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Set Up Amazon Ads – A Step by Step Guide for Marketers in 2026

Set Up Amazon Ads

Amazon Ads reaches millions of high-intent shoppers actively searching products. Setting up Amazon ads requires strategic campaign configuration. Understanding ad types maximizes visibility. Proper targeting drives qualified traffic. This comprehensive guide walks beginners through complete set up Amazon ads.

Amazon PPC campaigns deliver measurable ROI through precise audience targeting. Sponsored Products appear in search results. Sponsored Brands showcase multiple items. Display Ads build awareness. Following these step-by-step instructions enables successful campaign launch.

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Amazon Advertising Overview

Amazon Ads connects sellers with shoppers actively searching products. Three primary ad types serve different goals. Sponsored Products promote individual listings. Sponsored Brands build category presence. Display Ads reach audiences beyond Amazon. Understanding each type informs strategic selection.

Core Amazon Ad Types

Primary Advertising Options:
Sponsored Products: Single product ads in search results, detail pages
Sponsored Brands: Multi-product ads with brand logo, custom headline
Amazon DSP: Programmatic display reaching broader audiences (advanced)
Sponsored Display: Product or audience targeting across Amazon sites

Why Advertise on Amazon

High purchase intent: Shoppers actively searching to buy
Massive reach: 300+ million active customer accounts
Product-level targeting: Show ads on competitor pages
Performance tracking: Detailed sales attribution reporting
Flexible budgets: Start campaigns with minimal daily spend

Search intent comparison with high-performing Google search ads reveals key differences—while Google captures informational searches early in buyer journey, Amazon targets transactional queries from ready-to-purchase shoppers with immediate conversion intent.

Amazon Advertising Market Statistics

Amazon advertising services 2024
$56.22B
Total sales (+19.8% from $46.91B in 2023).
Amazon Ads Q3 2025 revenue
$17.7B
Quarterly revenue (+24% YoY growth).
India e-commerce ad revenue FY25
₹15,573cr
Platform ad revenue (+26% YoY increase).
Internet advertising revenue 2024
$259B
Total digital ad spending (overall market size).
Sources: Marketplace Pulse Amazon Advertising Services Sales, Adweek Q3 2025 Earnings Coverage, Economic Times India E-commerce Ad Revenue Report, IAB Internet Advertising Revenue Report.

Prerequisites Before Starting Set Up Amazon Ads

Amazon Ads requires specific account types and product eligibility. Meeting requirements ensures smooth campaign creation. Understanding prerequisites prevents setup delays. Verify these items before beginning.

Required Account Types

Eligible Seller Accounts:
Professional Seller account: $39.99/month subscription required
Vendor Central account: Invitation-only wholesale suppliers
Book vendors: KDP authors can advertise books
Agency accounts: Manage ads for clients (special access)

Product Eligibility Requirements

Product Must Have:
Buy Box eligibility: Competitive pricing, good seller metrics
Active detail page: Listed in Amazon catalog
Available category: Not restricted (no adult, used items)
Good account health: No policy violations, positive rating

Payment Method Setup

Valid credit card: Visa, Mastercard, American Express accepted
Bank account: For direct debit in some regions
Billing address: Matches card information
Sufficient funds: Ensure credit limit covers daily budget

Step 1: Set Up Amazon Ads Account

Set Up Amazon Ads Account

Creating your Amazon Advertising account takes minutes. Follow these detailed steps to access Campaign Manager. Proper setup enables campaign creation immediately.

Accessing Campaign Manager

Step-by-Step Access:
1: Log into Seller Central (sellercentral.amazon.com)
2: Navigate to “Advertising” tab in top menu
3: Select “Campaign Manager” from dropdown
4: Accept Amazon Advertising agreement terms
5: Add payment method (credit card information)

Platform navigation similarities with set-up LinkedIn ads reveal common patterns—both platforms require account verification, payment setup, and campaign manager access before creating first campaigns, though Amazon focuses on product catalog integration.

Setting Account Preferences

Initial Configuration:
Time zone: Set to your business location
Currency: Default to marketplace currency (USD for US)
Notification preferences: Choose email alert frequency
User permissions: Add team members if needed

Step 2: Set Up Amazon Ads: Creating Your First Campaign

Campaign creation involves selecting ad type, naming conventions, and structural decisions. Sponsored Products campaigns offer easiest starting point for beginners. Following proper setup sequence ensures successful launch.

Choosing Campaign Type

Sponsored Products Setup:
1: Click “Create campaign” in Campaign Manager
2: Select “Sponsored Products” (recommended for beginners)
3: Choose campaign name (descriptive: “Product-Name-Auto-Jan2026”)
4: Set portfolio (optional grouping for organization)
5: Select start and end dates (or continuous)

Campaign Settings Configuration

Essential Settings:
Daily budget: Set minimum $10/day (start conservatively)
Targeting type: Choose “Automatic” for beginners or “Manual” for control
Bidding strategy: Select “Dynamic bids – down only” (safe start)
Campaign bidding: Set default bid ($0.75-$1.50 typical range)

Adding Products to Campaign

Search products: Enter ASIN, SKU, or product name
Select items: Check boxes for products to advertise
Ad group creation: Name ad group descriptively
Review selections: Verify products meet eligibility
Launch campaign: Click “Launch campaign” button

Step 3: Configuring Targeting Options to Set Up Amazon Ads

Targeting determines where ads appear. Automatic targeting lets Amazon optimize placement. Manual targeting provides granular control. Understanding both approaches maximizes campaign effectiveness.

Automatic Targeting (Beginner-Friendly)

Automatic Targeting Options:
Close match: Amazon matches highly relevant searches
Loose match: Broader related search terms
Substitutes: Shows on competing product pages
Complements: Appears with related products

Audience targeting mechanics similar to set-up Instagram ads where both platforms offer automatic and manual options—Instagram uses demographic/interest targeting while Amazon focuses on shopping behavior and product-level precision.

Manual Keyword Targeting

Keyword Match Types:
Broad match: Variations, synonyms, related searches
Phrase match: Exact phrase with additional words
Exact match: Precise search term only
Negative keywords: Exclude irrelevant searches (save budget)

Product Targeting Setup

Individual products: Target specific ASINs (competitors)
Categories: Broad category targeting (e.g., “Kitchen Gadgets”)
Brands: Show ads on competitor brand pages
Refinements: Filter by price, rating, Prime eligibility

Step 4: Setting Budget & Bidding Strategy to Set Up Amazon Ads

Budget controls daily ad spend. Bidding determines cost per click. Strategic allocation maximizes ROI. Understanding auction dynamics informs smart bidding decisions.

Daily Budget Recommendations

Budget Guidelines by Experience:
Beginners: Start $10-$25/day per campaign
Testing phase: Minimum 2 weeks data collection
Scaling: Increase 20% weekly for profitable campaigns
Buffer amount: Set 20% above target spend

Bidding Strategy Options

Amazon Bidding Strategies:
Dynamic bids – down only: Lower bids for unlikely conversions (recommended start)
Dynamic bids – up and down: Raise/lower based on conversion likelihood
Fixed bids: Maintain exact bid amount (manual control)
Rule-based bidding: Adjust by placement (top of search +50%)

Determining Starting Bids

Amazon suggestions: Review suggested bid range
Profit margins: Calculate break-even ACoS (Advertising Cost of Sales)
Competitive research: Check similar products’ estimated bids
Conservative start: Begin at lower range, increase gradually
Placement modifiers: +100% top of search, +50% product pages

Conversion tracking importance parallels Meta pixel implementation—while Meta Pixel tracks off-Facebook conversions through website pixels, Amazon automatically attributes sales to ad clicks, simplifying ROI measurement through native platform analytics.

Step 5: Campaign Optimization & Monitoring Post Set Up Amazon Ads

Campaign Optimization & Monitoring Post Set Up Amazon Ads

Continuous optimization improves campaign performance. Regular monitoring identifies opportunities. Data-driven adjustments maximize ROI. Systematic optimization drives sustainable growth.

Key Metrics to Monitor

Essential Performance Indicators:
ACoS (Advertising Cost of Sales): Ad spend / attributed sales (lower better)
ROAS (Return on Ad Spend): Revenue / ad spend (higher better)
Click-through rate (CTR): Clicks / impressions (0.3-0.5% typical)
Conversion rate: Orders / clicks (10-15% healthy range)
Impression share: Market coverage percentage

Weekly Optimization Tasks

Regular Maintenance Schedule:
Search term report: Identify new keywords, add negatives
Bid adjustments: Increase profitable, decrease unprofitable
Budget reallocation: Shift spend to winning campaigns
Pause underperformers: Stop ads with high ACoS, low sales
A/B test changes: Test one variable at a time

Advanced Optimization Strategies

Dayparting: Analyze hourly performance, adjust schedules
Product page optimization: Improve listings for better conversion
Campaign structure refinement: Single keyword ad groups (SKAGs)
Seasonal adjustments: Increase budgets for peak periods
Competitor monitoring: Track rival pricing and positioning

FAQs: Set Up Amazon Ads

Do I need a Professional Seller account for Amazon Ads?
Yes, Sponsored Products and Sponsored Brands require Professional Seller account ($39.99/month). Individual sellers cannot access Amazon advertising, making account upgrade necessary before campaign creation.
Should I start with automatic or manual targeting?
Beginners should start with automatic targeting to gather keyword data, then transition to manual after 2-3 weeks. Automatic campaigns discover relevant search terms you can later refine manually.
What’s a good starting daily budget?
Start with $10-$25 per day per campaign minimum. Run for at least 2 weeks to collect meaningful data before making optimization decisions or scaling budget upward.
How do I calculate my target ACoS?
Target ACoS = Profit margin percentage. If product has 40% margin, target 40% ACoS to break even on ad spend while acquiring customers for future purchases.
How long until I see results from Amazon Ads?
Allow 2-4 weeks for data collection and algorithm learning. Amazon needs impression volume to optimize delivery, and you need conversion data for informed optimization decisions.

Conclusion

Amazon Ads setup requires Professional Seller account fundamentally. $56.22B advertising services demonstrate platform scale. Campaign creation involves selecting ad types strategically. Sponsored Products offer beginner-friendly starting point. Automatic targeting simplifies initial learning. Manual keywords enable granular control. Budget allocation demands conservative approach. Dynamic bidding down-only reduces risk. Regular optimization drives performance improvements. ACoS monitoring ensures profitability. Search term reports reveal opportunities. Negative keywords eliminate waste. Product page optimization boosts conversion. Systematic testing identifies winners. Patient data collection informs decisions. Following these steps launches successful Amazon advertising comprehensively.