Is your Amazon PPC delivering results? Discover 10 expert tips to reduce ACoS, increase conversions, and drive more sales!
As a brand owner, you understand just how competitive Amazon’s pay-per-click (PPC) landscape has become.
Standing out is more challenging than ever.
Without a well-crafted Amazon advertising strategy, you risk wasting valuable ad spend—funds that could be better invested in scaling your e-commerce business.
Success with Amazon PPC goes beyond the basics. Simply following the crowd won’t cut it. Strategic PPC management—covering everything from keyword research and Sponsored Products ads to precise product targeting—is essential for achieving real results.
These 10 expert strategies will help propel your products to the top of search results and maximize your advertising success.
With Amazon’s introduction of the low-cost “Haul” mobile shopping channel—designed to compete with Shein and Temu—brand building has become more crucial than ever for online sellers.
To put your Amazon Store in the spotlight, leveraging Sponsored Brands ads is a game-changer.
When customers search for products on Amazon, Sponsored Brands ads appear in the top section of the search results page. This premium placement makes them one of the most impactful ad formats available.
Since these ads dominate mobile real estate on page one, feature custom creative images, and showcase multiple products from your brand, they have become an essential tool for boosting brand awareness.
In fact, Sponsored Brands ads placed on search results pages boast an impressive 9.5% conversion rate, even when the advertised product wasn’t the one originally searched for.
Perfect for top-of-the-funnel marketing, these ads help increase both brand visibility and product reach. When paired with targeted keyword phrases and exact match keywords, their effectiveness skyrockets!
While it may seem straightforward, a key factor in optimizing your Amazon ad campaigns is understanding your product profit margins and how they impact your advertising strategy.
Every SKU holds unique selling data that can guide your decisions. By analyzing factors like promotion costs, manufacturing expenses, and selling prices, you can determine whether a product’s profit margin justifies increased ad spend.
Before allocating more budget to paid ads, focus on high-margin products. Investing in ads for a low-margin product can quickly eat into your profits, making it harder to scale.
This strategic approach also improves your organic ranking—by directing ad spend toward your most profitable products, you create greater visibility for the ASINs that truly drive your business forward.
Sales are great—but at what cost?
With Amazon’s marketplace becoming increasingly competitive, the difference between profitability and wasted ad spend can come down to a few cents.
That’s why knowing your Advertising Cost of Sales (ACoS) is essential before launching any ad campaigns. A well-calculated ACoS allows you to set a realistic, sustainable advertising budget and ensure your campaigns are cost-effective.
ACoS measures the efficiency of your Amazon ads by calculating the ratio of ad spend to ad revenue as a percentage. Use this formula to determine your ACoS
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Mastering this metric helps you fine-tune your campaigns, maximize ROI, and maintain profitability on Amazon.
Your break-even ACoS is the point where your advertising costs equal your profit margin—after accounting for all Amazon fees, product costs, and shipping expenses.
For example, if your total costs leave you with a 30% profit margin, then your break-even ACoS is also 30%.
To determine your target ACoS, subtract your desired profit margin from the break-even ACoS. If you aim for a 12% profit margin, that leaves 18% as your target ACoS (30% – 12%).
ACoS isn’t just a profitability metric—it’s also a strategic tool that can guide your ad spend decisions. Depending on your goals, you may want to increase ACoS to drive growth rather than always aiming to lower it.
For example, a higher ACoS in a Sponsored Products campaign can be beneficial for boosting visibility, especially for new product launches. In this case, prioritizing exposure over immediate profitability makes sense.
The key is knowing when to adjust your ACoS strategy—sometimes you’ll want to push for aggressive growth, while other times, a lower ACoS aligns better with profitability goals. Finding the right balance is what sets successful Amazon sellers apart.
For example, if your total costs leave you with a 30% profit margin, then your break-even ACoS is also 30%.
To determine your target ACoS, subtract your desired profit margin from the break-even ACoS. If you aim for a 12% profit margin, that leaves 18% as your target ACoS (30% – 12%).
Not every Amazon ad campaign should aim to get as many eyes on your listing as possible. Broad search results can lead to wasted ad spend and irrelevant traffic, making it essential to set up negative keywords and phrases.
🚨 Wasted Ad Spend – Paying for clicks from shoppers who aren’t interested in your product drains your budget.
📉 Low Conversion Rates – Irrelevant traffic leads to poor engagement, fewer sales, and a declining conversion rate, which can hurt your organic ranking.
⚠️ Negative Customer Experience – If shoppers land on mismatched listings, they may leave negative reviews or poor ratings, damaging your brand reputation.
For example, if you’re selling over-the-ear headphones, you wouldn’t want to appear in searches for earbuds. While you might get clicks—and even a few sales—you’d be spending ad dollars to attract customers looking for something entirely different. That’s a fast track to frustrated shoppers and wasted budget.
Amazon PPC success isn’t about getting the most clicks—it’s about driving high-quality traffic that converts into sales
By fine-tuning your negative keyword strategy, you ensure your ads reach the right audience — boosting conversions, lowering ACoS, and maximizing your return on ad spend.
With Amazon’s introduction of the low-cost “Haul” mobile shopping channel—designed to compete with Shein and Temu—brand building has become more crucial than ever for online sellers.
To put your Amazon Store in the spotlight, leveraging Sponsored Brands ads is a game-changer.
Like Google Ads, Amazon allows advertisers to refine targeting using broad, phrase, exact, and negative match types. The goal is to use a strategic mix of these match types to reach the right audience while eliminating wasted ad spend.
To boost your click-through rate (CTR) and conversion rate (CVR), it’s essential to apply the right modifiers based on your campaign objectives.
Phrase match offers a better balance between reach and specificity by ensuring that the search query contains your keyword in the same order, though additional words can be included before or after.
🔹 Example: For the keyword “red headphones”, your ad could appear for searches like:
✅ “best red headphones”
✅ “red headphones for running”
❌ “headphones red” (word order matters)
Negative match keywords help refine your targeting by preventing your ads from showing for irrelevant searches. This eliminates wasted clicks and improves ACoS.
🔹 Example: If you’re selling over-ear headphones, you might exclude terms like:
❌ “earbuds”
❌ “cheap headphones” (if you sell premium products)
Broad match terms have the widest reach but are the least defined. While they have lower conversion rates, they are effective for driving traffic, increasing brand awareness, and gathering data on potential customer searches.
🔹 Example: If you’re selling headphones, your ad may show for searches like “wireless headphones,” “best earbuds,” or even “Bluetooth speakers” (depending on relevancy).
Exact match is the most precise match type, only showing ads when a customer’s search exactly matches your keyword (with slight variations like plurals or misspellings).
🔹 Example: If your exact match keyword is “best red over-ear headphones”, your ad will appear only for that exact phrase and minor variations like:
✅ “best red over-ear headphones”
✅ “best red over ear headphones”
❌ “over-ear headphones red” (different word order)
❌ “cheap red headphones” (additional words not included in the phrase)
A successful Amazon PPC strategy balances all four match types to reach the right customers while avoiding unnecessary expenses.
✅ Broad Match – Great for traffic and brand awareness.
✅ Phrase Match – Ideal for refining audience targeting.
✅ Exact Match – Best for high-converting keywords.
✅ Negative Match – Eliminates wasteful ad spend.
By optimizing your match type strategy, you can increase conversions, lower ACoS, and maximize your return on ad spend (ROAS)—helping your products succeed in Amazon’s competitive marketplace.
Regularly reviewing your keywords is essential for optimizing your Amazon ad performance. However, avoid making hasty adjustments based on short-term fluctuations. Instead, take a data-driven approach by aligning your bidding strategy with keyword performance.
Amazon SEO and keyword effectiveness evolve over time due to trends, cultural shifts, and market demand. A keyword that performs well today may not be as effective in a few months.
✔ Identify Emerging Keywords – If a new search term starts gaining traction, consider testing it in your campaign before making major adjustments.
✔ Use Automatic Targeting – This feature helps discover trending customer search terms and provides valuable insights for optimization.
✔ Test Before Committing – Add promising phrases to your campaign and monitor performance. If they consistently convert, refine your product content and ad copy to match.
However, don’t overhaul your keyword list based on limited data—adjustments should be gradual and informed.
Amazon’s marketplace is dynamic, and some products experience seasonal demand spikes. Optimize your ad strategy accordingly:
✅ Increase bids for high-performing keywords during peak seasons.
✅ Lower bids for underperforming keywords during slow periods.
✅ Adjust ad spend based on trends to maximize efficiency.
By staying flexible and analyzing performance data, you ensure that your campaigns remain relevant throughout the year.
Amazon PPC strategy is increasingly powered by artificial intelligence (AI), which can enhance campaign efficiency and budget distribution.
🔹 AI-Based Dynamic Budget Allocation – AI tools analyze performance across multiple campaigns and automatically shift budget toward high-performing ads.
🔹 Optimize for ACoS & ROI – If one campaign generates better conversions and returns, AI redistributes funds to maximize profitability.
🔹 Seamlessly Manage Multiple Ad Types – AI helps balance budgets across Sponsored Products, Sponsored Brands, and Amazon DSP ads, ensuring each dollar is spent effectively.
By combining manual keyword refinement with AI-driven optimization, you can build a sustainable Amazon PPC strategy that adapts to changing trends while keeping your ad spend efficient and profitable.
In 2025, Amazon Sponsored Display Ads are set to become a cornerstone of e-commerce marketing. Unlike traditional keyword-based targeting, these ads focus on shopping behaviors, allowing brands to reach the right audience both on and off Amazon with precision.
🚀 Enhanced Brand Visibility & Product Discovery – These ads meet the growing demand for personalized shopping experiences, ensuring your products are seen by the most relevant shoppers.
🎯 Advanced Retargeting Capabilities – Sponsored Display Ads follow potential buyers across Amazon, third-party websites, and apps, keeping your brand top of mind.
📌 Strategic Placement – Your ads can appear on product detail pages, Amazon’s homepage, and external platforms, maximizing exposure.
Amazon reports that sellers using Sponsored Display Ads saw twice the impressions and 50% more clicks on their listings—making them a high-impact tool for driving engagement.
Unlike other ad types that rely on cost-per-click (CPC) bidding, Sponsored Display Ads operate on a vCPM (cost per thousand viewable impressions) model.
🔹 Why vCPM Matters:
For brands looking to stay ahead in Amazon advertising, leveraging Sponsored Display Ads in 2025 is a strategic move to dominate the marketplace and capture more customers.
We are a certified Amazon Ads Partner and an approved agency in the Amazon Service Provider Network (SPN)
After analyzing the data from your best-performing ad campaigns, it’s time to cut the ones that aren’t delivering results. Identifying high-performing keywords and eliminating low-impact terms is a critical step in optimizing your Amazon PPC strategy.
✔ Maximize Budget Efficiency – Ensure your ad spend is focused on the campaigns that drive conversions.
✔ Identify Low-Performing Products – If a product requires excessive advertising just to make a sale, it may not be worth continued investment.
✔ Reallocate Resources Wisely – Free up your budget for higher-margin products with better sales potential.
If a product consistently struggles to generate sales despite heavy ad spend, consider:
🔹 Discontinuing the Product – If margins are too slim, it may not justify the marketing costs.
🔹 Repositioning as an Upsell – Instead of allocating a separate ad budget, use it as an add-on product to boost order value.
Being strategic with your ad spend ensures that your Amazon business remains profitable, scalable, and focused on products that truly drive growth.
With increasing data privacy restrictions from Apple, Google, and other platforms, the advertising landscape has shifted dramatically. For Amazon brand owners, Amazon DSP (Demand-Side Platform) is a game-changer.
Amazon DSP is a programmatic advertising platform that allows brands to purchase and manage ad placements both on and off Amazon. Unlike traditional PPC ads, DSP leverages Amazon’s first-party shopper data, offering highly targeted, personalized campaigns based on real consumer behavior.
Amazon DSP goes beyond basic keyword targeting by utilizing AI-powered contextual and behavioral targeting. This means:
✔ Ads are served based on user behavior, browsing history, and shopping preferences.
✔ Relevance is increased, making shoppers more likely to engage.
✔ Brand awareness and loyalty grow, thanks to consistently targeted messaging.
For e-commerce brands, this level of targeting unlocks data that was previously unattainable, making DSP one of the most powerful tools in digital advertising.
There are two ways to use Amazon DSP:
1️. Managed by Amazon – Requires a minimum spend of $50,000 USD (varies by country).
2️. Managed by a Third-Party Agency – Agencies like Canopy Management offer greater flexibility, control, and expert guidance without the high minimum spend.
With the right strategy, Amazon DSP can supercharge your ad campaigns, helping you reach the right customers at the right time—on and off Amazon.
Artificial intelligence is transforming every aspect of Amazon advertising, but ad creatives are where AI’s impact is most powerful.
At Lezzat, we leverage AI-driven tools to optimize ad creatives, increase engagement, and drive conversions, ensuring your brand stays ahead in Amazon’s competitive landscape.
AI tools have revolutionized how brands create, test, and refine Amazon ad creatives, enabling personalized and high-impact ad experiences. By analyzing consumer data, AI dynamically tailors creatives to resonate with specific audience segments, maximizing ad performance.
✅ Effortless Image Creation – Instantly generate high-quality product images without expensive photoshoots.
✅ Higher Engagement – Amazon reports that AI-generated lifestyle images can boost click-through rates by up to 40%.
✅ Versatile Applications – Ideal for Sponsored Brands, Amazon Posts, and A/B testing, delivering professional visuals at no extra cost.
AI enables rapid A/B testing of key ad elements, including:
✔ Headlines – Finds the most engaging messaging.
✔ Images – Identifies the highest-performing visuals.
✔ Call-to-Action (CTA) – Optimizes wording to increase click-through rates.
AI platforms continuously learn from performance data, automatically adjusting creatives for the best results.
With the rise of voice-activated devices like Amazon Alexa, Google Assistant, and Siri, consumer shopping behavior is changing. Millions of Alexa users now make hands-free purchases, meaning an optimized voice search strategy is key to staying competitive.
Unlike traditional text-based searches, voice queries are longer, conversational, and question-based. Instead of searching “best wireless headphones,” a voice user might ask:
🔹 “What are the best wireless headphones for working out?”
🔹 “Which wireless headphones have the longest battery life?”
To capture this audience, your PPC strategy must focus on:
✔ Long-tail, conversational keywords
✔ FAQ-style content that matches natural speech patterns
✔ Structured, easy-to-read product listings optimized for voice search
Aligning PPC keywords with voice-optimized listing content helps ensure your products are the ones Alexa recommends.
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At Lezzat, we don’t just manage Amazon ads—we build high-performance advertising strategies tailored to your brand’s unique needs. Our expert team combines AI-driven insights, PPC expertise, and innovative ad creatives to help you
If you’re looking for the same strategic advantage that top Amazon brands use to scale, partner with Lezzat—the award-winning Amazon marketing agency trusted by leading brands.
Let’s take your Amazon advertising to the next level—contact Lezzat today!
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