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Amazon PPC 101: Everything You Need to Know for a Strong Start in 2024

2 min Read | 9 min Read

What is Amazon PPC?

Amazon PPC is an advertising service where sellers pay only when someone clicks on their ad, helping their products show up in searches and on product pages.

What are the Different Types of Amazon Ads

1. Sponsored Products: Targeted ads appearing in search results, product pages, and relevant areas. Pay only when clicked.

2. Sponsored Brands: Mini-billboards showcasing your brand logo/video and up to 3 products in search results.

3. Sponsored Display Ads: Reach potential customers beyond Amazon, appearing on websites, apps, and social media. Target by demographics, interests, and purchase behavior.

4. Amazon TV Ads: Run video ads on popular streaming services like Prime Video and Fire TV to reach a wider audience.

Avoid these Amazon PPC Mistakes:

1. Poor campaign structure: Organize campaigns by product, brand, or goal for better control and budget allocation.

2. Relying only on auto-campaigns: Combine them with manual campaigns for more control over bids and targeting.

3. One-size-fits-all bidding: Tailor bids to each product based on factors like profitability and competition.

4. Skipping keyword research: Use tools to identify relevant, high-traffic keywords.

5. Ignoring negative keywords: Use them to prevent irrelevant searches from draining your budget.

6. Neglecting optimization: Regularly monitor and adjust campaigns based on key metrics.

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What is Amazon PPC?

Amazon PPC is an advertising platform offered by Amazon that allows sellers and brands to promote their products to potential customers searching for relevant products on the Amazon marketplace. It’s an auction-based system, where advertisers bid and they want their products to appear in search results and on product pages. When a customer clicks on an ads, the advertiser is charged a fee.

What are the Different Types of Amazon Ads

1. Sponsored Products Ads:

Sponsored Products Ads act like targeted spotlights, grabbing attention in search results, product pages, and relevant areas. Users searching for specific keywords, browsing categories, or even checking out competitors can discover your offerings. You only pay when someone clicks, making it a cost-effective way to reach interested buyers.

2. Sponsored Brands Ads:

Think of Sponsored Brands Ads as mini-billboards within search results. Showcase your brand logo/Brand Video promote and up to three products, boosting brand awareness and driving traffic to your listings. Target by keywords, categories, or specific products to ensure your message reaches the right audience.

3. Sponsored Display Ads:

Sponsored Display Ads appear on third-party websites, apps, and social media where potential customers interested in similar products visit. This also involves retargeting past visitors, attracting new ones, and promoting specific deals or products. With the help of Sponsored Display Ads, you can laser focus your outreach by targeting based on demographics, interests, and even purchase behavior.

By understanding these core ad types and their distinct advantages, you can choose the ones that best align with your business goals, target audience, and budget.

4. Amazon TV ADs

Amazon TV Ads, also known as Sponsored TV, is a new advertising option within Amazon PPC that allows businesses of all sizes to run video ads on popular streaming services like Amazon Prime Video and Fire TV, reaching a wider audience beyond Amazon’s website. This program offers benefits like increased brand awareness, measurable results, and accessibility, making it a valuable tool for expanding your reach and driving results through video advertising on streaming platforms.

Amazon PPC Benefits: Attract, Convert, and Thrive

Selling on Amazon is a competitive race, and standing out amidst millions of products requires effective strategies. Here’s where Amazon PPC benefits truly shine:

1. Attract the Right Customers:

  • Laser-Targeted Reach: Unlike organic search, where visibility relies on algorithms, PPC allows you to target specific keywords shoppers actually use. Imagine your product appearing right when someone searches for a similar item! This targeted approach delivers highly relevant traffic, increasing the likelihood of conversions.
  • Bypass Organic Ranking Barriers: New products often struggle to climb the organic ranking ladder. PPC offers an immediate solution, placing your product in front of relevant eyes.

2. Boost Sales and Conversions:

  • Prime Placement, Elevated Clicks: Secure prominent ad placements on search results pages and product detail pages, grabbing attention and driving valuable clicks. Remember, clicks often translate to increased sales and conversions, propelling your brand forward.
  • Data-Driven Optimization: PPC provides valuable insights into what resonates with your target audience. Analyze keyword performance, refine bids, and optimize ad copy to continuously improve conversion rates, maximizing your return on investment (ROI).

Also Read: 6 Reasons Why Outsourcing Amazon PPC is Beneficial for Your Business

3. Enhance Brand Recognition and Awareness:

  • Repeated Exposure, Growing Familiarity: Even if customers don’t click immediately, repeated ad exposure builds brand awareness and recognition. Over time, they’ll remember your brand and consider you when making purchase decisions.
  • A/B Testing: Test different ad formats, visuals, and messaging to discover what resonates with your audience. This creative freedom helps you refine your brand voice and establish a strong presence on the platform.

Remember, Amazon PPC benefits are not magic beans; they require strategic planning, ongoing optimization, and continuous learning. By leveraging these benefits effectively, you can transform your Amazon presence, attract the right customers, and watch your brand flourish.

Best Practices for Amazon PPC Campaigns

Here are some of the best practices that SMB companies can use when running Amazon PPC campaigns.

  • Utilize Amazon’s tools: Leverage features like the Brand Analytics Search Term Report and Product Advertising Search Term Report to identify keywords shoppers use to find similar products.
  • Consider external tools: Explore keyword research tools like Helium 10 or SellerApp to uncover broader keyword pools and analyze search volume, competition, and estimated CPC (Cost-Per-Click).
  • Refine your targeting: Identify high-volume, relevant keywords with moderate competition for efficient targeting and optimal return on ad spend (ROAS).
  • Product Selection: Choose products with good profit margins and sales potential to ensure campaign sustainability.
  • Targeting Options: Utilize broad match, phrase match, or exact match keyword targeting strategies based on your desired reach and control.
  • Bid Optimization: Start with conservative bids based on your research and gradually adjust them based on campaign performance and ACoS (Advertising Cost of Sales).

Also Read: How to Dominate Amazon Keyword Rankings and Crush Competition in 2024?

What Are The Common Mistakes To Avoid On Amazon PPC

Amazon PPC holds immense potential for boosting your product visibility and driving sales. However, navigating this advertising platform successfully requires avoiding some common pitfalls. By steering clear of these Amazon PPC mistakes, you can ensure your campaigns run smoothly and deliver optimal results.

1. Campaign Structure Gone

Wrong Imagine throwing all your ingredients into a single pot without organization. It might cook something, but it won’t be the delicious dish you had envisioned. The same applies to Amazon PPC campaigns. Don’t lump all your products together. Instead, structure your campaigns strategically by product type, brand, or specific goals (e.g., new product launch, seasonal promotion). This allows for fine-tuned optimization and efficient budget allocation, maximizing the impact of your Amazon PPC campaigns.

2. Auto-piloting Your Campaigns

While auto-campaigns offer a convenient starting point, relying solely on them is like setting your cruise control and hoping for the best. Remember, the road to PPC success involves active management. Combine auto-campaigns with manual campaigns to gain granular control. This allows you to fine-tune bids for valuable keywords, experiment with different targeting strategies, and ultimately squeeze the most juice out of your Amazon PPC efforts.

3. Bidding Blunders

Imagine bidding the same price for a vintage designer bag as a pair of socks. Unrealistic, right? The same applies to Amazon PPC bidding. A one-size-fits-all approach ignores crucial factors like product profitability, conversion rate, and competition. Tailor your bids for each product, considering its unique characteristics and market dynamics. This ensures you’re not overpaying for clicks or leaving valuable opportunities untapped. Remember, smart bidding is key to Amazon PPC success.

4. Picking the Perfect Keywords

Keywords are the foundation of any successful Amazon PPC campaign. Guessing which terms your target audience searches for is like playing darts blindfolded. Instead, invest in proper keyword research. Utilize specialized tools to identify relevant, high-traffic keywords.

5. The Negative Keyword Neglect

Think of negative keywords as bouncers at your exclusive club, preventing irrelevant searches from draining your budget. Ignoring negative keywords is like leaving the door wide open, welcoming anyone regardless of their purchase intent. Utilize broad, phrase, and exact match variations to have complete control over which searches trigger your ads. Effectively utilizing negative keywords ensures your Amazon PPC campaigns target the right audience, maximizing your advertising impact.

6. Optimization Oversights

Launching a campaign and forgetting about it is like planting a seed and expecting a magical harvest without tending to it. Amazon PPC requires continuous optimization. Regularly monitor campaign performance, analyzing key metrics like impressions, clicks, conversion rate, ACoS (advertising cost of sale), and ROI (return on investment). Based on these insights, adjust bids, add negatives, and test new keywords to keep your campaigns performing at their peak. Remember, constant optimization is the fuel that propels your Amazon PPC success.

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Also Read: Why Every Amazon Seller Should Audit Their Account?


In conclusion, it would be appropriate to state that efficient management of PPC campaigns on Amazon for SMBs is a critical issue. However, with the right selection of keywords and their combination, avoiding bidding blunders, and exclusion of negative search terms can increase your overall ROAS. Hence, it is important to follow these instructions to extract maximum returns on your campaign.


While not strictly necessary, PPC can significantly boost your product visibility and sales, especially for new listings or those facing stiff competition. It’s a powerful tool to drive initial traffic and establish product presence.

  • Sponsored Products: Ads appear on product detail pages and search results pages relevant to your product.
  • Sponsored Brands: Showcase your brand logo and multiple products together, often for broader brand awareness.
  • Sponsored Display: Ads appear on other websites and apps within the Amazon advertising network, reaching potential customers beyond Amazon itself.

Use a mix of relevant, high-volume, and lower-competition keywords. Utilize Amazon’s keyword research tools and competitor analysis to identify effective options.

You can manage them yourself, but consider your expertise and workload. Hiring a PPC specialist can be beneficial for complex campaigns or if you lack the time or knowledge.

Costs vary depending on campaign complexity and chosen method:

  • DIY: Free, but requires time and expertise.
  • Freelancers: Variable hourly rates or project fees.
  • Agencies: Retainer fees based on campaign size and complexity.
  • Start small: Begin with a modest budget and one or two campaigns.
  • Focus on key keywords: Target relevant keywords with immediate potential.
  • Track performance closely: Monitor metrics and adjust your approach as needed.
  • Utilize learning resources: Take advantage of Amazon’s guides, webinars, and online communities.

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