Amazon PPC Advertising: Complete Guide 2026
Updated: March 25, 2026
Introduction
Amazon PPC (Pay-Per-Click) advertising is essential for sellers who want to increase visibility and sales. This guide covers everything you need to know to run successful campaigns.
Campaign Types
1. Sponsored Products
Best For: All sellers, product visibility
Features:
•Appear in search results and product pages
•Target keywords or products
•Automatic or manual targeting
•Highest conversion rate
When to Use:
•Launching new products
•Increasing visibility for key products
•Competing in crowded categories
2. Sponsored Brands
Best For: Brand-registered sellers
Features:
•Banner ads with logo and custom headline
•Direct to your Store or product list
•Keyword targeting
•Builds brand awareness
When to Use:
•Building brand recognition
•Showcasing product line
•Driving traffic to Store
3. Sponsored Display
Best For: Retargeting, off-Amazon reach
Features:
•Display on and off Amazon
•Retargeting capabilities
•View-based or purchase-based audiences
•Expanded reach
When to Use:
•Retargeting cart abandoners
•Reaching customers off Amazon
•Cross-selling products
Campaign Structure
Recommended Structure
Account
├── Auto Campaigns (1 per product)
│ └── For keyword research
├── Manual Campaigns (per product line)
│ ├── Exact Match
│ ├── Phrase Match
│ └── Broad Match
├── Brand Defense Campaigns
│ └── Target own brand terms
└── Competitor Targeting
└── Target competitor ASINs
Budget Allocation
Campaign Type
Budget %
Purpose
Sponsored Products
60-70%
Sales & ranking
Sponsored Brands
15-20%
Brand awareness
Sponsored Display
10-15%
Retargeting
Keyword Research
Finding Keywords
Tools:
•Amazon Search Terms Report
•Keyword research tools (Helium 10, Jungle Scout)
•Competitor analysis
•Customer searches
Process:
1.Start with auto campaigns (2-4 weeks)
2.Analyze search term reports
3.Identify converting keywords
4.Add to manual campaigns
Match Types
Type
Reach
Control
When to Use
Exact
Low
High
High-converting keywords
Phrase
Medium
Medium
Testing variations
Broad
High
Low
Discovery campaigns
Best Practice:
•Use all three match types
•Start broad, then refine
•Move winners to exact match
Bidding Strategies
Bid Optimization
Strategy Options:
1.**Dynamic - Down Only**
- Amazon lowers bids for less likely conversions
- Recommended for most campaigns
2.**Dynamic - Up and Down**
- Amazon adjusts both ways
- For established campaigns
3.**Fixed Bids**
- Manual control
- For precise management
Setting Bid Amounts
Base Bid = Target ACoS × Conversion Rate × Product Price
Example:
•Target ACoS: 20%
•Conversion Rate: 10%
•Product Price: $30
Bid = 0.20 × 0.10 × $30 = $0.60
Optimization Techniques
Weekly Optimization Checklist
☐Review search term reports
☐Add negative keywords
☐Adjust bids for performance
☐Check budget utilization
☐Monitor ACoS by campaign
ACoS Targets
Launch
50-100%
Visibility & reviews
Growth
25-40%
Balanced growth
Mature
15-25%
Profitability
Optimization Rules
Increase Bids When:
•ACoS < target
•High conversion rate
•Good CTR (>0.3%)
•Low impression share
Decrease Bids When:
•ACoS > target
•Low conversion rate
•Poor CTR (<0.2%)
•High spend, low sales
Pause Keywords When:
•High spend, zero sales
•Very high ACoS (>100%)
•Irrelevant search terms
Negative Keywords
Why Important
•Prevents wasted spend
•Improves campaign relevance
•Lowers ACoS
Common Negative Keywords
•"free" - Free seekers
•"cheap" - Price-sensitive shoppers
•"used" - New product sellers
•"repair" - Looking for parts
•Brand names (if generic keywords)
Finding Negatives
•Search term reports
•Irrelevant clicks
•Non-converting terms
Competitor Targeting
Product Targeting Strategies
1. Category Targeting
•Target entire categories
•Narrow with refinements
•Good for discovery
2. Individual ASIN Targeting
•Target specific products
•Higher precision
•Better conversion rate
When to Target Competitors
Good Targets:
•Higher-priced products
•Lower-rated products
•Out-of-stock products
•Poor listing quality
Avoid Targeting:
•Dominant brands
•Much lower prices
•Highly rated products
Reporting & Analysis
Key Metrics
ACoS
Ad Spend / Ad Sales
15-30%
RoAS
Ad Sales / Ad Spend
3-5x
CTR
Clicks / Impressions
>0.3%
Weekly Report Template
Campaign Performance Summary:
•Total Spend: $XXX
•Total Sales: $XXX
•ACoS: XX%
•RoAS: X.Xx
Top Performers:
1.Campaign: XX | ACoS: XX% | Sales: $XX
2.Campaign: XX | ACoS: XX% | Sales: $XX
Areas to Improve:
•Campaign: XX | Issue: High ACoS
•Action: Add negatives, lower bids
Next Week Goals:
•Reduce overall ACoS to XX%
•Launch XX new campaigns
•Test XX keywords
Common Mistakes
❌ Mistakes to Avoid
1.**Ignoring Search Term Reports**
- Missing optimization opportunities
- Wasting budget on irrelevant terms
2.**Setting and Forgetting**
- PPC needs regular attention
- Weekly optimization minimum
3.**Wrong Campaign Structure**
- Too many or too few campaigns
- Mixing products in campaigns
4.**No Negative Keywords**
- Wasted spend on irrelevant clicks
- Higher ACoS
5.**Wrong Match Type Strategy**
- Only using broad match
- Not leveraging exact match
Advanced Strategies
Brand Defense
•Bid on your own brand terms
•Prevent competitors from stealing traffic
•Low cost, high conversion
Seasonal Campaigns
•Increase budgets during peak seasons
•Create seasonal ad copy
•Plan for Prime Day, holidays
New Product Launch
•Start with aggressive bidding
•Use auto campaigns for research
•Focus on reviews first, ACoS second
Budget Planning
Recommended Starting Budgets
Stage
Daily Budget
Duration
Scaling Strategy
1.**Test Phase:** $20/day per product
2.**Winners Identified:** Increase to $50/day
3.**Profitable Campaigns:** Scale to $100+/day
4.**Monitor & Adjust:** Continuous optimization
*Need help with Amazon advertising or account health? Contact Account Health Desk.*
Contact: support@accounthealthdesk.com | Telegram: @accounthealthdesk