Running ads on Amazon in 2025 isn’t just about boosting visibility—it’s about building a sustainable, scalable sales machine. With ad competition heating up and budgets stretching thin, a sharp Amazon PPC strategy is no longer optional—it’s your edge.
At Growwithba, we help sellers at all stages maximize every rupee and dollar spent on ads. Whether you’re just launching your first product or managing a 7-figure brand, this guide will walk you through:
- How Amazon PPC works
- Types of ads available
- Ad structure & targeting strategies
- Budget planning, ACoS, and profit control
- Real seller results and expert tips
- Advanced tactics to scale without overspending
What is Amazon PPC and How Does It Work?
Amazon Pay-Per-Click (PPC) is Amazon’s internal advertising platform. It allows sellers to bid on keywords so their products appear in prime positions when shoppers search.
How it works:
- You set a bid (max amount you’ll pay per click)
- If you win the auction, your ad shows up
- You pay only when someone clicks your ad
Amazon rewards relevance + performance. So your ad success depends not just on bidding higher, but on converting more.
A common misconception is that whoever spends the most always wins. In reality, Amazon rewards relevance and high click-through and conversion rates more than aggressive bidding. Even a modest budget can outperform larger ones if your campaign is well-structured.
Types of Amazon PPC Ads
| Ad Type | Placement | Best For |
|---|---|---|
| Sponsored Products | Search results, product detail pages | Individual product visibility |
| Sponsored Brands | Top of search with logo/banner | Brand awareness, multiple ASIN coverage |
| Sponsored Display | On and off Amazon | Retargeting, cross-selling |
Each type serves a different role in your overall PPC funnel. For example, Sponsored Products are ideal for bottom-of-funnel buyers, while Sponsored Brands support top-of-funnel visibility.
How to Structure Your Amazon Ad Campaigns
Checklist: Winning Campaign Structure
✅ Create separate campaigns by match type (Exact, Phrase, Broad)
✅ Group similar keywords to improve targeting
✅ Segment by product category or goal
✅ Use portfolios to organize by brand or product line
Campaign structure isn’t just for clarity. A well-organized structure allows for faster optimization and clear insight into what’s working. It also improves budget control and prevents overlap in bidding.
Pro Tip: Don’t mix match types in one ad group. It ruins budget control and dilutes data clarity.
Keyword Targeting in Amazon PPC Strategy Explained
Manual vs. Automatic Targeting
- Automatic: Amazon decides which keywords/products to target (great for discovery)
- Manual: You control which keywords to target (best for ROI)
Tip: Start with auto for 1–2 weeks to mine converting keywords. Then move those to manual.
Match Types Amazon PPC
| Match Type | Description | Use Case |
| Broad | Ads show for loosely related terms | Keyword discovery |
| Phrase | Ads show for exact phrases in order | Mid-level control |
| Exact | Ads show for exact term only | Precision targeting, high ROI |
Choosing the right match type is critical. Most successful sellers use a funnel approach—start broad to test, then refine to exact once conversions start rolling in.
Understanding ACoS, TACoS, and Profitability
- ACoS (Ad Cost of Sale) = Ad Spend / Ad Sales (ideal ACoS varies by margin)
- TACoS (Total ACoS) = Ad Spend / Total Sales (helps track organic impact)
Table: ACoS Benchmarks by Product Type
| Product Type | Healthy ACoS Range |
| High-margin items | 15–30% |
| Mid-margin items | 20–35% |
| Low-margin items | 10–20% |
To evaluate campaign profitability, always consider your break-even ACoS, which depends on your product’s margin. If your product has a 40% profit margin, your break-even ACoS is 40%—anything under that is profit.
Also monitor TACoS. If TACoS is declining while your sales grow, it means your organic rank is improving thanks to your ad-driven momentum.
Scaling Amazon PPC Without Burning Budget
Growth Tips:
- Use dayparting (run ads only during high-converting hours)
- Analyze placement reports and increase top-of-search bids
- Launch branded keyword campaigns for defense
- Test new ASINs with Sponsored Display retargeting
- Create separate campaigns for new launches and bestsellers
Advanced Bid Optimization Tips:
- Use dynamic bidding strategies (Amazon’s dynamic up/down)
- Set placement modifiers for top-of-search or product pages
- Analyze click-through rate (CTR) vs conversion rate (CVR) weekly
Case Study: 5x ROAS for a Home Category Brand
A DTC brand selling home fragrance products came to Growwithba with 18% ACoS and poor targeting. After a deep account audit and full campaign overhaul:
Steps Taken:
- Created manual campaigns with 20 top-converting keywords
- Moved to exact match for high-performing terms
- Launched Sponsored Brands video ads
- Restructured auto campaigns for keyword discovery
- Improved product pages to support better ad conversion
Results in 45 days:
- ACoS dropped to 11%
- TACoS improved by 21%
- Revenue grew 52% with the same ad budget
- Review count rose by 38% via post-purchase strategy
FAQs About Amazon PPC Strategy
1. How much should I spend on Amazon PPC?
Start with 10–15% of your revenue. Adjust based on profitability and product margin.
2. Can I run profitable ads on low-budget products?
Yes, but you need strict ACoS control and high conversion rates. Focus on exact match and branded keywords.
3. Are Sponsored Display Ads worth it?
They’re great for retargeting and defending listings—especially when used alongside Sponsored Products.
4. What’s a good CTR for Amazon ads?
A healthy Click-Through Rate (CTR) is 0.3–0.5%, but it varies by category. Sponsored Brands videos often get higher CTRs.
5. Should I run PPC on new products with no reviews?
Yes—but start slow, use auto + manual mix, and push for early reviews. Also, consider adding coupons to increase CTR.
6. How do I reduce wasted ad spend?
Use negative keywords, pause poor-performing terms, and monitor search term reports weekly. Avoid bidding on irrelevant or too-broad terms.
Final Thoughts: Ads That Sell More Than Clicks
Amazon PPC is more than just traffic—it’s about profitable traffic. It’s a performance channel, not a vanity one.
With the right strategy, clear structure, and frequent optimization, your ads can drive massive ROI—not just short-term sales.
At Growwithba, we manage PPC with a full-funnel approach: keyword mining, A/B testing, placement analysis, and performance scaling. We don’t just lower ACoS—we grow your business.
Want better ROI from Amazon ads? Let’s build a smarter Amazon PPC strategy tailored to your brand.
📞 Book your ad audit with Growwithba today and turn ad spend into sales success.
