Amazon has become the default “product search engine” for millions of shoppers—so if you sell on Amazon, Amazon ads aren’t optional for long. They’re how you earn visibility when the marketplace is crowded, the top rows are competitive, and organic rank takes time to build.
In this guide, you’ll learn Amazon advertising fundamentals, the core of Amazon PPC, how to run campaigns in the Amazon advertising console, and how to choose the right formats—Amazon Sponsored Products, Sponsored Brands, and Sponsored Display—while keeping costs under control using ACoS and a practical optimization system.
Is Amazon Advertising Worth It?
If you sell on Amazon, Amazon Sponsored Ads are often the fastest path to (1) discoverability, (2) early sales velocity, and (3) keyword ranking data you can actually use. Unlike many platforms where users are browsing, Amazon shoppers are typically closer to purchase—so a “good-enough” campaign can outperform a “perfect” awareness campaign elsewhere.
- Immediate traffic for new listings or launches
- Controlled testing of price points, images, titles, and offers
- Scalable sales once you find profitable keywords and ASIN targets
- Defensibility (protecting brand terms + product detail pages)
How Amazon PPC Works (in Plain English)
Amazon PPC is a pay-per-click auction: you bid to appear when a shopper searches a keyword (or browses a product page). Most sponsored ads are CPC, meaning you pay when someone clicks—not when the ad shows. You choose your budget and bids, and campaigns can run with no minimum spend requirement (many sellers start small and scale).
- Targeting decides where you show up (keywords, products, categories, audiences).
- Creative + listing quality decides whether you earn the click (main image, price, reviews, Prime, title).
- Conversion rate decides whether the click turns into sales (A+ content, variations, shipping, trust).
One underused advantage: Amazon Ads are not just “ads”—they are also a feedback system. Your search term report tells you which queries convert, which ones waste spend, and which ones belong in your listing copy.
Types of Amazon Ads (Sponsored Products, Brands, Display & More)
Amazon gives you multiple formats depending on whether your goal is direct sales, brand discovery, or retargeting. Most sellers start with Amazon Sponsored Products because it’s the most straightforward path to conversions.
| Amazon ad type | What it does | Best for | Pro tip |
|---|---|---|---|
| Amazon Sponsored Products | Promote individual listings in search results and product pages. | Fast conversions, launches, ranking support. | Start with auto targeting to mine search terms, then move winners to manual. |
| Sponsored Brands | Showcase brand + multiple products (often top-of-search placements). | Brand discovery, cross-sell, category leadership. | Use video if possible; “hook” in the first 2 seconds matters. |
| Amazon Sponsored Display | Reach shoppers on/off Amazon using shopping signals and retargeting. | Retargeting, competitor product-page conquesting. | Use it to protect your own detail pages + win back “viewed but didn’t buy.” |
| Amazon video ads | Video creatives that drive high attention and better product understanding. | Higher AOV products, education-heavy categories. | “UGC-style” demos often beat studio polish in trust-building. |
| Amazon DSP | Programmatic reach beyond Amazon, with advanced audiences. | Scale + retargeting at larger budgets. | Use once your on-Amazon funnel converts consistently. |
Creative matters more than most sellers admit. Your main image + reviews are your “ad.” For video, lean into authentic, human proof—especially if you can repurpose UGC ads patterns for demos and testimonials.
How to Run Amazon Ads (Step-by-Step)
Here’s a practical setup flow you can follow inside the Amazon advertising console. This works whether you’re DIY, using an Amazon PPC agency, or hiring Amazon advertising services.
- Main image is clear, high-contrast, and category-native
- Price is competitive and your offer is “complete” (Prime, variations, coupons if relevant)
- Listing answers objections (size, ingredients, compatibility, warranty, what’s included)
- You have enough reviews to convert (or you’re using ads to accelerate traction carefully)
Step 1: Start with Sponsored Products (Auto)
Create an Amazon Sponsored Products campaign using automatic targeting. This is your data-mining engine: it finds real shopper search terms and ASIN placements that trigger impressions and clicks.
- Pick 1–3 hero ASINs (not your entire catalog on day one)
- Set a daily budget you’re comfortable “testing” with for 7–14 days
- Use “dynamic bids down only” early to reduce expensive misses
Step 2: Build Sponsored Products (Manual) from winners
After you have search term data, create manual campaigns and split intent:
- Exact for your proven converting terms
- Phrase for scalable variations
- Broad only if you can control waste with negatives
- Product targeting to show on competitor pages and complementary listings
Step 3: Add Sponsored Brands for discovery + higher AOV
Sponsored Brands help you own “top of search” and move shoppers into a small ecosystem of your products. If you have multiple SKUs, it’s one of the best ways to increase average order value.
Step 4: Use Sponsored Display for retargeting + defense
Sponsored Display is where many brands finally “stabilize” performance. It helps you retarget viewers, defend your product detail pages, and claw back lost carts—especially when you have high consideration products.
Amazon ACoS (and the Metrics That Actually Matter)
Amazon ACoS (Advertising Cost of Sales) is the default performance metric in Amazon PPC: ACoS = Ad spend ÷ Attributed sales.
| Metric | What it tells you | How to improve it |
|---|---|---|
| ACoS | Efficiency of ad spend relative to sales. | Better targeting, negatives, stronger listing conversion. |
| ROAS | Revenue per $1 spent (inverse of ACoS). | Scale winners, pause losers, improve offer strength. |
| CTR | How compelling your “ad + offer” looks. | Main image, price, coupon, title clarity, review count. |
| CVR | How often clicks become orders. | A+ content, better images, FAQs, trust + shipping. |
| TACoS | Ad spend vs total sales (ads + organic). | Use PPC to lift organic rank; improve listing SEO. |
ACoS doesn’t have a single “good” number. A launch campaign might tolerate higher ACoS to earn reviews and keyword momentum. A mature SKU often targets lower ACoS to protect margin. Your real goal is: profitable growth, not the lowest ACoS on a spreadsheet.
Amazon Ads Cost (What You’re Really Paying For)
Amazon ads cost is driven by auction competition and buyer intent. Most sponsored ads are CPC. You set your daily budgets and bids, and you pay when shoppers click your ads—so your cost structure is heavily influenced by (1) how competitive your keywords are and (2) how well your listing converts after the click.
- Overbidding on broad keywords without negative keyword control
- Low conversion rate (you pay for clicks that don’t buy)
- Weak offer (price, shipping speed, reviews, lack of coupon)
- Targeting mismatches (showing on irrelevant product pages)
If you’re building video assets for Sponsored Brands Video or DSP, you don’t need massive budgets to look credible. Many brands scale with affordable video marketing tactics—simple demos, clear voiceovers, and UGC-style testimonials.
Amazon Ads vs Google Ads (When to Use Which)
People often compare Amazon ads vs Google ads as if one “wins.” In reality, they serve different moments in the customer journey:
| Channel | Best for | Typical buyer mindset | Winning approach |
|---|---|---|---|
| Amazon Advertising | Purchase-ready shoppers; product-led growth. | “I want to buy this type of product.” | Tight targeting + high-converting listing + strong reviews. |
| Google Ads | Broader demand capture; research and comparison. | “I’m exploring options and brands.” | Landing pages, value props, and education-heavy content. |
A common growth play is: use Google to create demand and capture non-Amazon intent, then use Amazon retargeting and Sponsored Display to close the sale. This is where collaboration in marketing across teams matters—brand, performance, and creative need to work from one plan, not separate briefs.
Amazon PPC Optimization Playbook (Weekly System)
Most Amazon PPC “failure” is actually lack of process. Here’s a simple weekly routine used by top operators and many Amazon PPC agencies:
- Search term harvest: move converting terms into Exact + add negatives for waste.
- Placement review: cut irrelevant product pages; boost top converters.
- Budget routing: shift budget to profitable campaigns; cap experiments.
- Listing upgrades: improve image set, A+ content, and FAQs based on ad traffic.
- Creative refresh: rotate video hooks and visual angles (UGC-style works well).
This system is how you turn “Amazon PPC advertising” from guesswork into predictable improvement.
Key Amazon Ads Statistics (Quick Snapshot)
How AdSpyder Helps You Scale Amazon PPC Faster
Scaling Amazon PPC is rarely about “more spend.” It’s about faster learning. Competitor intelligence helps you understand what angles, offers, and creative patterns are winning in your category—so you can iterate with less trial-and-error.
- Spot proven hooks and benefit framing in your niche
- Benchmark landing page structure and offer positioning
- Generate faster creative variants (including UGC-style angles)
This is especially useful if you work with an Amazon PPC agency, or if multiple stakeholders need alignment—because good campaigns are a product of clear briefs, tight execution, and consistent optimization.
FAQs: Amazon Ads & Amazon PPC
How do I run Amazon ads as a beginner?
What is ACoS in Amazon PPC?
How much do Amazon ads cost?
Which Amazon ad type should I start with?
How do I reduce wasted spend in Amazon PPC?
Are Amazon ads better than Google ads?
Should I hire an Amazon PPC agency?
Conclusion
Amazon Ads work when you treat them like a system: mine search terms, build intent-based manual campaigns, protect profitability with negatives, and continuously improve listing conversion. Start with Sponsored Products, expand into Sponsored Brands and Sponsored Display once you have traction, and use ACoS/TACoS to decide whether you’re buying growth or burning margin. When you pair that with competitor insights and strong creative (often UGC-style + affordable video), Amazon PPC becomes one of the most scalable growth levers in eCommerce.
