The Ultimate Guide to Amazon PPC Advertising
Written by Shahid R. KhanReviewed by Andrew L. Adler & Jonathan M. Adler
Amazon PPC (Pay-Per-Click) advertising is one of the most powerful tools for increasing product visibility, driving sales, and scaling your business on Amazon. Mastering PPC can mean the difference between a product that thrives and one that struggles to gain traction.
This guide will walk you through everything you need to know to create, optimize, and scale your Amazon PPC campaigns for maximum profitability.
What is Amazon PPC and How Does It Work?
Amazon PPC is an auction-based advertising platform that allows sellers to bid on keywords to have their products appear in search results and on product pages. You only pay when a shopper clicks on your ad, making it a cost-effective way to drive targeted traffic.
Why Amazon PPC is Essential for Sellers
- Immediate Visibility: Your product can appear at the top of search results, even without reviews.
- Controlled Marketing Spend: You set daily and per-click budgets to manage costs.
- Data-Driven Optimization: Campaign reports help refine keyword targeting.
- Improved Organic Rankings: Increased sales from PPC can boost organic ranking.
Types of Amazon PPC Ads
Sponsored Products
- Appear in search results and product detail pages.
- Target specific keywords or use Amazon’s auto-targeting.
- Best for driving sales and improving organic ranking.
Sponsored Brands
- Banner ads featuring your logo, custom headline, and multiple products.
- Appear at the top of search results.
- Best for brand awareness and directing traffic to your Amazon Store.
Sponsored Display
- Retargets shoppers who viewed your product or similar items.
- Appears on product pages, search results, and external websites.
- Best for re-engaging potential customers and competitor targeting.
Step-by-Step Guide to Setting Up Your First Amazon PPC Campaign
Step 1: Choosing the Right Campaign Type
- Automatic Campaigns: Amazon selects keywords based on product information (best for beginners).
- Manual Campaigns: You select specific keywords and set individual bids (best for precise control).
Recommendation: Start with an automatic campaign to discover converting keywords, then transition to a manual campaign for better optimization.
Step 2: Selecting the Right Keywords
Keyword Research Tools
- Amazon Search Term Report (in Seller Central)
- Helium 10 Magnet & Cerebro
- Jungle Scout Keyword Scout
- Amazon Auto-Suggest
Keyword Match Types
- Broad Match: Shows ads for loosely related searches.
- Phrase Match: Shows ads for exact phrases with minor variations.
- Exact Match: Shows ads only for exact keyword matches.
Beginner Strategy: Use a mix of all three match types, prioritizing exact match for high-converting keywords.
Step 3: Setting a Budget and Bidding Strategy
- Daily Budget: Start with $10-$20 per campaign and adjust based on performance.
- Bidding Strategies:
- Dynamic Bids – Down Only: Amazon lowers your bid when a conversion is unlikely.
- Dynamic Bids – Up and Down: Amazon adjusts bids up or down based on conversion likelihood.
- Fixed Bids: Your bid stays the same, regardless of performance.
Best Practice: For beginners, use Dynamic Bids – Down Only to control costs while allowing flexibility.
Step 4: Launching & Monitoring Performance
- Let campaigns run for at least 7-14 days before making major changes.
- Monitor key metrics:
- Impressions (ad visibility)
- Click-Through Rate (CTR) (ad engagement)
- Conversion Rate (sales vs. clicks)
- Advertising Cost of Sales (ACoS) (profitability of ads)
Optimizing Your Amazon PPC Campaign for Better Results
Lowering ACoS (Advertising Cost of Sales)
Implement Negative Keywords
- Prevents wasted ad spend on irrelevant searches.
- Example: If you sell premium “leather wallets,” add “cheap wallets” as a negative keyword.
- Review Search Term Reports weekly to refine negative keywords.
Optimize Your Product Listings
- High-quality images (multiple angles, zoom-enabled)
- Keyword-rich product title
- Compelling bullet points & description
- Customer reviews & A+ Content (if available)
Adjust Bids Strategically
- Increase bids on high-performing keywords.
- Reduce or pause bids on underperforming keywords.
- Use bid adjustments for top-of-search placement (e.g., +20-30%).
Scaling Your Amazon PPC Campaigns
Retargeting with Sponsored Display Ads
- Views Remarketing: Targets shoppers who viewed your product but didn’t buy.
- Competitor Targeting: Places your ads on competitor product pages.
Leveraging Brand Analytics for Smarter Bidding
- Identify top-performing keywords in your category.
- Compare your click share vs. competitors.
- Adjust bids to dominate high-converting keywords.
Running Seasonal & Promotional PPC Campaigns
- Prime Day, Black Friday, Holiday Seasons: Increase bids on trending keywords.
- Use Sponsored Brands to promote deals and limited-time offers.
- Retarget deal viewers with post-sale ads.
Common Amazon PPC Mistakes and How to Avoid Them
Mistake 1: Ignoring Negative Keywords
✅ Solution: Review Search Term Reports weekly and add irrelevant terms as negatives.
Mistake 2: Setting the Wrong Bid Amount
✅ Solution: Start with Amazon’s suggested bid range and adjust based on ACoS.
Mistake 3: Not Monitoring Performance Regularly
✅ Solution: Check campaign performance daily, adjust bids weekly, and optimize listings monthly.
Mistake 4: Poor Product Listings
✅ Solution: Ensure listings are fully optimized before running ads.
Mastering Amazon PPC for Long-Term Success
Amazon PPC is an essential tool for growing your Amazon business. By setting up well-structured campaigns, optimizing based on data, and continuously refining your strategy, you can maximize profitability and scale your sales.
✅ Next Steps:
- Audit your current PPC campaigns.
- Optimize listings to improve conversion rates.
- Experiment with new bidding strategies.
- Join Amazon PPC communities to stay updated.
🚀 Need help with Amazon PPC? Drop your questions below, and let’s optimize your campaigns together!
