Amazon PPC for 2025: Still Worth It or a Waste of Time?

In 2023 alone, third-party sellers on Amazon sold approximately $480 billion in merchandise, which made more than 80% of the total sales on Amazon.

Amazon advertising can be a powerful tool in gauging all the opportunities Amazon can offer as a platform. And although Amazon ads might not be a great fit for everyone, they can still provide a very large number of Amazon businesses with the exposure they need.

Here's what Amazon marketing agencies know about Amazon PPC (and you should too.)

How Amazon ads work

Essentially, Amazon ads are a pay-per-click (PPC) advertising model, where advertisers only pay when their ads are clicked by users. Advertisers bid on relevant keywords and target specific audiences to display their ads on Amazon search results pages and product detail pages. When a shopper searches for a product or uses relevant keywords, Amazon runs an auction to determine which ads to display.

Of course, every Amazon marketing agency knows factors such as bid amount, relevance, and ad quality influence the ad's placement. This PPC model ensures that advertisers pay for actual clicks and allows for better budget control and targeting precision. By leveraging Amazon ads, businesses can increase their brand visibility, drive traffic to their product listings, and ultimately boost sales on the platform.

Vendors vs sellers on Amazon

Before moving on to learning more Amazon advertising, it's important to understand the distinction between vendors and sellers on the platform. Vendors are manufacturers or distributors who sell their products directly to Amazon. On the other hand, sellers are independent businesses that list and sell their products on Amazon's marketplace.

For example, a vendor may sell their products to Amazon at wholesale prices, and then Amazon will handle the selling process to customers. In contrast, sellers list their products on the marketplace and are responsible for managing all aspects of the selling process, including inventory, pricing, and shipping. Both vendors and sellers can leverage Amazon advertising to promote their products and increase visibility.m

The benefits of running ads on Amazon

Running ads on Amazon offers a range of benefits that can help drive sales and increase brand visibility. Let's explore some of these benefits:

Your products get seen

Amazon is one of the largest online marketplaces, with millions of customers actively searching for products every day. However, the competition is fierce, and it can be hard for your products to stand out. By running ads, you ensure that your items appear prominently in relevant search results, giving them better visibility and increasing their chances of being seen by potential buyers. This increased exposure can lead to higher click-through rates and ultimately more sales, helping your business grow in a crowded market.

Organic ranking improvements

Advertising on Amazon doesn’t just drive sales—it can also boost your organic search ranking. When your products gain more clicks and sales through ads, Amazon’s algorithm takes notice. These positive performance signals, such as high click-through rates and strong conversion rates, can improve your product’s visibility in organic search results over time. This means that ads not only generate immediate sales but can also create lasting benefits for your product's placement on the platform.

Precise targeting and audience reach

Amazon advertising offers robust targeating capabilities, allowing you to reach specific audiences based on various factors such as demographics, interests, and purchase behavior. This precision targeting ensures that your ads are shown to the most relevant and receptive audience, increasing the likelihood of capturing their attention and driving conversions. By reaching the right audience at the right time, you can maximize the effectiveness of your advertising campaigns and achieve higher ROI.

Are there disadvantages to Amazon advertising?

While Amazon advertising can be highly effective, it's important to be aware of potential disadvantages:

It can be costly

Advertising on Amazon can become expensive, especially in competitive product categories where bids for keywords are high. Without careful budgeting, costs can spiral quickly, impacting your profitability. It’s essential to set clear spending limits, monitor your campaigns regularly, and make adjustments to ensure a positive return on investment.

You need to invest time

Running successful Amazon ad campaigns isn’t a “set it and forget it” process. From conducting thorough keyword research to crafting compelling ad copy, every step demands time and attention. Once your campaigns are live, ongoing monitoring and optimization are necessary to refine performance and achieve the best results.

Ongoing testing is needed

Amazon’s advertising platform and customer behavior are constantly evolving, meaning what works today may not work tomorrow. To stay competitive, it’s vital to continuously test different strategies, such as adjusting bids, experimenting with ad formats, and refining targeting. Regular testing and optimization are key to unlocking better performance and maximizing your ad spend.

Types of ads on Amazon

Amazon offers a variety of ad formats to suit different advertising goals. Here are some of the most common types of ads you can run on Amazon:

Sponsored product ads

Sponsored product ads are designed to promote individual products directly within Amazon search results and product detail pages. These ads boost visibility and help drive sales by putting your product in front of customers at the moment they're searching for similar items. They’re a perfect choice for targeting specific keywords and increasing product discoverability.

Sponsored brand ads

Sponsored brand ads, previously known as headline search ads, feature your brand logo, a personalized headline, and links to multiple products. These ads appear prominently at the top of search results, offering a great way to showcase your brand and engage customers. They’re ideal for building brand awareness and driving traffic to your product listings or storefront.

Sponsored display ads

Sponsored display ads allow you to target customers based on their shopping behavior and product interests. These ads appear on Amazon product detail pages, customer review pages, or other highly relevant locations. By leveraging customer data, they help you reach potential buyers who are most likely to convert.

Video ads

Video ads are a dynamic way to engage customers and create product awareness. They help tell your brand story while showcasing product features in an eye-catching format. These ads can be displayed on Amazon-owned properties and external websites through Amazon DSP, expanding your reach beyond the platform itself.

Amazon store ads

Amazon store ads let you design a customized brand storefront on Amazon. This feature allows you to create an immersive shopping experience, showcasing your products in one branded space. It’s a great way to tell your brand story and highlight your product range while improving customer engagement.

Amazon native ads

Amazon native ads seamlessly integrate into the shopping experience, appearing in search results, on product pages, and even on Kindle e-readers. These ads are designed to blend naturally into the platform’s interface, making them highly effective at capturing customer interest without being intrusive.

Types of Amazon advertising keywords

Keywords play a crucial role in targeting your ads to the right audience on Amazon. Familiarize yourself with these different types of keywords to optimize your ad campaigns effectively:

Broad match

Broad match allows your ads to appear for search terms that include variations, synonyms, or related keywords to your selected keyword. This option offers the widest reach, making it ideal if you want to attract a large audience. However, it may also lead to less relevant clicks, so regular monitoring is essential to ensure effectiveness.

Phrase match

With phrase match, your ads show up for search terms that include the exact phrase or close variations of your selected keyword. This option strikes a balance between reach and relevance, targeting users who are searching for terms closely related to your offerings. It provides more control than broad match while still maintaining some flexibility.

Exact match

Exact match ensures your ads are displayed only for search terms that are an exact match to your selected keyword. This approach targets a highly specific audience, making it a great choice for maximizing precision and relevance. While it limits reach, it often leads to higher conversion rates since it focuses on users with clear intent.

Long-tail keywords

Long-tail keywords are longer and more specific keyword phrases that target a niche audience. These terms often have less competition, making them cost-effective for campaigns. They are particularly useful for addressing users with clear, specific search intent, such as those close to making a purchase or seeking detailed information.

Negative keywords

Negative keywords allow you to exclude irrelevant search terms from triggering your ads. By adding these to your campaign, you can prevent wasted ad spend and focus your budget on reaching the most relevant audience. This helps improve your return on investment and ensures your ads are shown to users who are more likely to engage with your offering.

Amazon advertising metrics

To measure the success and effectiveness of your Amazon ad campaigns, it's essential to monitor key metrics. One critical metric to track is advertising cost of sales (ACoS), which calculates the ratio of your ad spend to the attributed sales generated by your ads. Other important metrics include click-through rate (CTR), conversion rate, and return on ad spend (ROAS).

Self-serve ads vs premium ads on Amazon

When it comes to advertising on Amazon, you have two main options: self-serve ads and premium ads. Self-serve ads provide more control and flexibility, allowing you to set your own budget, target specific keywords, and manage your campaigns directly.

On the other hand, premium ads offer more visibility and placements, reaching a larger audience through prominent positions like the top of search results or on product detail pages.

As a general rule, if you are just starting with Amazon advertising, self-serve ads are a great place to begin. As you scale and become more familiar with the platform, you can consider adding premium ad options to your strategy for even greater impact.

How to improve performance on Amazon ads

To maximize the performance of your Amazon ads and achieve better results, consider implementing the following strategies:

Craft compelling ad copy

Creating persuasive ad copy is essential for grabbing the attention of potential customers. Focus on showcasing what makes your product unique and valuable. Use clear, concise language that resonates with your audience, and include a strong call-to-action to drive clicks and conversions. Whether it’s “Buy Now,” “Learn More,” or “Sign Up Today,” a well-placed CTA can make all the difference.

Be specific with targeting

Targeting specific keywords and offering detailed product descriptions can help you bring in the right audience. Long-tail keywords, in particular, are effective at attracting users with higher purchase intent. For example, instead of targeting "running shoes," try “women’s lightweight running shoes for marathons.” The more specific your targeting, the better you can connect with users who are actively looking for what you offer.

Leverage popular brand keywords

Using popular brand keywords in your campaigns can help you tap into an audience already familiar with major players in your industry. This allows your ads to appear alongside searches for well-known brands, increasing visibility. However, always check trademark restrictions and follow guidelines to avoid complications when using brand names in your ads.

Optimize with negative keywords

Negative keywords are a powerful tool to ensure your ads only appear for relevant searches. By excluding irrelevant terms, you can prevent wasted ad spend and improve the efficiency of your campaigns. For example, if you sell premium products, you might add "cheap" or "free" as negative keywords. This ensures your ads reach users who are more likely to convert.

Amazon Ads: Should you invest in 2025?

Amazon Ads are, more than anything, an opportunity: they allow you to push your products forward, and have them seen by exactly the kind of people who'd be interested in buying them. And while PPC in general (including, but not only Amazon advertising) is not a magic slot machine (where you can pour in money and pull out profit), it is a powerful tool that can significantly boost your visibility and sales. Whether you are an established brand or a new seller, investing in Amazon Ads can help you reach a larger audience and increase your revenue.

However, like any marketing strategy, it requires careful planning, continuous monitoring, and adjustments to optimize its effectiveness. And it might not be for just about anyone -- it's time-consuming, needs considerable financial investment (frequently without much to profit, at first). The best way to figure out if you should or shouldn't invest in Amazon Ads is by testing it out.

...And if you want to make the most out of it, don't hesitate to contact Mayple and we'll match you with one of the best Amazon experts or Amazon marketing agencies, according to your specific needs.