Mastering Amazon Advertising Strategy: A Complete Guide for 2025

Amazon is known to drive more than 40 percent of all online sales. With the marketplace booming with sales, it may seem like achieving high conversions immediately after listing your product is afterall an easy task.

However, as competition continues to grow on Amazon, advertising is becoming drastically challenging for the 1.9 million sellers chasing the same success on the marketplace.

Now, even the greatest of the great products can drown in the sea of products available on Amazon’s giant marketplace without the right visibility given to them. That’s where Amazon PPC (Pay-Per-Click) campaign comes at your service. 

Whether you’re looking to take over the campaign performance, target new shoppers, re-engage existing shoppers or improve brand awareness, these Amazon strategies could come in very handy for you.

In this guide, let’s explore Amazon advertising strategies, the three core Amazon Advertising Campaign types, Sponsored Products, Sponsored Brands, and Sponsored Display campaigns, Amazon Attribution, etc. We’ll break down how they can help you amplify your sales and grow your business.

A Seller’s Checklist Before Crafting Amazon Advertising Strategy

Before getting started, you need to have a clear understanding of the motive of this whole plan of action. In order to craft the right strategy, you need to understand your prime focus and what the purpose of this strategy is. 

#1 Set clear goals

Are you driving sales, striving to improve profit margin, boosting brand awareness, or liquidating inventory? Your campaign type should align with your core objectives.

Once you are clear on your business goals, explore setting SMART Goals for your PPC campaign management.

Specific, Measurable, Achievable, Realistic, Time bound goals can help you make strategic plans while sticking to your core motive. 

Doing this will help prioritise your efforts to focus objectives and result in yielding better ROI (Return on investment). 

#2 Plan the products you want to advertise

It’s not strategic to run ads on your entire catalog with the same budget. You need to systematically plan which SKUs you want to prioritize, whether you’re managing an Amazon product launch or scaling established bestsellers, and allocate your campaigns and budget as part of your Amazon marketing strategy.

For example, your top-rated yoga mat with excellent reviews will likely convert well with ads and hence you can bid a little higher on this bestseller. 

For products with fewer reviews, running Amazon ads can still be strategic but requires a different approach. Allocate a smaller, more controlled budget to these SKUs as it allows you to test their performance without risking significant ad spend. 

#3 Know your audience

Understanding your audience like the back of your hand can improve your campaign performance in more ways than one. Your PPC campaigns will cater to your audience when you have a deep understanding of what they are looking for and how to get them that.

Explore Audience segmentation, a strategy to organize different types of audiences and reach them with your PPC ads and campaigns. 

Use Amazon’s tools like Search Query Performance on Amazon Brand Analytics to understand what shoppers are searching for. The search query performance report offers an amalgamation of both paid and organic search data for each search term. This enables you to get a clear picture of your keywords and search terms’ performance both individually and together. 

#4 Track Historic ad performance metrics

Before diving into new campaigns, it’s essential to establish a performance baseline against ad performance benchmarks. Many successful sellers start by utilizing free Amazon PPC audit tools to identify current inefficiencies and wasted spend across their existing campaigns. Then, keep an eye on ACOS (Advertising Cost of Sale), ROAS (Return on Ad Spend), CTR (Click-Through Rate), TACOS (Total Advertising Cost of Sales), impressions and clicks to track the relevancy and effectiveness of your campaigns in every step of the way. 

Amazon gives out Ads reports with all the data consolidated so you can make data-driven decisions with every new campaign and optimizing existing campaigns.

#5 Make sure your product pricing is in check

Amazon is highly competitive on pricing, so it is crucial to monitor your pricing strategy. Use dynamic pricing tools or regularly review competitors’ prices to stay relevant and maximize sales without compromising margins. These tools are part of the broader suite of Amazon digital services designed to help sellers optimize their performance.

Amazon’s built-in repricer tool, known as Automate Pricing, is a great way to let Amazon handle the operational burden of setting competitive prices — it adjusts your price based on market analysis and competitive activity within your category.

Automate pricing also optimizes pricing for both B2C and B2B sales and automatically update your business prices based on your consumer prices. 

#6 Give Prior Importance to your Amazon Product Listings

Your product listings should be given high priority before starting to run any ads. Why do I say so?

Are the Amazon listing guidelines met? Are there 7+ images in your product listing? Are your titles, bullet points and description optimised with primary keywords? Is your A+ content visually enhancing and premium looking? Are all the backend details filled on your Amazon seller central? Have you updated your stock on FBM or have enough to book your FBA shipment on time? Have you responded to customer reviews?

Well, the list goes on. Get your organic game on point and the little nudge you give through ads will take over exponentially!

Top 12 Amazon Advertising Strategies for Building Campaigns That Boost ROI

1. Leverage Keywords that convert

A strong keyword analysis paves way to acquiring better results with the quality of keywords used. This step not only enhances your entire listing on your product detail page but also drastically improves your product searchability and visibility to shoppers. Incorporating high search volume keywords in your ads will lead to more sales and, in turn, improves the organic ranking of the product on Amazon for each well-performing keyword. 

Amazon provides you with 2 options to help you target the right keywords. 

Manual Targeting

Manual targeting is when you have to choose the keywords yourself and target those keywords. You can set custom bids on each keyword and have full control over your ad campaigns. 

This is best suitable when you have a deep grasp of the high performing keywords, your target audience and when you have had the product listed for a long period of times with good sales momentum on it. 

There are 3 options under Manual targeting; Broad match, Phrase match and Exact match.

Broad match

This targeting option allows you to test new opportunities and explore your horizons. For example, the keyword “shoes” can match “sport shoes”, “basketball shoes”, or “athletic shoes”.

Since the queries are broad, you can experience in an increased traffic rate as well and improved brand awareness. 

Phrase match

This option allows you to target a larger range of variations. However, the keyword terms need to present in the same order but additional terms as prefix or postfix. For example, a phrase match for “coffee mug” would match “large coffee mugs” but not “large mug for coffee”.

Exact match

This allows you to target keywords you know will convert. They focus on the exact term in the keyword. For example, an exact match for “cooking gloves” would not match “brown cooking gloves” or “gardening gloves women” 

Automatic Targeting

This type of targeting allows Amazon to personalize the entire targeting process for you. Amazon gathers data on your behalf based on customer shopping behavior and other factors, then optimizes bids accordingly. You don’t have as much control over your campaigns with this option, but it’s ideal when planning or strategizing a new product launch on Amazon—especially if you haven’t identified your top-converting keywords yet and need Amazon’s algorithm to discover them through actual customer search behavior. 

There are 4 options under Automatic targeting; Close match, Loose match, Substitute and Complement.

Close match is when a shopper searches the exact search query related to your product. This is when the keyword is captured and the search result will make your product appear. 

Loose Match supports search queries that have the same search intent but dont exactly have the exact same keyword. They are basically loosely related to your product. 

Close Match vs. Loose Match

Close match targets terms like “anti-slip yoga mat,” while loose match might target broader terms like “home workout equipment.”

Substitute is when your product can be shown as an alternative to customers when they are looking to purchase a product within the same category. 

Complement means that your product appears on a complementary product’s listing page. If someone is searching for workout essentials, and you sell running shoes, your product could show up. 

Competitor keyword analysis to understand where you stand

Making use of the keywords that your competitors are also using can bring about many benefits. You can use keyword research tools like Helium10’s Cerebro, Xray or SellerApp to find the list of high performing keywords being used by your competitors. 

Add negative keywords for improved ad relevancy

Making use of negative keywords in your campaigns can help you in more than one way. This tactic will help you choose the terms you don’t want your products to appear on, when a shopper types the particular keyword into the search bar. 

Suppose you sell Yoghurt on Amazon, you can include “Dairy-free” as a negative keyword. 

2. A/B testing when in doubt

Amazon allows you to test the performance of your ads through the concept of A/B testing. You can conduct performance testing by running variations of your ads to gain valuable insights. Post which you can get a clear idea on what resonates best with your audience and further fine-tune your campaigns to maintain a low ACOS. 

For example, in Sponsored Product Ads you can run two manual campaigns. You can have one campaign targeting exact match keywords and another targeting phrase match to compare both their outcomes and then running your ads accordingly. 

In Sponsored Brand Ads, test headlines like “Your Wellness Journey Starts Here” vs. “Discover Premium Yoga Gear.” Headline optimization is just one part of your overall strategic Amazon headline search advertising approach. Learn how to build a complete advertising strategy that aligns with your business goals.

In Sponsored Display Ads, try image ads vs. video ads to see which garners better engagement.

Let’s look at an image ad for reference. Does it capture your attention as much as a video ad does? 

3. Match Your Goals to the Right Ad Format in your Amazon Marketing Strategy

Sponsored Products

These ads are the ones visible in the search engine or when you search for any other product listing. This is a perfect option if you are looking for quick conversions or clearing out inventory—especially when evaluating an Amazon SP vs SB comparison based on funnel stage and campaign goals.You can view the “sponsored” tag on those listings that are advertising. 

Sponsored Brands

Sponsored Brand focusses on building brand awareness and showcasing multiple products. These ads are displayed on top of search results, and feature a custom headline, logo, and multiple products. 

Sponsored Display

These ads are powerful for retargeting shoppers who have interacted with your product or similar products. It paves the way for customer retargeting and customer retention. 

All other bid optimizations use CPC (cost-per-click) billing but, Amazon Sponsored Display Ads use vCPM (cost per thousand viewable impressions) and are charged on this basis. 

You can use high quality images to grab attention of viewers scrolling and persuade them into making a conversion. 

Sponsored display videos are one of the most effective ways of enticing a viewer to look into your product listing. Informative and premium videos are what gets maximum traction and builds brand visibility. 

Pro tip- Subsequently, ensure the hero image in all your campaigns look and feel premium and is able to convince the viewer to click on your ad and be a potential customer. 

4. How You Can Win the Bid game

Dynamic bidding is one of several Amazon bidding strategies where Amazon itself sets the bidding on your behalf for a maximum conversion rate. There are 4 types of bidding: down only, up and down, fixed and rule based.

Up and down bidding strategy

In up-and-down bids, Amazon has the liberty to lower or raise your bids according to the number of clicks, converting to sales. If the CTR is improving your conversions, it will increase the bids to keep the momentum going and helphelping you spend your precious as budget on quality clicks and vice-versa. 

According to Amazon, in the US, ‘up and down’ campaigns delivered 119% more ad-attributed sales per campaign, at a 5% lower return on ad spend (ROAS) as compared to ‘down only’ campaigns.

Down only bidding strategy

When you opt for down only, Amazon reduces your bids on those keywords that are underperforming and not yielding any significant clicks or sales. For a less relevant search query, this option could come in handy. 

Note that, Amazon adjusts your bids in real-time for both Dynamic bids- up and down as well as down only. 

Fixed bidding strategy

Unlike dynamic bidding, in fixed bids strategy, Amazon uses the exact bids for all the campaigns without making any flexible adjustments. This is ideal for those looking to achieve high impressions and brand awareness but will not yield many conversions as much as dynamic bidding would. 

Rule based bidding strategy

Rule based bidding doesn’t support the guess work like up-and-down bid optimization. With your existing Amazon advertising campaign running for at least 10 days, you can apply a rule with a guardrail of ROAS and Amazon Advertising Strategy may then adjust your base bids up and down to increase conversions while maintaining your guardrails.

Pro tip- Use the Targeting Report and sort by highest to lowest sales to understand which targeted keywords, categories, or products are meeting your targets.

5. Make use of Amazon’s Managed service 

Amazon’s managed service option offers end-to-end campaign management by Amazon’s team itself. Although it requires a higher minimum spend, it does provide better support. 

However, self-service option gives advertisers the flexibility in budget and strategy, with more direct control over their Amazon advertising strategy to maintain your preferred ACOS and TACOS. 

6. Retargeting or Remarketing is just as important

This kind of targeting brings you closer to those who have previously shown interest in what you sell and have made purchases of the same. This targets bottom-of-the-funnel where the agenda is to only make conversions. 

Suppose you sell Vanilla Scented Candles, Amazon retargeting ads allow you to target those who have previously purchased these candles from your brand or various other brands. Targeting these shoppers would open more options for them to make their next purchase. 

7. Use Broader Advertising Techniques to boost maximum visibility

These ads target shoppers based on shopping behaviors rather than just keywords, for precise audience targeting both on and off Amazon.

Store Spotlight

Highlight your Amazon Store categories like “Yoga Essentials” or “Home Fitness Gear” and drive traffic to these curated collections.

If you sell yoga mats, blocks, and straps, create a Store Spotlight ad to promote “All-in-One Yoga Kits” for shoppers looking for a complete solution.

Pro tip- Make sure you keep the newly launched products next to the bestsellers on your Amazon Brand store so it can get an organic push to visibility. 

Video Ads

Nothing grabs attention like an engaging, thought provoking video. Showcase your product in action. Present its features, benefits, or even customer testimonials to keep the viewers attention. A 15-second video of your yoga mat in use during a sweaty workout, emphasizing its durability and anti-slip technology can be highly impactful for somebody looking to purchase one. Brief yourself on the creative requirements and guidelines for running video ads while crafting you Amazon marketing strategy.

Sponsored TV

This ad type allows you to advertise your products on popular streaming platforms like Amazon FireTV, Twitch, Freevee, etc. You can build a strong brand awareness and brand visibility as there is a large number of people consuming these streaming platforms on a daily basis. 

Audio Ads

Audio ads work best as they open a new way of targeting those who are listing to music on Amazon music or are just listening to song on Amazon Alexa. This is a unique Amazon advertising strategy that capturers the listener’s interest in a way it will mostly lead to purchases. 

8. Run Brand Defense Campaigns (Branded Keywords)

When you start running ads, there is a high possibility for your competitors to bid on your very brand name as in, your branded keyword to sort of steal the traffic and clicks meant for your brand. The only way you can control this is by bidding on your own brand name as well, so you prevent losing top ranking placements to your competitors and then lose sales.

9. Make use of Amazon Attribution

Amazon attribution program is a free tool that provides analytics insight into how non-Amazon marketing channels impact sales on Amazon. It can also track traffic sent to a different website that ultimately converts on Amazon.

This tool can measure the analytics across various channels and devices, like social media, search engines, PPC campaigns, email marketing, and display ads. 

How is works is, it uses parameterised URLs that is, a tracking URL to precisely track what users do when they click the link and go to your store.

It simply works like Facebook’s Pixel and Google Analytics, combined. Everything users do once they click on your ad is tracked, and you can see it all within a single dashboard.

Insights on how many clicks you got, what percentage of those clicks turned into purchases, and even the revenue you made can be tracked easily.

10. Don’t Miss out on Amazon DSP

Amazon DSP (demand-side platform) is a mechanism that enables automatic purchasing of digital advertising. 

It can be from supply-side platforms (SSP), publishers, exchanges, to benefit advertisers like you reach their target audiences.  

11. Don’t Shy away from using third-party Amazon PPC Automation tools

Managing your PPC campaigns and constantly finding ways to improve your campaign performance can be a dreary task for anyone running the whole show of building a brand. Leveraging third-party automation tools to take care of your campaigns can significantly enhance your overall Amazon selling experience. 

You can use PPC automation tools like JungleScout, Helium10, Perpetua, Bidx and many more for effective bidding strategies and overall Amazon campaign management. 

12. Regularly Check Your Performance Metrics to Test, Tweak, and Scale

Regularly optimizing your PPC game can pave way for newer establishments as well as improve ongoing performance. 

PPC is not something you can set and forget. The metrics like ROAS, Amazon TACoS Advertising, ACOS in the campaign manager are updated every hour. Benchmarking Amazon PPC performance against your category helps you tell a normal fluctuation from a real problem. Regularly analyze and refine your campaigns as per the results.

At the same time, pause or discontinue campaigns that are just using up your budget but not contributing any revenue. 

Try not to make many changes at the same time as Amazon takes a week or two to reflect the results of the changes you made and for the algorithm to work in your favour. 

Once the momentum is set, sit back and let the dollars roll into your bank account. 

Amazon Sponsored Ads vs Amazon DSP 

	Amazon Sponsored Ads	Amazon DSP
Managed	Self-service solutions on Amazon	Self-service and Managed solutions on and off Amazon
Should be Amazon seller	Yes	No
Where do these ads appear	Amazon (For sponsored display ads) and Off Amazon third party apps and sites.	Amazon, Amazon devices, Amazon owned websites, other third party websites.
Who are the ideal users	Amazon registered sellers, Amazon vendors	brand advertisers, ad agencies, and tool providers.
Who are eligible	Buy-box eligible sellers	Amazon, minimum spend of 15k requirements apply.
Ad placement charges types	PPC (Pay per Click) and vCPM for Sponsored Display	CPM (Cost per thousand impressions)
Targeting options	ASIN, SKU, Keywords, category, brands	Behavioral, Lifestyle, Contextual, Remarketing, Audience Lookalike, Advertiser Audiences and more, including advanced AMC Audiences.

How Sequence Commerce Can Transform Your Amazon Game

Plug plug! Well, as we take pride in calling ourselves Amazon PPC experts, Sequence Commerce can help build an effective Amazon PPC management for your Amazon business and take over your campaigns to help achieve your target ACOS and increase your Amazon ROAS.

Our support aims to take your head off of the whole PPC shenanigans so you can focus on other aspects of scaling your business. From Amazon advertising strategies, budget allocation to Amazon Advertising Campaign management, and ad copies, we got you covered in every way you wish!

Final Thoughts

With a massive range of options Amazon has got to offer so you can advertise your product and grow your business, making use of these options wisely is where the real catch is. 

This ultimate guide has hopefully helped you understand the core properties of each of Amazon advertising strategies for 2025. With careful planning, strategic KPI achievement plans and the guidance of an ad management agency, you can surpass your target business goals!