Amazon isn’t just the largest ecommerce marketplace. It is one of the largest advertising platforms. The fastest growing brands on Amazon in 2026 will not be brands with the best product or the most attractive price. They will be the brands that know how to leverage Amazon’s advertising systems. Effective use of Amazon’s advertising systems builds a brand and gives it the competitive edge.
It does not matter if your business is large or small. If you are just starting your business or you want to increase the products and services your business offers, using Amazon’s paid online advertising is a strategic move. It will be beneficial to your business.
At Bizistech, we understand how to strategically use Amazon’s advertising systems and other paid online advertising systems to increase your business. The information in this article has helped our clients in numerous businesses.
Quick Answer — How Does Amazon’s Paid Advertising Boost Your Business?
Amazon’s advertising enables your products to be shown to shoppers who are searching for your products. With Amazon’s paid ads, also known as sponsored products, merchants can increase product sales. Amazon’s advertising also consists of sponsored brands and sponsored displays. Sponsored displays can also increase product sales. Similar to Google’s advertising, Amazon can increase your product sales and improve your product ranking. The benefit of Amazon’s advertising is that it can also improve your product sales and rankings organically. Paid advertising on other platforms cannot increase product sales and improve product rankings organically.
Why Amazon Paid Advertising Is Different From Other Digital Advertising
Understanding what makes Amazon advertising distinct from Google Ads, Meta Ads, or other digital channels is the foundation of using it effectively.
Purchase Intent at the Moment of Decision
Users on Amazon aren’t idly surfing or researching. They are shopping. People go on Amazon to buy things. Of all the places you can advertise, Amazon is arguably the most valuable because they have the most purchase intent audience of any website.
Someone researching “best wireless earbuds for running” on Amazon is much further along in the shopping process than if they were researching on social media or Google. Although there are other places to advertise on Amazon, sponsoring products on Amazon allows you to target consumers who are shopping on Amazon and gain business from them.
Amazon’s First-Party Data Advantage
Amazon has purchasing information for hundreds of millions of customers, another advantage when it comes to targeting customers for ads. Amazon can follow up on actual purchases, while other companies can only make assumptions based on consumer behavior.
Other platforms will likely not be able to identify a customer who purchased a product in your category in the last 90 days. However, Amazon can easily do this. Meanwhile, other platforms can only advertise to people who are assumed to be interested in a given product category, such as people interested in fitness.
Amazon knows actual purchase behavior for thousands of products. This advantage enables Amazon to target customers who are not targeted by other platforms.
The Paid-Organic Flywheel That Makes Amazon Unique
What makes Amazon Advertising unique from other paid channels is that with Amazon, your advertisements and your organic listings are linked. With other paid channels, like Google or Meta, your organic and paid listings are completely decoupled.
Because of the relationship between your paid and organic listings on Amazon, your sponsored product ads can improve your product listings’ organic ranking. Because Amazon rewards products with high sales velocity, the positive effect of your sponsored product ads on your product listing’s organic ranking is accelerated.
Because sponsored product ads improve both your product listing’s organic and paid rankings, the positive effects created by your sponsored product campaign are long-lasting and remain even after your campaign is stopped. No other advertisement platform offers a similar structure and compounding benefits like Amazon.
Amazon’s Paid Advertising Ecosystem — A Complete Overview
As of 2026, Amazon offers the following paid advertising methods:
- Sponsored Products: Keyword-based advertisements that appear in search results and product listings. All sellers can use this method.
- Sponsored Brands: Brand logo and custom copy advertisements that appear in search results and feature multiple products. Requires Brand Registry.
- Sponsored Display: Product and audience based advertisements, which can be displayed on and off Amazon. Product and Audience targeting require Brand Registry.
- Amazon DSP: Amazon’s programmatic advertisement exchange. Requires large upfront financial commitment.
- Amazon Attribution: Allows advertisers to gauge the influence of off-Amazon advertisements on Amazon product purchase.
In addition to their strategic differences, the methods above also differ in the shoppers’ position in the purchase funnel. Finally, management of some methods require more experience and capital than others.
Sponsored Products — The Foundation of Every Amazon Advertising Strategy
Sponsored Products are the most fundamental and most widely used Amazon ad type. If you are advertising on Amazon, you are almost certainly running Sponsored Products — and if you are not, this is where you start.
How Sponsored Products Work
Sponsored Products are ads that show up in search results and on product listing pages (PLPs) within Amazon. You can use these ads to reach shoppers based on keywords. You only pay when your ad is clicked. Like all Amazon advertising products, Sponsored Products are charged on a pay-per-click basis.
Sponsored Product ads are very attractive to shoppers because they are displayed similar to organic listings. Shoppers are comfortable engaging with Sponsored Product ads. Because of this, click through rates with Sponsored Product ads are usually higher compared to other off-site advertisements. With Sponsored Products, you pay only when your ad is clicked.
Automatic vs Manual Targeting for Sponsored Products
Campaigns for Sponsored Products can be built with either automatic or manual targeting. Knowing the pros and cons of each is essential for building the best campaigns.
Campaigns built with automatic targeting allow the campaign to be built quickly and allow Amazon to place the ads with searches that are relevant to the product listing. One of the benefits of automatic campaigns is discovering new keywords. Often times, Amazon will see relevancy to a product listing with a search query that may not occur to a human.
With manual targeting, the marketer is in complete control over the product or keywords that the ad is placed with. Like automatic campaigns, keywords have to be researched and determined to place ads with. Additionally, an ad with manual targeting can be placed using a broad, phrase, or exact match. Manual campaigns provide the most control, and as such, a lot of campaign optimization occurs with these campaigns.
An ideal sponsored product campaign utilizes both forms of campaigns. Automatic campaigns, with the Discovery section turned on, can find new keywords. With manual campaigns, control over the keywords and bids can be utilized with the known, high performing keywords.
Keyword Strategy for Sponsored Products
There are three match types for Sponsored Products keywords:
Exact Match: Your advertisement will appear to shoppers when the shopper’s search query equals your keyword. This generates the most relevant results, but the fewest.
Phrase Match: Your advertisement will be shown to shoppers when the search query includes your keyword phrase in order, and other words may be present before or after the phrase. This produces better relevant results.
Broad Match: Any search query that includes your keyword, in any order, and may include other words, may generate your advertisement. This creates the best potential results, but may be irrelevant.
Negative keywords will be necessary to prevent advertisement relevancy and potential waste.
A complete keyword strategy uses all three match types — exact for your best-performing, high-intent terms where you want maximum control; phrase for core terms where some variation is acceptable; and broad for discovery and expansion.
Bidding and Budget for Sponsored Products
Amazon Sponsored Products work using an auction system. You set a maximum Cost-per-Click (CPC) bid for each keyword. Your actual CPC is determined by Amazon based on the competition. Lower bids increase the chance of losing an auction and negatively affect placement.
In 2026, Amazon allows advertisers to implement bidding strategies where Amazon can control bids based on conversion likelihood. With other bid strategies, bids can be restricted to a minimum and maximum limit. You should adjust and monitor bid strategies to ensure your cost-capital doesn’t unmanageably increase.
Sponsored Brands — Building Brand Visibility at the Top of Search
Sponsored Brands represent a qualitative step up from Sponsored Products — not a replacement for them but an important addition that adds brand-level visibility alongside product-level advertising.
Who Can Use Sponsored Brands?
Sponsored Brands require Amazon Brand Registry enrollment, which requires an active registered trademark. This is one of the most important practical reasons to prioritize trademark registration and Brand Registry enrollment — not just for the protection benefits, but for the advertising capabilities it unlocks.
Sponsored Brands Ad Formats in 2026
Across Amazon’s search results, various formats of Sponsored Brands are available.
Product collection ads – Consist of your brand logo and a custom title to display alongside three of your products. These ads are placed at the very top of the search result page and give your brand an opportunity to display your products above all other ads and organic listings.
Store spotlight ads – Link to specific pages of your Amazon Brand store. Like product collection ads, store spotlight ads feature your brand logo and custom title and are also placed at the top of the search result page.
Video ads – Search result ads in which your brand displays a short product demonstration video. Product videos have been shown to increase product purchase intent and click through rate compared to traditional product ads.
How to Use Sponsored Brands Strategically
Placement of Sponsored Brands differs from Sponsored Products. Whereas Sponsored Products focus on shoppers searching for your product, Sponsored Brands focus on shoppers searching for a product category, therefore building your brand and product awareness.
Sponsored Brands permit you to build visibility for your brand using the highest volume product category searches even if your products don’t show up for less relevant product searches. Multiple placements of your brand in a product category search build visibility for your brand, and increase the likelihood that shoppers will click on your brand’s products in the organic listings.
So, while your brand may not be showcased for individual product searches, using Sponsored Brands allows you to build visibility for your brand using the most relevant product category searches. Relevant product category searches tend to include less precise product searches.
Sponsored Display — Reaching Shoppers Beyond the Search Results Page
Sponsored Display extends your Amazon advertising reach beyond search results to product detail pages across Amazon, and in some configurations to third-party websites and apps.
How Sponsored Display Targeting Works
Sponsored Display has two main methods of product targeting:
Audience targeting:
This method focuses on shoppers who have demonstrated interest in products similar to your own, or shoppers who have purchased products within the same category as yours. You can also target shoppers who have viewed your product pages. Audience targeting allows you to reach shoppers who have product interest similar to your own.
Product targeting:
This method allows you to place your display ads on product detail pages of your competitors’ products. For example, a seller of camera accessories can place his/her ads on product detail pages of various popular cameras.
Product targeting also allows you to place your display ads on product detail pages of related products.
Retargeting With Sponsored Display
Retargeting is Amazon’s way of allowing advertisers to reach shoppers who have already viewed their product pages. These shoppers, of course, are more likely to purchase the product than shoppers who have never viewed the page. Retargeting uses Sponsored Display ads to reach shoppers. These ads can be viewed on Amazon and other sites. Thus, an Amazon ad can be viewed on other sites. Often, Sponsored Display ads are successful in converiting shoppers’ consideration to purchase.
Product Targeting With Sponsored Display
Targeting competitor product pages with Sponsored Display can capture purchase intent at the decision point — a shopper viewing a competitor’s product sees your product as an alternative at the exact moment they are evaluating options.
Amazon DSP — Programmatic Advertising at Scale
Amazon DSP is Amazon’s Demand Side Platform, which is the most advanced and most costly option of Amazon’s advertising platform.
What is Amazon DSP?
Amazon DSP provides brands with the opportunity to advertise on Amazon’s platforms, including its main webpage and product listing pages, with programmatic display and video ads.
Because Amazon owns IMDb and other associated platforms, brands can also place display and video ads with Amazon DSP on those properties as well.
Fire TV has advertisements powered by Amazon’s first-party data.
Advertisements displayed through Fire TV are managed by Amazon’s Demand-Side Platform (DSP). Amazon’s DSP allows advertisers to create campaigns based on cost per thousand impressions (CPM).
Ads through Fire TV are not managed by the advertisers like Amazon’s Sponsored Ads. Amazon’s Sponsored Ads are managed by the advertisers and are cost per click (CPC).
Who Should Consider Amazon DSP?
Amazon DSP works for brands who:
Have a large advertising budget. The minimum commitment nature of DSP rules out most small advertisers.
Have a presence on Amazon. Brands should optimize and establish their organic and Sponsored listings on Amazon, and then use DSP for upper funnel prospects and to increase their presence.
Have upper funnel goals. Audience targeting and brand advertising are benefits unique to DSP. If your goal is to raise brand awareness among your target audience, DSP can be an effective channel.
How Amazon DSP Differs From Sponsored Ads
Sponsored Ads and DSP both create ads based on Amazon data, but Sponsored Ads optimize for different metrics and appear in different places. Sponsored Ads show consumers who are already on Amazon, and therefore, have purchase intent. DSP, on the other hand, can reach audiences who are further up in the purchase funnel by using Amazon data to show ads on other websites and apps. While DSP and Sponsored Ads can be used together, DSP can’t replace Sponsored Ads.
Amazon Attribution — Connecting External Traffic to Amazon Sales
Amazon Attribution is one of the most underutilized tools in the Amazon advertising ecosystem — valuable for any brand that drives traffic to Amazon from external channels.
What Is Amazon Attribution?
Use Amazon Attribution to create trackable links to use in your external advertisements. Measure how your marketing efforts impact your product page and item sales on Amazon.
Your marketing efforts may drive customers to your Amazon product page. However, without Attribution, you will not be able to identify which of those customers made a purchase. With Attribution, you will be able to identify how marketing efforts impact your Amazon product sales and help optimize your marketing effort expenditure.
How to Use Amazon Attribution to Measure External Traffic Impact
Track external sales through Attribution tags. Each time a potential customer clicks through to your product listing from an external source (social media, search engines, email, influencer partnerships, etc.) create an attribution tag specific to that channel.
This data can be very beneficial for Amazon ranking strategies. Since Amazon gives ranking credit for sales from external channels, this type of strategy can be considered a legitimate Amazon growth strategy. Additionally, external channel data can show post-purchase sales from customers who returned to make a purchase after being exposed to your brand through an external channel.
How Amazon Advertising Boosts Your Organic Ranking
The way paid advertising and organic rank impact one another on Amazon is probably the most important aspect of Amazon marketing that is different from other marketing and advertising platforms.
There are two important features unique to Amazon that have significant implications for advertising.
Sales Velocity and the Ranking Algorithm
Sales velocity is an important component of Amazon’s ranking algorithms, A9 and A10. The fundamental idea behind Amazon’s ranking algorithms is to display products that result in sales to other shoppers. It follows then that products that are listed higher in Amazon’s organic results are products that sell the most and that Amazon expects result in more purchases.
Because of the relationship between sales velocity and organic ranking, investment in product advertisement through the Sponsored Product program results in an improved product listing that results in sales without the need for product advertisement.
The PPC to Organic Transition Strategy
This reveals a potential strategy for new products. While the return on ad spend may not warrant advertising costs for new products, spending money on pay-per-click (PPC) advertising during a product launch would be beneficial, as it builds organic rankings for product search queries.
This strategy involves three steps. First, in order to artificially gain organic rankings, new products need to significantly bid on product search queries during the product launch. Second, due to the cost of the first step, the average cost of sales (ACoS) may increase, but this cost should be viewed strategically. Finally, after rankings improve, advertising costs should be removed for product queries where the product rankings are adequate, and the costs should be allocated to product queries where adequate rankings are not achieved. The focus should be on managing the total cost of advertising in relation to sales (TACoS), and as the goal of this strategy is to use advertising to gain organic rankings, TACoS should reduce as sales are mainly achieved due to organic rankings.
Building a Complete Amazon Advertising Strategy
The most effective Amazon advertising programs are not collections of independent campaigns but coordinated strategies where each ad type serves a specific role in the overall system.
Starting With Sponsored Products
All Amazon advertising strategies should include Amazon’s Sponsored Product ads. Automatic, keyword discovery, campaigns allow Amazon advertisers to identify the keywords their customers use to find their products. With this information, advertisers can create campaign groups, or sub-campaigns, by theme or product type. Lastly, advertisers should determine their target ACoS and analyze conversion data to assess which keywords drive the most product sales.
Determining this information can take between two and four weeks. It is important that advertisers not take any rash actions during this learning period because campaign data should be analyzed relative to a control to accurately assess if actions were effective.
Adding Sponsored Brands After Launch
Once your Sponsored Products campaigns are running smoothly, and your Brand Registry application is complete and submitted, start using Sponsored Brands to advertise in search terms that are most relevant to your product categories and have the highest search volume. Product collection Sponsored Brands ads allow you to feature up to three products. Once you have your ads up, create a video ad to feature your hero product.
Evaluate Sponsored Brands campaigns to find new-to-brand customers, track your product category brand representation, and improve branded search terms, in addition to the standard click through and conversion metrics.
Expanding to Sponsored Display and Retargeting
After launching Sponsored Products and Sponsored Brands, you can use Sponsored Display to target shoppers that have viewed your product pages and didn’t make a purchase. Start with a low campaign spend to test the effectiveness of the campaign. Compared to audiences that are searching for your products, the conversion rate of shoppers that are retargeted is usually much higher.
In addition, run product targeting campaigns of competing and complementary products using Sponsored Display. Monitor placement performance for these campaigns.
The Full-Funnel Amazon Advertising Approach
A sophisticated Amazon advertising program utilizes all three types of sponsored ads, and provides brand awareness, captures consumer searches, and retargets users. Additionally, it utilizes sponsored displays for conquesting and other advertising strategies. Through this program, brands are able to interact with consumers at several different phases of the purchasing process.
Brands that have additional marketing funds are able to increase their consumer reach through Amazon’s Display Advertising Platform (Amazon DSP). Additionally, Amazon Attribution provides brands the ability to analyze the effect their marketing strategies have outside of Amazon through the use of third-party trackers.
How Much Should You Spend on Amazon Advertising?
Budget is the question every seller asks — and the honest answer is that it depends on your margins, your category’s competitiveness, and your growth stage.
Budget as a Percentage of Revenue
A typical first step is to set an advertising budget for products in the launch phase at 10-15% of revenue. Budgets for products with organic rankings are set at 7-12% of revenue for mature products. For both cases, these are starting points and are adjusted according to the nuances of the category and the margin of the products.
In order to determine if your advertising investment is productive, you must look at your TACoS (Total Advertising Cost of Sale) as opposed to ACoS (Advertising Cost of Sale). This is because you have to consider the amount you’re spending beyond advertising to sell your product (i.e. cost of goods sold, pick/pack/ship, fulfillment, etc.).
Launch Phase vs Mature Phase Budgeting
High ACoS during product launches is because your product ranking is low and product sales are primarily from sponsored product listings. A high ACoS during a product launch is acceptable because spending money to build the ranking will decrease reliance on sponsored listings in the long-term.
Although ACoS on individual campaigns does not change, in cases where product organic rankings are good, the total advertising cost will be less with respect to total revenue (i.e. more revenue from organic sales, less advertising costs) because the sponsored campaigns will be to promote and reinforce the rankings rather than achieve and build them.
Understanding TACoS and Why It Matters More Than ACoS
ACoS measures advertising cost relative to advertising-attributed sales only. TACoS measures advertising cost relative to total sales — both paid and organic.
TACoS = Total Ad Spend / Total Revenue × 100
A business with an ad spend of $10,000 monthly, advertising-attributed sales of $30,000 (ACOS of 33%), total monthly sales of $70,000 (with $40,000 of the sales being from other sales channels), has a TACoS of 10%. The business may be able to comfortably afford the 33% ACOS.
Improving your organic rankings on Amazon and other sales channels means that your dependence on paid advertising channels declines and total revenues increase. TACoS is a measure of how much your total advertising costs affect your total sales. Declining TACoS indicates that your advertising dollars are working.
Key Metrics for Measuring Amazon Advertising Success
Calculation of ACoS and ROAS
ACoS = Advertising spend/ Advertising attributable sales * 100
If your break-even ACoS is x%, your gross profit margin is x%. Therefore, if your ACoS is less than your gross profit margin, then you are making an advertising profit. If your ACoS is greater than your gross profit margin, you are losing money on that sale.
ROAS is the same as gross profit margin but expressed as advertising revenue to advertising expense. You want your advertising to have a positive return, therefore your ROAS should be greater than 1.
TACoS
As stated above, TACoS is the most relevant of the three to measure return from advertising. It is important to track TACoS monthly and check for long-term downward trends.
Impression Share and Click-Through Rate
Impression share measures the percentage of available auctions that your ad does not win. Low impression share for your better-performing keywords indicates your bids are too low and you are not competing for optimal positions. Click through rate (CTR) is your ad’s interaction rate and measures the percentage of times your ad is shown and clicked. Low CTR typically means your ad is not relevant to the keyword that is causing your ad to be shown.
Common Amazon Advertising Mistakes That Waste Budget
Running campaigns without sufficient negative keywords
Every irrelevant search term that triggers your ad is a wasted click. Reviewing your search term reports weekly and adding irrelevant queries as negative keywords is one of the fastest ways to improve campaign efficiency.
Using only automatic campaigns.
Keywords are identified and added to automatic campaigns by the hundreds or thousands. As orders rise, budgets are quickly depleted by automatic campaigns that allocate funds to irrelevant, less-profitable searches. Manual campaigns with terms identified by automatic campaigns must be created to ensure effective and profitable scale.
Setting budgets once and never revisiting them.
Adjust your budgets according to ROAS. Increase what’s working and decreases or pause what’s not working. Keep in mind, campaigns that have a stagnant budget, usually end up wasting spend.
Measuring only ACoS and ignoring organic impact.
Using ACoS to assess advertising returns gives an incomplete picture because paid sales may improve a product’s organic ranking. To calculate advertising returns, you need to consider TACoS.
Scaling spend before optimizing conversion rate.
More traffic means more chances for a customer to purchase your product. As the traffic to your listing increases, conversion becomes more important. To increase your conversion rate, improve your images, copy, and reviews. If conversion is your problem, any further increase in traffic will raise your costs.
Not using Sponsored Brands after Brand Registry enrollment.
Many Brand Registry-enrolled sellers continue running only Sponsored Products, leaving the premium search placement and brand awareness benefits of Sponsored Brands unused.
Expert Tips for Getting the Most From Amazon Paid Advertising
Start with automatic campaigns and mine them for manual campaign keywords.
Your customers’ actual search language — revealed in your auto campaign search term reports — is the most valuable keyword research available. Build your manual campaigns around what is actually converting.
Test Sponsored Brands video for your hero product.
In general, video ads outperform image ads in terms of click-through rates. Well-made product videos of 60 seconds or less can raise the overall performance of your campaign.
Use dayparting to concentrate budget in high-converting time windows.
Understand the performance of your campaigns by the hour and by the day. Identify conversion trends for your products and determine when the “sweet spots” are throughout the day. By understanding bid dynamics you will be able to optimize your bids to achieve a better return for your advertising dollar.
Monitor organic ranking for your target keywords alongside advertising metrics.
The most convincing indicator that your advertising spend is profitable is improvement in organic rankings for your core keywords. You can track keyword positions with services like Helium 10 and/or similar services and determine position changes with your advertising changes.
Work with an experienced Amazon PPC agency if managing multiple campaigns becomes overwhelming.
The Amazon advertising platform is complex and requires continual optimization. At Bizistech, Amazon advertising is all that we do. We understand the platform and have the expertise to manage your Amazon advertising campaigns. Over time, you won’t be able to compare self-managed campaigns to campaigns run by Bizistech.
Frequently Asked Questions About Amazon Paid Advertising
What types of paid advertising does Amazon offer?
Amazon has several types of advertising. Sponsored Products are keyword-targeted ads that appear in search results and are available to all sellers. Sponsored Brands are headline ads and require brand registry. Sponsored Display ads are audience and product targeting display ads. Amazon DSP is programmatic display and video ads on Amazon and other partner sites. Amazon Attribution is a tool that allows sponsors to understand the impact of off-Amazon advertising on their Amazon product sales.
How do Sponsored Products work on Amazon?
Amazon’s Cost-per-click (CPC) advertising, also known as Sponsored Products, places your ads in Amazon search results and product listing pages. You pay nothing to Amazon unless your ad is clicked. With Sponsored Product campaigns, you have the option to define your own keywords to help refine who sees your ads (known as “manual targeting”), or you can choose to have Amazon suggest potential keywords to help you refine your ads (known as “automatic targeting”).
What is the difference between Sponsored Products and Sponsored Brands?
Sponsored Products are product-level ads that appear in search results. Sponsored Brands are ads that appear at the top of search results to advertise your brand, and also feature multiple products and a customizable title. Sponsored Products do not require Brand Registry, but Sponsored Brands do.
How much does Amazon advertising cost?
You’ll find the most variation in Amazon advertising costs by category, competition and season. There is no minimum spend for Sponsored Products. You can set your own advertising budget. For categories with less competition, expect to see clicks costing less than $0.50. For categories with a lot of competition, be prepared for costs over $5.00 per click. For new products expect to spend between 10-15% of your product revenue for advertising. Once a product has a good organic ranking, expect to spend between 7-12% of product revenue for advertising.
What is a good ACoS for Amazon advertising?
ACos is determined by your product’s margin. ACos should be at or below the gross margin percentage for your product to make money from advertising. Let’s say your product has a gross margin of 35%, then your break-even ACos would be 35%. Ideally, your target ACos should be a good deal lower than your break-even ACos. During the launch of a new product, it is often better to have an ACos that is at or above the break-even ACos since the sales generated by advertising increase the products’ exposure and rank which leads to long term benefits.
Do I need Brand Registry to advertise on Amazon?
No, all sellers, regardless of Brand Registry status, can use Sponsored Products. Sponsored Brands and most Sponsored Display features require Brand Registry. Completing Brand Registry also requires the seller to have a valid, registered trademark. In order to utilize Amazon’s complete advertisement suite, sellers may have to register their trademark and complete Brand Registry.
How does Amazon paid advertising affect organic ranking?
Amazon’s Sponsored Products, or advertising, programs help generate what Amazon calls sales velocity. Sales velocity is the volume of sales that helps to determine a product’s organic ranking. With additional sales from an advertising campaign, the product is listed lower in the organic ranking, potentially increasing sales. Over time, the compounding effect of strategic Amazon advertising helps products increase their organic ranking and gain a competitive advantage.
What is Amazon Attribution and how does it work?
Amazon Attribution is a tool that generates trackable links for external promotion to evaluate the influence of external referrals (e.g. Google, email, social media, and other partners) on customer purchases and page views on Amazon. This tool is available at no extra charge to Amazon sellers. To better analyze your promotional campaigns, you can create and assign different Attribution links to each of your external campaigns. Amazon Attribution will also provide reports that you cannot access in your Amazon Seller Central account.
How do I get started with Amazon advertising?
Visit Campaign Manager in your Amazon Seller Central account and set up your first automatic Sponsored Products campaign. With automatic targeting, Campaigns help you discover relevant keywords for your product. Define a daily spending limit for this campaign to set a budget for the duration of this campaign. Run this campaign for 2 to 4 weeks. After the campaign is over, review the search term report and see which terms produced sales. Add these terms in a new manual campaign and set bids for those terms based on the report. Don’t set up multiple types of campaigns until you completely understand your business performance.
What is Amazon DSP and who should use it?
Amazon DSP is Amazon’s programmatic advertising platform that lets companies spend on display and video ads on Amazon and off Amazon. Brands can use the data Amazon has on its shoppers to create lookalike audiences. DSP is ideal for large brands looking to spend large sums of money on programs outside of Amazon to build brand awareness and utilize Amazon’s data to create lookalike audiences. For smaller and medium sized businesses on Amazon, Sponsored Products and Sponsored Brands are better options to spend their marketing dollars before considering Amazon DSP.
Final Takeaway — Start Smart, Scale What Works
The Amazon advertising platform enables all kinds of businesses to accelerate their growth and increase the value of their business. It takes strategy to successfully implement Amazon’s advertising systems. That includes creating a solid foundation, focusing on the right metrics, expanding the elements of the advertising system that produce the best results, and continuously improving the system.
What makes Amazon’s advertising system unique is that it creates a flying wheel effect where the advertising and the organic listing rank contribute to the overall revenue of the product. Over time, the advertising costs are offset by the revenue generated by the organic rankings. Because of this, Amazon’s advertising system is one of the best ways for an ecommerce business to gain new customers and grow the business.
At Bizistech, we use the same strategies to manage our clients’ Amazon advertising as we do to build their business’s organic (non-paid) performance. If you are just getting started or looking to build your business and amplify your offerings, we can create, build, and implement the strategies required to help you achieve that. We pride ourselves on consistent implementation of various strategies to help our clients realize their business goals.
Want to try Amazon’s paid advertising? Bizistech offers free advertising audits and shows you how your Amazon advertising will look at the end of 2026.
