Amazon PPC Ad Types for Beginners: What you Need to Know

TL;DR

• Amazon PPC includes sponsored products, sponsored brands, and sponsored display ads, each serving different goals.

• Sponsored products ads are beginner-friendly, driving visibility and conversions through keyword and product targeting.

• Sponsored brand ads help build brand recognition by showcasing multiple products with custom headlines.

• Sponsored display ads allow off-Amazon retargeting, reaching past visitors and boosting re-engagement.

• Choosing the right PPC ad type depends on business goals, budget, and brand status on Amazon.

• Regular campaign optimization, keyword research, and performance tracking improve PPC efficiency and ROI.

Selling on Amazon is competitive, and simply listing your products isn’t enough. To stand out, you need a strong advertising strategy, and that’s where Amazon Pay-Per-Click (PPC) advertising comes in. Amazon PPC allows sellers to promote their products, increase visibility, and drive sales by bidding on keywords that shoppers search for. Understanding the different types of PPC ads is crucial for maximizing your return on investment. Whether you're new to Amazon advertising or looking to refine your strategy, this guide will walk you through the basics of Amazon PPC, its ad types, and how to create successful campaigns.

What is Amazon PPC?

Amazon pay per click advertising is an advertising model where sellers pay a fee each time a shopper clicks on their ad. This system allows sellers to bid on keywords relevant to their products, ensuring their ads appear in search results or on product detail pages when shoppers search for those terms. The primary goal is to increase product visibility, drive traffic, and ultimately boost sales.

Why is Amazon PPC important?

In the vast marketplace of Amazon, standing out can be challenging. PPC advertising offers sellers a way to:

• Increase visibility – Ensure products appear prominently in search results.

• Drive targeted traffic – Reach shoppers actively searching for specific products.

• Boost sales – Higher visibility and targeted traffic often lead to increased sales.

• Improve organic ranking – Successful PPC campaigns can enhance a product's organic search ranking over time.

Types of Amazon PPC ads

Amazon offers several PPC ad types suitable for beginners. Each ad type serves a different purpose, so understanding their strengths will help you choose the best option for your business.

1. Sponsored products ads

Sponsored products ads are the most common and beginner-friendly Amazon PPC ad type. These ads promote individual products and appear in search results and on product detail pages. They closely resemble organic listings, making them less intrusive and more likely to attract clicks from shoppers who are already interested in similar products.

Sponsored products ads can be keyword-targeted or product-targeted:

• Keyword targeting – Ads appear when a shopper searches for a specific keyword that you have bid on.

• Product targeting – Ads appear on specific product detail pages or within relevant product categories.

Key features:

• Automatic and manual campaigns – Choose between automatic targeting (where Amazon selects keywords based on your product listing) and manual targeting (where you pick your own keywords).

• Flexible bidding strategies – Use different bid strategies, including fixed bids, dynamic bids (up and down), and dynamic bids (down only) to optimize ad spending.

• Control over ad placement – Adjust bids to increase the likelihood of showing ads in high-visibility areas like the top of search results.

When to use sponsored products ads:

• If you're launching a new product and want to generate initial visibility.

• If you have a product that already sells well and want to scale up its reach.

• If you want to drive immediate traffic and increase conversions.

• If you’re looking for a budget-friendly way to start Amazon PPC advertising.

Who should use sponsored products ads?

• New sellers who are just starting with Amazon PPC.

• Small businesses are looking to get their products in front of relevant shoppers.

• Experienced sellers who want to optimize their current listings for more sales.

2. Sponsored brand ads

Sponsored brand ads, previously known as headline search ads, are designed to promote a brand rather than just a single product. These ads showcase a brand logo, custom headline, and multiple products, helping businesses increase brand recognition. Sponsored brand ads appear at the top of search results, which makes them highly visible and effective for grabbing shoppers' attention.

To run these ads, sellers must be enrolled in the Amazon Brand Registry, which means they need a registered trademark.

Key features:

• Customizable creatives – Include your brand logo, a compelling headline, and a selection of your top-selling products.

• Multiple product display – Feature up to three products in a single ad, allowing you to promote a range of items.

• Landing page options – Direct shoppers to a custom Amazon Storefront or a specific product listing page.

When to use sponsored brand ads:

• If you want to build brand awareness and trust with customers.

• If you sell multiple related products and want to showcase them together.

• If you’re competing in a crowded market and need a way to stand out.

• If you want to drive traffic to your Amazon Storefront for a more branded shopping experience.

Who should use sponsored brand ads?

• Established brands are looking to strengthen their presence on Amazon.

• Businesses with multiple products that complement each other.

• Sellers with an Amazon Storefront who want to drive direct traffic.

3. Sponsored display ads

Sponsored display ads are different from other Amazon PPC ads because they extend beyond Amazon's platform. These ads can appear on Amazon as well as third-party websites and apps, allowing you to re-target shoppers who have already shown interest in your product or similar products.

These ads are great for remarketing, meaning they help bring back shoppers who viewed your product but didn’t purchase it. However, like sponsored brand ads, you must be enrolled in the Amazon Brand Registry to use them.

Key features:

• Audience targeting – Reach shoppers based on their past browsing behavior, including those who viewed your product or similar products.

• Product targeting – Display your ads on relevant product detail pages, helping you compete directly with similar brands.

• Off-Amazon reach – Extend your advertising beyond Amazon to third-party websites, apps, and social media platforms.

When to use sponsored display ads:

• If you want to retarget shoppers who previously visited your product but didn’t buy.

• If you have a high-converting product and want to expand its reach beyond Amazon.

• If you're in a competitive niche and want to advertise on your competitors’ product pages.

• If you want to increase customer retention by reminding past customers of your brand.

Who should use sponsored display ads?

• Brands that already have strong sales and want to expand their reach.

• Sellers with high-margin products who can afford broader ad placements.

• Businesses are focusing on retargeting and customer re-engagement.

Which Amazon PPC ad type is right for you?

If you are new to Amazon PPC, sponsored products ads are the easiest and most cost-effective way to get started. If you already have an established brand, sponsored brand ads can help build recognition and showcase multiple products at once. For sellers with experience in PPC advertising, sponsored display ads can be a powerful way to retarget customers and expand reach beyond Amazon.

By choosing the right ad type and optimizing your campaigns, you can significantly increase your product visibility, drive more sales, and grow your business on Amazon.

How to get started with Amazon PPC

Embarking on your Amazon PPC journey involves several key steps:

• Set clear goals – Determine what you aim to achieve—be it increased sales, improved brand awareness, or higher organic rankings.

• Choose the right ad type – Select the ad format that aligns with your objectives and budget.

• Conduct keyword research – Identify relevant keywords that potential customers might use to find products like yours.

• Create compelling product listings – Ensure your product titles, descriptions, and images are optimized to convert clicks into sales.

• Monitor and optimize – Regularly review your campaigns, adjust bids, and refine keywords to improve performance.

Tips for successful Amazon PPC campaigns

• Start with automatic campaigns – Let Amazon identify relevant keywords initially, then use the data to create manual campaigns.

• Use negative keywords – Exclude irrelevant search terms to prevent wasted ad spend.

• Set a realistic budget – Begin with a modest budget and scale up as you identify profitable campaigns.

• Analyze performance metrics – Focus on metrics like click-through rate (CTR), conversion rate, and advertising cost of sales (ACoS) to gauge success.

• Stay updated – Amazon's advertising platform evolves, so keep learning and adapting your strategies.

When to consider professional help

As your business grows, managing PPC campaigns can become complex and time-consuming. Partnering with an Amazon ads management agency or investing in Amazon PPC management services can provide expertise and free up your time to focus on other aspects of your business.

In conclusion, Amazon pay-per-click advertising is a powerful tool for enhancing product visibility and driving sales. By understanding the different ad types and implementing strategic campaigns, beginners can effectively navigate the platform and achieve their business goals.