Amazon Ads: Complete Guide for Sellers & Brands in 2025

Key Takeaways

• Amazon Ads reaches 300M+ active customers ready to buy
• Sponsored Products drive 80% of Amazon ad revenue
• Average ROAS on Amazon is 3-5x (much higher than social)
• Amazon DSP enables retargeting across the web
• Start with automatic campaigns, then optimize with manual

Why Advertise on Amazon?

Amazon isn't just an e-commerce platform — it's a search engine where people come ready to buy. Unlike Google or Facebook where you interrupt browsing, Amazon ads appear when customers are actively shopping.

Amazon Advertising Benefits

Types of Amazon Ads

1. Sponsored Products

The most popular ad format — appears in search results and product pages.

Best for:

• Driving sales
• Launching new products
• Defending brand searches
• Conquesting competitors

Targeting options:

• Automatic: Amazon chooses keywords
• Manual: You select keywords/products
• Negative targeting: Exclude irrelevant terms

2. Sponsored Brands

Banner ads with your logo, headline, and multiple products.

Best for:

• Brand awareness
• Showcasing product range
• Driving Store traffic
• Video content

Requirements:

• Brand Registry enrollment
• At least 3 products
• Custom headline (50 chars max)

3. Sponsored Display

Retargeting ads on and off Amazon.

Best for:

• Retargeting cart abandoners
• Cross-selling customers
• Reaching new audiences
• Competitor conquesting

4. Amazon DSP

Demand-side platform for programmatic display and video.

Best for:

• Large budgets ($35K+ minimum)
• Video advertising
• Off-Amazon retargeting
• Advanced audience building

Setting Up Amazon Ads

Step 1: Create Seller Central Account

Go to sellercentral.amazon.com

Choose Professional selling plan ($39.99/month)

Complete identity verification

Set up payment method

Step 2: Enroll in Brand Registry (Recommended)

• Required for Sponsored Brands & Stores
• Need registered trademark
• Unlocks A+ Content
• Provides brand protection

Step 3: Launch First Campaign

Go to Campaign Manager
Select "Sponsored Products"
Choose "Automatic" targeting (for beginners)
Set daily budget ($20-50 to start)
Add products
Set default bid ($0.75-1.50)
Launch campaign

Amazon Ads Optimization Strategies

Keyword Research

Tools to use:

• Amazon Search Term Report
• Helium 10
• Jungle Scout
• Brand Analytics (if enrolled)

Keyword types:

Branded: Your brand + product

Category: Generic product terms

Competitor: Competitor brand names

Long-tail: Specific variations

Bid Optimization

Budget Allocation

Recommended split:

• 60% Sponsored Products
• 25% Sponsored Brands
• 15% Sponsored Display

ACoS vs TACoS

• ACoS (Advertising Cost of Sales): Ad spend / Ad revenue
• TACoS (Total ACoS): Ad spend / Total revenue

Amazon Ads Costs

Average CPCs by Category

Budget Recommendations

• New sellers: $500-1,000/month
• Growing brands: $2,000-10,000/month
• Established brands: $10,000+/month

Common Amazon Ads Mistakes

1. Starting with Manual Only

Let automatic campaigns find converting keywords first.

2. Ignoring Negative Keywords

Review Search Term Reports weekly and add negatives.

3. Same Bid for All Keywords

Use bid adjustments based on performance.

4. Poor Product Listings

Ads can't fix bad titles, images, or reviews.

5. No Campaign Structure

Separate campaigns by:

• Product category
• Match type
• Performance tier

Advanced Strategies

Dayparting

Adjust bids based on time of day:

• Increase bids during peak shopping hours
• Decrease overnight
• Monitor by day of week

Product Targeting

Target specific ASINs:

• Competitor products
• Complementary items
• Your other products

Audience Building

Use Sponsored Display audiences:

• Views remarketing (7, 14, 30 days)
• Purchases remarketing
• Similar to your customers

Amazon Ads vs Other Platforms

Measuring Success

Key Metrics

ACoS: Keep below 20-30% for profitability

TACoS: Should decrease as organic grows

Impressions: Ensure visibility

CTR: 0.3%+ is good

Conversion Rate: 10%+ is healthy

Attribution Windows

• Sponsored Products: 7 days
• Sponsored Brands: 14 days
• Sponsored Display: 14 days

Tools for Amazon Advertising

Free Tools

• Amazon Campaign Manager
• Search Term Reports
• Brand Analytics

Paid Tools

• Helium 10 ($99/month)
• Jungle Scout ($49/month)
• Sellics ($250/month)
• Perpetua ($250/month)

Conclusion

Amazon Advertising offers the highest-intent audience in digital marketing. Start with Sponsored Products automatic campaigns, graduate to manual targeting, and scale with Sponsored Brands and Display.

The key is continuous optimization — review Search Term Reports weekly, adjust bids based on ACoS, and always improve your product listings.

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