When you search for something on Amazon, have you noticed how certain products always show up first? They aren’t there by accident. Those sellers are running Amazon ads, and it’s one of the smartest ways to stand out in a crowded marketplace.
If you’re selling on Amazon, your biggest challenge isn’t just having a fantastic product; it’s getting people actually to see it. Ads give you that visibility. Let’s break it down so you know exactly how Amazon ads work, what they cost, and the best strategies to make them worth every cent.
Why You Can’t Ignore Amazon Ads
Here’s the thing: shoppers go to Amazon with one goal in mind, to buy. Unlike on social media, where people scroll casually, users on Amazon already have purchase intent. That’s powerful.
In Australia, Amazon’s share of online retail sales has been growing quickly. Statista shows its market presence expanding each year. What this really means is more competition for you. If you don’t run ads, chances are your competitors will, and they’ll get the clicks and sales.
How Amazon Ads Work
Amazon ads use a pay-per-click system, known as Amazon PPC advertising. This means you only pay when someone actually clicks on your ad, not just when they see it.
1. The Auction-Style Process
Whenever a shopper searches on Amazon, there’s a split-second auction happening behind the scenes. You and other sellers are competing for the top spots by bidding on keywords.
Here’s how it happens:
- You pick keywords that you think match what shoppers might type when searching for your product.
- You set a bid, which is the highest amount you’re happy to pay if someone clicks your ad.
- Amazon compares all the bids from sellers for each keyword.
- Amazon also checks how well your ad matches the search and how good your product page looks.
If your bid is high and your ad is relevant, your product shows up in the top results or on a product page.
2. Paying Only for Clicks
You never pay just for being seen. The only time you’re charged is when a shopper clicks on your ad. That’s why it’s called pay-per-click (PPC). You can decide how much you want to spend each day, and Amazon won’t go over that limit.
3. Bidding and Ad Placement
What Counts in the Auction?
The placement of your ad depends on:
- Your bid: The higher your bid, the better your chance.
- Ad relevance: Amazon also looks at how closely your ad matches the search, your keywords, your listing, and even your reviews.
Even if you don’t bid the highest, you can still win a good ad spot if your ad is more relevant to what the shopper wants.
Kinds of Bidding
- Manual Bidding: You pick how much to bid for each keyword. More control, but more work.
- Automatic Bidding: Amazon chooses bids and keywords for you. This is great for beginners or if you want to discover new search terms.
Why This Matters for You?
Amazon ads help get your products in front of people who are ready to buy. It can boost your sales, improve your visibility, and help your product move up the search rankings on Amazon.
Types of Amazon Ads
Amazon gives you a few ways to advertise. Each serves a different purpose.
1. Sponsored Products
These promote single product listings. They show up in search results and on product detail pages. If you’re new to ads, sponsored products on Amazon is where you should start because they drive direct sales.
2. Sponsored Brands
These highlight your brand and a set of products together. They usually appear at the top of search results. They’re great for building recognition.
3. Sponsored Display
These appear not just on Amazon but also across partner websites and apps. They’re helpful for retargeting people who looked at your product but didn’t buy.
The Real Cost of Amazon Advertising
The cost of Amazon advertising isn’t fixed. It depends on your product category, keyword competition, and bidding strategy. Some clicks might cost 20 cents, others a few dollars.
Here’s how to keep costs under control:
- Start small. Test a few keywords.
- Watch results closely.
- Increase your budget only on campaigns that bring sales.
Treat ads like an investment, not an expense. You’re paying for exposure that can lead directly to revenue.
Strategies to Maximise Sales and Visibility
Now let’s talk about what actually works. Running ads blindly won’t get you far. You need a plan.
1. Do Smart Keyword Research
Shoppers type very specific things into Amazon. That’s your goldmine. If you sell headphones, “Bluetooth headphones” is too broad. Go deeper: “noise-canceling Bluetooth headphones” or “wireless headphones with mic.” These longer phrases often convert better because they match buyer intent.
2. Optimise Your Listings
Ads bring traffic, but your product page has to do the heavy lifting. Make sure:
- Titles are clear and include strong keywords.
- Photos are crisp, bright, and show details.
- Descriptions answer common questions.
- Reviews are visible and authentic.
If a shopper clicks but doesn’t buy, your ad money goes to waste.
3. Test and Adjust
Think of ads like a science experiment. Run multiple campaigns. Compare results. Kill the weak ones and push more money into the winners. This constant tweaking is how you squeeze out maximum sales.
4. Use Negative Keywords
These stop your ads from showing up for irrelevant searches. For example, if you sell high-end backpacks, you don’t want clicks from someone searching “cheap school bags.” That would drain your budget without sales.
5. Balance Short-Term and Long-Term Goals
Sponsored products get you quick wins. Sponsored brands build recognition. Running both keeps you competitive today and tomorrow.
Amazon Ads vs Google Ads
A common question sellers ask: Should I put money into Amazon ads or Google ads?
Here’s the simple answer:
- Amazon ads hit people who are ready to buy right now. They’re near the finish line.
- Google Ads catch people earlier in the process. They might be researching, comparing, or just browsing.
If you want instant sales, Amazon is usually stronger. If you want to build awareness or drive general traffic, Google can help. Many successful businesses use both.
(You can also read our detailed guide here: Google Ads Australia – Optimising Your ROI in Sydney)
Common Mistakes to Avoid
- Relying on one or two keywords.
- Not checking campaign results often.
- Running ads without fixing poor product listings.
- Overspending too early.
Avoid these, and you’re already ahead of many sellers.
FAQs About Amazon Ads
Are Amazon ads worth it for beginners?
Yes. Even with a small budget, they help you get noticed.
How much should I spend at first?
Start with a small budget, something you’re comfortable testing. Increase only on campaigns that clearly bring in sales.
Can Amazon ads build my brand, or just sales?
Both. Sponsored brands and display ads work well for recognition, while sponsored products push direct sales.
When will I see results?
Often, within days, if your keywords and listings are solid.
What’s one thing sellers overlook?
Negative keywords. They save you from wasting money on irrelevant clicks.
Wrapping Up
Here’s what you should remember: Amazon ads are one of the fastest ways to boost visibility and sales. They put your product in front of people who are ready to buy. But success depends on smart keyword targeting, strong product pages, and regular adjustments.
If you’re serious about growing your sales, don’t treat ads as an afterthought. Treat them as a core part of your Amazon strategy. And if you want extra guidance on managing PPC campaigns, iSonic Media has resources that can help.
For sellers in Sydney and beyond, check out our SEM and PPC services or contact us for tailored advice.
Ads are your chance to be seen. Use them wisely, and you’ll not only win more sales, you’ll build lasting visibility for your brand.
