How to optimize amazon ads campaigns || Amazon PPC strategy 2025
How to optimize Amazon PPC campaigns
Amazon is the world’s largest eCommerce platform, and its advertising system allows sellers to promote their products to millions of potential customers. However, running profitable Amazon Ads campaigns requires strategy, data analysis, and optimization. In this guide, you’ll learn step-by-step how to optimize your Amazon PPC (Pay-Per-Click) ads to improve conversions and reduce unnecessary ad spend.
1. Structure Your Amazon Ads Campaigns Properly
A well-structured campaign ensures better control, tracking, and performance analysis.
a) Organize Campaigns Based on Match Types
Amazon allows three keyword match types:
- Broad Match: Shows your ad for related searches, including synonyms.
- Phrase Match: Displays ads for searches containing your exact phrase in order.
- Exact Match: Ads appear only for the exact keyword searched.
👉 Best Practice: Run separate ad campaigns for Broad, Phrase, and Exact match types. This helps you control bidding strategies and optimize performance.
Example of Poor Campaign Structure
❌ Single campaign running all match types, different ASINs mixed together
👉 Results: Hard to optimize, difficult to track performance.
Example of Optimized Campaign Structure
✅ Separate campaigns for different match types and ASINs
| Campaign Name | Product Category | Match Type | Budget Allocation |
|---|---|---|---|
| Running Shoes – Exact Match | Running Shoes | Exact | High ($50/day) |
| Running Shoes – Broad Match | Running Shoes | Broad | Medium ($30/day) |
| Running Shoes – Retargeting | Running Shoes | Sponsored Display | Low ($20/day) |
👉 Benefit: Easier tracking, better budget allocation, and higher performance optimization.
b) Use Different Campaigns for Different Products
Avoid mixing multiple products in a single campaign. Instead:
- Create separate campaigns for each product category or ASIN.
- Run individual ad groups within each campaign for better tracking.
c) Leverage Sponsored Products, Sponsored Brands & Sponsored Display
- Sponsored Products: Best for driving direct sales and product visibility.
- Sponsored Brands: Ideal for brand awareness and driving traffic to your Amazon Storefront.
- Sponsored Display: Great for retargeting and reaching audiences outside of Amazon.
👉 Best Practice: Use a combination of all three ad types to maximize reach and conversions.
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2. Optimize Keyword Targeting for Maximum Conversions
Choosing the right keywords is crucial for ad success. Here’s how to do it:
a) Start with Automatic Campaigns
Amazon’s auto-targeting campaigns help discover which search terms are converting.
- Run an automatic campaign for at least 1-2 weeks.
- Analyze search term reports to find profitable keywords.
Example:
- You sell “Men’s Waterproof Running Shoes.”
- Amazon automatically targets searches like:
best running shoes for men
waterproof sneakers for jogging
cheap running shoes (low-quality traffic!)
Solution: Identify converting keywords and move them to a manual campaign.
b) Transfer High-Performing Keywords to Manual Campaigns
Once you identify successful keywords from your auto campaigns:
- Move them to a manual campaign.
- Bid more aggressively on high-performing exact match keywords.
- Test different bid amounts to find the most profitable CPC (Cost Per Click).
Example of Keyword Migration
| Search Term (from Auto Campaign) | Clicks | Orders | ACoS | Action |
|---|---|---|---|---|
| Best running shoes for men | 120 | 25 | 18% | Move to Exact Match |
| Waterproof sneakers jogging | 80 | 15 | 22% | Move to Phrase Match |
| Cheap running shoes | 90 | 0 | 70% | Add as Negative Keyword |
👉 Benefit: More control over high-performing keywords, reduced wasted spend.
c) Use Negative Keywords to Reduce Wasted Spend
Block irrelevant or low-converting search terms.
Example of Negative Keywords for “Premium Leather Wallet”
❌ Cheap leather wallet
❌ Free wallets for men
❌ Plastic wallet
👉 Benefit: Prevents wasted clicks, lowers ACoS, and improves targeting.
d) Utilize Long-Tail Keywords for Higher Conversion Rates
Long-tail keywords (3+ words) typically have lower competition and higher conversion rates.
- Example: Instead of just “running shoes,” target “men’s waterproof running shoes.”
3. Improve Amazon Ads Bidding Strategies
Amazon offers three bidding strategies:
a) Choose the Right Bidding Strategy
1️⃣ Dynamic Bidding – Up and Down (Best for high-converting campaigns)
2️⃣ Dynamic Bidding – Down Only (Good for budget control)
3️⃣ Fixed Bids (Less control, not recommended)
Example: Adjusting Bids Based on Performance
| Keyword | Clicks | Orders | Conversion Rate | Suggested Bid | Adjustment |
|---|---|---|---|---|---|
| Men’s waterproof running shoes | 150 | 30 | 20% | $1.50 | Increase bid to $1.80 |
| Best running shoes for men | 200 | 10 | 5% | $1.20 | Decrease bid to $0.80 |
| Jogging sneakers men | 50 | 2 | 4% | $0.90 | Pause keyword |
👉 Benefit: Higher control over CPC, increased conversion rates, and lower wasted spend.
b) Adjust Bids by Placement
Amazon provides three placement options:
- Top of Search (First Page) – Higher visibility but higher CPC.
- Product Pages – Targets customers browsing similar products.
- Rest of Search – Lower competition and lower CPC.
👉 Best Practice: Increase bids for Top of Search if your product has a high conversion rate.
4. Amazon PPC strategy Ad Content for Higher Click-Through Rates (CTR)
a) Improve Product Titles (SEO & Click-Friendly)
A well-optimized title improves CTR and rankings.
Example: Optimized Title
✅ Men’s Waterproof Running Shoes – Lightweight Jogging Sneakers for Trail & Road | Non-Slip & Breathable
Example: Poor Title
❌ Men’s Shoes – Black, Size 9
👉 Benefit: Optimized titles improve relevance and conversions.
b) Use High-Quality Images
- ✅ Use lifestyle images (e.g., a person running in the shoes).
- ✅ Show multiple angles of the product.
- ✅ Include infographics highlighting key benefits.
👉 Benefit: High-quality images increase CTR and engagement.
5. Analyze Amazon Ads Reports & Performance Metrics
Amazon provides detailed analytics to help optimize your campaigns.
a) Key Metrics to Track
- CTR (Click-Through Rate): Measures ad engagement. Aim for >0.5%.
- Conversion Rate (CVR): The percentage of ad clicks that result in sales. Aim for 10%+.
- ACoS (Advertising Cost of Sales): ACoS = (Ad Spend ÷ Sales) × 100. Lower ACoS = better profitability.
- TACoS (Total Advertising Cost of Sales): Measures ad impact on total revenue.
b) Use Search Term Reports
Download Search Term Reports regularly to:
- Identify new high-performing keywords.
- Find and block wasteful keywords using negative targeting.
a) Monitor Key Metrics Regularly
| Metric | Definition | Ideal Range |
|---|---|---|
| CTR (Click-Through Rate) | % of people clicking your ad | >0.5% |
| CVR (Conversion Rate) | % of ad clicks leading to sales | >10% |
| ACoS (Advertising Cost of Sales) | Ad spend / Sales | <30% |
| TACoS (Total ACoS) | Ad spend / Total revenue | <10% |
👉 Action Plan:
1️⃣ Increase bids for high-performing keywords.
2️⃣ Lower bids for low-converting keywords.
3️⃣ Optimize product pages for better conversions.
👉 Best Practice: Optimize campaigns weekly based on report insights.
6. Retarget Customers with Amazon Sponsored Display Ads
Retargeting helps bring back potential buyers who didn’t purchase.
- Audience Retargeting: Targets shoppers who visited your listing but didn’t buy.
- Competitor Targeting: Targets customers who viewed or purchased competing products.
👉 Best Practice: Use Sponsored Display Ads to target cart abandoners and competitor audiences.
7. Manage Budget & Optimize Spending
a) Increase Budget for Profitable Campaigns
- If a campaign has low ACoS and high sales, increase the daily budget to scale.
b) Reduce Budget for Poor-Performing Campaigns
- If a campaign has high ACoS with low sales, reduce bids or pause it.
Example: Budget Optimization Strategy
| Campaign | ACoS | Sales | Action |
|---|---|---|---|
| Running Shoes – Exact Match | 18% | $5,000 | Increase budget |
| Running Shoes – Broad Match | 45% | $2,000 | Reduce bids |
| Running Shoes – Auto Campaign | 60% | $1,000 | Pause campaign |
👉 Benefit: Maximizes ROI by reallocating budget to high-performing campaigns.
Final Thoughts: Continuous Testing & Optimization is Key
Amazon PPC success requires continuous monitoring, testing, and optimizing. Here’s a quick recap: ✅ Structure campaigns properly (separate match types & product categories).
✅ Use a mix of auto & manual campaigns for keyword discovery & optimization.
✅ Refine bidding strategies based on performance data.
✅ Improve ad content & listings to increase conversions.
✅ Analyze reports & adjust accordingly to reduce wasted spend.
By following these steps, you can significantly increase your sales, lower ACoS, and grow your Amazon business profitably.
🚀 Need help setting up or optimizing your Amazon Ads? Let’s discuss!
