The Ultimate Guide to Amazon PPC Advertising

Amazon’s advertising engine is accelerating at full speed. It surged to $17.3 billion in Q4 2024 alone. This explosive growth signals a simple truth: Brands that want to win in e-commerce can’t afford to ignore Amazon pay-per-click (PPC). With over 60% of consumers starting their product searches on Amazon, visibility through paid advertising isn’t just helpful; it’s mission-critical.

In this comprehensive guide, you’ll discover how to harness the full power of Amazon PPC. We’ll walk you through the essential ad types, expert-backed strategies, performance metrics, and real-world optimization tactics you need to outpace your competitors and capture more market share. Whether you’re launching a new product or scaling an established brand, this is your blueprint for profitable, measurable growth on the world’s largest shopping platform. 

• What Is Amazon PPC?
• What Are the Benefits of Amazon PPC?
• What Are the Different Types of PPC Ads on Amazon?
• Where Do Amazon Ads Appear?
• Who Should Use Amazon Advertising?
• How to Set Up and Optimize Amazon PPC Campaigns
• How to Optimize Your Amazon Listing Before Launching PPC Campaigns
• How to Manage Amazon PPC Pricing and Profitability
• How Do You Measure Amazon PPC Performance?
• Amazon PPC Tools and Platforms
• Amazon PPC FAQ

Amazon PPC (pay-per-click) advertising is a powerful digital advertising model where brands and sellers bid to have their products strategically featured across Amazon’s vast marketplace, paying only when a shopper clicks their ad. Think of it as buying prime real estate in the world’s largest online mall. You’re investing directly into visibility and buyer attention and precisely targeting customers who are actively searching for products like yours, right when they’re ready to buy. 

How Does Amazon PPC Work? 

Amazon PPC (pay-per-click) advertising is a powerful digital advertising model where brands and sellers bid to have their products strategically featured across Amazon’s vast marketplace, paying only when a shopper clicks their ad. Think of it as buying prime real estate in the world’s largest online mall. You’re investing directly into visibility and buyer attention and precisely targeting customers who are actively searching for products like yours, right when they’re ready to buy. 

How Does Amazon PPC Work? 

Amazon PPC works like a strategic auction where advertisers compete for the most valuable digital shelf space: placement in Amazon’s search results and product pages. Advertisers choose and bid on keywords related to their products, and each click incurs a cost, hence “cost per click.” 

But winning isn’t just about the highest bid. Amazon’s sophisticated algorithm evaluates both your bid and how relevant your product is to the shopper’s search query to make sure customers see ads that genuinely match their needs and interests. 

For a complete breakdown of how Amazon’s ad auction, relevancy scoring, and cost-per-click model function, consult Amazon Ads Academy, which offers resources and trainings to help you learn how to advertise on Amazon. 

How Is Amazon PPC Different From DSP? 

Amazon PPC and Amazon Demand Side Platform (DSP) serve different strategic purposes.  

Amazon PPC targets shoppers who are actively searching on Amazon by using keyword-focused ads that you only pay for when someone actually clicks on it. This is ideal for driving immediate conversions.  

Amazon DSP, on the other hand, casts a wider net by leveraging Amazon’s extensive audience data to reach potential customers across various sites and platforms through display and video ads. DSP is charged based on impressions, which makes it perfect for brand building, retargeting shoppers, and nurturing customer interest at scale. 

If you’re considering both DSP and PPC, Search Engine Land’s Amazon advertising library is a great source for comparing audience strategies, campaign types, and ad formats used across the funnel. 

Amazon PPC’s impact on brand visibility and sales velocity is well documented. As WebFX explains, PPC is often the most immediate and scalable way to dominate Amazon’s crowded search results pages. 

Amazon PPC isn’t just another advertising tool; it’s your strongest weapon in conquering the fiercely competitive Amazon marketplace. With thousands of products fighting for limited attention, PPC advertising gives you the immediate visibility needed to stand out and captures motivated buyers right when they’re ready to purchase. But PPC does far more than simply generate clicks; it acts as a growth engine that fuels your sales, boosts your organic rankings, and amplifies your brand’s reach. Here are some of the key benefits of Amazon PPC: 

Immediate Visibility in a Crowded Marketplace 

Organic rankings take significant time and effort to build, especially for new products. Amazon PPC instantly propels your product listings into prominent positions in search results and competitor pages and places you directly in front of highly engaged shoppers who are actively searching for your products. Think of PPC as your shortcut to prime real estate. Instant access to high-intent audiences without waiting months to organically rank. 

Accelerated Sales and Organic Ranking Growth 

Amazon rewards listings with high sales velocity. PPC advertising rapidly increases traffic and sales volume, which creates a positive feedback loop: More sales → improved organic visibility → even more sales. This cycle of continuous growth is one of the strongest benefits PPC advertising offers, and it directly influences your long-term success.  

Hypertargeted Advertising 

Amazon PPC empowers you to pinpoint exactly who sees your ads. Unlike traditional marketing, PPC allows you to carefully select and bid on specific keywords, competitor products (ASIN targeting), shopper categories, or behaviors. By zeroing in on these highly targeted segments, you can maximize the impact of your ad spend and drive more relevant traffic and higher conversion rates. 

Powerful Retargeting Capabilities 

Not every shopper buys immediately. Through Sponsored Display ads, PPC enables strategic retargeting to reconnect you with visitors who previously viewed your product but didn’t complete their purchase. Retargeting maintains your brand’s presence, increases customer recall, and boosts your chances of turning interest into action. 

Enhanced Brand Awareness and Authority 

Amazon PPC, especially through Sponsored Brands and Display campaigns, elevates your brand’s visibility and credibility. These ads prominently feature your brand’s logo, curated products, and compelling visuals to ensure consistent and impactful brand exposure. PPC strengthens your brand recognition, builds authority in your niche, and fosters customer trust, all of which are crucial for long-term success. 

Rich, Actionable Data and Insights 

One of PPC’s greatest advantages is the rich performance data it provides. Metrics such as advertising cost of sale (ACOS), click-through rate (CTR), conversion rate, and total impressions give you precise, actionable insights. By leveraging this data, you can continually refine your campaigns, optimize your listings, adjust bidding strategies, and enhance overall profitability to make sure you get the most from every advertising dollar spent. 

Essential Competitive Advantage 

Most successful Amazon brands rely heavily on PPC advertising. If you’re not actively advertising, you’re essentially handing customers directly to competitors that do. Investing strategically in PPC not only keeps you competitive, but also positions your brand to dominate your niche and secure valuable market share in a crowded and competitive e-commerce landscape. 

In short, Amazon PPC advertising delivers transformative, comprehensive benefits that directly contribute to your immediate sales growth, long-term brand strength, and enduring marketplace success. 

Amazon PPC advertising isn’t a one-size-fits-all approach. There are multiple powerful ad formats designed to help you reach shoppers at every stage of their purchasing journey. Understanding how each type of ad works allows you to make sure you’re using the right tactics to effectively boost your brand’s visibility, drive more sales, and grow your brand’s authority. 

Sponsored Products Ads 

The Sponsored Products ad format is Amazon’s most popular. These ads are designed to put your individual product listings directly in front of motivated shoppers who are searching for relevant keywords. These ads seamlessly blend into Amazon’s search results and product pages and capture buyer attention at the critical moment when they’re ready to click “Add to Cart.” 

Sponsored Brands Ads

Sponsored Brands ads give your brand prime visibility at the top of search results by featuring your brand logo, custom headlines, and multiple product listings. Perfect for building strong brand recognition, these ads capture shopper interest early in the purchasing process, drive traffic to your custom Amazon storefront or product selection, and position your brand as a trusted leader in your category. You can also enhance engagement further with Sponsored Brands Video, a dynamic format that showcases individual products through autoplay videos directly in search results. This is ideal for highlighting features, demonstrating use, and stopping the scroll. 

Sponsored Display Ads 

Sponsored Display ads are Amazon’s powerful retargeting tools that allow you to reconnect with shoppers who have previously viewed your products or similar items. These visually engaging display ads appear not only on Amazon’s own marketplace, but also across partner websites and apps to dramatically extend your reach and conversion potential beyond initial interactions. 

Sponsored TV Ads 

While listed under the broader Amazon Ads umbrella, Sponsored TV ads are not true PPC in structure. Sponsored TV Ads take your brand awareness to the next level through Amazon’s streaming services and platforms like Fire TV. Leveraging engaging video content, these ads deliver impactful brand messages directly into consumers’ homes and have the potential to increase brand recall and position your brand prominently in competitive markets. 

Sponsored Audio Ads and Device Ads 

While listed under the broader Amazon Ads umbrella, Sponsored Audio Ads and Device Ads are not true PPC in structure. Sponsored Audio Ads and Device Ads enable brands to reach audiences through Alexa-enabled devices and Amazon Music, which can expand awareness through hands-free and auditory experiences. 

Choosing the right mix of Amazon ad formats empowers your brand to connect strategically with customers, from discovery to purchase, to drive sustainable growth and maximize your return on investment. 

As Mike Zagare, owner of Dorado Ads, said on the Amazon Legends Podcast: “Making sure your budget is utilized the right way is really important. Many accounts spend money on just one ad type or match type or focus heavily on a single product. It’s important to diversify and maximize traffic to all products. Additionally, allocating the budget effectively according to your strategy is essential to minimize wasted ad spend.” 

Amazon PPC ads don’t just show up randomly. They’re strategically placed in prime locations designed to maximize visibility, engagement, and conversions. Understanding exactly where your ads will appear helps you target shoppers at the right moment and improve the effectiveness of your campaigns. Here are three places where Amazon PPC ads appear: 

Search Results 

When shoppers search for products, your ads can appear prominently at the top, middle, or bottom of Amazon’s search results pages. These placements blend naturally with organic listings to instantly capture the attention of buyers who are searching for products like yours. 

Product Detail Pages 

Ads on product detail pages let you target shoppers as they browse competitors’ listings. By appearing in prominent positions such as “Sponsored products related to this item” or “Products related to this item,” you directly position your product as an appealing alternative or complementary choice. 

Off-Amazon Placements 

With Sponsored Display ads, your brand extends its reach beyond Amazon’s ecosystem. Ads appear across Amazon-owned sites, apps, and partner websites to reach shoppers even after they’ve left Amazon. This extended reach keeps your brand top of mind, drives incremental conversions, and ensures shoppers continue thinking about your products no matter where they browse. 

Pro tip: Regularly analyze which ad placements drive the most clicks, conversions, and revenue. Amazon’s A10 algorithm dynamically tests ad positions. By monitoring performance data and strategically adjusting bids, you can optimize placements to achieve maximum return on investment. 

Amazon PPC isn’t just beneficial for a select few. It’s essential for any brand or seller that’s serious about maximizing their presence, driving sales, and dominating their category on Amazon. Whether you’re a seasoned vendor, an independent seller, or a brand looking to enhance visibility, PPC advertising offers targeted, impactful strategies that can be tailored to your selling model. 

Amazon Vendors and Sellers: Essential Advertising for Every Model 

Both vendors (selling directly to Amazon via Amazon Vendor Central) and sellers (selling directly to consumers via Amazon Seller Central) can leverage PPC advertising. Vendors often use PPC to increase purchase orders from Amazon by driving product demand, while sellers use PPC to directly boost product visibility, sales velocity, and revenue growth. 

For more details on eligibility requirements, check out Amazon’s official Seller Central documentation that provides policy information and instructions tailored to both new and advanced sellers. 

Fulfilled by Amazon and Fulfilled by Merchant: Powerful Ads for All Fulfillment Methods 

Regardless of your fulfillment method — Fulfilled by Amazon (FBA) or Fulfilled by Merchant (FBM) — PPC advertising is crucial. FBA products often experience higher conversion rates due to the Prime badge and fast shipping benefits, so PPC is especially potent for increasing sales velocity and ranking. However, FBM sellers can also drive significant growth through targeted PPC ads by highlighting product quality, competitive pricing, and unique selling points to capture customer interest. 

The Role of Amazon Brand Registry: Elevate Your Advertising 

While enrolling in Amazon Brand Registry doesn’t directly impact your eligibility to advertise, it unlocks powerful advertising tools and enhanced features, including Sponsored Brands and Sponsored Display ads. Brand-registered sellers benefit from advanced creative capabilities, customized brand stores, video advertising, and robust analytics, all of which can supercharge visibility, strengthen brand loyalty, and increase advertising ROI. 

These additional capabilities can be a game changer for brands that are looking to stand out. As Destaney Wishon, CEO of BetterAMS, said on the MarTech Podcast: “Creative is a huge focus on Amazon’s end. They’re really shifting to prioritizing brand builders rather than people who are just launching products back to back to back.” 

Setting up an Amazon PPC campaign isn’t about pressing “launch” and crossing your fingers. It’s a strategic process that combines clear objectives, precise targeting, and ongoing optimization. When done well, PPC can become a powerful engine driving sustainable growth, visibility, and profitability. Here’s a practical, enjoyable approach to mastering your PPC strategy, step by step.

Step 1: Define your goals and allocate budget thoughtfully. 

First, you need clarity about what success looks like for your brand. Is your main goal profitability, increasing visibility, or rapid market entry? Defining clear objectives helps you set the right budget and measure progress meaningfully. 

For example, you might aim for a specific ACOS, such as 20%, to ensure profitability, or perhaps your primary goal is more aggressive, like increasing sales volume by 50% within three months. Align your budget with these objectives, and set aside more funds if you’re in a highly competitive category or entering the market with a new product. 

Step 2: Choose the right mix of automatic and manual campaigns. 

Amazon offers two powerful PPC campaign types: automatic and manual. Both have unique benefits, and smart advertisers typically leverage both. 

Automatic campaigns let Amazon’s powerful algorithm identify relevant keywords and product placements for you so you can uncover profitable opportunities you might not have considered. Meanwhile, manual campaigns give you granular control by letting you precisely target specific keywords and competitor products that you’ve identified through research. 

Consider using automatic campaigns as your “scouting” tool to discover new keywords or unexpected customer segments. Regularly check the performance reports; then, move your best-performing keywords from automatic into manual campaigns to fine-tune bidding, reduce costs, and improve conversion rates. 

For instance, a skincare brand might initially run an automatic campaign that reveals “vitamin C serum for sensitive skin” as a high-performing keyword. That brand can then manually target this exact phrase and allocate a higher budget to capture more targeted traffic and conversions. 

Step 3: Be precise with your targeting options. 

Amazon’s targeting capabilities go beyond simple keyword matches. You can place your ads directly in front of customers who are actively shopping in your category, people who are browsing competitor products, or even those who have visited your listings but didn’t complete a purchase. 

For example, if you sell premium yoga mats, you could target shoppers currently viewing competitor yoga mats (ASIN targeting) or retarget visitors who’ve shown interest previously (views retargeting). 

Experiment with targeting strategies. Test placements by product, category, and shopper behavior to see which provides the highest ROI, and adjust accordingly. 

Step 4: Master keyword research and targeting strategies. 

Effective PPC revolves around smart keyword management: understanding exactly how customers search for products and making sure your ads appear in those searches. 

Keyword “match types” help you control the breadth and precision of your targeting: 

• Broad match reaches a wider audience (e.g., “running shoes” might match searches like “men’s running shoes size 12”).

• Phrase match targets closer variations of your exact phrase (e.g., “running shoes” could match “red running shoes”).

• Exact match precisely targets your exact keyword for maximum relevance (e.g., “women’s trail running shoes”). 

To continuously improve your campaign, regularly review your search term reports to find new profitable keywords. Integrate these top performers into manual campaigns, and at the same time, add irrelevant phrases to your negative keyword list to reduce wasted spend. 

For example, if you discover your “healthy snacks” broad keyword generates conversions from searches like “healthy snack bars,” incorporate this profitable term as an exact match keyword in your manual campaigns. Conversely, irrelevant terms like “healthy snack recipes” should be added as negatives to preserve your ad budget. 

Step 5: Strategically manage your bids and budgets. 

Your bidding strategy directly influences your visibility and profitability on Amazon. 

Amazon lets you choose between dynamic and fixed bidding. Dynamic bidding allows Amazon’s algorithm to adjust your bids in real time based on the likelihood of conversion, which is perfect for maximizing conversions. Fixed bidding gives you precise, predictable control over spending, which is ideal if you have tight margins or strict budget requirements. 

Be proactive. Regularly analyze campaign data to adjust your bids and budgets according to real-time performance. During peak seasons or special promotions, consider increasing bids on high-converting keywords to capitalize on increased shopper intent. 

For example, in the lead-up to the holiday season, a gift retailer could strategically increase bids on high-performing terms like “unique Christmas gifts for dads” to ensure top-of-page visibility and capture seasonal demand. 

Consistent campaign management is key to staying competitive. When approached thoughtfully and strategically, your Amazon PPC campaigns become less of a gamble and more of a calculated, high-return investment. By clearly defining goals, choosing the right campaign mix, mastering keyword targeting, and continuously optimizing bids, you’ll build a PPC strategy that not only drives clicks, but also fuels your brand’s sustained growth and profitability. 

Launching PPC campaigns without a fully optimized Amazon listing is like running a race with untied shoes. You might get started, but you won’t get far, and you’ll waste valuable time and money along the way. Before you turn on any ads, your product detail page needs to be polished, conversion-ready, and aligned with both Amazon’s algorithm and your customers’ expectations. A well-optimized listing improves click-through rates, lowers your ACOS, and maximizes every dollar of your PPC investment. 

Start With Amazon SEO: Align Organic and Paid Performance 

Your listing is your foundation. If it’s not built correctly, even the most strategic PPC campaigns will struggle to perform. Begin with Amazon SEO by conducting comprehensive keyword research using tools like Helium 10, Jungle Scout, or Amazon’s Brand Analytics. Identify your top-performing and most relevant keywords, and integrate them naturally throughout your listing. 

Consistency is key. The keywords you target in your PPC campaigns should also appear in your product title, bullet points, and backend search terms. This alignment helps Amazon’s algorithm better understand and rank your product while increasing your ad relevance, which can lead to lower costs and better placements. 

Use This Retail-Ready Checklist Before You Launch Ads 

Your product listing should be optimized for both shoppers and Amazon’s A10 algorithm. Every detail matters. Use this checklist to ensure your listing is fully prepared before launching your PPC campaigns: 

High-quality, zoomable images 

• Include a minimum of three high-resolution images that meet Amazon’s zoom standards. 

• Use a clean white background for your main image. 

• Add lifestyle images that show your product in use and infographic-style visuals that highlight key features, benefits, or dimensions.

Clear, keyword-rich product title 

• Keep your title under 200 characters to stay within Amazon’s guidelines. 

• Place your most important keywords toward the beginning. 

• Avoid keyword stuffing or excessive punctuation. 

• Example: “Organic Vitamin C Serum for Face – Brightening, Anti-Aging, Hydrating Skincare with Hyaluronic Acid – 1oz Bottle”

Benefit-focused bullet points 

• Use all five bullet points to clearly communicate your product’s top features and customer benefits. 

• Begin each bullet with a feature and explain how it helps the buyer. 

• Write short, scannable sentences that make it easy to absorb value at a glance.

A+ Content or optimized description 

• If you are Brand Registered, build A+ Content with comparison charts, lifestyle images, and branded visuals. 

• If not, format your product description with clean HTML for readability. Use persuasive language that reinforces the key benefits of your product and builds trust.

Strong review profile 

• Aim for a 4.5-star average rating or higher. A product with fewer than four stars may be eligible for ads but will often convert poorly and result in a higher ACOS. 

• Use review request tools, email follow-ups, or programs like Amazon Vine (if eligible) to gather early feedback.

Competitive pricing and Buy Box ownership 

• Make sure your product is competitively priced relative to similar items in your category. 

• You must own the Buy Box to be eligible for Sponsored Products ads. Regularly monitor your Buy Box status to avoid wasted ad spend.

Inventory and Prime eligibility 

• Ensure your product is in stock and Prime-eligible through Fulfilled by Amazon (FBA) or Seller-Fulfilled Prime. 

• Running ads on low-inventory items can result in out-of-stock issues and wasted ad clicks.

Listing health and compliance 

• Check for suppressed listings or errors in your Seller Central dashboard. 

• Make sure your product complies with Amazon’s content and image policies to avoid disapprovals or visibility issues. 

Why Listing Optimization Matters for PPC 

A well-optimized listing builds confidence, reduces friction, and improves the odds that a shopper who clicks your ad will actually buy. If your product title is unclear, your images are low-quality, or your bullets don’t answer buyer questions, you’re paying for traffic that won’t convert. Optimizing your listing before launch ensures your ads work harder, your cost per acquisition stays lower, and your growth becomes sustainable. 

For additional keyword research, listing optimization, and ongoing PPC refinement tips, the Jungle Scout blog offers data-driven insights backed by millions of Amazon listings tracked across categories. 

A profitable Amazon PPC strategy doesn’t start with your ad; it starts with your numbers. Before you invest a dollar into advertising, you need to understand how your pricing strategy, product margins, and marketplace competition directly influence your ad costs and long-term profitability. PPC can accelerate growth, but without the right pricing structure in place, it can also erode your margins fast. 

“You can no longer kind of just grow an Amazon brand haphazardly,” says Mina Elias, founder and CEO of Trivium Group. “It really has to be calculated. Your books need to be clean from day one. You need to kind of have the end in mind.” 

Key Factors That Influence PPC Costs 

Amazon’s ad platform operates as a dynamic auction. That means your cost per click (CPC) is never fixed. It fluctuates based on several factors: 

• Competition

  The more sellers bidding on the same keywords, the higher your CPC. Highly competitive categories like supplements or electronics demand higher bids to stay visible.
   

• Category

  Some categories naturally command higher CPC. For example, home goods or baby products may see lower average CPC than saturated, high-stakes verticals like skincare or tech accessories.
   

• Keyword difficulty

  According to “My Amazon Guy,” Steven Pope, “The more limited your budget, the more long-tail keywords you should chase.”

  High-volume keywords are attractive but expensive. Bidding on broad terms like “protein powder” can cost significantly more than niche, long-tail phrases like “grass-fed whey protein for women.”
   

• Seasonality

  During peak periods like Q4 or Prime Day, increased competition drives up CPC. Advertisers must adjust their bids and budgets to stay visible while protecting profit margins. 

How to Set Strategic Pricing That Supports PPC Profitability 

You can’t outspend your way to profitability. Your pricing strategy must be tightly aligned with your ad performance and cost structure to ensure you’re not paying more to acquire a customer than you’re earning per sale. 

Here’s how to keep your pricing and PPC aligned: 

• Know your break-even ACOS.

  If your product has a 30% profit margin, your break-even ACOS is 30%. Any ACOS higher than that means you’re losing money on ad-attributed sales.
   

• Build in margin flexibility.

  If you’re launching a product with aggressive PPC spend, consider pricing it with slightly higher margins upfront so you have more room to scale advertising without sacrificing profit.
   

• Monitor Buy Box pricing.

  To run Sponsored Products ads, you must own the Buy Box. Aggressive pricing from competitors can cost you that advantage, so monitor your position frequently and use automated pricing tools if needed.
   

• Use tiered pricing strategies.

  Offer bundle deals or volume discounts to increase average order value and offset rising ad costs. Selling a three-pack of your product at a better margin than a single unit can boost profitability while still appearing competitive. 

Margin Protection Tips for Amazon Advertisers 

• Calculate TACOS (total advertising cost of sale).

  Don’t miss “the most underrated metric in your Amazon toolbox” according to Elizabeth Greene, co-founder of Junglr. TACOS = Ad Spend / Total Revenue (Organic + Paid). A rising TACOS often signals that your ads are driving revenue but not improving overall profitability.
   

• Avoid price wars.

  Competing solely on price is a race to the bottom. Instead, differentiate through enhanced listings, A+ Content, strong branding, and product reviews.
   

• Factor in returns and refunds.

  High return rates reduce effective margins. Monitor returns closely and build return-adjusted profit into your PPC calculations. 

When pricing and profitability are tightly managed, PPC becomes a tool for scalable, sustainable growth, not just a short-term traffic boost. The brands that succeed long-term on Amazon are the ones that treat pricing strategy and advertising strategy as two sides of the same coin. 

To run profitable and scalable campaigns, you need to track a core set of Amazon PPC metrics that reveal not only how your ads are performing, but also how they’re impacting your overall business. The key is knowing which numbers to watch, what they actually mean, and how to act on them. 

The Most Important Amazon PPC Metrics to Track 

Here are the essential metrics every Amazon advertiser should monitor, along with what each tells you about your campaign health and profitability: 

Advertising cost of sales (ACOS) 

• Formula: Ad Spend / Ad Revenue 

• ACOS is your baseline profitability metric. It shows how much you’re spending on ads to generate a dollar of sales. 

• A low ACOS (e.g., 10% to 20%) generally indicates strong profitability, especially for high-margin products. 

• A high ACOS (e.g., 40%+) may be acceptable for aggressive brand building or product launches, but it’s usually unsustainable long-term. 

• Pro tip: Know your break-even ACOS. If your profit margin is 30%, your ACOS needs to stay below that to remain profitable.
   

Return on ad spend (ROAS) 

• Formula: Ad Revenue / Ad Spend 

• The inverse of ACOS, ROAS shows how much revenue you earn for every dollar spent. 

• A ROAS of 4.0 means you’re generating $4 for every $1 spent. 

• Higher is better, but like ACOS, acceptable benchmarks vary based on category, goals, and margin structure.
   

Total advertising cost of sales (TACOS) 

• Formula: Ad Spend / Total Revenue (Ad + Organic)
  TACOS gives you a big-picture view of how your ads are influencing total sales. 

• A declining TACOS over time indicates your ads are improving organic visibility and driving sustainable growth. 

• A rising TACOS may mean your organic sales are flat or declining and you’re becoming overreliant on paid traffic. 

• Use TACOS to evaluate whether your PPC efforts are lifting your entire business, not just your ad revenue.
   

Cost per click (CPC) 

• CPC tells you how much each click on your ad costs, and it’s influenced by keyword competition, bidding strategy, and ad relevance. 

• High CPC isn’t necessarily bad as long as the clicks convert. 

• If you see rising CPC without improved conversions, revisit your targeting or reduce bids on underperforming terms.
   

Click-through rate (CTR) 

• Formula: Clicks / Impressions 

• CTR measures how compelling your ad is. If your CTR is low, shoppers are seeing your ad but not clicking, which is usually a sign that your listing title, image, or placement isn’t resonating. 

• Benchmark: A CTR above 0.3% is average. Above 0.5% is solid. CTR can vary widely by category and ad type.
   

Conversion rate 

• Formula: Orders / Clicks 

• Conversion rate shows how many shoppers actually buy after clicking your ad. 

• A strong conversion rate means your product listing is doing its job. It’s persuasive, clear, and aligned with shopper intent. 

• A low conversion rate often signals poor listing quality, pricing issues, or irrelevant targeting.
   

Impressions 

• The total number of times your ad is shown. This is your reach at the top of the funnel and is useful for evaluating brand awareness campaigns or testing new keywords. 

• Tip: High impressions with low clicks? Revisit your creatives, title, or product relevance to the keyword.
   

Brand lift and reach 

• Brand lift quantifies increased engagement or searches for your brand after running ads. 

• Reach tells you how many unique shoppers were exposed to your ads. 

• These advanced metrics, available via Amazon Brand Analytics and DSP, measure how your ads impact overall brand awareness and market penetration.
   

New-to-brand metrics 

• If your goal is customer acquisition, this metric is critical. It tells you what percentage of your ad-driven sales came from shoppers who had never purchased from your brand before. 

• High new-to-brand percentages are ideal when launching new products or expanding market share. 

• Use this metric to measure long-term customer acquisition performance, not just one-off sales. 

Tracking these metrics in isolation only tells part of the story. The real magic happens when you analyze them together. For example, if your ACoS is high but your conversion rate is strong, you may need to lower bids or refine targeting. If your CTR is low but impressions are high, your creative likely needs a refresh. By understanding what each number means and how they relate to one another, you can make smarter, faster decisions and unlock the full potential of your Amazon PPC strategy. 

Want help interpreting key metrics like ACOS, TACOS, or ROAS? The Ad Badger blog dives into tactical approaches to maximize PPC profitability. 

Running a high-performing Amazon PPC strategy requires more than manual bid adjustments and gut instinct. To compete in today’s fast-moving marketplace, you need real-time data, automation, and visibility across every layer of your campaigns. Fortunately, Amazon provides a robust suite of native tools, and there are several powerful third-party platforms that can take your strategy even further. 

Native Amazon PPC Tools 

• Amazon Ads Console

  This is your command center for creating and managing Sponsored Products, Sponsored Brands, and Sponsored Display campaigns. It’s where you’ll set budgets, choose targeting options, view performance reports, and make ongoing adjustments.

  Use it for day-to-day ad management, launching campaigns, and tracking performance metrics like impressions, clicks, and ACOS.
   

• Amazon Campaign Manager

  Campaign Manager lives inside Ads Console and provides a more granular view of individual campaigns. It allows you to dig into ad group performance, adjust bids, add negative keywords, and fine-tune targeting.

  Use it for hands-on optimization, keyword refinement, and budget management at the campaign or ad group level.
   

• Amazon Marketing Stream

  This tool provides real-time, hourly performance data via API. It’s perfect for advanced sellers and agencies that want to react quickly to changes in performance.

  Use it for real-time bidding adjustments, budget pacing, and data-driven automation. With Stream, you can identify patterns by time of day and automatically adjust bids during peak shopping hours.
   

• Amazon Attribution

  Attribution tracks how your off-Amazon marketing efforts, such as social media, Google Ads, or email campaigns, contribute to Amazon sales.

  Use it for measuring the ROI of external traffic, optimizing influencer campaigns, and understanding how shoppers discover and buy your products after clicking through non-Amazon channels.
   

• Amazon Marketing Cloud (AMC)

  AMC is a powerful, privacy-safe data clean room that gives advanced advertisers access to detailed, cross-channel insights. You can run custom queries to understand shopper journeys, frequency, purchase behavior, and campaign overlap.

  Use it for multitouch attribution, advanced audience segmentation, and deep-dive performance analysis that’s not available through the standard console. 

Third-Party Tools to Supercharge Your Amazon PPC 

• Helium 10 Adtomic

  Adtomic is Helium 10’s PPC platform built for Amazon sellers. It combines keyword harvesting, automated bidding, campaign optimization, and competitor intelligence into one user-friendly dashboard.

  Adtomic is best for data-driven sellers who want detailed control with smart automation. It’s especially useful when paired with Helium 10’s keyword research and listing optimization tools.

  Sellers using Adtomic or other Helium 10 tools should regularly check the Helium 10 blog for new strategies, platform updates, and expert commentary on improving PPC performance and keyword strategy.
   

• Perpetua

  Perpetua is an AI-powered advertising platform designed to fully automate and scale Amazon ads. It offers keyword suggestions, performance tracking, and bid optimization based on machine learning.

  Perpetua is best for brands and agencies looking to scale fast with minimal manual intervention. The platform’s visual dashboards make performance insights easy to digest.
   

• Jungle Scout

  While best known for product research, Jungle Scout’s advertising tools offer keyword optimization, sales tracking, and campaign performance analysis.

  Jungle Scout is best for sellers who want a simplified, all-in-one platform that integrates product research, launch planning, and advertising.
   

• Teikametrics

  Teikametrics uses machine learning to automate bidding, manage budgets, and improve profitability across Amazon and Walmart. Its Flywheel platform syncs advertising performance with inventory levels and sales velocity.

  Teikametrics is best for high-volume sellers looking for predictive automation that adapts to changing inventory and demand patterns. 

For more tool insights and competitive benchmarks, platforms like SmartScout and DesignRush provide powerful Amazon market intelligence, while Hawk SEM offers advanced PPC strategies and industry thought leadership you can leverage to refine your advertising edge. 

If you’re managing more than a handful of ASINs or spending aggressively on Amazon ads, trying to do everything manually is a recipe for inefficiency. The right mix of Amazon’s native tools and third-party platforms can save you time, boost performance, and provide the insights you need to win in a competitive landscape. Whether you’re just getting started or scaling into multiple marketplaces, these tools are essential to building a PPC engine that grows with your business. 

What are the different types of Amazon PPC campaigns? 

Amazon PPC includes two core campaign types: 

Automatic campaigns: Amazon handles targeting based on your product listing content. These are great for keyword discovery and easy setup. 

Manual campaigns: You control the targeting and select specific keywords, ASINs, and categories. These offer deeper optimization and better control. 

Within manual campaigns, you can launch three key ad formats: 

• Sponsored Products: This ad type is best for individual product promotion, as it allows you to promote individual listings directly in search results and on competitor product pages. The average cost per click for this ad type is 81 cents, though actual CPC will vary by category, product, and competition.
   

• Sponsored Brands: Great for brand awareness and multiple projects, this ad type allows you to feature your brand logo, custom headline, and multiple products at the top of search results. The average cost per click for this ad type is 89 cents, though actual CPC will vary by category, product, and competition.
   

• Sponsored Display: Ideal for off-Amazon remarketing, this ad type allows you to target shoppers based on their behavior both on and off Amazon to retarget and reengage potential buyers. The average cost per click for this ad type is $1.25, though actual CPC will vary by category, product, and competition. 

How much does Amazon PPC cost? 

It depends. Amazon PPC costs vary widely based on your product category, competition level, and targeted keywords. 

In 2025, the average cost per click for Amazon PPC ads is between 81 cents and $1.20 per click. 

Low-competition niches may see an average cost per click around 30 cents to 75 cents. On the other hand, highly competitive categories like supplements, tech accessories, or skincare can push CPC over $2 or even $5 for top keywords. 

You don’t need a huge budget to get started, but you do need to manage bids smartly and monitor profitability closely. 

Is Amazon PPC worth it? 

Absolutely! When done right, Amazon PPC offers: 

• Immediate visibility for new or slow-moving products. 

• Sales acceleration that can improve organic rankings. 

• Insight-rich data for smarter marketing decisions. 

• Control over customer acquisition, especially in competitive categories. 

Relying solely on organic reach is no longer enough. PPC gives you the ability to actively shape your visibility, growth, and brand presence. 

What’s a good click-through rate for Amazon ads? 

The average CTR for Amazon ads is approximately 0.35%, with variations depending on ad type and category. 

A typical CTR on Amazon can range from 0.3% to 1% depending on the product category and ad type. Above 1% is considered strong and typically reflects a highly relevant, well-optimized listing. 

If your CTR is below 0.3%, revisit your product images, titles, or ad targeting to improve engagement. 

What’s a good conversion rate? 

The average Sponsored Products conversion rate is 9.96%, which is significantly higher than the general e-commerce conversion rate of 1.33%. 

Conversion rates can be even higher in well-optimized niches or with strong review profiles. 

If your conversion rate is below 7%, it might signal issues with your pricing, reviews, listing quality, or relevance to the targeted keywords. 

What’s a good CPC on Amazon? 

There’s no universal benchmark for CPC. It’s category-specific. 

For example, “silicone baking mats” might have a $0.60 CPC, while “wireless earbuds” could be closer to $2.50+. 

Instead of aiming for a specific CPC, focus on whether your CPC supports a profitable ACOS based on your product margins. 

What’s a good ACOS on Amazon? 

A good ACOS depends on your profit margins and goals. 

Around 15%-30% is generally considered healthy for most products. 

Lower ACOS is ideal for profit-focused campaigns. 

Higher ACOS (30%-50%) may be acceptable when launching a new product or investing in brand awareness. 

Tip: Know your break-even ACOS and optimize around that to ensure you’re growing without bleeding profit. 

Success on Amazon doesn’t happen by accident; it’s built through strategic, data-driven advertising. Amazon PPC is your most powerful lever to boost visibility, accelerate sales, and grow a brand that dominates. When campaigns are structured intelligently, listings are fully optimized, and every bid is backed by insight, PPC becomes more than advertising. It becomes a growth engine.