Running Amazon PPC campaigns is easy. Running profitable Amazon PPC campaigns is not.
Many sellers spend heavily on ads but struggle with high ACoS (Advertising Cost of Sale), low conversions, and shrinking margins. The difference between loss-making ads and scalable profits lies in how well your PPC campaigns are optimized.
This in-depth guide explains how to optimise Amazon PPC campaigns step by step, reduce ACoS, and achieve maximum ROI, whether you’re a new seller or an established brand on Amazon.
Understanding Amazon PPC and ACoS
What Is Amazon PPC?
Amazon PPC (Pay-Per-Click) is an advertising model where sellers pay only when shoppers click on their ads. These ads appear in:
- Search results
- Product detail pages
- Competitor listings
- Retargeting placements
What Is ACoS?
ACoS = (Ad Spend ÷ Ad Revenue) × 100
- Low ACoS = Higher profitability
- High ACoS = Poor targeting, weak listings, or inefficient bids
Your goal is not always the lowest ACoS—but the most profitable balance between ACoS and sales volume.
Why Most Amazon PPC Campaigns Fail
Before optimization, it’s important to understand common mistakes:
❌ Running ads without keyword research
❌ Using only automatic campaigns
❌ No negative keywords
❌ Poor listing conversion rate
❌ Overbidding on non-converting keywords
❌ Ignoring search term reports
Fixing these issues alone can reduce ACoS by 20–40%.
Step 1: Optimise Your Product Listing First (Non-Negotiable)
PPC optimization starts before ads even run.
A poor listing = high ACoS no matter how good your ads are.
Checklist for a PPC-Ready Listing
- Keyword-optimized title
- Clear, benefit-driven bullet points
- High-quality images (including infographics)
- Competitive pricing
- Strong reviews (ideally 4★+)
- A+ Content (for brand-registered sellers)
📌 Rule: Fix conversion issues first, then scale ads.
Step 2: Build the Right PPC Campaign Structure
A clean campaign structure gives you control and clarity.
Recommended Campaign Types
- Automatic Campaigns
- Purpose: Keyword & ASIN discovery
- Use low to medium bids
- Mine converting search terms
- Manual Keyword Campaigns
- Exact match → Low ACoS, high intent
- Phrase match → Moderate scale
- Broad match → Controlled discovery
- Product Targeting Campaigns
- Target competitor ASINs
- Target category placements
📌 Separate campaigns by match type to control bids precisely.
Step 3: Keyword Optimization to Reduce ACoS
Focus on Buyer-Intent Keywords
Not all keywords convert equally.
- ❌ Informational keywords = High spend, low sales
- ✅ Transactional keywords = Lower ACoS, higher ROI
What to Do Weekly
✔ Pause keywords with spend but no sales
✔ Lower bids on high ACoS keywords
✔ Increase bids on profitable keywords
✔ Move converting terms from auto → manual exact
Step 4: Master Negative Keywords (ACoS Killer Tool)
Negative keywords are the fastest way to reduce wasted spend.
Types of Negatives to Add
- Irrelevant search terms
- Competitor brand names (if non-converting)
- Low-intent words (free, cheap, used, how to, etc.)
📉 Sellers who actively manage negatives often see 15–30% ACoS reduction.
Step 5: Bid Optimization Based on Performance
Avoid emotional bidding. Use data.
Bid Adjustment Rules
- High ACoS + low conversions → Decrease bid
- Low ACoS + high sales → Increase bid gradually
- No sales after enough clicks → Pause or reduce
📌 Optimize bids at keyword + placement level (Top of Search vs Product Pages).
Step 6: Placement Optimization for Higher ROI
Amazon allows bid multipliers for placements.
Best Practices
- Increase bids for Top of Search on converting keywords
- Reduce bids for placements with high spend but low sales
- Analyze placement reports weekly
Smart placement optimization can dramatically increase ROAS without increasing budget.
Step 7: Budget Allocation for Maximum ROI
Golden Rule
Don’t spread budget evenly — fund what works.
How to Allocate Budget
- More budget → Low ACoS, high-volume campaigns
- Limited budget → Testing & discovery campaigns
- Pause budget-draining campaigns temporarily
📌 Scaling without reallocating budget is one of the biggest PPC mistakes.
Step 8: Use Search Term Reports Like a Pro
The Search Term Report is your PPC goldmine.
Use It To
- Find converting customer keywords
- Identify wasteful search terms
- Discover competitor ASIN opportunities
- Build long-tail exact match campaigns
📊 Weekly analysis = consistent ACoS reduction.
Step 9: Use PPC Data to Improve Organic Ranking
Optimized PPC does more than drive paid sales.
✔ Higher sales velocity
✔ Better keyword relevance
✔ Improved organic ranking
✔ Reduced dependence on ads over time
This is how profitable brands scale sustainably.
Step 10: Monitor the Right Metrics (Not Just ACoS)
While ACoS is important, don’t ignore:
- TACoS (Total Advertising Cost of Sale)
- Conversion Rate (CVR)
- Click-Through Rate (CTR)
- Cost Per Click (CPC)
- Organic vs Paid Sales ratio
📌 Low ACoS with low sales ≠ success
📌 Balanced ACoS + growing revenue = real ROI
Advanced Amazon PPC Optimization Tips (2026 Ready)
🔥 Segment campaigns by SKU profitability
🔥 Day-parting bid adjustments
🔥 Seasonal keyword scaling
🔥 Product targeting on competitor listings
🔥 Retargeting with Sponsored Display
🔥 Align promotions (coupons/deals) with PPC
Common PPC Optimization Mistakes to Avoid
❌ “Set and forget” campaigns
❌ Chasing lowest ACoS blindly
❌ Scaling without inventory planning
❌ Running ads on weak listings
❌ Ignoring brand defense campaigns
Conclusion: Optimisation Is the Key to Profitable Amazon PPC
Amazon PPC success isn’t about spending more — it’s about spending smarter.
By:
- Structuring campaigns correctly
- Optimizing keywords and bids
- Using negative keywords aggressively
- Monitoring performance consistently
You can reduce ACoS, increase ROI, and scale profitably in 2026 and beyond.
Amazon rewards relevance, efficiency, and performance. When your PPC strategy aligns with these principles, growth becomes predictable—not expensive.
