E-commerce

Amazon PPC (Sponsored Ads) for Beginners

How Amazon sponsored product ads work, how to set up your first campaign and the metrics like ACoS that tell you if they pay off.

AMAMJAM Solutions teamRewari, Haryana 4 Aug 20263 min read
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    Amazon’s sponsored ads place your products at the top of search results and on product pages. You pay when someone clicks. Used well, they speed up sales and rankings.

    Ad types

    TypeWhat it doesWho can use it
    Sponsored ProductsPromotes individual listings in search and product pagesMost sellers
    Sponsored BrandsBanner with your logo and several productsBrand Registry
    Sponsored DisplayRetargeting and product targetingEligible sellers

    Key metrics

    • ACoS: ad spend ÷ ad sales. Lower is better.
    • ROAS: ad sales ÷ ad spend; check with our ROAS calculator.
    • Break-even ACoS: roughly your profit margin before ads. Work out your margin with our break-even calculator.

    Your first campaign

    1. Start with an automatic Sponsored Products campaign for your best listing.
    2. Set a daily budget you are comfortable testing.
    3. Run it for two weeks to collect search terms.
    4. Move converting search terms into a manual campaign with exact match.
    5. Add irrelevant terms as negative keywords.

    Fix the listing first

    Ads send traffic; your listing converts it. Good images, titles, reviews and price matter before spending. Read how to write Amazon titles.

    Review weekly

    Lower bids on keywords with high ACoS, raise them on profitable ones, and keep adding negatives.

    See our marketplace account management service.

    Want the full picture? This article is part of Marketplace selling: the complete guide, our in-depth guide with everything in one place.

    AM
    Written by the AMJAM Solutions team

    Our specialists handle product listing for businesses across India from our office in Rewari. We update our articles as platforms change.

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