What is Amazon PPC?<\/h2>\n\n\n\n
Amazon PPC (pay-per-click) is exactly what it sounds like—you pay Amazon each time a customer clicks on your ad, whether they purchase your product or not. <\/p>\n\n\n\n
Amazon provides third-party sellers with an easy-to-use advertising platform for setting up various PPC ad campaigns within minutes. The amount you pay depends on the ad type, the keywords you target, and the competitiveness of your niche.<\/p>\n\n\n\n
PPC ads are for professional sellers<\/a> and Brand Registered<\/a> sellers on Amazon who want to reach more customers. This is the most common ad platform for Amazon sellers and includes Sponsored Products<\/a>, Sponsored Brands<\/a>, and Sponsored Display<\/a> ads. <\/p>\n\n\n\n Sellers enrolled in the Brand Registry also have access to Amazon Stores<\/a>, Amazon Attribution<\/a>, and Amazon Live<\/a>—all of which fall under the Amazon Advertising umbrella.<\/p>\n\n\n\n Amazon provides sellers with important key metrics to help measure the success of each campaign you’re running:<\/p>\n\n\n\n These metrics can help you set goals for your advertising campaigns. <\/p>\n\n\n\n Understanding them all requires a bit of a learning curve, but after a bit of practice, you’ll be able to optimize your campaigns like a pro.<\/p>\n\n\n\n Why PPC ads are important for your Amazon business<\/strong><\/p>\n\n\n\n It’s no secret that competition on Amazon continues to grow year after year, in turn driving the necessity for sellers to use Amazon Advertising. <\/p>\n\n\n\n PPC ads are immensely popular among Amazon sellers and brands<\/a> of all sizes. 79% of first-party (1P) vendors and 71% of third-party (3P) sellers use at least one form of Amazon PPC. Using Amazon advertising is particularly important when listing new products. With a simple keyword- or product-targeting campaign, PPC ads provide the audience reach you wouldn’t otherwise have, pushing your products to the front page of search results. <\/p>\n\n\n\n As long as you have a great product, great pictures, and a compelling, optimized listing, you shouldn’t have a problem converting ad clicks into sales. Those ad sales will then help increase your organic rankings for each well-performing keyword, further driving your sales.<\/p>\n\n\n\n Not surprisingly, 32% of sellers believe that using Amazon’s PPC platform is a top factor in their success as Amazon sellers. <\/p>\n\n\n\n Let’s go over the different types of ads you can run for your products, no matter if you’re a complete beginner or a seasoned seller.<\/p>\n\n\n\n There are three types of Amazon PPC ads: Sponsored Products, Sponsored Brands, and Sponsored Display. <\/p>\n\n\n\n Every seller starts their Amazon advertising journey with a Sponsored Products campaign. You don’t need to be brand-registered to use it, and it’s the most straightforward form of PPC to set up. After conducting proper keyword research<\/a>, you can launch a Sponsored Products campaign in minutes. <\/p>\n\n\n\n Sponsored Products ads appear at the top of the Amazon search result page and throughout the organic results, as well as on competing product listing pages.<\/p>\n\n\n\n Within Sponsored Products, there are two types of targeting to choose from:<\/p>\n\n\n\n In our How to Sell on Amazon for Beginners Guide<\/a>, we recommend running both an automatic and manual campaign — once your listing is optimized, of course. <\/p>\n\n\n\n With manual targeting campaigns, you can choose from two subtypes:<\/p>\n\n\n\n Note: You can run both keyword targeting and product targeting campaigns at the same time. You’ll just need to set them up separately.<\/p>\n\n\n\n Sponsored Brands ads<\/a>, previously known as Amazon Headline Search Ads, are banner ads that feature your logo, custom tagline, thumbnails for a few products, and even a video if you want. They appear above Sponsored Product ads in Amazon search results. <\/p>\n\n\n\n These types of ads help drive brand awareness by funneling all traffic to your custom Amazon storefront or a dedicated brand-centric landing page on Amazon. The biggest advantage here is that there are no competitor listings in sight—just your products. With Sponsored Brands Ads, you can choose from three formats: Product collection, Store spotlight, or Video.<\/p>\n\n\n\n The Product Collection ad type allows you to advertise up to three products at once, with the option to send traffic to your Amazon Store or a dedicated landing page. <\/p>\n\n\n\n This is a great way to boost newer or lower-ranking products by advertising them alongside your high-performing products. <\/p>\n\n\n\n Here is another example of a Product Collection ad in action:<\/p>\n\n\n\n After clicking on the ad, it’ll bring you to this landing page:<\/p>\n\n\n\n The Store Spotlight ad format is only available if you have your own Amazon Store, as that’s where your traffic will go. As mentioned above, an Amazon Store is basically your custom ecommerce website, but on Amazon. <\/p>\n\n\n\n This is great for brands that sell multiple products across a variety of categories. Instead of just promoting three different products, you’ll be able to promote three different categories <\/em>of products, as well as their specific store subpages. <\/p>\n\n\n\n Here’s a great example of a Store Spotlight ad:<\/p>\n\n\n\n As you can see, instead of advertising just three products, the Frigidaire brand is showcasing three different subcategories within the ad—water filters, probiotic cleaners, and air filters.<\/p>\n\n\n\n If we click on “Air filters that fit every refrigerator,” we’ll arrive at the air filter subpage within their Amazon Store. <\/p>\n\n\n\n The Sponsored Brands Video<\/a> ad format can offer brand registered sellers a huge advantage over their competitors, as video ads tend to stand out within search results. <\/p>\n\n\n\n After searching for the keyword “boat sponge,” this video popped up and stopped me in my tracks. <\/p>\n\n\n\n Video ads play automatically, making them eye-catching and immediately helpful to the scrolling customer. <\/p>\n\n\n\n Amazon recommends<\/a> that your videos be short and informative—between 15–30 seconds. A well-done video ad tells the potential customer everything they need to know about the product within the first few seconds through effective visuals and subtitles. <\/p>\n\n\n\n Before creating your product video ad, make sure you review Amazon’s guidelines<\/a> on video creation—otherwise, you risk having your video rejected. <\/p>\n\n\n\n Unless you’re a skilled videographer, we recommend you hire a professional to shoot and edit your video ad.<\/p>\n\n\n\n Similar to Sponsored Products, you can choose from two targeting options for your Sponsored Brand ads:<\/p>\n\n\n\n What makes Sponsored Display<\/a> ads special is the ability to reach relevant audiences on and off<\/em> Amazon. That’s right: you can advertise to—and retarget—customers on third-party websites and apps. <\/p>\n\n\n\n Like Sponsored Brands, Sponsored Display is also only available to brand-registered sellers or Vendors. <\/p>\n\n\n\n The biggest difference between Sponsored Display, Sponsored Products<\/a>, and Sponsored Brands<\/a> is how you target customers. Instead of targeting keywords or competitors’ products, you’ll target potential customers based on interests, shopping behaviors, and whether they’ve viewed your product’s detail page in the past.<\/p>\n\n\n\n Amazon defines Sponsored Display<\/a> as “a self-service display advertising solution that helps you grow your business and brand on Amazon by engaging shoppers across the purchase journey, on and off Amazon.”<\/p>\n\n\n\n Essentially, this means Amazon keeps track of the products a given customer views on their site and displays them again across Amazon search results, competitor listings, and the third-party websites or apps that customer uses. <\/p>\n\n\n\n That way, you can remind customers about your product and brand, even if they’ve navigated away from your Amazon listing. <\/p>\n\n\n\n Here is an example of Display Ads in action:<\/p>\n\n\n\n In this example, you can see that Sponsored Display offers an added benefit: you can target listings for complementary products. The Boat Wash product (the ad at the far right in the image above) is not directly related to the main product (sponges) but will complement the purchase. <\/p>\n\n\n\n With Sponsored Display ads, there are a few ways to target an audience.<\/p>\n\n\n\n Launching a successful Amazon Advertising campaign requires strategic planning, data-driven decision-making, and ongoing refinement. Whether you’re just starting or looking to ramp up ROI, following these steps can help ensure your campaign is optimized for visibility, engagement, and sales.<\/p>\n\n\n\n The foundation of any effective Amazon Advertising campaign is keyword selection. <\/p>\n\n\n\n Using tools like Jungle Scout’s Keyword Scout<\/a> and Rank Tracker<\/a> can help identify high-performing, relevant keywords. <\/p>\n\n\n\n These tools provide insights into search volume, competition, and relevance, making it easier to pinpoint terms that match customer search intent.<\/p>\n\n\n\n For experienced sellers aiming to increase ROI, focus on long-tail keywords that reflect specific purchase intent. These often have lower competition and higher conversion rates. Additionally, monitor keyword trends regularly to adapt your campaign to seasonal or market shifts.<\/p>\n\n\n\n The right bidding strategy depends on your ad goals and budget. Decide between fixed bids or dynamic bidding strategies, considering the type of PPC ad (Sponsored Products, Sponsored Brands, or Sponsored Display). <\/p>\n\n\n\n Adjust bids over time based on performance data to strike a balance between visibility and cost-effectiveness.<\/p>\n\n\n\n Experienced sellers can benefit from employing dynamic bidding with bid adjustments for placements (e.g., top of search vs. rest of search). <\/p>\n\n\n\n Set a budget that aligns with your sales goals and overall business strategy. Jungle Scout’s data insights within Advertising Analytics<\/a> can guide ad spend allocation, ensuring you invest in campaigns that deliver strong returns while avoiding overspending or underfunding.<\/p>\n\n\n\n Leverage historical data to set daily and monthly limits while preserving flexibility to increase budgets for top-performing campaigns during peak seasons or promotions.<\/p>\n\n\n\n To ensure your campaign remains effective, track essential metrics such as ACOS (Advertising Cost of Sales), CTR (Click-Through Rate), and conversion rate. Regularly reviewing these figures will help you identify areas for improvement and adjust your strategy accordingly.<\/p>\n\n\n\n For sellers aiming to scale, consider deeper metrics like TACoS<\/a> (Total Advertising Cost of Sales) to measure how ads contribute to overall business growth. Pair this with customer acquisition cost analysis to gauge whether campaigns are driving profitable new customers.<\/p>\n\n\n\n Jungle Scout’s suite of tools, including AI Assist<\/a>, provides actionable insights to refine your campaign. Use these insights to adjust keyword targeting, improve product detail pages, and enhance ad creative. <\/p>\n\n\n\n\n
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Types of Amazon PPC ads<\/h2>\n\n\n\n
1. Sponsored Products<\/h3>\n\n\n\n
<\/p>\n\n\n\nSponsored Products ad targeting<\/h4>\n\n\n\n
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Our recommendation<\/h5>\n\n\n\n
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2. Sponsored Brands <\/h3>\n\n\n\n
<\/p>\n\n\n\nSponsored Brands ad types<\/h4>\n\n\n\n
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1. Product Collection<\/h5>\n\n\n\n
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2. Store Spotlight<\/h5>\n\n\n\n
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3. Video<\/strong><\/h5>\n\n\n\n
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Best Practices for Product Video Ads<\/h6>\n\n\n\n
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Sponsored Brands ad Targeting<\/h4>\n\n\n\n
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3. Sponsored Display <\/h3>\n\n\n\n
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Sponsored Display ad targeting<\/h4>\n\n\n\n
How you can set up an effective Amazon Advertising campaign<\/h2>\n\n\n\n
1. Select the right keywords<\/h3>\n\n\n\n
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2. Choose a bidding strategy<\/h3>\n\n\n\n
3. Allocate your budget wisely<\/h3>\n\n\n\n
4. Monitor key metrics for ROI<\/h3>\n\n\n\n
5. Refine and optimize with data<\/h3>\n\n\n\n
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<\/p>\n\n\n\n