Ultimate Guide to Master Amazon PPC Optimization in 2025

If you’re an Amazon seller who wants to transform the way you sell, leveraging PPC (Pay-Per-Click) advertising can be a powerful tool. But success with PPC isn’t automatic—it requires strategy and insight.

Effective Amazon PPC optimization goes beyond running ads. It’s about implmenting campaigns that align with your marketing goals and understanding the key metrics that drive performance. Without a clear plan, you risk wasting your budget and missing out on valuable opportunities.

In this guide, we’ll explore how you can leverage PPC and boost sales for your online storefront.

Understanding Key Metrics for Amazon PPC Success

Before we deep dive into mastering Amazon PPC optimization, let’s first understand the key metrics that impact your ad performance.

Metric #1: ACoS (Advertising Cost of Sales)

Source

Advertising Cost of Sales (ACOS) is a key metric that compares your ad spend to your ad revenue, helping you gauge the effectiveness of your ad campaigns. It also helps determine whether your campaigns are cost-efficient. Specifically for Amazon, ACOS is used to measure the performance of Sponsored Products ads.

The formula is simple: Ad Spend ÷ Sales x 100

Pro tip: For a product launch, a higher ACoS might be okay to build visibility. However, for established products, keep it low to maximize profitability.

Metric #2: ROAS (Return on Ad Spend)

Source

Return on Advertising Spend (ROAS) measures how much revenue your ad campaign generates for every dollar spent. It helps you assess your ad performance and find ways to improve your marketing efforts.

To calculate it, divide your ad revenue by ad spend.

An Amazon ROAS of 4x, for instance, means $4 earned for every $1 spent. Sellers love this metric because it gives a clearer picture of ROI. 

Metric #3: CTR (Click-Through Rate) and Conversion Rate

The Click-Through Rate (CTR) represents the frequency at which customers click your ad when it is displayed. Amazon provides the CTR for each campaign and keyword. It is calculated as the ratio of clicks to impressions. Conversion rate, on the other hand, measures how many clicks or actions turn into purchases. 

Why These Metrics Matter

CTR measures whether your ad is resonating with potential customers or not. CPC calculates the cost incurred for ads placed on websites and social media, based on the number of clicks the ad generates. Together, these two metrics offer critical insights into your digital advertising performance.

Understanding and improving them is key to Amazon PPC optimization for better conversions and ad efficiency.

Checklist for Amazon PPC Optimization

Below, we will be looking at a must-have checklist that you need for Amazon PPC optimization. And the best part? We will do it turn by turn for each ad type.

Sponsored Products Checklist

• Find Profitable Keywords

1. Use tools such as Helium 10, Jungle Scout, etc., to find the right keywords, but don’t skip checking search term reports (a report that provides detailed data on the actual search terms customers used to find and click on your ads. This report shows which keywords generated impressions, clicks, and conversions) weekly.
2. Focus on long-tail keywords to find high-converting, low-competition terms. Here’s a brand, “S’well” that uses long-tail keywords effectively:

Source

Use Negative Keywords

Negative keywords allow you to exclude specific customer shopping queries, brands, or products from triggering your ads in search results or on product detail pages.

Negative keyword targeting is available across various Amazon ad formats, including Sponsored Products (both automatic and manual targeting), product targeting, and Sponsored Brands keyword targeting.

• Ad group-level negative keywords: These apply only to the keywords or auto-targeting within the specific ad group where they are set.
• Campaign-level negative keywords: These apply to any keyword, product, or auto-targeting within all ad groups of the same campaign.

Include irrelevant terms like “used,” “damaged,” or “DIY” in your negative keyword list to filter out unqualified traffic. For example, if you sell luxury wooden dining tables, you might exclude terms such as “folding dining table,” “plastic table,” or “second-hand dining table” to focus on customers specifically looking for premium furniture.

Pro tip: Regularly review your search term report—especially for auto campaigns—to spot irrelevant searches. Add these to your negative keyword list bi-weekly to avoid wasting ad spend on shoppers unlikely to convert.

Boost Top-of-Search Bids

Top of search (first page) refers to Sponsored Products ads displayed in the top row of search results on the first page. As per Amazon, your base bid applies across all placement groups, with the option to increase it by up to 900% (10x).

The “Adjust Bids by Placement” feature works in tandem with your chosen bidding strategy to calculate the final bid applied for each placement.

Top-of-search placements for Amazon Sponsored Products significantly outperform other ad placements for KPIs such as click-through rate (CTR) and conversion rate: 

Placement | Metric	Click-through rate	Conversion rate	ACOS
Top of Search	4.41%	13.8%	27.0%
Product Detail Page	0.13%	6.7%	40.9%
Rest of Search	0.79%	8.7%	31.8%

The higher CTR is attributed to the prominence of top-of-search ads and their resemblance to organic listings. Strong conversion rates are driven by shopper intent and advertisers prioritizing high-converting ASINs for these placements. 

Optimize Listings for Ads

Ensure product titles, bullet points, and images are on point. Highlight key benefits and include reviews to build trust as shown here:

Source

Separate Auto and Manual Campaigns

Start with auto campaigns to discover high-performing keywords. Once you identify the ones that work, transfer them to manual campaigns for better control.

Pro tip: After running your Amazon Ads campaign for a few weeks, review its performance in Campaign Manager. Keep an eye on key metrics like impressions and clicks, and adjust your targeting to better align with your business objectives.

In manual campaigns, test match types: use exact match for precise targeting and broad match to capture variations of your keywords. This strategy improves targeting.

Sponsored Brands Checklist

Write Better Headlines

If you let Amazon Ads dynamically optimize your advertisement, keep your headline general and focused on your value proposition. This ensures your ad resonates with shoppers, regardless of which products are displayed.

You can create headlines that address your buyer’s problems directly and highlight your product’s benefits, as Aveeno demonstrates below:

Source

Regularly Test and Adjust Keywords Based on Performance

Make sure to bid on your brand’s keywords (read: your product name or even company name) to prevent competitors from overtaking your traffic.

To find effective keywords, follow these best practices:

Before Adding Keywords:

• Define Campaign Purpose: Determine whether to use general or specific keywords based on campaign objectives. 
• Include an Adequate Number of Keywords: Add at least 25 keywords to ensure sufficient impressions. 
• Review Recommended Keywords: Use the “Suggested” tab for keyword ideas based on shopping queries and product relevance. Utilize metrics like Clicks and Orders to prioritize high-performing keywords.
• Leverage Impression Metrics:
  • Impression Share (IS): Percentage of impressions received compared to competitors.
  • Impression Rank (IR): Rank of impressions received for a keyword over 30 days.

While Adding Keywords

• Use Branded Keywords: Include terms with your brand name, product name, or related product categories. 
• Incorporate Descriptive Terms: Use product descriptions and common search terms from your detail pages or competitors. 
• Avoid Keyword Overlap: Keep similar ASINs and keywords in the same campaign to avoid unnecessary duplication across campaigns.

After Adding Keywords

• Optimize Regularly:

  • After 2 weeks, analyze keyword performance.
  • Archive underperforming keywords and increase bids on top performers.
  • Use suggested bid ranges to guide adjustments.

• Utilize Search Term Reports: Analyze actual shopping queries from Search Term Reports to identify top-performing search terms and trends. Adjust bids to prioritize these terms.

• Limit Keyword Length: Phrase or exact-match keywords should be three or fewer to ensure searchability and performance.

Add Video Ads

You can sponsor brands videos and video posts to engage customers. Follow these best practices:

• Formats: Sponsored Brands Video can be in either vertical (9:16) or horizontal (16:9) format, while Video Posts must be vertical (9:16).
• Relevance: The video must align with the promoted product or brand and lead to a relevant landing page.
• No Letterbox or Pillarbox: Avoid having bars on any side of the video content.
• No Blank Frames: Videos should not start or end with blank or black frames.
• Avoid Truncation: Video ads cannot end in the middle of a sentence, whether it’s voice-over or written text.
• Autoplay and Mute: Sponsored Brands videos autoplay on mute. Ensure that the video is understandable without sound or provide subtitles.
• Local Language: Videos should be in the local language of the region where the ad is shown. If the audio is in a different language, subtitles in the local language are required.
• No Interference with Ad Templates: Avoid creative elements that interfere with the Sponsored tag or mute button.
• Avoid Distractions: Do not use flashing, spinning, or pulsating elements. 
• Legible Text: Ensure text is readable, with enough contrast against the background. 

Blendjet’s sponsored ad is the best example of how to show your product in action with clear and compelling imagery:

Source

Link to Your Storefront

Use Sponsored Brands ads to send shoppers to your Amazon Storefront (instead of just a single product page). This gives customers a chance to explore your entire catalog.

For example, if you sell home decor, you can use Sponsored Brands ads to direct customers to your Amazon Storefront instead of a single product page.

In your Storefront, organize sections such as “Living Room Décor,” “Bedroom Essentials,” “Wall Art,” and “Seasonal Collections.” Highlight bestsellers and customer favorites in these sections, and add banners and text that showcase your brand’s unique style.

This approach allows customers to explore your full product range and encourages them to browse multiple items. By sending shoppers to your Storefront, you create a more immersive shopping experience and can showcase your full catalog.

Pro tip: Check the performance in the Insights tab located within the Stores Insights dashboard to see what’s driving traffic and sales. Follow these steps Go to the Stores builder or the Stores main page. Access the Stores Insights dashboard. If one collection gets more clicks, feature it in your next campaign. Sending traffic to your Storefront is a great way to upsell, cross-sell, and build a loyal customer base.

Sponsored Display Checklist

Run Retargeting Campaigns

Sponsored Display ads help re-engage shoppers and drive sales by appearing in high-visibility sections on Amazon, such as “Customers also viewed these products,” “Customers who viewed this item also viewed,” and “Products related to this item:”

Source

These placements enable you to capture shoppers’ attention who have already shown interest in similar products.

Other Best Practices for Sponsored Display Purchases Remarketing:

• Leverage Dynamic Segments: Use Amazon’s dynamic segments, such as “advertised products” and “related to advertised products,” to reach audiences who purchase complementary items. Start with your product’s category and expand into other relevant categories. 
• Customize Lookback Windows: Adjust lookback windows based on campaign objectives. For example, a short lookback window (14 days) targeting recent buyers is used to drive repeat purchases. For cross-selling, use a longer window (30 days) to engage shoppers who purchased in related categories.
• Combine and Scale Audiences: Include up to 20 audience types in a single ad group to refine targeting and scale your campaigns. Customize ads with headlines, logos, or images and display them on high-visibility placements like product detail pages, Amazon’s homepage, and Twitch. 

Pro tips: Add demographic filters such as age for even sharper targeting. Start small by testing focused segments such as “sports enthusiasts” or “fitness beginners” to gauge performance. Use Amazon’s audience insights to identify which groups convert best and gradually expand your reach.

• Refresh Ad Videos: Change video creatives every few weeks to avoid ad fatigue (when shoppers repeatedly become less responsive to ads they’ve seen, leading to lower engagement). You must ensure all videos meet Amazon’s video guidelines:

Source

• Pick the Right Bidding Strategy: Choose CPC (Cost-Per-Click) bidding if you’re focused on driving sales—as you only pay when someone clicks. CPM (Cost-Per-Thousand Impressions) is better for campaigns aimed at building brand awareness because it emphasizes visibility. 

Pro tip: For new products, mix both strategies to balance visibility and conversions. Always monitor performance and tweak bids based on what’s working.

Sponsored Products Optimization Strategies

So, as part of Amazon PPC optimization, let’s first look at how you can refine Sponsored Product Ads to improve targeting and boost conversions.

Tip 1. Refine Keyword Targeting

When it comes to targeting the right keywords, start with broad terms (for example, “laptop”) to capture more impressions, but don’t stop there.

Use highly specific, long-tail keywords (for example, “lightweight touchscreen laptop under $500”) to target buyers who are further along in the purchase funnel.

Amazon offers three keyword match types for manual targeting: broad, phrase, and exact.

• Use broad matches to discover new keywords or when launching a product.
• Try phrase match to reach people searching for terms closely related to your product.
• Use exact match for high-converting keywords to get more precise targeting and control.

Automatic targeting for Sponsored Products enables advertisers to refine bids and strategies for optimal campaign performance. Here are the specific targeting options:

• Close Match: Ads appear when shoppers use search terms closely related to the product, such as “cotton sheets” for “Doppler 400-count Cotton Sheets.”
• Loose Match: Ads target broader search terms, such as “bed sheets” or “bath towels” for the same product.
• Substitutes: Ads are shown on detail pages of similar products, like “300-count Cotton Sheets.”
• Complements: Ads are displayed on detail pages of complementary products, such as “queen quilt” or “feather pillows.”

As we discussed above, check the Amazon Search Term Report regularly (under Reports > Advertising Reports) and add keywords to your negative keyword list.

Pro tip: Use tools like Amazon’s Brand Analytics or Helium 10’s Keyword Tracker to find high-value keywords competitors are ranking for.

Tip 2. Bidding and Placement Strategies

Selecting the right bidding strategy will help you achieve your Sponsored Products campaign goals. Here’s a breakdown of how you can achieve this:

• Dynamic Bids – Down Only: This strategy automatically lowers your bid for clicks deemed less likely to convert, such as those originating from less relevant search queries or underperforming placements. It is particularly suited for advertisers focused on cost-efficiency.
• Dynamic Bids – Up and Down: This approach dynamically adjusts bids based on the likelihood of conversion. Amazon may increase your bids—up to 100% for top-of-search placements and 50% for other placements—when clicks are likely to result in a sale. This strategy is ideal for advertisers seeking to maximize conversions.
• Fixed Bids: With this strategy, your bids remain static and are not adjusted based on performance metrics. While this approach may generate higher impression volumes, it typically results in fewer conversions relative to dynamic bidding strategies. Fixed bids are most effective for campaigns prioritizing broad visibility over conversion efficiency.
• Rule-Based Bidding: Available for eligible campaigns, this strategy automates bid adjustments to align with your defined return on ad spend (ROAS) goals. Amazon dynamically increases or decreases bids to optimize conversions while adhering to the specified ROAS guardrails. This option is ideal for advertisers aiming for a consistent balance between performance and cost control.

Tip 3. Optimize Product Listings for Relevance

Enhancing your advertised product listings can significantly boost their visibility and click-through rates. Here’s how you can optimize your Amazon listings:

• Create a Strong Product Title: Create an informative, concise title (approximately 60 characters). A good Amazon product title optimization strategy includes key details like brand, product type, size, material, or essential features to boost visibility and attract the right buyers.
• Feature High-Quality Images: Use at least four images showing your product from various angles. Ensure images are at least 1,000 pixels in height or width to enable Amazon’s zoom feature for a closer look.
• Write Detailed Bullet Points: Add at least three bullet points on your product detail page. Highlight key features such as contents, dimensions, usage, materials, or special attributes.
• Provide a Clear Product Description: Write a compelling product description that explains benefits, uses, and value beyond the bullet points. For instance, when you search for B12, an ad by the Vitacook store comes up. The brand uses terms like energy production in the headline to capitalize on the right customer segment:

Source

• Include Relevant Search Terms: Optimize your listings with keywords that potential customers use when searching. Focus on relevant elements like product features, materials, size, and use.
• Enhance Listings with A+ Content: Use A+ content (available to vendors and Amazon Brand Registry sellers) to elevate your product page with enhanced visuals, text, and storytelling.
• Leverage the Featured Offer: Choose products eligible for the featured offer (enabling “Add to Cart” or “Buy Now” options) to maximize visibility.
• Highlight the Prime Badge: Promote products with Prime Shipping to appeal to shoppers seeking fast, free delivery. Enroll eligible items in Fulfillment by Amazon to earn the badge.
• Advertise Well-Reviewed Products: Focus on products with five or more customer reviews and ratings of 3.5 stars or higher to build trust and engagement.

Pro tip: Amazon incentivizes customer engagement through Rewarded Ads, a feature available exclusively in the U.S. for self-service advertisers on Amazon DSP. Rewarded Ads boost interaction and drive better performance by attaching an incentive to your display ads. The system automatically generates the ad creative and landing page based on your configuration choices, streamlining the process while enhancing customer engagement. So, improve your listing to lower costs and increase sales on Amazon.

Tip 4: Use Auto and Manual Campaigns in Balance

Auto campaigns are a goldmine for keyword discovery. Amazon’s algorithm targets relevant search terms for you and gives you insights into what customers are searching for. You can use this data to find long-tail keywords you might not have considered. 

In manual campaigns, you control the match types and bids:

• Use exact match for keywords that are already making sales
• Test phrase match to capture more related search terms
• Use Bid+ to raise bids for high-performing keywords without breaking your bank

Running both auto and manual campaigns together creates a feedback loop: auto campaigns bring in data, and manual campaigns give you the flexibility to optimize for profit. With this data, your goal should be to get Top of Search placements for keywords that convert well.

Sponsored Brands Optimization Strategies

Since we have covered Sponsored Products, let’s see how to optimize Sponsored Brands ads to improve brand awareness and conversions as part of Amazon PPC optimization.

Tip 1: Crafting Effective Ad Copy and Creative Elements 

• Ad Formats: Choose from Product Collection, Brand Store Spotlight, or Video Ads. Product Collection promotes multiple products with lifestyle imagery, while Brand Store Spotlight highlights up to three sub-pages of your Brand Store. Video Ads feature 6–45 second auto-playing videos that direct shoppers to product detail pages.
• Clear Messaging: Pair concise, benefit-oriented headlines with a strong call-to-action (CTA) such as “Shop Now” or “Learn More.” Focus on what makes your product or brand unique.
• Visuals: Use high-quality images or videos that clearly showcase your product’s benefits. Avoid writing specific product details in the headline if Amazon Ads dynamically optimizes products for your ad.
• Testing: Clone campaigns to test single elements, such as headlines or imagery. Experiment with custom vs. lifestyle images and different ad formats to determine what resonates most with your audience.
• Branding: Always include your registered logo and follow Amazon’s creative guidelines to prevent ads from being paused. Visuals too can tell your brand story brilliantly. Use images that evoke emotion as Kodak does and make the shopping experience immersive:

Source

Pro tip: You must add your brand’s logo to reinforce recognition. A small and clean logo in the corner does the trick.

Tip 2: Optimizing Keyword Targeting and Bidding

• Keyword Targeting: Use a mix of broad, phrase, and exact match keywords for optimal reach. Include at least 25 keywords in your campaign and prioritize high-performing search terms by increasing bids. Add negative keywords to exclude irrelevant queries.
• Broad Match Modifiers: Use a “+” symbol to ensure specific words always appear in search queries. For instance, “+men shoes” ensures your ad appears for searches containing “men,” such as “running shoes for men.”
• Product Targeting: Broaden reach with category targeting or target specific products to encourage brand loyalty and cross-selling. For awareness campaigns, category targeting is ideal, while product targeting is better for precise promotions.
• Bid Management: Specify daily bids and budgets, adjusting as needed to remain competitive. 

Tip 3: Leveraging Video Ads for Engagement

Video ads outperform static ads by showcasing product functionality, telling your brand story, and highlighting unique features that static images can’t. 

Pro tip:  You can Video Builder (beta) to create customized videos for Sponsored Brands ads in minutes. Choose from ready-made templates, pull product images and copy from your detail pages, or upload creative assets. Plus, you can customize themes, colors, fonts, and music to match your brand!

Best Practices for Video Ads

1. Define Your Goal and Audience:

• For awareness: Focus on building emotional connections with customer testimonials or transformation stories.
• For consideration or purchase: Highlight unique features or benefits through product demonstrations.

2. Use the Right Format: Amazon recommends a 16:9 widescreen format with high resolution (minimum 1280 x 720) for clarity. Keep videos short—15-30 seconds works best to maintain attention.

3. Focus on Visuals: Start with a strong hook. Remember, the first three seconds matter most. Avoid relying on audio—many users scroll without sound. Use visuals and text overlays instead.

4. Optimize for Mobile: Ensure product shots are easily visible on smaller screens.

5. Show Product Benefits: Emphasize the transformation your product offers, like a clear before-and-after scenario. For example, if you’re selling a pressure cooker, show a quick before-and-after scene of a meal being cooked:

Source

6. Include Your Logo and a Call-to-Action: Show your logo at the beginning or end. Use a concise CTA like “Learn More” or “Shop Now.”

7. Use Closed Captions: Ensure the ad is understandable without sound by adding captions.

8. Leverage Other Ad Solutions:

• Brand Follow: Build long-term connections by encouraging shoppers to follow your Brand Store:
• Posts: Inspire shoppers with lifestyle content in organic feeds.
• Brand Stores: Create an immersive, multi-page experience to showcase your brand.

When to Use Video Ads?

• For demonstrating products: If you have a product line that you’d like to highlight, video ads work best:

Source

• For educating customers: Use videos to explain your product and compare them to alternatives as Dreo does here. On searching for “heaters,” you get to see a stunning video sponsored ad by Dreo:

Source

This visually convinces the customer as to why your product is the better choice.

• For driving seasonal sales: Cash in on the holiday shopping rush by highlighting seasonal bundles and limited-time offers. 

Tip 4: Link Ads to Custom Amazon Store Pages.

When shoppers click on your ad, give them more than just one product to look at. Linking to your Amazon Store lets them explore everything you offer in one place. It’s perfect for building brand loyalty.

Pro tip: Design your store with your audience in mind. Use easy-to-follow, intuitive categories that make browsing easy, such as body care, hair care, bundles, etc.:

Source

Highlight your bestsellers on the homepage to draw attention to your star products:

Source

Here, Sol De Janeiro has added banners with clean visuals and brief text that is creating a sense of urgency. The product imagery is eye-popping, the content is customer-oriented, and the navigation is simple.

Sponsored Display Optimization Strategies 

Now that we’ve optimized Sponsored Brands, let’s explore how to refine Sponsored Display ads for better retargeting and audience expansion as part of Amazon PPC optimization.

Tip 1: Set Up Contextual Retargeting Campaigns 

Retargeting for Sponsored Display ads helps you reconnect with shoppers and reminds interested customers to take action. Since you’re focusing on shoppers who already showed interest, your investment is more likely to pay off:

Source

Even if they don’t buy right away, seeing your product repeatedly will help build trust and keep your brand top of mind. Plus, sellers get a second chance to close the sale. 

Pro tip: Start by segmenting your audience. Target shoppers who: Visited your product pages Added items to their cart Browsed similar products You can use Amazon’s Sponsored Display audience features to define these segments.

Here are a few Amazon Sponsored Display optimization strategies you can try:

1. Optimize for Reach: Focus on maximizing your ad’s visibility by targeting a larger audience. Using the vCPM model (pay per 1,000 viewable impressions), you can adjust your campaign settings to prioritize viewable impressions. This strategy is great for building awareness, though it may result in lower click-through and conversion rates.

2. Optimize for Page Visits: Target shoppers most likely to click on your ads by fine-tuning your bids. This strategy helps drive traffic to your product detail pages and encourages product consideration by focusing on audiences who have shown interest in similar products.

3. Optimize for Conversions: Concentrate on shoppers who are ready to buy by tailoring your bids to drive purchases. This data-driven approach targets customers in the final stages of the buying process, making it ideal for remarketing or co-selling efforts. This option is only available to Amazon product sellers.

4. Optimize for Leads: If lead generation is the reason why you are trying Amazon PPC optimization, focus on reaching customers likely to submit lead forms. With a CPC model (pay-per-click), you pay only when someone clicks on your call-to-action (e.g., “Learn More”). This approach works well for driving customer engagement, but you’ll need to upload a privacy policy link and manage leads through Amazon’s Leads Manager portal.

Key Considerations:

• Once an optimization strategy is selected, it cannot be changed after the campaign goes live.
• You can set cost controls when creating your Sponsored Display campaign.

Tip 2: Audience Targeting and Segmentation

Audience targeting is all about showing your ads to the right people at the right time. Amazon provides detailed audience insights that let you target specific shopper behaviors. These insights are accessible via the advertising console and Amazon DSP, offering advertisers a broad range of ready-to-use audience segments. 

For instance, you can reach customers who viewed similar products, added items to their cart, or purchased from competitors.

How to Segment Your Audience?

Break your audience into smaller groups based on shopping habits. For example:

• Category Viewers: Target shoppers who browsed products in your niche.
• Cart Abandoners: Focus on customers who added items to their cart but didn’t check out. Offering a discount can seal the deal.
• Repeat Buyers: If you sell consumables like supplements, target customers are likely to reorder.

Pro tip: When paired with detailed reporting (like Amazon’s Sponsored Display Insights), segmentation allows you to refine ads in real-time. It’s much like creating a personalized shopping journey for every customer.

Tip 3: Optimize Creative Assets for Retargeting

Selling on Amazon with retargeting ads can only succeed if they resonate with your audience. The goal is to remind shoppers why they considered your product in the first place.

Video for Sponsored Display Ads:

Sponsored Display Video lets you highlight your brand and products in action, access exclusive video inventory on Amazon and third-party sites, and combine it with Sponsored Display features for greater flexibility in reaching new audiences.

You can convert browsers into buyers with engaging videos that showcase your products’ unique features and benefits.

Pro tip: Include a nudge like, “Still thinking about this? Act now!”

For related product cross-sells, show complementary items with clear visuals. For example, when a customer searches for a women tshirt, the State Cashmere Store brings up an ad for cashmere men’s essential tshirt—a cross-selling PPC ad at its best:

Source

Consistent Branding:

Your ad colors, fonts, and tone should mirror your Amazon Storefront and product detail page. When buyers click back, the visual connection reinforces trust and credibility.

How to Keep It Relevant

• Always A/B test different images and headlines. You can use any of the following approaches:
  • Manual Split Testing: Test one listing component (think: images, titles, or bullet points) at a time. Use Seller Central to monitor metrics like Sessions, Conversion Rate, and Units Ordered via Reports > Business Reports > “Detail Page Sales and Traffic by Child Item.” 
  • Let each version run for at least two weeks (longer for low-traffic products) and track performance in a spreadsheet. Compare results to identify the best-performing variation.
  • Manage Your Experiments Tool: Available for brand-registered sellers, this tool allows simultaneous A/B tests for content like A+ Content, Product Titles, Images, and Bullet Points. Amazon splits customer traffic into two groups to compare both versions in real time. Go to Brands > Manage Experiments in Seller Central, create an experiment, and schedule a test lasting 4–10 weeks. Review weekly results to determine the optimal version.
  • Audience Polls: Conduct polls on social media platforms (Instagram, Facebook, TikTok) or via tools like PickFu to gather direct feedback on options. Use Instagram Stories polls to ask targeted audiences which option they prefer. Apply the winning option to your Amazon listing and monitor improvements in conversion rates.

Why This Approach Works

Shoppers respond to ads that feel personalized. With Amazon’s Sponsored Display, you can automate personalization by leveraging its built-in audience targeting capabilities. 

Tip 4: Adjust Bidding for Sponsored Display

Your bidding strategy directly impacts the success of your Sponsored Display campaigns. Getting it right requires aligning your bids with clear goals and leveraging Amazon’s tools to maximize results.

CPC vs. CPM—Which to Choose?

• CPC (Cost-Per-Click): Go with CPC when your goal is sales. Considering you only pay for clicks, it’s perfect for retargeting campaigns. 
• CPM (Cost-Per-Mille): Use CPM for awareness-focused campaigns, like a product launch. You pay for impressions, not clicks, so it’s all about visibility. Start with modest bids, anywhere between $3–$5 per 1,000 views to test performance.

Pro Tips to Optimize Bids

• Set Dynamic Bids: Use Amazon’s “Adjust Bids by Placement” tool to automatically increase bids for top-performing placements and reduce them where performance lags. This feature is only available for Sponsored Products ads.
• Retarget Shoppers: For abandoned carts or recently viewed products, prioritize CPC bids that focus on conversion. Initially, test bids between $0.50 and $1.50 and scale up for profitable items.
• Leverage Amazon’s Reporting: Regularly check Placement Reports to see how different ad locations perform. If product page placements deliver lower conversions, lower your bid to save costs.

Amazon PPC Reports and Optimization Tools

Amazon provides built-in reports and tools to help sellers optimize their PPC campaigns. If you’re managing ads and struggling with wasted spend, low conversions, or high ACoS, these resources can turn things around for you.

Amazon PPC Reports (Built-In Feature):

• Search Term Report

This report shows which search terms triggered clicks and conversions. It also highlights irrelevant terms draining your ad spend. As Amazon advertising costs continue to rise, it’s important to use this report right.

Try running this report weekly. Add underperforming terms to your Negative Keywords list. Double down on converting search terms by switching them to Exact Match for better control.

• ACoS Report (Advertising Cost of Sales)

This report helps you track how much you’re spending on ads compared to your sales. To leverage the data effectively, compare ACoS across campaigns.

You can access ACOS directly in the Campaign Manager or through downloadable reports. It reflects the attributed sales for advertised products, with attribution metrics varying depending on the campaign type and advertiser profile:

Source

• Targeting Report

Wondering if you’re targeting the right shoppers? This report tells you how well your audience and product placements are working. 

You can download Targeting Reports from the Reports section in your Amazon Ads account:

1. Log in to your Amazon Ads account.
2. Navigate to the Campaign Manager and click on the Reports tab.
3. Select Sponsored Ads as the report type.
4. Under the Report Category, choose Targeting to generate a report specific to your ad targets, including keywords, product targets, and auto-targeting.

Note: Targeting Reports are only available for Sponsored Product ads and Sponsored Display ads.

Pro tip: If your retargeting ads aren’t converting, test new segments, like shoppers who bought complementary products. You can also refine your ad messaging to better align with shopper intent.

• Placement Report

The Placement Report provides detailed insights into how your Sponsored Product ads perform across different ad placements: Top of Search (First Page), Rest of Search, and Product Pages. Ads at the Top of Search often deliver higher click-through and conversion rates but at a higher cost per click.

Use this report to evaluate whether the premium bid adjustments for prime placements like Top of Search offer enough ROI. If ads on Product Pages show better conversion rates at a lower cost, consider reallocating more of your budget toward those placements for improved efficiency.

To access the Placement Report:

1. Go to Campaign Manager in your Amazon Ads account.
2. Navigate to the Reports tab.
3. Select Sponsored Products under the report type.
4. Choose Placements as the report category.
5. Customize your date range and generate the report.

Note: Placement reports are only available for Sponsored Product ads. 

• Campaign Performance Report

This is your PPC health report. It tracks impressions, clicks, CTR, sales, and more across campaigns.

You can download this report directly from the Campaign Manager in your Amazon Ads account. Navigate to Reports, select Sponsored Ads, and choose Campaign Performance as the report type. Customize the date range and other filters as needed before downloading.

Use this report to identify trends and make data-driven decisions. For instance, if Sponsored Brands ads outperform Sponsored Products, you might allocate more budget toward video ads or headline campaigns to maximize ROI.

Built-in Amazon PPC Optimization Tools:

You can also use some built-in Amazon PPC optimization tools to manage your campaigns without leaving the platform.

• Campaign Manager

This is essentially your control center. You can create, adjust, and monitor campaigns in one place. The dashboard is easy to use. 

Start by setting clear goals—whether it’s boosting sales, cutting ACoS, or testing new keywords.

• Bulk Operations

Bulksheets allow you to make large-scale changes to your campaigns. Instead of manually editing each campaign in the campaign manager, you can manage multiple campaigns, keywords, ads, and ad groups in a few clicks.

Who is Bulk Operations useful for?

• If you’re familiar with the advertising console and campaigns
• If you need a more scalable solution as your advertising needs are expanding
• If you want to automate daily tasks of setting up, launching, and optimizing campaigns 

Here’s recommended use cases for Bulksheets:

Source

Bulk Operations lets you update bids, budgets, and targeting across campaigns in just a few clicks. It’s a lifesaver if you’re running 10+ ad groups.

Third-Party Optimization Tools:

When Amazon PPC Optimization tools aren’t enough, third-party tools can help refine your PPC strategy with advanced insights:

• Helium 10

Helium 10 is a popular Amazon marketing software for keyword research and listing optimization. Its PPC tools help you identify profitable keywords and automate campaigns. Starting at $29/month, it’s an excellent all-in-one solution for sellers.

• Sellics

Ideal for tracking and improving ACoS, it uses AI to automate bids and manage ads. While it starts at $57/month, there’s no free trial, which can be a downside for sellers testing the waters.

• Jungle Scout

Widely recognized for helping sellers discover profitable products, Jungle Scout also offers robust Amazon PPC optimization tools. It’s beginner-friendly, starting at $29/month, and provides a limited free trial. It is perfect for small businesses testing ad strategies.

• Zon.Tools

If you want to automate everything, Zon.Tools is the way to go. It’s designed to reduce manual work for PPC management. Starting at $9/month with a free trial, it’s affordable and time-saving.

General Amazon PPC Optimization Techniques

Running Amazon PPC ads can feel like a money pit if you’re not careful. Sellers often waste budgets on irrelevant clicks, untested strategies, and more. The good news? With the right strategies, you can reduce wasted spend, boost sales, and maximize the results of your Amazon PPC optimization efforts.

Tip 1: Trigger Seasonal and Promotional Adjustments

Holidays and big sales events (like Prime Day) bring massive traffic—and stiff competition. Sellers often blow their budgets early because they don’t adjust bids or budgets in advance.

How to Win:

• Boost Bids on Proven Keywords: If “Christmas gift sets” drove sales last year, prep your campaigns early. Allocate more budget to these keywords and start increasing bids gradually two to three weeks before the season peaks.
• Lower Bids on Poor Performers: During the busy seasons, some keywords may get more clicks but fewer sales. For example, “budget-friendly gifts” may perform worse during luxury-focused holidays. So, Lower your bids for these keywords.

Ad Copy Tip:

Make your promotions stand out. Include terms that induce a sense of urgency, such as:

• “Limited Stock—Order Now!”
• “Only 3 Days Left for 20% Off!”

How to Prepare:

• Review your Placement Report to identify where your ads performed best during previous events. Did product pages work better than top-of-search? Shift your budget as needed.
• Use Performance Data from Past Events to guide your keyword strategy and ad spend.

Tip 2: A/B Test for Continual Improvement.

Amazon PPC optimization will require you to continuously refine your ad strategies. Sellers often feel stuck with stagnant ad performance because they’re not testing new strategies. A/B testing can uncover what really works for your audience.

What to Test:

Ad Copy: Experiment with two variations of your ad headline:

• Option A: “Hydration Made Easy—20% Off Water Bottles Today!”
• Option B: “Durable Water Bottles Built for Adventure—Shop Now!”

Images: Test different styles of visuals:

• Option 1: A clean product image of a stainless steel water bottle on a white background.
• Option 2: A lifestyle shot of someone hiking, sipping from the bottle on a scenic mountain trail.

Targeting: Compare the performance of different audience segments:

• Repeat Buyers: Retarget customers who previously purchased your travel gear.
• New Customers: Target shoppers who browsed similar products like thermoses or hydration packs.

How to Improve A/B Testing for Continuous Optimization:

1. Test one variable at a time (for example, copy or image).
2. Let the test run long enough to gather meaningful data (Amazon recommends at least two weeks).
3. Use the results to optimize future campaigns and cut out what doesn’t work.

Pro Tip: Use Amazon’s Creative Assets Library to easily swap and test different images or videos without creating a new campaign.

Ready to Ace Your Amazon PPC Optimization Strategy?

To sum it up, Amazon PPC optimization success comes down to getting the basics right and constantly improving. Focus on targeting the right keywords, blocking the wrong ones, and balancing auto and manual campaigns to get the best of both worlds. Fine-tune your bids, use your budget wisely, and make sure your product listings do justice to your ads.

Track your progress using Amazon’s reports and make changes based on what’s working. Don’t be afraid to test new ideas—whether it’s tweaking headlines, trying fresh images, or experimenting with different bids. A strong Amazon PPC optimization strategy also considers seasonal trends and promotions, helping you stay ahead of the competition.

So, keep testing, learning, and adjusting. With a little patience and consistent effort, you’ll see your ads perform better, and your sales grow. You’ve got this!

FAQs

1. What is the KPI in Amazon PPC? 

KPI (Key Performance Indicator) is a metric that helps you measure the success of your Amazon PPC campaigns. Common KPIs include ACoS (Advertising Cost of Sales), CTR (Click-Through Rate), Conversion Rate, and CPC (Cost Per Click).

2. What are the key metrics to track for Amazon PPC optimization?

ACoS (Advertising Cost of Sales) measures ad spend efficiency. Lower ACoS indicates better ROI. CTR (Click-Through Rate) shows how often people click on your ad. Higher CTR means better engagement. CPC (Cost Per Click) is the average amount you’re paying for each click. Conversion Rate indicates how many clicks turn into sales. A high conversion rate means your product is resonating with shoppers.

3. How do I determine the best bidding strategy for my Amazon PPC campaigns?

To choose the best bidding strategy, consider your goals. For immediate sales, go for CPC (Cost-Per-Click). This helps you control your spending and only pay when someone clicks.For brand awareness, opt for CPM (Cost-Per-Thousand Impressions). This is useful for getting your brand in front of more shoppers without focusing on clicks.

4. What’s the difference between auto and manual campaigns in Amazon PPC, and how should I use each?

Auto campaigns let Amazon choose keywords for you based on your product. Manual campaigns give you full control over choosing specific keywords and bids. To use auto campaigns, start with these to gather data and identify high-performing keywords. For manual campaigns, once you find winning keywords, move them to manual campaigns for more control over targeting and bidding.

Using both together helps you discover new keywords while focusing on what works best.

5. How can I use negative keywords to improve my Amazon PPC performance?

Negative keywords help prevent your ads from showing for irrelevant searches. To improve performance, regularly review your search term report for terms that aren’t converting. Include words such as “cheap” or “free” if you’re selling premium products. Also, keep updating your negative keyword list to avoid wasted spend on non-relevant traffic.

Using negative keywords ensures your ads target the right audience and improves ROI.

6. Which Amazon PPC reports should I monitor regularly to assess my campaign’s success?

Key Amazon PPC reports to monitor include Search Term Report to identify high-performing and underperforming keywords. ACoS Report shows your Advertising Cost of Sales to measure profitability. Campaign Performance Report provides an overview of all key metrics for each campaign. Placement Report analyzes how ads perform on different placements, like Top of Search or Product Detail Pages.

7. What tools are available to help with Amazon PPC optimization, and are they worth it?

Tools such as Helium 10, Jungle Scout, Sellics, etc., offer features like keyword research, bid management, and performance analytics. They can save time, improve targeting, and boost ROI. While they come with a cost, many sellers find them worth the investment for the insights and automation they provide.

8. How do I optimize my product listings to enhance PPC ad performance?

Make sure your product listings are clear and relevant. Use high-quality images and include key details in your title and bullet points. Focus on benefits, not just features, to appeal to shoppers. Add relevant keywords naturally in your description to match what buyers are searching for. Positive reviews and a well-organized listing can also improve conversions, making your ads more effective.

9. How do seasonal trends and promotions affect my Amazon PPC strategy?

Seasonal trends and promotions drive higher traffic and competition. To capitalize on this, increase your budgets and bids during high-demand periods like holidays to maximize visibility. Use historical performance data in the Campaigns tab to identify trends and adjust your strategy.

Running seasonal promotions, like discounts or bundles, can also boost your campaign performance.