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Amazon PPC (Pay-Per-Click) is Amazon’s advertising platform that allows sellers to boost their products’ visibility across search results and product pages — paying only when shoppers click.
Amazon PPC is one of the most effective ways to drive sales, improve product rankings, and gain actionable data to optimize your listings.
Keep reading to discover the types of Amazon PPC ads and proven strategies to maximize your advertising ROI.
First off, let’s explain what PPC even is. PPC stands for “Pay-Per-Click”, and PPC advertising is a web-based promotion model where the advertiser pays for each click on an advertisement.
PPC ads are commonly used for a broad range of advertising goals, such as traffic driving, sales conversion, and lead generation. Tailoring your ad campaign to your target audience will help you achieve these objectives.
Popular PPC platforms enable in-depth targeting methods, allowing you to create ads that suit the needs of a particular customer demographic.
Pay-Per-Click advertising campaigns can help you get in front of potential customers with precision targeting features and tools that are not available through more traditional forms of advertising.
Using PPC enables you to target specific keywords, locations, categories, audience interests, and even competitors.
You can also set bids and ad copy to get the most out of your campaign. However, you will need to optimize and manage your campaigns regularly. This can help steer you in the right direction so you don’t overspend on keywords that don’t convert into sales.
PPC is a very effective way of targeting potential customers when they are most likely to be interested in your product/service. It can lead to the collection of valuable customer data which can help target your ads more effectively in the future.
Amazon offers three primary PPC ad types
Third-party Amazon sellers have three main types of Amazon PPC advertising to choose from in their Seller Central accounts, each type has a specific purpose and function depending on your goals.
Sponsored Products — Explain where they appear (search results, product detail pages), goals (immediate sales), and why they’re the most popular.
Sponsored Brands — Mention they feature a custom headline, logo, and multiple products, perfect for brand awareness.
Sponsored Display — Highlight that they can reach shoppers on and off Amazon via product targeting and interest audiences.
This article will help you better understand each type of Amazon advertising. (Amazon pay-per-click search marketing) and how they can boost your presence on product detail pages.
The first type of PPC advertising is “Sponsored Product Ads”. This type is designed to enable you to bid for particular keywords in order to gain maximum exposure within Amazon search results.
Sponsored Product ads are the most commonly used type on Amazon because they don’t require you to be brand registered to use them. Like the term “PPC” says, They require a small fee from the advertiser for every click on their ad.
This type of ads’ prominence on the page, and its similarity to organic listing thumbnails, make them particularly inviting.
It works like this; you first specify a list of targeted keywords or products that you want to show up in certain Amazon search results.
You want customers to find your ad when searching for something relevant, and then click on it. In order to rank at the top search results, you’ll need to bid high enough.
If you spend more money on your bids, you’ll get the top spot and will be able to reach the most customers. However, if you don’t bid high enough, your product will not appear anywhere.
Sponsored Brand ads are banner ads that show up on top of the Amazon search results that highlight your brand’s logo, custom tagline, and a variety of products from your brand.
Sponsored Brands ads are different from Sponsored Products ads in that they help you increase brand awareness by driving traffic to your Amazon Storefront or another page of your choosing, that features your products.
With Sponsored Brands, you can also run video ads, which are very eye-catching to potential customers, as they scroll through Amazon search results. Like other PPC ad types on Amazon, you can still target specific keywords, categories, or products when setting up your ad.
On your landing page or Amazon Store, customers can only view your brand, no other competitors’ ads or products will appear. This is highly advantageous and could give you a higher RoAS compared to other PPC ad types.
However, it’s essential to know that this ad type is only available for third-party sellers who are Brand Registered.
Sponsored Display ads are the newest form of Amazon advertising, having been launched in 2019. This type may be the least popular ad type of the three, but its use is on the rise.
In 2022 more than 25% of third-party sellers are using sponsored ads and it accounts for around 2% of Amazon’s advertising revenue.
Amazon explains this type of advertising in this way; ”Sponsored Display is 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.”
Sponsored Display brings advertising on Amazon next level, as this service offers the option to retarget Amazon customers on and off of Amazon. This means that your ads will not only show up across Amazon the same as with other ad types, but they’ll also be visible to customers on other websites and apps.
Unlike the first two ad types, there is no targeting keywords with Sponsored Display ads. Rather, the aim is to target the audience’s specific interests, and shopping behaviors, as well as customers who have visited your product page previously.
Essentially, Amazon will display products that customers have looked at before, on other Amazon pages or third-party websites with the intention that a purchase will then be made.
This advertising method is another that requires the seller to be enrolled in Brand Registry and is a very impressive tool to come out on top of your competitors.
Create your campaign
Choose your keywords or product targets
Set your bids and daily budget
Launch & pay only for clicks
Review and optimize regularly
Amazon PPC doesn’t simply award ad placements to the highest bidder — it runs a real-time auction that weighs both the bid amount and the relevance of the ad to the shopper’s search.
When a customer enters a keyword, Amazon looks at:
🏷️ Your bid — how much you’re willing to pay per click.
🎯 Your ad relevance — how well your product and keywords match the search intent.
📈 Your performance history — especially your click-through rate (CTR), which shows how often shoppers find your ad appealing.
That’s why a seller with a lower bid can outrank a higher bidder if their product is more relevant and has a better CTR.
By focusing on well-optimized listings and choosing the right keywords, you can boost your “quality score” and win better placement — often at a lower cost per click!
Here are a few proven strategies — and pitfalls — to keep in mind as you manage your Amazon PPC campaigns:
🎯 Start with manual campaigns using proven keywords.
Identify high-relevance, high-intent search terms from your keyword research or existing data and target them directly for better control and ROI.
🔍 Test different match types — broad, phrase, and exact.
Each match type can help you discover new search terms or focus on highly targeted traffic. Experiment to see which combination brings the most sales.
❌ Don’t ignore negative keywords.
Regularly review your search terms report and add irrelevant or underperforming keywords as negatives. This prevents wasted ad spend and improves campaign efficiency.
📊 Review performance weekly and optimize bids.
Monitor your campaigns at least once a week to spot trends. Adjust bids up for top performers and decrease them on underperforming terms to continually improve profitability.
Amazon PPC (Pay‑Per‑Click) is Amazon’s advertising system that enables sellers to boost visibility and sales of their listings on Amazon’s marketplace. You fund your campaign, and ads appear in sponsored spaces—like search results and product pages—only paying when a shopper clicks on your ad.
Campaign Setup: Create ads grouped into campaigns and ad sets (called ad groups).
Keyword & Product Targets: Choose relevant keywords or competitor ASINs to display your ad.
Bid Strategy: Select how much you’re willing to pay per click—higher bids often mean more ad visibility.
Live Ad Auction: When a shopper searches on Amazon, your ad competes alongside others. The highest—most relevant—bids win.
Clicks & Cost: If a shopper clicks your ad, you’re charged your bid amount or slightly above the next-highest bid.
Performance Tracking: Monitor key metrics (click‑through rate, advertising cost of sale, impressions, etc.) to assess and tweak your strategy.
Gain Instant Visibility: Appear immediately in prominent real estate—search results and product detail pages.
Boost Product Launches: Drive early sales and reviews, powering algorithms like Amazon’s A9.
Leverage Insightful Data: Your PPC campaigns generate search and conversion data, useful for refining listings and organic SEO.
Expand Reach: Advertising enables placement on relevant product pages, enhancing exposure beyond searches.
Sponsored Products: Most common format—ads for individual listings, shown in search results and related product pages.
Sponsored Brands: Feature your brand logo, headline, and multiple products—a banner-like ad in search results.
Sponsored Display: Targets shoppers across Amazon via interest-based, remarketing, and product-based placements.
PPC doesn’t guarantee organic ranking, but it does:
Boost visibility (impressions and clicks)
Drive early sales velocity
Provide keyword performance insight
Contribute to listing optimization and long-term SEO gains
| Strategy | Details |
|---|---|
| Diversify Targeting | Combine broad, phrase, exact keywords, and even competitor ASINs. |
| Optimize Keyword Tracking | Use tools to find high-performing terms; remove wasteful low-converting keywords. |
| Bid Wisely | Adjust bids depending on ROI; reduce bids on low-performing keywords, and increase on top converters. |
| Use Negative Keywords | Avoid spending on irrelevant or unprofitable searches. |
| Adjust by Day/Time | Shift budgets based on performance data (e.g. higher bids during peak sales hours). |
| Test Frequently | Run A/B tests on ad types, copy, and images to find what resonates best. |
| Sync with SEO Efforts | Integrate PPC keywords into your titles, bullets, and product descriptions for organic ranking benefits. |
This article has given you the basics of the different advertising options that are available to you as an Amazon seller. Competition is continuously rising in the marketplace, so it’s vital to have a thorough understanding of how to launch and promote your new products, as well as sustain sales for your already existing products. Amazon PPC will be one of your greatest resources.
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