To keep up with current trends in eCommerce, making your business visible to customers is important. To stay ahead, companies have started using Amazon advertising campaigns to market their products. With 60% of shoppers searching for products directly on Amazon, effective advertising is critical for all companies.
This guide serves everyone; whether you are advanced in expertise or just starting out, looking to set up Amazon ads, interested in improving performance, and understanding expenses, there is much to learn.
What Is an Amazon Advertising Campaign?
An Amazon advertisement campaign is a comprehensive marketing plan intended for use on Amazon. Seller’s products are promoted by targeting the buyers directly, already using the sponsored advertisements option. These ads show up in all the important portions of the website – searches and product pages.
Types of Amazon Ads:
- Sponsored Products: Ads that promote individual product listings.
- Sponsored Brands: Ads that showcase your brand logo, custom headline, and multiple products.
- Sponsored Display: Display ads that reach audiences on and off Amazon.
- Amazon DSP (Demand Side Platform): Programmatic ads reaching audiences both on and off Amazon.
Each type serves different stages of the customer journey—from awareness to purchase.
Why You Should Consider Advertising on Amazon
Amazon’s unique strength lies in purchase intent. While Google and Facebook are great for awareness, users on Amazon are actively looking to buy. Here’s why running an Amazon advertising campaign makes sense:
- High conversion potential
- Massive built-in audience
- Performance-based advertising
- Direct impact on product visibility and rankings
In fact, 74% of U.S. shoppers begin product searches on Amazon. Disregarding it is akin to leaving cash unclaimed.
How Much Does It Cost to Advertise on Amazon?
Cost of Amazon Advertising
Amazon uses a pay-per-click (PPC) model, meaning you only pay when someone clicks your ad. The cost of Amazon advertising depends on factors like product category, competition, and keyword selection.
Key Cost Factors:
| Element | Average Cost |
| CPC (Cost per Click) | $0.80–$2.00 |
| Daily Budget | $10–$100+ |
| ACOS (Ad Cost/Sale) | 15%–30% |
FAQs:
- How much does it cost to advertise on Amazon?
There’s no fixed rate. You can start with as little as $10/day, but scaling depends on your goals. - What is the minimum advertised price on Amazon?
MAP is set by the manufacturer and must be followed in retail ads. However, Amazon sellers can price below MAP unless legally restricted.
Setting Up Your First Amazon PPC Campaign
Here’s how to initiate your campaign through Amazon Seller Central:
- Log in to Seller Central.
- Go to the Advertising tab.
- Choose your campaign type: Sponsored Products (ideal for beginners).
- Set your budget, duration, and targeting type (automatic/manual).
- Add your products and select keywords (or let Amazon auto-target).
- Submit for review.
🛠 Pro Tip: Use manual targeting once you’ve collected data from automatic campaigns.
Best Practices to Improve Your Amazon Advertising Strategy
- Target long-tail keywords for higher relevance and lower competition.
- Use negative keywords to avoid wasting spend on irrelevant searches.
- A/B test different ad creatives and copy.
- Check ACoS and RoAS on a weekly basis and modify bids as necessary..
- Leverage Amazon’s Brand Analytics if you’re a registered brand.
Tools like Helium 10, Sellics, and JungleScout are invaluable for optimizing your Amazon PPC campaigns.
Measuring the Success of Your Amazon Ads
Key performance indicators (KPIs) to track:
- ACoS (Advertising Cost of Sales): Lower is better. The ideal is 20–30%.
- RoAS (Return on Ad Spend): The greater, the more favorable. Aim for 3x+.
- CTR (Click-Through Rate): Indicates ad relevance. Over 0.3% is decent.
- Conversion Rate: Measures how many clicks lead to a sale.
Establish specific objectives prior to initiation and continually refine based on analytics.
Cost comparison chart: Amazon vs. Google vs. Facebook
Data for the Chart:
- Amazon: Average CPC is approximately $0.87 (U.S., 2022, Sellics data).
- Google: Average CPC is around $4.66 (2024, WordStream data).
- Facebook: Average CPC is about $0.77 (2024, WordStream data for traffic campaigns).
Note: CPC values can vary by industry, campaign type, and time, but these are recent averages from reliable sources. I’ve chosen these figures to reflect typical costs for a broad comparison.
Final Thoughts on Running an Effective Amazon Advertising Campaign
Launching a successful Amazon advertising campaign isn’t about throwing money at ads. It’s about strategic targeting, optimization, and understanding your customers.
Start small, test thoroughly, and scale gradually. In a marketplace as dynamic as Amazon, data is your compass, and consistency is your engine.
