What changed
Pay-per-click ads inside Amazon search and product pages
When
Updated October 2026
Who it affects
Professional sellers, vendors and KDP authors
What to do
Start with one automatic Sponsored Products campaign

Key takeaways

  • Start with one Sponsored Products automatic campaign at about $10 a day.
  • Fix the listing before advertising: reviews, images, bullets, stock and price.
  • Each week, move converting search terms to exact match and add negatives for waste.

Ready to advertise?

  • Five or more reviews, 3.5 stars plus
  • Four or more zoomable images
  • Three or more bullet points
  • In stock with the featured offer
  • Break-even ACoS calculated
  • Daily budget of about $10 set

What is Amazon PPC and how does it work?

Amazon PPC is Amazon's self-service advertising, mostly known as sponsored ads. Each time a shopper searches, Amazon runs an auction among eligible ads. Your bid and how relevant your product is to the search both matter, so the highest bid does not always win. You never pay more than your maximum bid, and there is no monthly fee or minimum spend for Sponsored Products. Amazon's FAQ lists a minimum daily budget of $1.00.

Ads only run while your product can be bought. It must be in an eligible category, in stock and winning the featured offer, the offer shown beside the Add to Cart button. That is why stock and price matter as much as bids. For the wider picture, read our Amazon advertising guide.

The Amazon ad types, in the order to learn them

Amazon has several ad types, but beginners only need the first one for the first few months. Add the others once you have data and, for two of them, Brand Registry. In 2026 they all sit inside Amazon Ads Agent, the new name for Amazon's unified ads platform.

  • Sponsored Products: single-product ads in search and on product pages, cost per click, no Brand Registry needed
  • Sponsored Brands: logo, headline and several products or a video at the top of search, Brand Registry required for sellers
  • Display ads, formerly Sponsored Display: retargeting and audience ads on and off Amazon, Brand Registry required for sellers
  • Programmatic display, video and audio: impression-based campaigns for larger budgets

Before you advertise: is your listing ready?

Ads send traffic. If the listing does not convert, you pay for clicks that do not sell. Amazon's own best practice guide lists a short readiness check. Fix these first; our Amazon listing optimization guide shows how.

  • At least five reviews and a 3.5-star rating or higher
  • Four or more zoomable images, at least 1,000 pixels on one side
  • At least three bullet points and a clear title
  • In stock, competitively priced and winning the featured offer

How to set up your first Amazon PPC campaign, step by step

This sequence follows Amazon's guidance and keeps early spend under control.

  • Open the ads console from Seller Central and choose Sponsored Products
  • Name the campaign clearly, for example Brand, product, Auto
  • Set a daily budget; Amazon suggests about $10 to start
  • Choose automatic targeting and dynamic bids down only
  • Add closely related products at a similar price to one ad group
  • Set a bid for each of the four automatic targeting groups
  • Launch, then check results at least twice in the first week

Automatic vs manual targeting

In an automatic campaign Amazon chooses where to show your ad based on your listing, across four targeting groups: close match, loose match, substitutes and complements. It is the easiest way to discover the searches that sell your product. In a manual campaign you choose keywords or products yourself. Keywords use three match types: broad reaches the most searches, phrase needs the words in order, and exact must match word for word, plus plurals. Amazon notes exact usually converts best, and recommends bidding highest on exact, lower on phrase and lowest on broad.

The beginner pattern is to run automatic first, then build manual exact and phrase campaigns from the search terms that converted. Our guide to Amazon Sponsored Products covers each option in more depth.

  1. 1Launch auto

    Four targeting groups, down only bids

  2. 2Watch

    Check twice in the first week

  3. 3Harvest

    Move converting terms to exact

  4. 4Prune

    Negatives after about 20 clicks

  5. 5Repeat

    Weekly search term review

How much should a beginner spend on Amazon PPC?

Amazon suggests starting at around $10 a day per campaign. Daily budgets are not paced, so a small budget can run out early in the day, and a month's spend can reach about 31 times the daily budget. You are first charged when clicks reach $1.00, then whenever they reach your credit limit, which starts at $50 and rises with successful payments.

Clicks are priced by auction and vary by category. One 2026 dataset from WisePPC, covering US accounts that use its tool, found a median cost per click of $0.82, with most between $0.51 and $1.22. At those prices, $10 a day buys roughly 8 to 20 clicks. Read how much Amazon advertising costs for budget planning, and Amazon CPC for what drives click prices.

Sponsored Products benchmarks 2026

$0.82median US CPC
5.85%median conversion rate
28.2%median ACoS
Source: WisePPC, June 2026

Your weekly routine after launch

PPC rewards small, regular changes. Once a week, download the search term report. Terms with orders at a good cost move to a manual exact campaign. Terms with clicks and no orders become negatives; Amazon suggests judging a term after at least 20 clicks and letting changes run two weeks or more before judging again. Then adjust bids toward your target ACoS, which should come from your margin. Our guide to a good ACoS for Amazon shows the maths.

Common beginner mistakes

Most early losses come from a few habits. Avoid these and your first month of data will be far more useful.

  • Advertising a listing with no reviews or weak images
  • Setting bids without knowing break-even ACoS
  • Changing bids daily before there is enough data
  • Never adding negative keywords
  • Putting products at very different prices in one ad group
  • Letting stock run out while ads are live

When to get help

If PPC is taking hours each week or ACoS will not come down, compare doing it yourself with outside help. Our Amazon PPC course teaches the routine, and PPC Spider's Amazon PPC management runs it for you on SpiderOS, which monitors bids, budgets, search terms and stock and sets each target ACoS from margin after fees. Plans start at $995 a month. A free Amazon audit shows where your first campaigns are leaking spend.

Sources

  • Amazon Ads: Frequently asked questions (advertising.amazon.com/resources/faq)
  • Amazon Ads: Best practices for your Sponsored Products ads (advertising.amazon.com/library/guides/sponsored-products-best-practices)
  • Amazon Ads: A guide to targeting with Sponsored Products (advertising.amazon.com/library/guides/targeting-with-sponsored-products)
  • WisePPC: What Amazon Sponsored Products metrics actually look like in 2026 (wiseppc.com/blog/amazon-sponsored-products-benchmarks/)
Get the next change before your competitors do

We send the marketplace changes that matter each week, with what to do next.

By subscribing you agree to our privacy policy. Unsubscribe any time.
Want this done for your account?

We run these playbooks on client accounts every day. Start with a free audit.

Get a free audit