Product Ads here get the most visibility and clicks because shoppers see them first, but they are also the most expensive. Amazon allows you to set a placement adjustment to increase your bids specifically for Top of Search to improve your chances of securing these spots.

Pro tip: Assuming your Top of Search placement is generating 15% more sales than others, you can increase your Top of Search bid by 40%. 

• Product Pages Placement: These ads appear on detail pages, often under the “Customers Also Bought” or the “Products related to this item” section. Product page placements can help you target competitor listings or complement your own. Adjusting bids here can work well if you’re trying to attract shoppers who are already considering similar items.
• Rest of Search Placement: This is a more affordable option but usually offers less visibility. Ads appear lower down in search results, so they get fewer impressions. This is a good choice if you’re working with a tight budget and still want to drive some traffic.

Pro Tip: Check the placement report regularly in your Amazon Ads dashboard. It can show you where your ads are performing best. 

Bid Adjustment Tips for Retargeting with Sponsored Display

Retarget with Sponsored Display ads to target shoppers who have already shown interest in your products with these tips:

• Start with a Higher Bid for Cart Abandoners: Set a higher bid (20%-30% above your standard bid) for retargeting cart abandoners. 
• Use a Lower Bid for Product Viewers Who Didn’t Add to Cart: You can set a lower bid (10%-15% below your standard bid) for shoppers who only viewed your product. 
• Adjust Bids for Repeat Viewers of Your Brand or Product: Shoppers who have previously viewed your product are more likely to convert on the second or third exposure. So, increase your bids for these users by 10%-15% to catch them on their return visits. 
• Use Data to Target Customers by Frequency of Visit: The longer a customer has been away from your listing, the less likely they are to buy. Adjust your bids based on how long it’s been since their last interaction with your product. Place higher bids for customers who visited in the last 7-14 days and a lower bid for customers who visited 30 days ago or longer.
• Use Suggested Bid and Bid Range: Use the Suggested Bid and Bid Range to get started, based on recent winning bids for similar ads in your category. You can adjust your bid to meet your goals, with options to bid higher or lower. Both are updated daily. The Performance Estimate tool shows estimated impressions at different bid levels, based on historical trends, competing bids, and shopper engagement.

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Monitoring and Analyzing Amazon PPC Performance

Key Metrics by Ad Type

We’ve already discussed the different metrics (such as ACoS, TaCos, etc.) you should focus on for each ad type. Let’s explore the Reports you should focus on.

Using Reports for Optimization

Amazon provides detailed reports to help you spot what’s working and what’s not to help you maximize your ad spend:

• Search Term Report: It shows which keywords shoppers used to find your product and identify underperforming keywords:

Source

Add the underperforming keywords as negative keywords and save on ad spend:

Source

• Targeting Report: Identifies how your targeted ASINs or categories are performing, and helps you see the effectiveness of product targeting. 
• Placement Report: Compares ad performance in different placements, such as top of search vs. rest of search, for instance. As a seller, you may find that sometimes “Top of Search“ may convert better than “Rest of Search.“ The idea is to adjust bids for better ROI.

Adjusting Strategies Based on Metrics

Here are 7 actionable tips to improve your campaigns:

• Lower Bids for Low-Converting Keywords: If a keyword gets clicks but no sales, reduce the bid to minimize wasted spend. For instance, if a keyword costs $1 per click but doesn’t generate sales after 20 clicks, reduce the bid by 30%-50%.
• Boost High-Performing Keywords: Allocate more budget to keywords that drive sales and show a good ACoS. A seller running an ACoS of 15% on “vegan protein powder” should increase bids by 20% to capitalize on its profitability.
• Add Negative Keywords: Block terms like “cheap” or “free” to avoid wasting the budget. 
• Refine Product Targeting: Focus on competitor products with similar prices or lower reviews for better conversions.
• Optimize Placements: If “Top of Search” converts better, increase bids by 15%-20% for those placements in the placement settings. (Note: Sponsored Display Ads (SDA) does not have a Top of Search option).
• Pause Poorly Performing ASINs: If a Sponsored Display campaign consistently shows a ROAS of 5x, double the daily budget to scale.
• Test Ad Copy and Creative: For Sponsored Brands, try different headlines, images, and videos to see which resonates more with shoppers.

Advanced Strategies and Best Practices by PPC Ad Type

Amazon PPC advertising becomes a game-changer when you move beyond the basics and customize strategies to each ad type.  

Sponsored Products

Sponsored Brands let you showcase multiple items with your brand logo and headline. To stand out, focus on long-tail keywords. These terms capture shoppers who know exactly what they want. 

Sponsored Brands

Sponsored Brands let you showcase multiple items with your brand logo and headline. You can highlight your product collection with categories such as best deals, new launches, etc. Pair this with video ads—short, engaging clips showing your product in action. Shoppers love seeing how products solve real problems.

Sponsored Display

Sponsored Display Ads remind people about items they’ve browsed or added to their cart but didn’t buy.

Cross-Campaign Optimization: Work Smarter, Not Harder

Don’t let your campaigns work in silos. Use Sponsored Products to promote your bestsellers.

Finally, retarget with Sponsored Display Ads to close the sale. Think of this exercise as building a funnel: awareness, consideration, and purchase.

Pro tip: Synchronize these strategies to create a seamless shopping journey and boost your sales.

Final Thoughts: Optimizing Your Amazon PPC Advertising Strategy

Selling on Amazon can be highly rewarding with the right PPC strategy in place. A balanced approach using Sponsored Products, Sponsored Brands, and Sponsored Display Ads will help maximize results. Start small, test what works, and optimize by pausing underperforming ads while boosting spend on successful ones.

Remember, Amazon PPC requires ongoing attention—monitor results, adjust bids, and refine your strategy as products, competition, and trends evolve. With continuous optimization, you’ll increase efficiency, grow profits, and manage your campaigns with confidence.

FAQs

Is PPC worth it on Amazon?

Studies show that Amazon advertisers typically see a return on ad spend (ROAS) of 3:1 to 4:1, meaning for every $1 spent on PPC, they earn $3 to $4 in revenue. This makes it a profitable channel, especially when targeting high-converting keywords. Additionally, PPC helps improve product visibility, drive traffic, and boost organic rankings over time.

How much does Amazon charge for PPC?

Amazon PPC costs depend on factors such as the number of ad campaigns you’re running and the keywords you’re targeting. Depending on your product category’s competitiveness, costs typically range from $0.15 to $6 per click.

What are the different types of PPC campaigns available on Amazon?

There are 3 types of PPC campaigns on Amazon: Sponsored Product Ads, Sponsored Brand Ads, and Sponsored Display Ads.

How does Amazon’s PPC bidding system work, and what are the different bidding strategies?

Amazon’s bidding system lets you control how much you’re willing to pay for ad clicks or views. Bid options include Suggested Bids (based on winning bids), Custom Bids (specific to targets), and Default Bids (applied across keywords).

Bids dynamically adjust during auctions. For example, Sponsored Brands and Sponsored Display bids can increase up to 300% for better opportunities. Starting with the suggested bid range boosts visibility, and raising bids can improve impressions or clicks.

What are ACoS and ROAS, and how do they impact the success of an Amazon PPC campaign?

ROAS measures the expected revenue against the ad spend, while Amazon ACOS shows the percentage of costs compared to sales. 

How do I choose between automatic and manual targeting for my Amazon PPC campaigns?

Start with automatic campaigns to gather data, then shift to manual targeting to focus on the best-performing keywords and placements. You can also run both types together to maximize reach and control.

What are the best practices for setting a budget for Amazon PPC?

Define whether you aim to launch a product, clear inventory, or boost sales. Calculate the maximum ad spend percentage you can afford without losing profit. Factor in how much customers typically spend to guide your ad budget. Spread your budget over the campaign’s duration to avoid running out of funds early. Invest in high-volume keywords for visibility and long-tail keywords for conversions. 

How can I reduce my ACoS while maintaining a high conversion rate?

Focus on top-performing keywords and remove ones that aren’t working. Make sure your ad copy is clear and relevant to get more clicks. Use negative keywords to stop your ads from appearing in irrelevant searches.

What metrics should I track to measure the effectiveness of my Amazon PPC campaigns?

To measure the performance of your Amazon PPC campaigns, focus on these four metrics: Advertising Cost of Sales (ACoS), Cost-Per-Click (CPC), Click-Through Rate (CTR), and Conversion Rate (CR) or Order Session Percentage.