How to advertise on Amazon: Simplified guide for SMBs

Key takeaways:

• Amazon Ads put your products in front of shoppers who are actively weighing options, not people scrolling with no plan to buy at all.
• You’re charged per click, not per view, so you decide how much to spend and can adjust as you go.
• Better results come from regular check-ins, like reviewing keywords, bids, and listings as data comes in.

Selling on Amazon can be exciting. But learning how to advertise on Amazon takes some getting used to. Amazon advertising comes with new terms, rising ad spend, and pressure to avoid costly mistakes. That’s a lot to navigate when you’re just trying to get your products seen.

This guide will teach you how to advertise on Amazon effectively. We’ll show you how Amazon ads show up in search results and on product pages. Not only that, but you’ll also discover how to choose the right keywords and learn to handle your bidding strategy so you’re not burning through cash along the way.

What Amazon Ads are and why small businesses use them

Amazon Ads are paid ads that show your products to shoppers who are already on Amazon looking around. You only pay when someone clicks, which helps you keep ad spend in check and see what’s pulling its weight. For many sellers, it’s a practical way to get in front of people already searching for products like yours.

Timing also matters with Amazon advertising. Your ads appear while shoppers are typing relevant shopping queries or browsing product detail pages, when they’re comparing options and checking prices. Instead of waiting to be noticed later, your product enters the decision process right when choices are being made.

Before we go further, you need to understand:

• How it works
• Where ads appear
• Why Amazon Ads help SMBs compete

How Amazon Ads work

Amazon Ads run on a pay-per-click (PPC) model. You set a budget and define the cost of each click. That’s your bidding strategy in action.

Ads are matched to target keywords and products that relate to what shoppers are searching for. You can use automatic targeting if you want Amazon to handle this for you. You can also use manual targeting to choose specific keywords and products. As you go, you can review performance and adjust bids based on what drives sales.

Where your ads appear 

Your ads can appear in a few high-visibility places across Amazon:

• Search results when shoppers look for related products
• Product pages on similar or competing listings
• Off-Amazon placements across Amazon’s network of third-party websites

These placements keep your products in view while shoppers are still weighing options.

Why Amazon Ads help SMBs compete 

Amazon advertising gives smaller sellers a real shot because placement depends more on relevance than brand size. When your ads align with relevant keywords and genuine search intent, your products can appear alongside larger brands. You can start with a modest budget, then watch how shoppers react, and adjust as you learn what actually works.

Since Amazon understands how people shop, ads are shown to buyers who are already close to checkout. This leads to more potential customers, stronger product sales, and fewer wasted clicks.

What you need before starting Amazon Ads

Before you put money into Amazon Ads, you need a few basics in place first. Ads can drive traffic fast, but they work best when your account and listings are ready to convert clicks into sales. That’s why you need to get these sorted before you start:

• Seller account requirements 
• Listing optimization 
• Featured Offer eligibility 
• Product restrictions 

Seller account requirements

To run Amazon Ads, you need an active seller account in good standing. Most ad types are available to third-party sellers, but some features require extra access. So:

• A Professional seller account is required to advertise
• Brand-registered sellers get access to more tools, including Sponsored Brands and video ads
• Brand Registry also unlocks features like a custom brand logo, custom headline, and your own Amazon store

Ad management takes place in Amazon’s campaign manager, which you access through the advertising console after setup.

Listing readiness checklist

Ads will only work if your product pages are ready to convert clicks into orders. Before launching a campaign, review each listing you plan to promote.

Make sure you have:

• Clear product titles and bullet points
• High-quality images that show the product clearly
• Accurate pricing and enough stock available
• Competitive pricing compared to similar competitor listings

If shoppers click your ad but pause or leave the page, you still pay for that click. The spend adds up without turning into sales.

Featured Offer eligibility

The Featured Offer, often called the Buy Box, plays a bigger role than many sellers realize. Your ads can still run without it, but reach and results are often reduced.

Your eligibility depends on:

• Price competitiveness
• Shipping performance
• Seller metrics and account health

If you’re not competitive on price or delivery, your ads may get fewer impressions or a higher cost-per-click.

Product restrictions and approvals

Not all products can be advertised right away. Some categories require approval before ads can run.

These include:

• Certain health, beauty, and grocery items
• Products with brand restrictions
• Categories with stricter compliance rules

So, check category eligibility early, especially before setting up a product-targeting campaign or manual targeting campaigns. It saves time and prevents rejected ads later.

After you handle these basics, you’re set to create budgets, pick targets, and watch your campaign performance. You’ll also know exactly where your money goes and how advertising sponsor placements drive actual sales.

Note: If you’re building a brand beyond Amazon, it also helps to think about where shoppers can find you outside the marketplace. Having your own domain gives you a place to grow traffic, plan promotions, and stay connected with customers. Every domain comes with free tools to help you do that, like a link-in-bio page, social and customer apps, a marketing calendar, and even a coming soon page while you’re getting set up.

The main types of Amazon Ads (and when to use each one)

If you want to advertise on Amazon, choosing your ad type is important. Each option serves a different goal. Some are built to drive quick ad sales, while others help shoppers discover your brand. The best way to decide is to match the ad type to what you want to achieve.

Below are the three main Amazon Advertising options, along with the scenarios in which each one is most suitable:

• Sponsored Products 
• Sponsored Brands 
• Sponsored Display 

Sponsored Products

Sponsored product ads promote individual product listings. You’ll see these ads in search results and on product pages. That’s why they’re a common first choice.

You’ll likely use these ads to:

• Drive sales for specific products
• Launch new items
• Run focused sponsored products campaigns

These are often the best way to advertise on Amazon for better visibility and regular conversions. They also play a big role in many Amazon advertising campaigns because they target shoppers with strong buying intent.

Sponsored Brands

Sponsored brand ads, sometimes called sponsored brand campaigns, focus on your brand rather than one product. They appear at the top of search results and can include a brand logo, a custom headline, and even video ads.

These ads work well when you want to:

• Grow brand awareness
• Promote multiple products at once
• Reach shoppers early in the search process

These ads are useful if you want to guide shoppers toward your store or introduce them to your full product range.

Sponsored Display

Sponsored display ads reach shoppers both on Amazon and across third-party websites. They often target people who viewed a product but didn’t buy it.

Choose this option when you want to:

• Re-engage past visitors
• Reach relevant audiences outside search results
• Support longer buying cycles

These sponsored ads are helpful when shoppers need more time before buying. They also support the overall click-through rate by keeping your products visible after the first visit.

Most sellers use more than one ad type, though. But Amazon PPC ads are flexible, and combining formats lets you support different stages of the buying journey. Unlike Google ads, Amazon ads reach shoppers while they are already in buying mode, which is why these advertising solutions complement each other.

How to set up your first Amazon Ads campaign (step-by-step)

Amazon Advertising isn’t as complicated as it seems. Once you know where to click and what to choose, your first campaign can be live in minutes. Here’s how to set it all up:

1. Access Amazon Ads console 
2. Choose your ad type 
3. Set budget and bidding 
4. Choose targeting 
5. Select products 
6. Launch your campaign 

Step 1: Access the Amazon Ads console 

Sign in to Amazon Seller Central, then head to the advertising console and open Campaign Manager. This is where you’ll create campaigns, review performance, and make updates as you go.

If you’re new to selling on Amazon, this will also be your main hub for tracking key metrics like impressions and ad clicks.

Step 2: Choose your ad type

Choose an ad type based on what you want to accomplish. Most beginners start with Sponsored Products because these ads promote a single Amazon listing and appear directly in search results and on a product detail page.

If your goal is to expand reach or bring in new customers, you can explore other formats later. For now, focus on one specific goal.

Step 3: Set your daily budget and bidding strategy

Set a daily budget you are comfortable with. You can begin with a smaller amount and adjust once you see how your ads perform. Your bid affects how competitive your ad is and where your ad placements show up.

Right now, you’re just setting what you’ll pay for visibility, and it doesn’t really guarantee sales. So, keep an eye on your costs as your campaign runs.

Step 4: Choose automatic or manual targeting 

This is where you decide how Amazon matches your ads to shoppers.

• Automatic targeting lets Amazon choose search terms based on your product details.
• Manual targeting lets you select target keywords yourself.

If this is your first campaign, start with automatic targeting. Later, review the search term report to see what searches bring clicks and sales.

Step 5: Select products to advertise

Choose which products to promote. Your ads send shoppers straight to a product detail page, not a separate landing page. Make sure the listing is easy to scan, priced competitively, and ready to convert interest into sales.

Strong listings help move shoppers along the purchase journey and turn clicks into orders

Step 6: Launch and monitor your campaign 

Once your campaign is live, give it time to collect data. Check performance regularly in Campaign Manager and watch how shoppers engage.

Then, pay attention to:

• Impressions and ad clicks
• Cost and conversions
• Which ads help you reach customers and drive more customers overall

Make small changes with real numbers to get better results and engage customers without spending too much.

How to improve your Amazon Ads performance

If you already advertise on Amazon, get better results without spending more. Better performance comes from small tweaks based on real data, not major overhauls. The tips below are simple and effective.

Here’s where to focus first:

• Refining keywords
• Adding negative keywords
• Improving listings
• Adjusting bids based on performance

Refining and expanding keywords 

Your keyword strategy should track what shoppers type before clicking your ads. Check advertising reports for search terms that generate sales, not only traffic.

Focus on:

• High-performing search terms
• Exact match keywords that show clear buying intent
• Keywords that consistently reach potential customers

Better keywords sync your ads with your advertising goals and attract quality clicks.

Adding negative keywords

Negative keywords prevent your ads from showing up in searches that don’t sell. It’s one of the quickest ways to save money and maintain performance.

So, add negative keywords when:

• Search terms bring clicks but no sales
• Traffic doesn’t match your product or Amazon business focus

You’ll improve your click-through rate when you filter out window shoppers, you’ll see.

Improving product listings

Your ads send shoppers to a product detail page, not a separate landing page. That’s why, before you raise your budget, you need to take a quick pass through your listing and confirm the following:

• Clear titles and images
• Competitive pricing
• Simple, scannable product details

Better listings support stronger ad results and improve how shoppers respond once they click.

Adjusting bids based on performance

Bid changes should be based on key metrics. It pays to look at which ads drive sales and which only drive clicks. With that, consider adjusting bids when:

• Certain ad placements perform better than others.
• Costs rise without a matching increase in sales.

Minor bid adjustments make things more efficient without throwing off your campaigns.

Seasonal opportunities 

Shopping behavior shifts throughout the year. It’s important to check past performance so you can better plan for the busy seasons and slow months.

Seasonal data helps you:

• Time promotions more effectively
• Support sponsored display ads during longer buying cycles
• Scale or pause automatic targeting campaigns when demand shifts

This keeps your ads relevant instead of reactive.

If you’re enrolled in Brand Registry, you get access to deeper reporting and brand-level insights. You’ll see how shoppers interact with your ads, your Amazon store, and product pages. Track this data and adjust regularly. It’s the best way to advertise on Amazon since your ads stay relevant, efficient, and driven by real results

Advanced strategies for scaling your Amazon Ads

Once your basics work, scaling Amazon Ads means reaching more people while keeping costs in check. Since this stage is about amplifying success, not reinventing everything, use these strategies to see better results:

• AI-powered tools 
• Amazon DSP 
• Advanced product targeting 
• Data-driven optimization 

AI-powered tools

Amazon leverages first-party data for automated bidding, placements, and targeting. AI-driven tools find patterns faster than manual checks, especially across big sponsored product campaigns

These tools are most useful when:

• You manage multiple products.
• You want growth without overspending on advertising costs.
• You need quicker insights into what drives conversions.

AI support works best when paired with regular review, not full autopilot.

Amazon DSP

Amazon DSP lets you reach shoppers beyond search results through display ads, video, and off-Amazon placements. These ads use Amazon’s shopper data to reach people based on behavior, not just keywords.

DSP works well if you want to:

• Reach shoppers earlier in the buying journey.
• Bring past visitors back to a detail page.
• Support brand growth alongside sponsored brand ads.

This option works best if you have specific goals and a bigger budget.

Advanced product targeting

With product targeting campaigns, you pick specific products or categories for ad placement. Your sponsored products ads appear next to competitor listings or similar items.

This helps you:

• Promote individual product listings.
• Compete directly on high-traffic pages.
• Control placement without relying only on keywords.

This approach works especially well for products with strong pricing and reviews.

Data-driven optimization

The best scaling happens when performance data drives your choices. Check reports for cost per click, conversion rates, and which formats actually convert more customers

Look for patterns across:

• Sponsored products versus sponsored brands campaigns
• Video ads versus static ads
• Keyword match types like exact match

This helps you put more budget behind what works and reduce spend that isn’t paying off. At the end of the day, you won’t need every option for growth. You simply have to choose advertising solutions that work not only for your products and brand, but also for your wallet.

Troubleshooting common Amazon Ads issues

If your Amazon Ads aren’t working right, you’re not alone. Most problems trace back to setup or listing issues. Better yet, run through these checks to catch issues quickly and solve them fast.

Most Amazon Ads problems are one of these:

• Ads not serving
• High ACoS
• Low impressions
• Low conversions

Ads not serving

If your sponsored ads aren’t showing up, start here.

Check whether:

• Your daily budget runs out early.
• Your bids are too low to compete.
• Your targeting is too broad or too narrow.

Also, verify if your account is active. If you’re brand registered, confirm that it’s set up correctly since certain ads require it.

High ACoS

High advertising cost of sale (ACoS) means you’re spending more than you’re earning back. Your ads aren’t necessarily failing. They just need a bit of fine-tuning.

Try this:

• Shift budget toward sponsored products or keywords that already drive sales.
• Lower bids on search terms that get clicks but no orders.
• Look at your ad copy and pricing if they’re aligned with shopper expectations.

The goal is not to cut spend everywhere, but to focus it where returns are stronger.

Low impressions

Low impressions usually mean your ads aren’t getting enough exposure yet.

Check the following:

• Keyword relevance and match types
• Category or product targeting settings
• Competition in your niche

If you rely solely on search, adding display ads can help your products appear in more places. If you have an Amazon store, linking ads to it can also give branded searches more visibility.

Low conversions

If shoppers click but don’t buy, the problem is often the product page itself.

Before changing your ads, review:

• Images and titles on your product detail page
• Pricing compared to similar listings
• Reviews and overall trust signals

Ads get clicks, but your listing does the convincing.  Even strong sponsored products campaigns won’t convert if shoppers can’t find what they need. So, tackle one issue at a time. First, check if ads are serving, then look at cost, reach, and conversions. Small changes are easier to track and less risky than full resets.

Frequently asked questions

Get more from your Amazon PPC ads

Learning how to advertise on Amazon is rarely a one-and-done thing. It takes testing, small course corrections, and a bit of patience. The upside is that once you see what clicks with shoppers, you can lean into it and keep improving as patterns start to emerge.

And when you’re ready to expand beyond Amazon, you don’t have to figure that out on your own either. Our pay-per-click advertising services can help you reach customers through search while keeping your wider marketing goals in focus. If you want a second set of eyes on your ads, our digital marketing team is ready to support you on your terms.