Short answer: Amazon PPC (pay-per-click) is Amazon’s advertising system, where you pay each time a shopper clicks your ad. To run it profitably, start with automatic Sponsored Products campaigns to collect search data, move proven search terms into manual campaigns, add negative keywords to cut wasted spend, and judge success by ACoS and TACoS against your profit margin, not by sales alone.
Most new Amazon sellers either avoid advertising and stay invisible, or switch it on and watch the budget disappear. This guide explains how Amazon PPC works, how to structure campaigns, the numbers that matter, and the mistakes that waste money. It applies to Amazon.ae, Amazon.co.uk and Amazon.com.
Key takeaways
- Fix your listing first: ads send traffic, but the listing converts it.
- Use automatic campaigns for research and manual campaigns for control.
- Know your break-even ACoS before setting bids.
- Review search terms weekly and add negatives to stop wasted spend.
- Track TACoS to see whether ads are growing total sales, not just ad sales.
The main Amazon ad types
| Ad type | Where it shows | Best for |
|---|---|---|
| Sponsored Products | In search results and on product pages | Driving sales of individual products; the starting point for most sellers |
| Sponsored Brands | Banner at the top of search results, with your logo and several products | Brand awareness and cross-selling (requires Brand Registry) |
| Sponsored Display | On and off Amazon, including product pages | Retargeting shoppers and targeting competitor products |
Before you spend: get the listing right
Advertising multiplies whatever your listing already does. If the main image, title, price, reviews or bullet points are weak, ads will bring clicks that do not convert. Before launching campaigns, make sure the listing has a clear main image, a keyword-rich title, benefit-led bullet points, A+ content if you are brand registered, and a competitive price. Our conversion rate optimisation tips cover this in more detail.
A simple campaign structure that works
- Automatic campaign (research): Amazon chooses the searches and products to target. Run it with modest bids to discover which search terms actually convert.
- Manual exact match (performance): move converting search terms here so you control the bid on each one.
- Manual phrase or broad match (discovery): find variations of your best keywords.
- Product targeting: show ads on competitor or complementary product pages.
- Brand defence: bid on your own brand name so competitors cannot take those shoppers.
When a search term converts well in the automatic or broad campaign, add it to exact match and add it as a negative in the original campaign so the two do not compete.
The numbers that matter
ACoS (advertising cost of sale)
ACoS is ad spend divided by ad sales. If you spend 100 and make 400 in ad sales, your ACoS is 25%. A lower ACoS means more efficient ads.
Break-even ACoS
Your break-even ACoS equals your profit margin before advertising. If you keep 30% of the selling price after product cost, Amazon fees and shipping, any ACoS above 30% loses money on that sale. Set target ACoS below this, unless you are deliberately investing in a launch.
TACoS (total advertising cost of sale)
TACoS is ad spend divided by total sales, including organic sales. A falling TACoS over time shows that advertising is lifting your organic ranking, which is the long-term goal.
Click-through and conversion rate
A low click-through rate usually points to the main image, price or title. A low conversion rate usually points to the listing content, reviews or price.
Weekly optimisation routine
- Download the search term report and add irrelevant or non-converting terms as negative keywords.
- Raise bids on keywords that convert below your target ACoS; lower bids on those above it.
- Move new converting search terms into exact match campaigns.
- Check budgets: campaigns that run out of budget early in the day miss sales.
- Pause products that are low on stock so you do not pay for clicks you cannot fulfil.
Common Amazon PPC mistakes
- Judging ads by sales alone and ignoring profit.
- Never adding negative keywords.
- Putting all products in one campaign, which makes budgets and bids impossible to control.
- Changing bids every day before there is enough data.
- Advertising listings with few reviews or an uncompetitive price.
Tips for Amazon.ae and Amazon UK
- UAE: add Arabic keywords and backend search terms, and plan budgets around Ramadan, White Friday and other regional peaks. Many sellers also advertise on Noon, which has its own ad platform.
- UK: use British spellings in keywords (for example “colour” and “organiser”) and plan for Prime Day, Black Friday and the Christmas peak.
How Ecomalign can help
Ecomalign manages Amazon PPC and full account management for sellers in the UAE, UK and US, from listing optimisation to campaign structure and weekly bid management. See our marketplace management services or request a free PPC audit.
Frequently asked questions
What is a good ACoS on Amazon?
There is no single good ACoS. It depends on your profit margin and goals. As a rule, keep ACoS below your break-even point for mature products, and accept a higher ACoS for a limited time when launching a new product.
How much should I spend on Amazon PPC?
Start with a daily budget you can sustain for at least two to four weeks so the campaigns collect enough data, then increase spend on campaigns that are profitable.
Should I use automatic or manual campaigns?
Use both. Automatic campaigns find new search terms, and manual campaigns give you control over bids on the terms that convert best.
How long does Amazon PPC take to work?
Most campaigns need two to four weeks of data before you can optimise them properly. Organic ranking improvements from advertising usually build over one to three months.
