Guide to run advertisement on Amazon

Guide to run Sponsored Products Ads on Amazon:

Amazon’s Sponsored Products are a great opportunity for e-tailers to boost visibility and sales. Amazon’s  registered sellers can advertise their products using the seller central account. It works on cost per click model, the way similar to Google AdWords. To create a campaign for the selected products, products need to be eligible for buy box .

Amazon Sponsored Product Ads are only displayed when the bid is competitive and the offer is listed in the buy box on the detail page of the product for which ad is run. As a seller, you needn’t worry as your ad would not run if the buy box for the product is with your competition.

When a seller should run Sponsored Product Ads?

You might be wondering whether running sponsored product ads is the right decision for you or not? To Evaluate go through the following Scenarios. If you fall under any of these, believe me Sponsored Product Ads would definitely prove beneficial for you.

  1. You are a new seller, looking forward for the ways to boost your visibility in the competitive space.
  2. You have new products that you want to highlight.
  3. Looking ahead to promote a seasonal product line.
  4. Looking to drive more traffic to specific products.
  5. Having a product line lined up for clearance, want to get rid of some products.  

Tip : Before spending on Sponsored Product Ads, ensure that your product content is optimized well and the buyer gets all the relevant information on the product detail page. So that you are not ending up with a waste of your ad budget.

How to run Sponsored Products Advertisement?

  1. Registered sellers need to Login to their Amazon Seller Central Account using their existing Login credentials.
  2. Go to Promotions -> Campaign Manager
  3. Create new Campaign by specifying the Budget, targeting type and creating Ad group
    1. Set your Campaign budget and duration.
      1. Name the Campaign in a manner so that you are able to identify it for later reference.
      2. Specify daily budget and interval for your campaign. You can change it anytime later. If you have more than two campaigns running, seller can also specify the Account daily budget. For example, you have three campaigns running for Rs. 50 as a daily budget. If you specify 100 as account budget. Your ads will stop running after spend of Rs.100 on total account even though total budget of three campaigns is Rs.150.

You can choose budget depending on your budget allocated for promoting the products. It completely depends on you how much you want and are able to spend on advertising. Till you are getting profitability from your campaigns there is no harm in continuing.

      1. Select the target viewers for your sponsored products ads. Amazon offers sellers two ways to target the ads.
        1. Automatic targeting: Amazon with its knowledge displays your advertisement based on the relevant keyword according to your product information. You can see the report of the keywords on which your ads are clicked
        2. Manual targeting: Sponsored Product Ads run by sellers can targeted for the keywords chosen by seller.

The image below highlights the sponsored products ads run for the keyword “black kurti”.



4. Create Ad group

    1. For automatic targeting, you only need to choose the products for which you want to run sponsored ad from list of your active products. Save the Campaign. Now you can start enjoying the benefit of your campaign.


Some scenarios for which you would prefer to choose automatic targeting can be one of the mentioned below:

  1. When you are doubtful for the keywords that would be used.
  2. When you do not have ample of time and number of ads you want to run is huge. To save your time you can follow automatic target method.
  3. When your manual targeted keywords are not that efficient in delivering better results.
  4. Automatic targeting can also be used as complementary to manual targeting keywords by for the same set of products as for manual targeting method.

Before selecting Automatic Targeting, Consider the following points:

  1. Sponsored Product Ad would run on the keywords decided by amazon based on the content provided by you for the product.
  2. Do not opt for automatic targeting If Seller want to target some specific keywords which are not mentioned there in Product content.
  3. Make sure your products have enough of relevant content . Your ad won’t be displayed on relevant keywords if you have not mentioned the detailed product description and bullet points.
    1. For manual targeting, you need to specify the keywords and bidding amount for which you want to display sponsored product ad. Select the product and specify the keywords for the selected product.  You can also choose from the keywords suggested by Amazon. Provide your own keywords and select the match type for keywords from broad, exact and phrase match. You can specify the keyword bid against each keyword in manual targeting. Keyword bid is the maximum amount you will pay for a click when this keyword triggers your ad. Custom keyword bids for each keyword will override default bids.

manual-targeting-ad-group               manual-targeting-ad-groups-creation

How to make Payments for sponsored products?

Seller needs to make an advance payment for running campaigns. It’s not the way that seller gets debited after each click, charges are accumulated and then debited from seller’s advance paid amount.

Bill summary is created by amazon after every debit. Invoices are available in Advertising invoice history in seller central panel. To view invoice history seller needs to follow these steps,

  1. Go to Reports and select Payments.
  2. Select the Advertising Invoice History seller would see a list of all invoices available including the invoice periods, amounts due and amounts paid.
  3. To view and print a specific bill summary, click the View link for that invoice.
  4. Seller can review detailed bill summary information or download a PDF by clicking the PDF


What are the Ways to Analyze Performance Metrics?

Sponsored Product Services also provides detailed performance data of the campaigns to understand Return on Investment for each in Campaign Manager in Amazon seller central panel. These reports can be downloaded in spreadsheet format.

The primary performance metrics are the following:

  1. Impressions– Number of times ad is displayed on a page, so a prospective customer can view it.
  2. Clicks: Number of times ad is clicked by Amazon customers when displayed.

Spend:  The amount seller has spent on click for his/her ads

  1. Sales: Total Product Sales revenue generated from clicks on sponsored product ads. Sales equals the total product sales generated within one week of clicks on your ads. This total includes both sales of the advertised SKU and sales of your other SKUs attributed to clicks on your ads.
  2. ACoS: Advertising cost of sales (ACoS) is the percent of sales spent on advertising.

ACoS = Total Spend ÷ Total Sales
Display Ads on Amazon

Display ads enable you to advertise your storefront, your product, or any page on Amazon. These ads are charged on a cost per click basis and can help you reach potentially millions of Amazon shoppers. Display Advertisement program is currently an invite only program. Interested sellers can write to amazon using registered email address.

To know more about display ads, login to your existing seller central account and Go to This covers the following aspects:

  1. Difference between display ads and sponsored ads.
  2. How to run Display Ads
  3. How to pay for display advertisement

Testimonials from Sellers on Successful Sponsored Product Campaigns:

“Two-week campaign for a new cell phone case yielded a 206 percent return on investment. Empire Case was able to achieve this with an Advertising Cost of Sales that was nearly 20 percent lower than its goal.”

“MMP Living states that One of their products jumped from a 70,000 to 20,000 sales rank in Home & Kitchen, and from page 4 to page 1 in natural search results. These improvements helped drive a 2,600 percent return on investment. MMP Living spent just $74 to make $2,000”