Amazon advertising is everywhere you look – it might be a sponsored product that caught your eye. I could also be a banner you scrolled past but remembered, or a brand name that shows up at the right moment.
For sellers, this tool is a secret weapon of sorts, subtly nudging shoppers to add products to their cart and check out.
If you’re still toying with the idea of using Amazon advertising, you’ve come to the right place! Let’s discuss what it is, how to use it, and tackle the best practices you can apply to see your sales charts moving in the right direction.
What is Amazon Advertising?
Amazon Advertising is a platform that allows sellers and brands to promote their products through paid ads. These ads can appear in:
- Amazon search results
- Amazon product pages
- Outside Amazon
With a well-planned Amazon advertising strategy, sellers can appear not just in search results but also on competitor product pages, category listings, and even off-site through Amazon Ads served across the web.
Amazon Ads (screenshot)At its core, Amazon runs on a PPC management model, meaning sellers pay only when a potential customer clicks. This ensures budgets are performance-driven and measurable.
But the value goes beyond paid clicks. A strong campaign can fuel your organic growth strategy. Well-performing Amazon Ads often boost your rankings, helping products show up even when ads aren’t running.
Amazon Ads vs Google Ads and Facebook Ads
What are the differences between Amazon Ads vs Google Ads, and Amazon Ads vs Facebook Ads?
It goes without saying that Google Ads and Facebook Ads have been established for a while now. That said, it’s not surprising that 2024 Q4 data shows Google Ads earning $49 billion in revenue, with Facebook Ads coming in second with $40 billion.
Where is advertising spend going? (Source – Quartr)Amazon entered the digital ads game later, which explains its smaller revenue at $14 billion during the same period.
However, it’s crucial to note that Amazon Ads revenue jumped from $8 billion to $14 billion in just three years. That’s a 23% compound annual growth rate (CAGR)—the highest among major platforms.
This rapid rise shows that advertising on Amazon is becoming a major player. Here are the major differences between the three platforms for quick comparison:
Amazon Ads vs Google Ads vs Facebook Ads
| Feature / Platform | Amazon Ads | Google Ads | Facebook Ads (Meta) |
| Primary Intent | Shopping / High purchase intent | Information / Broad search intent | Discovery / Interest-based |
| Ad Format Focus | Product ads, brand ads, display, Amazon DSP | Search, display, video (YouTube) | Image, video, carousel, stories |
| Targeting | Shopping behavior, product interest | Keywords, demographics, location | Interests, demographics, behaviors |
| Ad Placement | Amazon marketplace + external sites | Google Search, YouTube, Display Network | Facebook, Instagram, Messenger, Audience Network |
| Conversion Funnel Stage | Bottom-funnel (ready to buy) | Mid to bottom-funnel | Top to mid-funnel |
How Amazon Advertising Works
The beauty of Amazon advertising lies in its ability to meet shoppers right where they’re ready to buy. After all, many Amazon users are on the platform not just to browse; they actually intend to shop. That makes it a goldmine for sellers who know how to use the Amazon advertising platform strategically.
With the Amazon PPC model, advertisers only pay when shoppers click their ad. But before that happens, there’s an internal auction system happening behind the scenes.
Advertisers place bids on relevant keywords, and Amazon decides whose ad shows up based on a combination of bid amount and ad relevance (including the product’s sales history, reviews, and listing quality).
There are two main ways sellers can run ads:
- Automatic targeting. Amazon chooses the keywords and products to target based on your listing.
- Manual targeting. You handpick ASINs, categories or keywords you want to appear under.
A smart Amazon advertising strategy often combines both. Start with automatic campaigns to gather data, then move to manual to optimize and scale.
Related content: What is Contextual Targeting?
Amazon Ad Products and Formats
Here are the diverse advertising solutions offered by Amazon Ads designed to help users get in touch with potential customers throughout their shopping journey:
Sponsored Ads
Sponsored ads promote individual products or brands within Amazon’s shopping environment. These include:
- Sponsored Products. These ads promote individual product listings and appear in shopping results and on product detail pages. Amazon Sponsored Products help increase visibility and drive sales by targeting shoppers actively searching for related items.
- Sponsored Brands. Formerly known as Headline Search Ads, Amazon Sponsored Brands feature your brand logo, a custom headline, and multiple products. They appear in prominent placements within shopping results, aiding in brand discovery and driving traffic to your brand store or product detail pages.
- Sponsored Display. These ads enable you to reach relevant audiences across the shopper journey, both on and off the marketplace. Amazon Sponsored Display uses automatically generated creatives to help promote product discovery and engagement.
Brand Shopping Experiences
Beyond traditional ads, Amazon provides immersive tools to enhance brand presence:
- Brand Stores. A customizable multipage storefront that allows you to showcase your brand and product portfolio in a curated shopping experience.
- Posts. Curated lifestyle imagery in a shoppable feed on Amazon, helping to inspire shoppers and drive product discovery.
- Amazon Live. Interactive, shoppable live streams that enable real-time engagement with shoppers, demonstrating products and answering questions live.
Ad Formats
To further diversify your advertising strategy, consider these formats:
- Video Ads. Streaming TV ads that reach audiences across Amazon’s exclusive and premium streaming services.
- Display Ads. Visual ads across Amazon properties, devices, and premium third-party content.
- Audio Ads. Non-visual ads that play during streaming audio content.
- Out-of-Home Ads. On-package ads, in-store signage, and locker pickup locations.
- Device Ads. Ads on Amazon devices like Fire TV, Fire tablet, and Echo Show.
Amazon Ad Formats (screenshot)How to Use Amazon Advertising
If you’re wondering how to advertise on Amazon, here’s the good news—you don’t need to be a big brand with a massive budget to get started. The Amazon Marketing Platform is designed to give sellers of all sizes access to powerful tools that can drive real results.
First, make sure you have a professional seller account. Then, you can access the Amazon Advertising Platform through Seller Central or the advertising console.
Here’s a how to get started:
Choose the right campaign type
As mentioned above, there are several Amazon advertising types: Sponsored Products, Sponsored Brands, and Sponsored Display. You may want to start with Sponsored Products, which is a beginner-friendly and targets high-intent shoppers.
Set your goals
Are you trying to boost visibility? Launch a new product? Retarget past visitors? Your campaign objective will guide which ad format and targeting method to use.
Pick your targeting method
Choose between automatic targeting (Amazon decides where to show your ads) and manual targeting (you’ll choose the keywords, ASINs, or categories). You can run both at first to gather data, then shift to manual for better control.
Set your budget and bids
Decide how much you’re willing to spend per day and per click. You can choose between fixed or dynamic bidding strategies depending on your goals.
Launch and monitor
Once your campaign is live, check your reports regularly. To adjust your bids and keywords to optimize performance, track metrics such as:
- Impressions
- ACoS (Advertising Cost of Sale)
- Clicks
- ROAS (Return on Ad Spend)
How to Optimize Amazon Ads Campaigns
Here are some of the best practices that could boost your return on ad spend, whether you’re managing ads in-house or working with an Amazon advertising agency:
Fine-Tune Your Product Listings
Your Amazon advertising campaign won’t convert if the product page they lead to is lacking. Poor images, weak titles, or unconvincing descriptions can drive shoppers away—even if they click your ad.
For inspiration, take a cue from the product listing of this bed sheet set, which has 426,302 ratings and is one of the bestsellers on the platform:
Sample Amazon product listing (screenshot) - Actionable Tip. Use high-resolution images, bullet points that highlight benefits, and clear titles with strong keywords. Think like your buyer—what would make them stop scrolling?
Related content: Amazon Listing Optimization Guide
Choose the Right Keywords
Effective keyword targeting can make or break your Amazon advertising campaign. Using overly broad or irrelevant keywords can drain your budget without generating sales.
- Actionable Tip. Use Amazon’s suggested keywords, plus other third-party tools, to find low-competition, high-intent search terms. Regularly add negative keywords to filter out unqualified traffic.
Consider Professional Amazon Advertising Services
Sometimes, the fastest route to better performance is working with experts who live and breathe Amazon ads. An experienced Amazon advertising agency can handle strategy, execution, and analysis—freeing you up to focus on operations.
- Actionable Tip. If you’re not sure where to start, consult with AMZ Advisers. Its tailored Amazon advertising services can help you scale campaigns while keeping your Amazon advertising cost-efficient.
The Lowdown
Whether you’re a first-time seller or a seasoned brand, Amazon advertising gives you the tools to increase visibility, drive traffic, and convert shoppers who are ready to buy.
In a crowded marketplace, visibility is everything—and that’s exactly what Amazon Ads delivers when used with intention. With the right mix of Amazon PPC campaigns, strong listings, and continuous optimization, you can turn casual browsers into loyal customers.
Author
Carla Bauto Deña is a journalist and content writer producing stories for traditional and digital media. She believes in empowering small businesses with the help of innovative solutions, such as ecommerce and digital marketing.
