Amazon Sponsored Product ads || Beginner's Guide 2025
A Comprehensive Guide to Amazon Sponsored Products
Amazon Sponsored Products is one of the most effective advertising tools for sellers looking to boost product visibility, drive traffic, and increase sales on Amazon. Whether you’re a new seller or an experienced e-commerce entrepreneur, leveraging Sponsored Products can give your listings the competitive edge they need.
What Are Amazon Sponsored Products?
Amazon Sponsored Products are pay-per-click (PPC) ads that promote individual product listings on Amazon. These ads appear in search results and on product detail pages, helping sellers gain more visibility for their products. Since they are keyword-targeted, they show up when shoppers search for relevant terms, increasing the chances of conversions.
Table of Contents
How Amazon Sponsored Products Work
- Keyword Targeting: You can either let Amazon automatically choose keywords based on your product details or manually select relevant keywords.
- Bidding System: You set a bid amount that determines how much you’re willing to pay per click. Higher bids increase the likelihood of your ad appearing in top positions.
- Ad Placement: Ads can appear at the top of search results, within search results, and on product detail pages.
- Pay-Per-Click Model: You’re only charged when a shopper clicks on your ad, making it a cost-effective advertising solution.
- Example: Imagine you’re selling a high-quality stainless steel water bottle. If you bid on keywords like “insulated water bottle” or “leak-proof bottle,” your Sponsored Product ad could appear at the top of search results when a customer searches for these terms, increasing your chances of making a sale
Where Do Amazon Sponsored Products Appear?
Amazon Sponsored Products appear in multiple strategic locations across the Amazon marketplace to maximize visibility and conversion rates. These placements are designed to capture the attention of shoppers at various stages of their buying journey. Below are the key placements where Sponsored Products can be displayed:
Search Results Pages One of the most prominent placements for Sponsored Products is within Amazon’s search results. Ads can appear in multiple positions:
a. Top of Search (First Page) – These ads appear as the first few listings on a search results page, making them highly visible and likely to generate clicks.
b. Middle of Search Results – Ads are placed among organic search results, capturing the attention of shoppers as they scroll.
c. Bottom of Search Results – These ads appear at the end of search results pages, targeting shoppers who scroll through the full list before making a decision.
2. Product Detail Pages Sponsored Products can appear on competitors’ and complementary product pages in sections such as:
“Sponsored Products Related to This Item” – Located below the main product description, showcasing related items that shoppers might be interested in.
“Customers Also Bought” Section – Sponsored Products can be featured in sections where Amazon suggests items frequently purchased together.
Product Carousel Ads – Ads appear in horizontally scrolling product carousels beneath the main listing.
3. Amazon Buy Box Placement The Buy Box is the section on a product page where shoppers add items to their cart. Sponsored Products can appear directly below the Buy Box, increasing the chances of catching a shopper’s attention just before they make a purchase.
4. Amazon Mobile App & Mobile Web Amazon Sponsored Products also appear in various locations on the mobile version of Amazon, ensuring that advertisers reach shoppers using smartphones and tablets. Placements include:
Top of Mobile Search Results – Sponsored Products are prominently displayed as the first results when users search for a product.
Within Mobile Search Results – Ads are interspersed between organic results as users scroll.
Mobile Product Detail Pages – Sponsored Products appear below the main product description on mobile listings.
5. Amazon’s “Today’s Deals” Page Sponsored Products sometimes appear within promotional sections such as Amazon’s “Today’s Deals” page. This placement can increase exposure for products that have discounts or special promotions.
6. Amazon Checkout Pages In some cases, Sponsored Products can be displayed as recommended items on checkout pages, encouraging last-minute add-on purchases.
7.Amazon’s External Advertising Network Amazon has extended Sponsored Product placements beyond its platform through Amazon DSP (Demand-Side Platform), which can place ads on:
Conclusion Amazon Sponsored Products benefit from a variety of high-impact placements, ensuring advertisers can reach shoppers at different points in their buying journey. Understanding these placements can help sellers optimize their advertising strategy, improve visibility, and increase conversions. By strategically bidding on keywords and optimizing ad performance, sellers can maximize the potential of Sponsored Products across Amazon’s marketplace.
Would you like to learn more about optimizing your Sponsored Products for each of these placements? Let us know in the comments!
Benifits of sponsored products
1. Increased Visibility
Sponsored ads appear at the top of search results, increasing product exposure. This is especially beneficial for new sellers competing against established brands.
2. Higher Sales Potential
These ads target shoppers who are actively searching for related products, increasing the chances of conversions and sales.
3. Cost-Effective Advertising
Unlike traditional advertising, you only pay when someone clicks on your ad. This ensures efficient budget usage, as you’re only paying for real engagement.
4. Better Product Ranking
More clicks and purchases from ads contribute to improved organic rankings on Amazon’s search algorithm. Over time, your product can achieve better placement in search results.
5. Flexible Budgeting
Amazon Sponsored Products don’t require a minimum budget, allowing sellers to start small and scale up as they see results
Targeting types in Sponsored Product
Auto Targeting
Amazon’s Automatic Targeting help advertiser to let Amazon choose relevant keywords based on their product information. This is a great option for beginners or sellers who want to test which keywords work best for their products, by the help auto targeting we can find right keywords for the new product, which is closely related to the product, we can use this keywords in manual campaign for relevancy.
Types of Automatic Targeting
Amazon provides four different match types under automatic targeting:
- Close Match: Your ad appears when a shopper’s search term closely matches your product title and description.
- Loose Match: Your ad is shown for broader, loosely related search terms.
- Substitutes: Your ad appears on product detail pages of similar products.
- Complements: Your ad appears on product pages of related but complementary products.
Example : If you’re selling an “insulated stainless steel water bottle”:
- Close Match: Your ad may show up for “insulated water bottle.”
- Loose Match: Your ad may appear for “gym water bottle.”
- Substitutes: Your ad could be placed on the product page of another insulated water bottle brand.
- Complements: Your ad might appear on a product page for a lunch box or travel mug.
Manual Targeting: A Detailed Guide with Examples
Manual Targeting allows sellers to take full control over their ad campaigns by selecting specific keywords and match types. Unlike Automatic Targeting, where Amazon chooses keywords for you, Manual Targeting lets you decide which search terms trigger your ads. This provides greater precision in reaching the right customers and optimizing ad spend.
How Manual Targeting Works in Sponsored product
- You Select Keywords: Sellers research and add relevant keywords manually.
- You Choose the Match Type: Amazon provides three match types—Broad, Phrase, and Exact.
- You Set Custom Bids for Each Keyword: Higher bids increase visibility, while lower bids help control costs.
- Amazon Displays Your Ads for Relevant Searches: Your ad appears when shoppers use your selected keywords.
Keyword Match Types in Manual Targeting
Amazon provides three types of keyword match options in Manual Targeting:
1. Broad Match
Definition: Your ad will show for searches that include your keyword in any order, along with related variations
Example:
Keyword: “stainless steel water bottle”
Potential Search Queries That Trigger Your Ad:
- “best stainless bottle for gym”
- “steel insulated water bottle”
- “water bottle made of stainless steel”
Pros:
- Reaches a wide audience and increases visibility.
- Captures unexpected but relevant searches.
Cons:
- Less control, which can lead to irrelevant clicks.
- May have lower conversion rates compared to tighter match types.
1. Phrase Match
Definition: Your ad appears when the shopper’s search includes your keyword in the exact order, but it can have additional words before or after.
Example:
Keyword: “stainless steel water bottle”
Potential Search Queries That Trigger Your Ad:
- “best stainless steel water bottle for gym”
- “stainless steel water bottle with straw”
- buy stainless steel water bottle online
Pros:
- More targeted than Broad Match but still flexible.
- Ensures ads appear for closely related searches.
Cons:
- Less reach than Broad Match.
- May still trigger some irrelevant searches.
1. Exact Match
Definition: Your ad will only appear when the shopper types the exact keyword or a very close variant (plural forms or slight spelling variations).
Example:
Keyword: “stainless steel water bottle”
Potential Search Queries That Trigger Your Ad:
- “stainless steel water bottle”
- “stainless steel bottles”
Will NOT Trigger Your Ad:
- “best stainless steel bottle for gym”
- “insulated steel bottle”
- Highly targeted and leads to higher conversion rates.
- Prevents wasteful ad spend on irrelevant searches.
Cons:
- Limited reach, as it only targets specific search terms.
- Requires thorough keyword research to find the most profitable exact terms.
How to Choose the Right Match Type?
The best match type depends on your advertising goals:
| Goal | Best Match Type |
|---|---|
| Brand awareness & visibility | Broad Match |
| Balanced approach | Phrase Match |
| High conversions & lower ACoS | Exact Match |
Example Strategy:
- Start with Broad Match to discover potential keywords.
- Identify high-performing search terms and move them to Phrase Match or Exact Match.
- Use Exact Match for your best-converting keywords to maximize return on investment.
Example of a Manual Targeting Campaign
Let’s say you are selling wireless noise-canceling headphones. Here’s how you can set up Manual Targeting:
Step 1: Keyword Research
Use tools like:
Your initial keyword list might include:
- “wireless headphones”
- “noise canceling headphones”
- “Bluetooth headphones for travel”
- “best headphones for work”
Step 2: Setting Up Match Types
| Keyword | Match Type | Bid ($) |
|---|---|---|
| “wireless headphones” | Broad | $0.75 |
| “noise canceling headphones” | Phrase | $1.00 |
| “Bluetooth headphones for travel” | Exact | $1.50 |
Step 2: Setting Up Match Types
To prevent wasted ad spend, you should add negative keywords to exclude irrelevant searches.
| Negative Keyword | Match Type |
|---|---|
| “wired headphones” | Exact |
| “cheap headphones” | Phrase |
| “used Bluetooth headphones” | Broad |
Step 4: Monitoring & Optimizing
Check Performance After 7 Days
- If Broad Match generates irrelevant clicks, reduce the bid or switch to Phrase Match.
- If Exact Match performs well, increase the bid to improve placement.
Example Optimization Action
- Bluetooth headphones for travel” (Exact Match) has a high conversion rate → Increase bid to $1.75.
- “Wireless headphones” (Broad Match) has low conversions → Lower bid to $0.50 or switch to Phrase Match.
Pros & Cons of Manual Targeting
| Pros | Cons |
|---|---|
| Full control over keyword selection | Requires ongoing optimization |
| Can adjust bids for each keyword | More time-consuming |
| Higher conversion rates | Needs keyword research |
| Eliminates irrelevant clicks | Can have a learning curve |
Bidding Strategy's In Sponsored product
Amazon offers different bidding strategies to help sellers control their ad spend and maximize performance. Here are the three main bidding options with examples:
1. Dynamic Bids – Down Only
Amazon automatically lowers your bids when it determines that a conversion is unlikely.
Example:
- You set a bid of $1.00 for the keyword “stainless steel bottle”.
- If Amazon detects that a shopper is unlikely to convert, it may lower your bid to $0.50 to save you money.
Best for:
- Sellers who want to reduce wasted ad spend.
- Campaigns that are focused on profitability.
2. Dynamic Bids – Up and Down
Amazon increases your bid when a conversion is more likely and decreases it when a conversion is less likely.
- You set a bid of $1.00 for “leak-proof bottle”.
- If Amazon predicts a high chance of conversion, it may increase the bid to $1.50.
- If the chance of conversion is low, it may decrease the bid to $0.60.
Best for:
- Sellers who want more aggressive bidding.
- Products with high margins that can handle increased bids.
Fixed Bids
Amazon does not adjust your bid at all. Your bid remains the same regardless of the likelihood of conversion.
- You set a bid of $1.00 for “eco-friendly water bottle”.
- Amazon will always bid exactly $1.00 on that keyword, regardless of conversion probability.
Best for:
- Sellers who want full control over bids.
- Experienced advertisers who manually optimize their campaigns.
Final Thoughts
Manual Targeting is ideal for sellers who want full control over their ad spend and maximize their return on investment. By carefully selecting keywords, testing match types, and continuously optimizing your bids, you can run a highly profitable ad campaign on Amazon.
