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How Amazon Pay-Per-Click Campaigns Work:

E-commerce business is the focus of the world today, as business is evolving every day. Amazon is a major e-commerce platform and captures a significant share of online sales. In order to remain at the top of the niche and to compete, advertising is an essential tool for survival and growth.


Amazon introduced sponsored Ads tool, through this paid tool sellers promote their brands on the Amazon platform. The primary goal of Amazon PPC campaigns is to increase sales and business growth. When it comes to advertising expenses, sellers are curious about every penny. It is wasteful to spend money and time on ads without properly optimizing campaigns in such a competitive market.

Types of Campaigns

There are three types of Amazon Pay-Per-Click sponsored ads, which help to boost product visibility and sales by targeting specific audiences. Advertising campaigns are launched according to the campaign goals (awareness, profitability, and sustainability). Amazon sponsored ads campaigns have three types which are as under:

  1. Sponsored Brands
  2. Sponsored Products
  3. Sponsored Display
Amazon Sponsored Ads Campaign Types

In this article, I will cover Sponsored Product Ads only.

Bird Eye View of Sponsored Product Ads

Sponsored Product Ads Campaign

Sponsored Products are pay-per-click ads that promote individual product listings on Amazon. Product ads appear at the top, side, or inside of shopping results and on product pages. Sponsored Products offer automatic and manual targeting options. Bidding strategies in both automatic and manual campaigns are:

  1. Dynamic Down only
  2. Dynamic Up & Down only
  3. Fixed Bidding
Amazon Bidding Strategies

Automatic Targeting

Automatic campaigns are often used to discover new search terms and get better reach (impressions) than manual campaigns when you’re launching a product. Automated campaigns cannot intervene in advertising campaigns and don’t have great control over bidding. If you’re just launching your product and don’t have any keywords to target, auto-targeting is the best option.

Auto campaigns can be useful for finding new, high-converting long-tail keywords. These long-tail keywords help to drive traffic and to get search terms used by customers.  Automatic Campaigns are frequently not the greatest ads for boosting revenues and driving sales but help in understanding customer behavior from search terms. Amazon’s automatic campaign has four different match types:

  1. Close Match (Keywords are closely related to the customer search terms)
  2. Loose Match (Keywords are loosely related to the customer search terms)
  3. Compliment (Display ads to customers who visit product pages of items that complement yours)
  4.  Substitute (Display ads to customers who visit product pages of similar items.) 

Additionally, automatic targeting offers the option of negative targeting, including (negative keyword targeting and negative product targeting), to prevent bleeding on irrelevant terms.

Manual Targeting

In manual targeting, you can intervene and input keywords and optimize bids according to desire. Manual targeting gives you greater control over bidding as compared to automatic targeting. With manual targeting, you can choose the specific keywords and products you wish to target and set bids accordingly.

In manual targeting, use the data(keywords) from your automatic or manual campaigns to update and optimize your campaigns. Manual targeting offers three match types

  1. Broad Match: customer searches for your keywords in any order, along with other key terms that closely resemble your targeting keywords. Broad match is a great way to find new keywords and increase ad visibility to a wide range of shoppers.
  2. Phrase Match: Your ad will be displayed if a shopper uses those keywords in the same order, including suffixes or prefixes.
  3. Exact Match: The ad will only be displayed when a shopper uses the exact targeted keywords. This is the most refined targeting option. It generates highly-relevant traffic, higher conversion rates, and reduces ad spend.

In manual targeting, you have the option of keyword targeting and product targeting. These all options make manual targeting broader as compared to automatic.

Adjustment of Bids by Placement Feature.

Amazon also has the option to adjust your bids by placement. Amazon automatically raises your Amazon bid by up to 900% for ‘Top of Search’ and ‘Product Pages’ placement auctions. Amazon segregates the placement into the following categories:

  1. Top of Search: Sponsored product ads appear at the top row on the first page of the search engine results page (SERPs).
  2. Product Pages: ‘Product pages’ means the sponsored products can be viewed on the Amazon product details page, and other placements outside the SERPs, like the add-to-cart page.

Rest of Search: All other placements in the Amazon SERPs that come after ‘Top of Search.’


Amazon-sponsored Ads helps seller promote their brands on the Amazon platform. These ads help the seller to compete in niche and reach the relevant customers.  These bidding strategies match types, and targeting options can help to achieve campaign goals.

 Regularly manage and optimize advertisement campaigns, bid adjustments, and keyword targeting to help your product in ranking, generating traffic, and sales conversion. boost in increased sales and business growth.

Also Read

Gross and Invalid Traffic on Amazon, Detect and Save Money

What is Advertising Cost of Sales (ACoS) and How to Calculate ACoS for Amazon PPC?

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