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Amazon Sponsored Ads for Beginners: How to Launch PPC the Right Way

  • Writer: David Stephen
    David Stephen
  • 7 days ago
  • 6 min read
Amazon Sponsored Ads For Beginners

Introduction

If you're launching a product on Amazon, one thing is certain:

👉 You need traffic.

(And reviews but I'll cover that in a different blog.)


And the fastest way to get that?

👉 Amazon Sponsored Ads (PPC)


But this is where most sellers, particularly new sellers, go wrong…


They:

  • Don’t understand how ads actually work

  • Set campaigns up incorrectly

  • Waste budget early

  • Or think that PPC is not required at all.


This guide will walk you through everything you need to know—in simple, practical terms.


I've over 10+ years experience with Amazon PPC. When I launched my own products back in 2015, I had to learn quickly. I didn't have the budget to waste. Getting PPC wrong could have been costly and slowed any chance of scaling my brand portfolio.


Since I successfully exited my brand in 2020, I help Amazon sellers with FBA Coaching and Consultancy in the UK,. My goal is to make the processes as easy as possible and to help you have the best chance at reducing any wasted budget.



What Are Amazon Sponsored Ads?

Simply, Amazon Sponsored Ads are pay-per-click (PPC) ads.

👉 You pay each time someone clicks your product.


These ads appear:

  • In search results

  • On product pages

  • Across Amazon


Just search for any product and you'll see 'Sponsored' above product titles.

Go in to the listing product page and you'll see products from other brands. These are also sponsored ads.



The 3 Main Types of Amazon Ads


1. Sponsored Products

  • Promote individual products

  • Appear in search results

  • Best for new sellers


2. Sponsored Brands

  • Show your brand

  • Show multiple products

  • Requires Brand Registry (which you should absolutely make sure you have for brand protection, if you are the brand/trademark owner)


3. Sponsored Display

  • Retarget shoppers

  • Appear on and off Amazon


👉 For beginners: focus on Sponsored Products first



Why Amazon PPC Is Essential for New Product Launches


Without PPC:

  • Your product won’t get visibility

  • You won’t generate sales

  • You won’t rank organically


💡 Key Insight:


👉 Amazon rewards sales velocity

The more you sell over time, the higher you rank.

Sales consistency is key to organic ranking.


👉 PPC helps you generate those initial sales



Why Getting PPC Wrong Is Expensive


Most new sellers:

  • Launch campaigns with no structure

  • Use random keywords (You should have your keywords list as you've already done your listing)

  • Rely only on Auto campaigns

  • Don't analysis key data to make informed decisions

  • Assigning a daily budget based on your margins and goals

  • If you don't know your margins, your real profit could shock you.


👉 Result:

  • Wasted spend

  • Poor data

  • No scalable growth





How to Set Up Amazon Ads (Step-by-Step)


Step 1: Go to Ads Console

Seller Central → Advertising → Campaign Manager


Step 2: Create Campaign

  • Choose Sponsored Products


Step 3: Set Budget

  • Start with £10–£30/day (depending on budget)


Step 4: Choose Targeting

  • Auto OR Manual (we’ll structure this next)


Step 5: Launch & Monitor

👉 Don’t “set and forget”—review regularly



The Correct Campaign Structure (Rank, Defend & Harvest)


Most beginners are told:

👉 “Just run Auto and Manual campaigns”


But that’s not a strategy.


The Real Structure:

👉 Rank → Defend → Harvest


This is how you build a system that:

  • Generates sales

  • Builds ranking

  • Scales profitably


1. RANK (Get Visibility & Generate Sales)


This is your launch phase.

👉 Your goal is to generate traffic and data.

👉 Profit during this stage will likely be less as you're investing in your launch.


💡 Insight: The quicker you start ranking organically and gaining organic sales, the quicker you will increase your profit - Organic sales cost nothing in advertising


What You’re Doing:

  • Running Manual Single Exact Match Keyword Campaigns

    • targeting several specific top keywords you want to rank for (Highest budget allocation)

    • Easy to track one keyword in each campaign

    • Easier to control and allocate budget to each high performing keyword


  • Running Auto Campaigns (Close Match, Loose Match)

    • for research and exploring search terms

    • understanding what keywords Amazon relates to your product

    • Personally I don't recommend Substitutes or Compliments at this stage


  • Running Manual Multi Keyword Broad & Phrase campaigns

    • for testing and ranking

    • exploring keywords and phrases


Why This Matters:

At launch:

  • No ranking

  • No data

  • No sales history

👉 You need Amazon to learn where you fit


Key Focus:

  • Clicks

  • Impressions

  • Early conversions

  • Which keywords convert

  • Where your ads appear

  • Remove any irrelevant keywords from Auto Campaign data (add them to negative exact)


💡 Insight:

👉 You are buying data and visibility


⚠️ Mistake to Avoid:

Trying to optimise too much too early can kill momentum.

That doesn't mean you ignore it e.g your ACOS is over high. You must monitor the reasons.

If it high because you are achieving your goals/strategy then fine.

If its high because you are gaining clicks and not converting, then that's something to address asap.


👉 Focus on learning

👉 Do - Monitor your PPC costs and profit. You don't want PPC costs going crazy. Although this phase is about ranking, you should set your budget and aim to achieve that. (You've still got to pay for that 2nd batch of inventory)




2. DEFEND (Protect Your Product & Ranking)

I would set this up early on with a small budget but certainly once your product starts gaining traction…

👉 You must protect it.


What You’re Doing:

  • Targeting your own brand name

  • Targeting your Brand keywords and search terms

  • More aggressive targeting top converting keywords (Exact match)

  • Increasing bids on top placements


Why This Matters:

Without defence:

👉 Competitors steal your traffic

👉 You lose sales on your own product

👉 Your organic rank is rising and your getting noticed by your competitors


Key Focus:

  • Maintain ranking

  • Control your traffic

  • Protect conversions


💡 Insight:

👉 This is one of the most overlooked stages.


So many sellers that I've worked had lost sales to competitors and wondered why. This is why....they are not protecting their traffic.

Go to any listing on Amazon and you'll immediately see other brands advertising on that listing. This is where you must compete with defence.


3. HARVEST (Scale What Works Profitably)

This is where real further growth and ACOS & TACOS control happens.

👉 You scale proven data.


What You’re Doing:

  • Moving discovered converting keywords from Auto campaigns into Exact Manual Campaigns

  • Increasing bids on winners (depending on current placement and goals)

  • Cutting wasted spend on losing keywords

    • Irrelevant keywords added in Negative exact

    • I would start monitoring this from day one

  • Scaling budgets

    • If your running out of daily budget on your top converting keywords then you must increase your budget, otherwise you are loosing sales and sales velocity

  • Add Video Campaigns.

    • I've found that conversion can be higher on these

    • Gives you a great opportunity to show your products benefits in action

  • Maintaining organic rank

    • Organic sales from non PPC sales are essential for long term growth

    • No PPC cost to pay = increase in profit per sale


Why This Matters:

👉 This is where PPC becomes profitable

👉 Your organic rank is rising and you are seeing an increase in organic sales


Key Focus:

  • Efficiency

  • Profitability

  • Scaling winners


💡 Insight:

👉 You are turning data into growth

👉 You are turning growth into brand scaling opporunties


⚠️ Mistake to Avoid:

Staying in testing mode too long



Why You Can’t Just Rely on Auto Campaigns


Auto campaigns are useful—but limited.


The Problem:

  • Less control

  • Poor scalability

  • Hard to optimise


The Right Approach:

👉 Use Auto for initial insights

👉 Use Manual for control



The Ideal Setup for New Sellers

When launching:

  • Run Auto + Manual campaigns together

  • Focus on data first

  • Accept early inefficiency


👉 Your goal is:

  • Find what works

  • Generate sales

  • Build ranking



What Happens After Launch?


Once data comes in:

  • Move keywords to Exact

  • Increase budgets on winners

  • Cut underperforming spend


👉 This is where scaling begins



Key PPC Principles to Remember

  • Structure beats guesswork

  • Data beats opinion

  • Consistency beats quick wins



Final Thoughts


Amazon PPC isn’t as complicated as you think.

👉 But it must be structured correctly


If you:

  • Set it up properly

  • Follow the right stages

  • Stay consistent

  • Learn the basics and keep learning


👉 You build a system that scales



Want Help Setting Up Your Amazon Ads Properly?

If you're launching or struggling with PPC…I can help.


I offer a free Amazon PPC audit where I’ll:

  • Review your campaigns

  • Identify wasted spend

  • Show quick wins


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