Mastering Amazon PPC: A Beginner's Guide to Sponsored Products
Amazon Sponsored Products are a cornerstone of successful ecommerce growth on the world’s largest marketplace. For ecommerce managers, marketing leads, and founders, understanding how to leverage Amazon PPC effectively is essential to boosting product visibility, driving sales, and scaling marketplace performance. This guide offers a clear, strategic introduction to Sponsored Products campaigns, providing actionable insights to help brands optimise their Amazon advertising and reinforce Incubate Agency as your trusted partner in marketplace success.
What Are Amazon Sponsored Products?
Amazon Sponsored Products are pay-per-click (PPC) ads that promote individual product listings directly within Amazon’s search results and product detail pages. These ads help sellers increase visibility by placing their products in front of shoppers actively searching for relevant items.
Sponsored Products are popular because they:
Target shoppers with high purchase intent
Appear seamlessly alongside organic search results, enhancing discoverability
Operate on a cost-per-click basis, meaning you only pay when a shopper clicks your ad
Do not require brand registry, making them accessible for most sellers
In 2023, Amazon expanded Sponsored Products’ reach to premium external sites like Pinterest and BuzzFeed, further amplifying exposure without additional effort from advertisers4.
Setting Up Your First Sponsored Products Campaign
Launching a Sponsored Products campaign is straightforward but requires careful planning to maximise return on ad spend (ROAS).
Step 1: Access Campaign Manager
Log into your Amazon Seller Central account, navigate to the Advertising tab, and select Campaign Manager. Click Create Campaign and choose Sponsored Products as your campaign type26.
Step 2: Select Products to Advertise
Choose the ASIN(s) of the product(s) you want to promote. Focus on bestsellers or new launches that need visibility.
Step 3: Choose Targeting Type
Automatic Targeting: Amazon selects keywords based on your product details and shopping trends. Ideal for beginners or testing new products.
Manual Targeting: You select keywords to target, allowing greater control over who sees your ads25.
Step 4: Add Keywords (Manual Targeting)
For manual campaigns, add relevant keywords using match types:
Broad match captures a wide range of search queries
Phrase match targets searches containing your keyword phrase
Exact match targets precise search terms
Include negative keywords to exclude irrelevant searches and reduce wasted spend6.
Step 5: Set Bidding and Budget
Set your daily budget and bids per keyword. For beginners, a minimum daily budget of around £10 is recommended in the UK2. Use bidding strategies like Dynamic Bids – Down Only to control costs while staying competitive6.
Step 6: Launch and Monitor
Name your campaign clearly for easy management and launch it. Regularly monitor performance metrics such as clicks, impressions, conversion rate, and ACOS (Advertising Cost of Sale) to optimise campaigns5.
Optimising Your Sponsored Products Campaign for Success
Effective optimisation transforms basic campaigns into scalable growth engines.
Keyword Research and Match Types
Use tools and Amazon’s suggested keywords to uncover high-converting search terms.
Start with broad match to gather data, then refine with phrase and exact matches for precision.
Regularly add negative keywords to eliminate non-performing terms and improve ROAS16.
Structuring Campaigns
Segment campaigns by match type or product category to track performance granularly.
Create separate ad groups for broad, phrase, and exact matches to allocate budgets effectively6.
Bid Management
Adjust bids based on keyword performance and competition.
Increase bids by around 25% above suggested amounts to gain impressions if budget allows6.
Use Amazon’s dynamic bidding options to balance cost control and visibility.
Leveraging Automatic Campaigns
Use automatic campaigns to discover new keywords and product targets.
Transition high-performing automatic keywords into manual campaigns for better control1.
Creative and Listing Optimisation
Ensure product titles, images, and descriptions are compelling and keyword-rich.
A well-optimised listing improves ad relevance and conversion rates, lowering CPCs.
Measuring Performance and Scaling
Tracking key metrics is vital for continuous improvement.
Important Metrics
ACOS (Advertising Cost of Sale): Percentage of ad spend relative to sales. Lower ACOS indicates better efficiency.
CTR (Click-Through Rate): Measures ad engagement; higher CTR suggests relevant targeting.
Conversion Rate: Percentage of clicks that convert to sales; reflects listing and ad quality.
Impressions and Spend: Monitor to understand reach and budget utilisation.
Scaling Strategies
Increase budgets on top-performing campaigns gradually.
Expand keyword lists based on data insights.
Test new product launches with Sponsored Products to accelerate visibility15.
Common Pitfalls to Avoid
Ignoring negative keywords, leading to wasted spend on irrelevant clicks.
Setting budgets too low, causing campaigns to under-deliver.
Poor listing optimisation reducing conversion rates.
Overbidding on low-performing keywords without data support.
Why Choose Incubate Agency for Amazon PPC Management?
With over 50 years of combined leadership experience, Incubate Agency specialises in optimising Amazon PPC campaigns that deliver measurable growth. We provide tailored, transparent strategies that align with your brand goals, ensuring your advertising budget drives maximum return.
Learn more about our Amazon performance management services to boost your marketplace presence.
Explore our digital performance strategy expertise for sustainable ecommerce growth.
Review case studies where we have accelerated brand success through expert Amazon PPC management.
Conclusion: Ready to Master Amazon Sponsored Products?
Amazon Sponsored Products offer unparalleled opportunities to increase product visibility and sales. By understanding campaign setup, optimisation, and performance measurement, ecommerce leaders can unlock scalable growth on Amazon’s marketplace.
Ready to scale your marketplace growth with a partner who gets it? Book your consultation now.