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Amazon Advertising Guide (2025) – Types, PPC, and How to Use Them

A digital screen showing Amazon Advertising dashboard with PPC performance metrics like impressions, clicks, and ACoS for Sponsored Products
Amazon PPC ad campaign overview — tracking impressions, ACoS, and conversion rates for better performance.

Introduction: What Is Amazon Advertising?

Amazon Advertising refers to a suite of paid advertising tools that help sellers and vendors increase product visibility, drive traffic, and boost conversions within Amazon's ecosystem. Whether you're launching a new product or scaling an existing one, Amazon Ads can put your listings in front of high-intent shoppers actively searching to buy.


🔍 Why Use Amazon Ads?

  • Reach millions of ready-to-buy customers

  • Improve organic ranking through paid visibility

  • Launch new products faster

  • Win the Buy Box and increase sales

  • Outperform competitors in saturated categories


🚀 Main Types of Amazon Ads (2025)

Amazon offers several ad types tailored for different goals and budgets. Here's a breakdown of the most popular ones:


1. 📦 Sponsored Products (PPC)

What it is:Pay-per-click (PPC) ads that promote individual product listings directly in Amazon search results and on product detail pages.

Where it appears:

  • Top of search results (above organic listings)

  • Middle or bottom of results

  • Product pages (under "Sponsored Related Products")

Best for:

  • New product launches

  • Ranking for specific keywords

  • Competing on high-volume ASINs

How to Use:

  • Create a campaign via Seller Central

  • Set a daily budget and bid strategy (manual or automatic)

  • Target keywords or ASINs

  • Monitor and optimize based on ACoS (Advertising Cost of Sale)


2. 🎯 Sponsored Brands

What it is:Ads that promote your brand and multiple products together, typically with a custom headline and logo.

Where it appears:

  • Top of search results

  • Brand Store landing pages

  • Mobile banners

Best for:

  • Increasing brand awareness

  • Promoting your Amazon Store

  • Driving traffic to multiple listings

Requirements:

  • Amazon Brand Registry enrollment


3. 🛍️ Sponsored Display

What it is:Display ads that retarget customers who viewed your products or similar products, both on and off Amazon.

Where it appears:

  • Amazon homepage

  • Product detail pages

  • Third-party websites (retargeting)

Best for:

  • Retargeting warm traffic

  • Competitor conquesting

  • Product awareness


4. 🏪 Amazon DSP (Demand Side Platform)

What it is:Advanced programmatic advertising that allows advertisers to buy video and display ads both on Amazon and across the web.

Best for:

  • Large brands with bigger budgets

  • Video campaigns

  • Cross-platform visibility

Requirements:

  • Minimum budget (varies by region)

  • Typically managed by Amazon Ads team or certified DSP partners


💸 What Is Amazon PPC?

PPC = Pay-Per-ClickYou only pay when someone clicks on your ad, not when it’s viewed.

Key PPC Metrics:

  • Impressions: How often your ad is shown

  • CTR (Click-Through Rate): Clicks ÷ Impressions

  • CPC (Cost Per Click): How much you pay per click

  • ACoS: Ad Spend ÷ Attributed Sales

  • ROAS: Return on Ad Spend

Types of Targeting:

  • Automatic Targeting: Amazon chooses keywords/ASINs for you

  • Manual Targeting: You choose keywords or product targets

    • Broad match

    • Phrase match

    • Exact match

    • Negative keywords to block irrelevant traffic


⚙️ How to Set Up an Amazon PPC Campaign (Step-by-Step)

  1. Log into Seller Central

  2. Navigate to “Advertising” > “Campaign Manager”

  3. Click “Create Campaign”

  4. Choose “Sponsored Products”

  5. Set campaign name, start/end dates, daily budget

  6. Select targeting type (Automatic or Manual)

  7. Add products to promote

  8. Add keywords or product targeting

  9. Set bids

  10. Launch and monitor regularly


🎯 Tips to Optimize Amazon Ads

  • Start with automatic campaigns to gather data

  • Use negative keywords to reduce wasted spend

  • Split test product images and titles

  • Increase bids on high-performing keywords

  • Use Brand Analytics to identify converting search terms

  • Monitor ACoS weekly and pause underperformers

  • Run retargeting via Sponsored Display for abandoned viewers


📌 Final Thoughts: Why Amazon Ads Matter in 2025

Amazon advertising is no longer optional—it’s essential. With competition rising in every category, running effective Amazon Ads can make or break your business. Whether you’re a new seller or an established brand, leveraging Sponsored Products, Brands, and Display Ads will boost your visibility, improve conversions, and scale your growth in 2025 and beyond.

 
 
 

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