When you start selling on Amazon, you quickly realize that a good product listing and competitive pricing alone aren’t always enough. No matter how great your product is, if customers can’t find it, they can’t buy it. That’s where Amazon PPC (Pay-Per-Click) advertising comes in. So, how do you actually set up a campaign that works?
1. Choose the Right Campaign Type
Amazon offers three main types of advertising campaigns:
Sponsored Products: The most commonly used ad type. You promote a specific product and it appears in search results or product detail pages.
Sponsored Brands: If you have Brand Registry, you can promote multiple products in a single ad. Great for boosting brand awareness.
Sponsored Display: These ads can even appear outside Amazon. Perfect for retargeting shoppers who viewed your product but didn’t buy.
2. Choose Your Targeting Method: Automatic vs. Manual
When setting up your campaign, you’ll need to choose between:
Automatic Targeting: Amazon decides which keywords and products to show your ad for. It’s a solid way to collect keyword data if you’re just getting started.
Manual Targeting: You choose the keywords yourself and decide how precisely you want your ad to match search queries.
A good strategy is to start with an automatic campaign, gather performance data, and then use that information to launch a more focused manual campaign.
3. Keyword Research: Don’t Skip This Step
If you go the manual route, keyword research becomes essential. Some practical ways to find keywords:
Use Amazon’s search bar suggestions to see what shoppers are looking for.
Try tools like Helium 10, Jungle Scout, or Keyword Tool to check search volume and competition.
Spy on your competitors. What keywords are they targeting in their listings?
Once you have your keywords, you’ll need to choose between match types:
Broad Match: Your ad can appear for a wide range of related searches.
Phrase Match: Your keyword has to appear in the same order as you set.
Exact Match: Only shows your ad for the specific term you input.
If you’re new, stick with Phrase and Exact match types at first. They’re more controlled and less likely to drain your budget.
4. Set Your Budget and Bids
Be honest about how much you’re willing to spend each day. A daily budget of $5–10 is a good starting point for beginners.
As for bids, Amazon will offer a suggested range, but you don’t have to go with the highest number. Start lower, test, and adjust based on performance. Overspending from day one won’t guarantee results—it’ll just burn through your ad money faster.
5. Use Negative Keywords
One big money-waster in PPC campaigns is irrelevant clicks. That’s why negative keywords are so important. These prevent your ad from showing for keywords that aren’t converting or aren’t relevant to your product. Don’t forget to check your search term reports and add negative keywords regularly.
6. Monitor Performance Regularly
Once your campaign is live, the work isn’t over. Log into Campaign Manager and keep an eye on these metrics:
ACOS (Advertising Cost of Sales): How much you’re spending on ads to generate $1 in sales.
CTR (Click-Through Rate): How often people click your ad after seeing it.
Conversion Rate: How many of those clicks actually lead to a sale.
These numbers will tell you what’s working and what’s not—and help you make smart adjustments.
