What is Amazon PPC and How Does It Work? (Complete Beginner’s Guide)
By eCom Managers
If you’ve ever searched for a product on Amazon and noticed listings labeled “Sponsored,” you’ve seen Amazon PPC in action. For sellers, Amazon PPC (Pay-Per-Click) is one of the best tools to gain visibility, attract buyers, and boost sales. However, without the right strategy, it can quickly drain your profits.
At Ecom Managers, we focus on making PPC a growth driver — assisting sellers to minimize wasted spend, drive more conversions, and grow profitably. Let’s see what Amazon PPC is, how it operates, and how you can leverage it.
Understanding Amazon PPC
Amazon PPC is an advertising system in which seller’s only pay when shoppers click on their ad. It’s a bidding system that makes products appear in prime positions on Amazon — search results, competitor product pages, and even placements off of Amazon.
In short:
You select keywords → place a bid → Amazon displays your ad → you only pay when someone clicks.
The objective is straightforward to have your product viewed by the correct target market and make that exposure translate into sales, all while keeping a good ACoS (Advertising Cost of Sales).
Step-by-Step How Amazon PPC Works
- Choose a Product and Campaign Type
You select what product you want to promote and which type of advertisement you want to run (Sponsored Products, Brands, Display, or TV).
- Set Targeting
Choose the keywords, ASINs, or audiences that determine where your ad appears.
- Set Bids and Budget
Decide how much you’re willing to spend per click and your daily budget.
- Ad Auction
When a shopper searches, Amazon’s system runs an auction to determine which ads appear. Relevance and bid value decide the winner.
- Pay Only for Clicks
You only pay when someone sees your ad.
Amazon PPC Ad Types
- Sponsored Products
Amazon’s most prevalent ad type. These are displayed in search results and product detail pages, advertising single products.
Best for: Driving sales and visibility.
Example: A seller selling a “Memory Foam Pillow” bids on the keyword and gets displayed when customers search for it.
Tip: Employ exact match for high-performing keywords and phrase match to discover new ones.
- Sponsored Brands
These ads include your brand logo, headline, and several products — typically appearing in top search results.
Best for: Creating brand awareness and traffic to your Amazon Store.
Example: A sportswear brand advertising “Home Workout Gear” with its logo and tagline to increase brand recall.
- Sponsored Display
Sponsored Display ads reach shoppers **both on and off Amazon**, through audience and product targeting.
Best for: Retargeting and competition targeting.
Example: A customer looked at your product but didn’t purchase — a Sponsored Display ad reminds them later.
- Sponsored TV Ads (New & Growing)
Amazon’s new ad option, Sponsored TV, enables sellers and brands to display ads on streaming TV platforms such as Prime Video, Freevee, and Fire TV.
Ideal for: Driving brand awareness outside of Amazon search pages.
Example: A home goods brand places a short 15-second video ad during a streaming series to drive awareness of its “Ergonomic Pillows” range.
Tip: Ideal for established brands looking to scale and reach broader audiences.
Why Amazon PPC Matters
With millions of competing listings, organic visibility isn’t enough. PPC ensures your products appear in front of ready-to-buy shoppers.
A strong PPC strategy helps you:
– Gain instant visibility for new products.
– Improve organic ranking over time.
– Boost conversion rates and brand awareness.
– Monitor all spend and gauge effects (ACoS, ROAS, and conversions).
Normal PPC Issues (and How eCom Managers Fixes Them)
High ACoS: We watch how we perform and bid adjust to keep things profitable.
Bad Conversions: Our specialists optimize ad copy, listings, and targeting for improved interaction.
Budget Waste: We update negative keywords frequently and eliminate poor-performing ads to conserve budget.
With eCom Managers, each campaign is optimized by hand no short cuts with automation. We are all about precision, data, and outcomes.
Final Thoughts
Amazon PPC isn’t about ads it’s about strategy. With Sponsored Products, Brands, Display, and now TV ads, sellers have more tools than ever to scale.
At Ecom Managers, we assist you in using those tools the intelligent way optimizing visibility, eliminating wasted spend, and generating profitable sales.
If you want to get your Amazon PPC working smarter for you, it’s time to scale intelligently with Ecom Managers your go-to partner for data-driven Amazon expansion.