What Are Amazon Ads? A Complete Beginner’s Guide to Amazon Advertising in 2025
In today’s digital commerce landscape, Amazon Ads have become a powerful tool for brands looking to grow visibility, drive sales, and scale sustainably on the world’s most competitive eCommerce platform.
But if you’re new to Amazon advertising, you might be asking: What exactly are Amazon Ads? How do Amazon Ads work? And are Amazon Sponsored Ads worth it for your business?
In this comprehensive guide – the first of our “Introduction to Amazon Ads” series – we break down the fundamentals, explain how to run Amazon Ads, explore different ad types, and show you how Amazon advertising fits into the broader digital marketing mix.
What Are Amazon Ads?
Amazon Ads (formerly known as Amazon Marketing Services) are paid placements that appear on Amazon’s platform and across its advertising network. These ads help sellers, vendors, and brands promote their products directly to high-intent shoppers during their purchase journey.
Unlike Google or Meta, where users are browsing or researching, Amazon Sponsored Ads target users who are actively looking to buy – making it a high-conversion advertising channel that answers the question, “Do Amazon Sponsored Ads work?” with a resounding yes.
Where Do Amazon Ads Show Up?
When learning how to run ads on Amazon, it’s important to understand where your Amazon Ads will appear. These ads can show up in multiple strategic locations, including:
- Search results pages (above or within organic listings)
- Product detail pages (in “Sponsored Products” or “Brands you may like” sections)
- Amazon homepage banners (via Amazon display ads or video ads)
- Off-Amazon placements via Amazon DSP (Demand Side Platform), including sites like IMDb, Twitch, and third-party websites
Types of Amazon Ads: Understanding Your Options
Amazon Ads offer several ad formats to suit different goals and budgets. Here are the main types:
1. Sponsored Products
- Keyword-targeted ads for individual ASINs
- Appear in search results or on competitor product detail pages
- Ideal for driving product sales and visibility
- Pay-per-click (PPC) model
- Best for: New sellers learning how to run Sponsored Ads on Amazon
2. Sponsored Brands
- Ads that showcase your brand logo, custom headline, and 3+ products
- Great for brand discovery and portfolio promotion
- Drive traffic to your Amazon Store or a landing page
- Best for: Established brands looking to increase brand awareness
3. Sponsored Display
- Audience-based targeting across Amazon and external sites
- Can retarget users who viewed your products or similar ones
- Excellent for cross-sell, upsell, and retargeting strategies
- Best for: Advanced advertisers focusing on customer retention
4. Amazon DSP (Demand-Side Platform)
- Programmatic advertising tool for broader audience reach
- Not limited to Amazon.com – includes first-party and third-party data targeting
- Ideal for scaling Amazon Ads campaigns across the funnel (Awareness > Loyalty)
- Best for: Large brands with substantial advertising budgets
How to Create Amazon Ads: Getting Started
If you’re wondering how to create Amazon Ads, the process typically involves:
- Setting up your Amazon Advertising account through Seller Central or Vendor Central
- Choosing your campaign type (Sponsored Products, Sponsored Brands, or Sponsored Display)
- Setting your Amazon PPC campaign budget and bidding strategy
- Selecting relevant keywords for your target audience
- Creating compelling ad creative and product listings
- Launching and monitoring your Amazon advertising campaigns
Why Should You Use Amazon Ads?
Understanding what Amazon Ads can do for your business helps answer whether Amazon Sponsored Ads are worth it:
- Shoppable Audiences: You’re advertising to people who are already in the buying mindset
- Rich First-Party Data: Leverage Amazon’s shopper behavior insights for precise targeting
- Full-Funnel Capabilities: Build awareness, drive consideration, and retarget effectively
- Measurable Performance: Real-time metrics and ROAS tracking with tools like Amazon Attribution and AMC (Amazon Marketing Cloud)
Amazon Ads vs Other Advertising Platforms
| Feature | Amazon Ads | Google Ads | Meta Ads |
|---|---|---|---|
| Purchase Intent | High | Medium | Low |
| Audience Targeting | First-party | Search intent | Interest-based |
| Conversion Rates | High | Medium | Lower |
| Ideal Use Case | Product discovery & purchase | Lead gen, info queries | Brand engagement, remarketing |
Who Can Run Amazon Ads?
Amazon Ads are accessible to various business types:
- Sellers using Amazon Seller Central (3P)
- Vendors via Vendor Central (1P)
- Agencies & Brands with Amazon Advertising Console access
- Non-endemic brands (e.g., insurance or auto) can advertise through Amazon DSP
Amazon Sponsored Ads Cost: What to Expect
When planning how to run Amazon Ads, budget considerations are crucial. Amazon Sponsored Ads cost varies based on:
- Competition level in your product category
- Keyword competitiveness and search volume
- Bidding strategy (manual vs. automatic campaigns)
- Campaign optimization and performance history
Most sellers start with a daily budget of $10 – 50 per campaign and adjust based on performance data.
How to Optimize Amazon Ads for Better Performance
Learning how to optimize Amazon Ads is essential for long-term success:
- Regular keyword research and negative keyword management
- A/B testing ad creative and product images
- Bid optimization based on performance metrics
- Campaign structure refinement for better targeting
- Performance monitoring using Amazon’s advertising reports
Amazon PPC Campaign Strategy: Best Practices
A successful Amazon PPC campaign strategy includes:
- Starting with automatic campaigns to discover high-performing keywords
- Transitioning to manual campaigns for better control
- Using multiple campaign types for comprehensive coverage
- Regular performance analysis and optimization
- Seasonal adjustments for peak selling periods
Frequently Asked Questions About Amazon Ads
Are Amazon Sponsored Ads worth it?
Yes, Amazon Sponsored Ads are generally worth it for most sellers, with many seeing a positive return on ad spend (ROAS) within the first few weeks of optimization.
How do Amazon Ads work?
Amazon Ads work on a pay-per-click model where you bid on keywords relevant to your products. When shoppers search for those keywords, your ads may appear in search results or on product pages.
What is the difference between Amazon Display Ads and Sponsored Products?
Amazon Display Ads focus on visual creative and audience targeting, while Sponsored Products are keyword-based ads that appear in search results and are text-heavy.
How many keywords should I use per ad group?
For optimal Amazon campaign performance, start with 10–20 highly relevant keywords per ad group and expand based on performance data.
Key Takeaways: Why Amazon Ads Matter
- Amazon Ads offer direct access to high-conversion audiences
- Supports multiple ad types – from search to display and video
- Performance can be optimized with data-driven strategies
- Ideal for brands at all stages – launch, growth, or scale
- Success requires ongoing optimization and strategic management
What’s Next in Your Amazon Ads Journey?
In our next post, we’ll dive deeper into “How Sponsored Products Work & When to Use Them” – stay tuned as we break down real examples and setup tips for beginners learning how to run Amazon Ads.
Until then, if you’re considering Amazon Ads for your brand or want to audit your current performance, reach out to our team for a free consultation.
We’re here to help you unlock your full potential on the world’s biggest retail platform – and answer any questions about how to create Amazon Ads that drive results.
Ready to Start Your Amazon Ads Strategy?
Contact our certified Amazon Ads specialists today for a personalized strategy session.