Amazon Pay-Per-Click (PPC) advertising is one of the most effective ways to drive visibility and increase sales for your products. With millions of shoppers browsing the platform daily, PPC ads give you the power to reach potential customers at the right moment—when they’re ready to buy.
The good news? Setting up Amazon PPC ads doesn’t have to be complicated. This 2025 step-by-step tutorial will guide you through the entire process, helping you launch your first (or next) PPC campaign in just a few minutes.
What is Amazon PPC Advertising?
Amazon PPC is a form of paid advertising where you pay each time a shopper clicks on your ad. It allows you to promote your products in high-visibility areas like search results and product detail pages.
Amazon offers three main types of PPC ads:
- Sponsored Products: Ads that promote individual product listings and appear in search results or product detail pages.
- Sponsored Brands: Ads that feature your brand logo, a custom headline, and multiple products (available for Brand Registered sellers).
- Sponsored Display: Ads that retarget shoppers on and off Amazon, promoting your products even after they leave the platform.
Why Use Amazon PPC?
Amazon PPC campaigns are essential for several reasons:
- Increase Visibility: Your products appear in top search results and high-traffic areas.
- Drive Sales: Targeted ads help you reach the right customers, boosting conversions.
- Improve Organic Rankings: Higher sales from PPC campaigns can positively impact your organic search rankings.
Step-by-Step Guide to Setting Up Amazon PPC Ads
Step 1: Log into Amazon Seller Central
Start by logging into your Amazon Seller Central account. From the dashboard, click on the “Advertising” tab in the top menu and select “Campaign Manager.”
Step 2: Choose Your Campaign Type
Amazon offers three campaign types. Here’s how to decide which one to use:
- Sponsored Products: Best for promoting individual products and driving direct sales.
- Sponsored Brands: Ideal for increasing brand awareness and showcasing multiple products.
- Sponsored Display: Great for retargeting and reaching customers off Amazon.
For beginners, we recommend starting with Sponsored Products campaigns as they’re simple to set up and deliver measurable results.
Step 3: Set Your Campaign Parameters
Click “Create Campaign” under your chosen ad type and fill out the campaign settings:
- Campaign Name: Choose a clear and descriptive name, such as “Q1-2025-Shoes.”
- Start and End Date: Select when you want the campaign to run. For ongoing campaigns, leave the end date blank.
- Daily Budget: Set a daily budget that aligns with your goals. A starting point of $10–$20 per day is a good choice for beginners.
Step 4: Choose Targeting Type
You can choose between Automatic and Manual Targeting for Sponsored Products campaigns:
- Automatic Targeting:
- Amazon automatically selects keywords and matches based on your product listing.
- Ideal for beginners or testing campaigns.
- Great for discovering new keywords.
- Manual Targeting:
- You select specific keywords to target.
- Offers more control over your campaign.
- Ideal for sellers with keyword research and campaign experience.
Step 5: Select Keywords (For Manual Targeting)
If you’ve chosen manual targeting, the next step is selecting keywords.
Keyword Match Types:
- Broad Match: Targets keywords with variations (e.g., “water bottle” matches “best water bottle” or “bottle for water”).
- Phrase Match: Targets keywords in exact order (e.g., “water bottle” matches “blue water bottle” but not “bottle for water”).
- Exact Match: Targets keywords in precise order (e.g., “water bottle” matches only “water bottle”).
Tips for Keyword Selection:
- Use Amazon’s Keyword Planner Tool or third-party tools like Helium 10 or Jungle Scout to find high-performing keywords.
- Include long-tail keywords for lower competition and better conversions.
- Bid higher on exact match keywords for precision targeting.
Step 6: Set Bids
Amazon will suggest a default bid, but you can adjust it based on your strategy.
Bidding Tips:
- Start Conservatively: Begin with moderate bids and adjust based on performance.
- Adjust for Match Types: Bid higher for exact match and lower for broad match keywords.
- Use Dynamic Bidding to let Amazon increase or decrease your bids automatically based on the likelihood of a conversion.
Step 7: Add Negative Keywords
Negative keywords prevent your ad from showing up for irrelevant searches, saving you money.
Example:
If you’re selling premium water bottles, add “cheap” or “budget” as negative keywords to avoid unqualified clicks.
Step 8: Review Your Ad and Launch
Before launching your campaign, double-check all the settings:
- Ensure the correct product is selected.
- Verify your daily budget, targeting type, and bids.
- Add any additional ad copy or creatives if applicable (for Sponsored Brands or Display ads).
Once everything looks good, click “Launch Campaign.”
Monitoring and Optimizing Your Campaigns
Setting up your campaign is just the beginning. Regular monitoring and optimization are key to maximizing ROI.
1. Monitor Key Metrics
Keep an eye on these essential metrics in Campaign Manager:
- ACoS (Advertising Cost of Sales): Measures ad spend as a percentage of ad-attributed sales. Aim for an ACoS lower than your profit margin.
- CTR (Click-Through Rate): The percentage of ad impressions that result in clicks. Low CTR may indicate poor targeting or weak images.
- Conversion Rate: The percentage of clicks that result in sales. A high conversion rate indicates effective targeting.
2. Optimize Keywords
- Pause or reduce bids for underperforming keywords.
- Increase bids for high-performing keywords with strong conversion rates.
- Continuously refine your keyword list using insights from the Search Term Report.
3. Adjust Budgets and Bids
- Reallocate budgets to campaigns or products with better performance.
- Adjust bids dynamically for peak seasons, promotions, or competitive categories.
4. Test and Iterate
- Use A/B testing to experiment with different keywords, ad creatives, or bidding strategies.
- Test new campaigns targeting different audiences or product variations.
Case Study: How Amazon PPC Transformed a Business
The Problem:
A small seller of fitness equipment struggled to gain visibility for their resistance bands in a competitive category.
The Solution:
- Launched a Sponsored Products campaign with automatic targeting to gather keyword insights.
- Transitioned to manual targeting using high-performing keywords from the campaign data.
- Added negative keywords like “cheap” and “low-quality” to filter irrelevant clicks.
- Monitored and adjusted bids weekly, reallocating budget to top-performing keywords.
The Results:
- CTR improved by 45% within one month.
- Sales increased by 60%, with an ACoS of 15%, well below their profit margin.
Common Mistakes to Avoid
- Ignoring Negative Keywords: Wastes ad spend on irrelevant clicks.
- Not Monitoring Campaigns: Failing to check performance regularly can lead to missed opportunities.
- Setting and Forgetting Campaigns: PPC requires ongoing optimization to remain effective.
- Underbidding on Keywords: Low bids may reduce ad visibility, costing you potential sales.
Conclusion
Setting up Amazon PPC ads is simpler than you think, especially with the right guidance. By following this 2025 step-by-step tutorial, you can launch effective campaigns in minutes and start driving traffic to your products.
Remember, success with Amazon PPC requires ongoing monitoring and optimization. Use the tips and strategies outlined in this guide to refine your campaigns and maximize your ROI over time.
Have questions or need help with Amazon PPC? Share your thoughts in the comments below—we’d love to hear from you! 🚀
