3 November 2025
A full-funnel approach using Sponsored Products for conversions, Sponsored Brands for visibility and video, and Sponsored Display/DSP for retargeting and audience expansion.
Use an 80/15/5 model: 80% to proven campaigns, 15% to growth and ranking initiatives, 5% to experiments (new keywords, creatives, and formats).
Monitor TACoS, organic rank movement, click-share vs. conversion-share, New-to-Brand %, repeat-purchase rate, and Brand Metrics (awareness → consideration → purchase).
Optimize your PDP first, build rank with SP + SBV, retarget using SD, expand with DSP, and refresh creatives monthly. Scale budgets only after maintaining strong conversion rates.
To operate a successful Amazon Seller business, you need a sophisticated Amazon Advertising Strategy to get the most out of your Amazon advertising management. Your Amazon ads strategy needs to meet your company’s objectives, consider consumer needs and clearly highlight your products’ unique selling points (USPs) – in addition to understanding the minutiae details of operating and optimizing Amazon PPC ads .
Thus, as competition intensifies, mastering an effective Amazon advertising strategy is no longer optional—it’s critical. In this article we share eight tips and provide a clear roadmap for sellers aiming to dominate their niche through Amazon advertising.
This may sound counter-intuitive, especially coming from an Amazon Seller Agency, but running Amazon ads too early is one of the most common mistakes we see sellers make. What we mean by that is: make sure you have also your basics covered BEFORE you start splurging on Amazon ads. This includes, Amazon Listing Optimization and Amazon SEO. Even the smartest Amazon advertising plan will fail if your product detail page isn’t ready. Ads can drive relevant users to your product pages, but if you bullet points don’t cover essentials, your product images are not optimized or you do not have product reviews yet, you likely won’t generate any sales. Thus, before you scale spend, make sure your listing meets Amazon’s baseline for trust, discoverability, and buyer confidence. Another aspect are operation aspects. Here is an overview:
Before you push ads, ensure you’re strong across:
| Retail Component | Best Practice |
|---|---|
| Buy Box ownership | Maintain 95%+ Buy Box share |
| Prime shipping | Fast delivery + free returns whenever possible |
| Price competitiveness | Match or beat top sellers in your sub-category |
| Reviews | Target 4.2★+ and at least 50 reviews (product maturity threshold) |
| Product media | 6–8 images, lifestyle + infographic + comparison chart |
| Video | 15–30 second product explainer (plus UGC if possible) |
| A+ Content | Enhanced + if eligible, A+ Premium |
| Inventory coverage | 30-day runway minimum during scaling cycles |
Many articles on this topic will argue that you should deploy a “Full-Funnel Advertising Mix” consisting of videos, search and display ads. While this may hold true for large Amazon sellers with an established brand presence and consistent sales on the marketplace, please note that things are different for smaller sellers. For sellers with budgets sub $5,000 per month, generally, it makes little sense to spend on anything else other than Sponsored products and sponsored brands ads.
Rather than venturing into video and display advertising, we would actually recommend testing out Google Ads for Amazon Products. The rationale is as simple as it is sound: You can take your learnings from Amazon sponsored products ads and apply them DIRECTLY to Google search ads. Also, the intent of users searching on Google is only slightly lower than the purchase intent of shoppers searching for the same keywords on Amazon.
For more established Sellers, a full-funnel strategy however does make sense. Here are some basic pointers for that:
| Funnel Stage | Goal | Key Tactics |
|---|---|---|
| Awareness | Reach new audiences | Sponsored Brands Video, Sponsored TV, DSP in-market & lifestyle audiences |
| Consideration | Build trust and search visibility | Sponsored Brands, competitor/product targeting, retargeting views |
| Conversion | Capture purchase intent | Sponsored Products exact/manual + placements |
| Loyalty & Repeat | Increase lifetime value | Remarketing, Brand Tailored Promotions, upsell/cross-sell ads |
Another important strategic variable are advertising formats. Each Amazon ad type plays a different strategic role in your growth engine. Choosing the right format at the right time determines how efficiently you build awareness, ranking momentum, and drive profitable sales.
Think of Sponsored Products as your conversion engine, Sponsored Brands as your visibility and brand-building system, and Sponsored Display as your audience amplifier and defender.
Primary use: capture demand and drive direct conversions.
Sponsored Products should be the foundation of nearly every Amazon advertising strategy. They appear directly in search results and on product pages—where shoppers already show buying intent.
When to use Sponsored Products:
Best for:
Avoid relying only on SP if:
You’ve plateaued on ranking and need incremental reach or creative storytelling.
Primary use: increase brand awareness, capture premium placement, and introduce shoppers to your product portfolio.
Sponsored Brands ads appear at the top of search results—the single most valuable real estate on Amazon. They also unlock video inventory, which has become one of Amazon’s top conversion tools.
When to use Sponsored Brands:
Best for:
Pro tip:
Link SB ads to your Amazon Store page instead of a product page to improve AOV and merchandising control.
Primary use: audience targeting & demand amplification—on and off Amazon.
Sponsored Display allows you to target shoppers by behavior, not just keywords. It’s the most flexible format for retargeting, conquesting competitor audiences, and expanding visibility beyond Amazon’s search results.
When to use Sponsored Display:
Best for:
Ideal for:
Consumables, accessories, seasonal items, and brands with multiple SKU lines.
| Goal | Best Ad Type |
|---|---|
| Drive conversions + rank | Sponsored Products |
| Win premium search real estate | Sponsored Brands |
| Tell your brand/product story | Sponsored Brands Video |
| Retarget shoppers / recover cart abandoners | Sponsored Display |
| Conquest competitors | SD + SP product targeting |
| Build multi-SKU visibility | Sponsored Brands → Storefront |
| Increase new-to-brand sales | SB Video + SD audiences |
Leveraging synergies between organic SEO on Amazon and paid advertising is essential for sustainable growth (Amazon SEO and PPC). The reason therefore is that cost-free organic clicks are critical to balancing out the lower profitability of sales generated via paid ads.
Think of your organic traffic as a feeder that fuels your Amazon marketing funnel: Ignoring brand searches, you mostly reach consumers that are likely still in the product discovery stage. They may not convert right away, but they become aware of your brand and become a great audience to remarket to (more on this later).
To do so, you need to spend time on your Amazon SEO Strategy.
Use Amazon PPC to Boost Organic Rankings: Use Sponsored Product Ad campaigns (Amazon Sponsored Products Ad Management Services) to target generic keywords and to boost traffic. As more people click through to your Amazon listings (and hopefully some will also end up making a purchase), the organic ranking of your listings for these keywords will also increase. This is because the Amazon A9 algorithm considers conversion rates for a given keyword as one of the factors it uses to determine which listings rank in better positions. While the exact composition of Amazon’s search algorithm is unknown, it stands to reason that conversion rates are obviously an important factor, as after all Amazon maximizes its own revenue if Sellers generate more sales.
Your Amazon PPC campaign objectives will also be different based on your product life cycle (Amazon PPC Services). For example, if your product is new and just launched, you expect and should target a much higher ACoS. This is because Amazon will need to test your product for keywords/product fit, the testing will require you to outbid existing placements to gain impressions. I will separate the cycle into three stages: Product Launch, Scaling Phase, and Cash-Cow Phase.
This is the stage when your product list is active and/or your product has landed into Amazon FBA. The objective will be to test and get an impression on all the relevant keywords that you have research.
At this point, you should know if this product is going to stick, if not then you should go back to the drawing board on product research. At this point, you should know which keywords/product targets are converting for your product on the most granular level. This is also where you will scale your Amazon advertising out, more on that later.
Your product has been selling well, ranks for the top few placements organically and for sponsored placement. Now is the time to lower your AcoS and maintain the winning campaigns and shut down poor ones. Basically, keep putting your budget into well-tried and tested keywords and product targets, while cutting back on so-so and poorly performing ones.
SellerMetrics is an Amazon PPC Software built for sellers, our bid algorithms are designed for the above product life cycle. Our bid automation algorithm allows for the below 3 strategies:
Especially for smaller Sellers, retargeting audiences may not be big in size, but they can be huge in terms of impact. Re-engaging shoppers who have previously interacted with your Amazon product listings is typically going to deliver strong results in terms of ROI. Here is how you can leverage different Amazon Ad Formats for remarketing purposes:
Use Amazon’s Sponsored Display Ads to target customers who viewed your product but didn’t purchase. You can also retarget customers who purchased complementary products. However, be aware that the latter will deliver very different results as you are effectively reaching a cold audience. You can still try this tactic though for products that are often purchased together (more on this further down). A few examples:
This tactic works well for Sellers that are in the process of expanding their existing product portfolio: You may already be doing well with a number of products but are now looking to broaden your footprint by launching more, related products. You thus may want to target your existing customers with complementary or upgraded products.
How to make this work: Experiment with different lookback windows (7, 14, or 30 days) to find the optimal retargeting period for your audience. Also the length of the lookback window will determine the size of your audience pool. Shorter windows work well for high-demand products and for Sellers with large remarketing audiences, while longer windows may be better for niche items, for items with a longer purchase cycle, or for Sellers with a small footprint on Amazon.
Tip: Look at the current traffic on your Amazon listings and work out what budget you need to allocate to your remarketing campaign. You can do that by walking back from:
These two numbers will give you an optimum impression target. For example: if within a month you estimate that your listings get around 80,000 clicks in total and that you want to serve each of these visitors at least 3 ad impressions in a week (so frequency = 3), then you can serve 80,000 * 3 = 240,000 impressions. Now you take your average CPM (= cost to deliver 1,000 impressions) and set your daily campaign spend to a daily campaign budget that ensures that you can deliver 240,000 impressions per week (total desired weekly impressions / 1,000 * avg. CPM / 7).
We believe that this method is best suited for products with a well-known brand name, strong listings, and positive ratings. This method is highly likely to work for you if your product is in the Top 10 in a specific subcategory.
The majority of keyword bids are below average. Only keywords with a high CTR and conversion rate receive high bids, as long as the ACoS remains below a reasonable threshold. Loose match targeting such as auto and broad match types will not be used
This strategy works best for experienced Amazon sellers who are confident in their offerings and have the cash flow to temporarily drive their margins into the negative, as with all risk-high-reward tactics.
The reward is also substantial: either beating out near-top opponents or taking the Best Seller badge from the current leader. Because of the way the Amazon algorithm reacts to an increase in sales, via the Amazon flywheel effect, the scale to the moon strategy should be running for at least a month.
To do this strategy, increase your bids on all of your best-performing keywords. Maintain your bids above the top of Amazon’s recommended bid upper limit.
Targeting the books category on Amazon is a unique way to employ product targeting ad type. You can use Sponsored Display and Sponsored Product to target the book ASIN or ISBN number if the book’s audience is in line with the product you want to sell. More on this topic on our blog post on Amazon Kindle Advertising Strategy.
You can also target products that are complementary to yours, such as yoga trousers and yoga mats if you are selling yoga pants. This type of promotion necessitates a thorough understanding of your product and the intended demographic. Examining the commonly purchased together section of your list is a fun approach to locate complementary products.
During the Scaling phase in the product life cycle is where you focus your efforts on scaling. Your monthly budget should be between $10,000 and $30,000 per month.
You’ve finally arrived at the point where you can begin to challenge your category’s established competitors. If this describes your current stage of development, now is the time to begin experimenting with various ad formats and campaign types mentioned above.
Start working on your Sponsored Brands advertisements, and at the very least, start dabbling in Sponsored Display. You should also start working with broad and phrase term match and auto campaigns. Campaign budget on a campaign level should be increased substantially, campaign should never run out of budget.
What’s particularly exciting about this stage is that your increased ad expenditure provides you with a lot more data and a lot more flexibility. You may also attempt split testing and experiment with different targeting kinds, the possibility is endless.
Diversification is the name of the game here. If you spread your ad budget among a variety of campaigns and advertising, your competitors are less likely to discover a flaw in your marketing approach. It also makes it a lot easier to respond to changes in the Amazon PPC scene that are unforeseeable.
You can build your way up to become a powerful, large-scale brand if you invest enough time scaling higher and establishing yourself as a major player in your field.
To Summarize;
Scale Vertically by:
Scale Horizontally by:
Driving traffic from outside Amazon not only increases sales but also signals Amazon’s algorithm to boost your product rankings. It can be a real boon for Sellers looking for ways to grow sales beyond just investing in Amazon ads. You have three basic options for this:
While you will not be able to optimize your Google Ads with the Google advertising platform for “sales” or “ROAS” targets, driving traffic from Google to Amazon can still be highly efficient. You can try driving traffic directly to Amazon product listing pages. The advantage of this is that by default these pages tend to be high-converting pages, which will be a benefit in the Google ad auction. Google considers “landing page experience” as a factor in its “quality score”, which essentially serves as a weighting factor that is either decreasing or increasing the CPC bids you need to put up to win the Google ad auction. In many cases you may also opt to drive traffic to your own landing pages (more on that below).
Custom landing pages are an advanced Amazon advertising strategy. They help you control the customer journey, collect first party data (cookies and/or email addresses) while still being able to optimize for conversions.
The main difference between driving traffic to landing pages that you own and sending traffic straight to amazon is that your own pages allow you to capture customer data, such as email addresses and cookies. If you send traffic to Amazon you won’t be able to capture any of that. This requires you to “fly blind”. While for Google search ads that may still be okay as you can limit your ad spend on highly converting keywords, it is a huge issue when spending on Meta (Facebook and Instagram), TikTok or YouTube ads. These channels are “push” channels and you are serving ads to users who may or may not have a strong intent to buy your product(s). Meta’s powerful advertising engine however is fueled by data. Sending traffic to your own landing page allows you to send these vital signals back to Meta and to optimize your Meta ads for more than just a click. You can optimize your Meta ads based on metrics such as dwell time, or email submissions and so on. These are all proxies for a purchase. Someone who spends a lot of time studying your landing pages is more likely to make a purchase later on than someone who leaves a page just seconds after it has finished loading.
With sophisticated out-of-the-box landing page builders you can tailor the content and design to highlight your product’s unique value propositions and get a head start by using templates that have proven to work.
We recommend using LandingCube to create conversion-optimized landing pages. LandingCube specializes in Amazon landing pages only. Their templates have been used successfully by thousands of Amazon FBA businesses and can be integrated with Amazon Attribution. You can thus map your landing page traffic to Amazon using Amazon Attribution to measure its impact on your sales.
What strategy you choose for Amazon Advertising is highly dependent on the stage of your company’s development.
There is no one-size-fits-all approach to Amazon advertising, and you should not concentrate on a single-digit ACOS. Because every business/product has a different timeline and a goal that works for one company may not work for another.
We understand that anything that can encapsulate all situations is attraction, but keep in mind that if anything seems too good to be true, it most likely is. Every campaign is unique, and Amazon PPC has so many variables that there is no single method that works for all campaigns.
For example, you may achieve an ultra-low ACOS if you focus solely on it, but the rest of your metrics may suffer as a result.
If you’re a new Amazon seller getting started with Amazon PPC, start small and focus on a few winning keywords. Profitability is important since it ensures that you can continue to operate. For your main keywords, aim for the first page or two of organic results and only focus on a few.
Differentiation and experimentation are your major objectives once you’ve passed through the launch phase and are focused on growth. You now have an extra ad budget at your disposal, and now is the time to put it to good use.
Your strategy and tactics need to be malleable. Always be willing to change your approach or tactics if they aren’t working for you. Never forget to keep trying and learning no matter where you are in your business’s path. The more you learn, the more you will advance!
We are SellerMetrics, our Amazon PPC Software helps Amazon sellers, brands, KDP Authors and agencies navigate Amazon Advertising PPC via bid automation, bulk manual bid changes, and analytics.
A plan for using Amazon’s ad formats and targeting tools to increase visibility, drive conversions, and scale profitable sales. It includes keyword research, bidding, creative testing, audience targeting, and performance tracking.
On Amazon, competition is rising, CPCs are climbing, and shoppers expect strong product pages. A strategy ensures efficient spend, faster ranking, higher profits, and long-term defensibility against competitors.
Retail readiness, keyword research, full-funnel ad mix, audience targeting, budget rules, creative testing, negative refinement, and KPI tracking across awareness → conversion → loyalty.
Sponsored Products: bottom-funnel conversions & ranking
Sponsored Brands: brand visibility, video, and multi-SKU showcase
Sponsored Display: retargeting, competitor conquest, cross-selling
Common range: 10–15% of revenue for established brands; 20%+ for launches or aggressive growth. Adjust based on inventory, goals, and TACoS stability.
Track TACoS, click share vs conversion share, New-to-Brand, Brand Metrics, organic rank, and repeat-purchase rate. ACoS alone doesn’t show long-term growth.
Expect initial learning in 2–4 weeks, stronger impact in 6–12 weeks, and full funnel performance within ~90 days.
Improve PDP conversion, use negative keywords, focus on exact match winners, retarget efficiently, and use coupons to lift CVR—not just bid cuts.
Expand into Sponsored Brands & Sponsored Display once core campaigns are stable, keywords rank, and you want to broaden reach or scale brand presence.
Yes. Paid traffic drives sales velocity, which improves keyword ranking, visibility, and long-term organic performance.
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