Amazon PPC Basics: What are the Options?

Do you offer great products on Amazon, but find that Amazon only lists them on page 5 for the important keywords? Are you keen to achieve a good merchant performance, but simply not generating enough sales? If you are not making enough sales with Amazon, Amazon PPC – pay per click advertising – is one way to fix the problem. This is because it allows you to advertise your products directly on the platform, and only to those who are interested in what you have to offer.

There are 3 options if you want to use Amazon PPC

You have three options if you want to advertise on Amazon:

  • Sponsored Products
  • Sponsored Brands
  • Sponsored Display

You are probably familiar with Sponsored Products. When you opt for this type of advertising, Amazon will display your products within the search results pages and in the ad carousels on Amazon’s product detail pages.

If you choose Sponsored Brands, on the other hand, your products are displayed next to and above the search results and on the product detail pages.

The third option is Sponsored Display. These are found on third-party websites and apps, and they allow you to retarget prospects who have viewed your products. Amazon also displays these ads under “Add to Cart” and in its internal search results.

How does Amazon Advertising work?

If you want to advertise on Amazon, you will need to start a campaign. Amazon offers a number of automated options for finding keywords, products and identifying the optimal bidding strategy. However, you can also make many decisions manually.

You can then set your bid. It competes in a kind of auction with everyone else bidding on the same keywords.

Amazon takes into account the price of your product and your performance as a retailer. Amazon displays the winner of the auction until its budget is exhausted. The winner of the auction is only charged the amount that the runner-up in the action has to pay for each click. 

What are the advantages of using Amazon PPC?

The biggest advantage is the visibility that your product gains when customers are in a buying mindset. Many customers use the search with a strong intention to make a purchase.

Another huge advantage is that you only have to pay when a customer clicks on the ad. Of course, not everyone who clicks buys. Your financial risk is limited, however, because you can scale how much you spend.

How much does advertising cost on Amazon?

You are free to set your own budget, and you will only be charged when people click on your ads. Amazon states that you can achieve a lot with just ten euros a day. Larger retailers have been known to invest five-figure sums.

The amount that you have to pay to make Amazon PPC work for you depends on the size of your competition. The prices that you will pay can vary depending on the product, category and marketplace.


Amazon PPC can increase your sales because it increases your visibility and showcases your products when prospects are most likely to buy. But you have to get to grips with this type of advertising and spend time optimising your campaigns in order to avoid wasting money.

Steve Paine