Amazon Ads Breakdown: Purpose of Each Campaign Type

Introduction

Selling on Amazon is like entering into the vast world of eCommerce, where everyone is competing for attention. That’s where Amazon ads come in. Understanding the types of Amazon ads is important to put your products right in front of your target audience. In this guide, we’ll break down Amazon’s ad types in a way that’s as easy to follow as a halftime show.

What is Amazon Advertising?

Think of Amazon Advertising as your own personal billboard on the busiest shopping highway in America. With more than 50% of shoppers heading to Amazon to find a new product, it’s no surprise that companies are increasing their budgets for advertising on Amazon. Whether you're launching a brand-new product or trying to turn an old favorite into a bestseller, Amazon ads can give you the boost you need. Even if your items aren’t appearing in organic searches, you can still make sure people find your listings by strategically using ads.

Why Amazon Ads Matter for Sellers

There are 150 million Amazon Prime users, and more than 112 million are Americans. So, for any eCommerce business, Amazon advertising is a no-brainer! If you’re not using Amazon ads, you might as well be trying to sell lemonade in the middle of winter in Minnesota—people just aren’t going to find you.

Amazon ads help sellers:

• Boost product visibility faster than a viral TikTok trend

• Drive conversions like a Black Friday sale at Best Buy

• Stand out in a sea of competitors

• Improve organic ranking, just like how a chart-topping song gets more radio play

• Ensure that your products appear in front of interested shoppers, even if they aren’t ranking high organically
  

Types of Amazon Campaigns

Amazon’s advertising game has different plays, just like an NFL team running different formations. The main types include:

• Sponsored Products

• Sponsored Brands

• Sponsored Display

• Amazon DSP (Demand-Side Platform)

Sponsored Products: Purpose & Benefits

Sponsored Products ads are like the headliner at Coachella—they get all the attention. These cost-per-click (CPC) ads promote individual product listings and show up right where customers are already searching.

Why Sponsored Products Matter:

• Give new products the kind of boost that a Grammy win gives an artist’s album sales

• Drive traffic directly to product pages, like a Hollywood blockbuster’s trailer leading to sold-out showings

• Increase sales momentum—because, just like a hot new sneaker drop, once people start buying, more will follow

If you’re launching something new, Sponsored Products ads can help increase sales momentum right out of the gate.

Sponsored Brands: Why & When to Use

If you want to be more than just a one-hit wonder, Sponsored Brands ads help build brand recognition. These banner-style ads, which appear on the top, left, and below the search results page, are like the prime-time commercial slot during the Super Bowl—they put your brand front and center.

Use Sponsored Brands Ads To:

• Get shoppers familiar with your brand, like how every household knows Coca-Cola

• Send traffic to your Amazon storefront for a more immersive brand experience

• Highlight seasonal deals, new arrivals, or limited-time offers, just like an exclusive sneaker drop

Sponsored Display: How It Works

Unlike other types of Amazon ads, Sponsored Display is all about retargeting—it follows shoppers around like their favorite Netflix recommendations. These ads pop up across Amazon, third-party websites, and apps.

Why Sponsored Display Ads Are Effective:

• Remind shoppers about products they checked out but didn’t buy (kind of like when you leave something in your cart at Target, and the ad follows you everywhere)

• Target people based on their interests and past browsing behavior—like an algorithm that knows you better than your best friend

• Keep your product visible across the web, ensuring you stay top-of-mind like a catchy Taylor Swift song

Amazon DSP (Demand-Side Platform)

Amazon DSP is for the big leagues—it’s like getting a prime-time commercial slot during the NBA Finals. This programmatic advertising platform lets brands buy display and video ads both on and off Amazon to reach a wider audience.

Amazon PPC: How It Works

Amazon’s Pay-Per-Click (PPC) system is like running an online auction for ad space. Sellers bid on keywords, and the highest bidder gets the best placement. You only pay when someone clicks—kind of like only paying for a concert ticket when your favorite band actually shows up.

Automatic vs. Manual Targeting

Amazon PPC offers two main targeting methods:

• Automatic Targeting – Amazon does the work for you, like Spotify’s Discover Weekly curating your playlist

• Manual Targeting – You choose the keywords, giving you full control, just like setting up your fantasy football draft picks

How to Optimize Amazon Ad Campaigns

Winning Amazon ads isn’t luck—it’s strategy. To get the best results:

• Analyze your ad performance regularly

• Adjust bids based on performance to avoid any wasteful spending

• Do A/B testing on ad creatives and targeting to check which option works best for you

Negative Keywords: Why They Matter

Negative keywords ensure that the wrong crowd always remains excluded. By filtering out irrelevant searches, you save money and improve your ad efficiency.

Bidding Strategies for Maximum ROI

Want to get the best bang for your buck? Try these strategies:

• Dynamic Bidding (Up & Down) – Amazon raises or lowers bids based on conversion likelihood, just like ticket prices fluctuate based on demand

• Fixed Bids – Keeps bids steady, like a reliable Tesla autopilot setting

• Rule-Based Bidding – AI tools adjust bids automatically, like an advanced stock trading algorithm

Campaign Budgeting & Cost Control

Set a budget, just like you would for a Vegas trip—you don’t want to overspend but still want a good time. Daily and lifetime budgets help keep spending in check.

Tracking & Measuring Campaign Performance

Use Amazon’s analytics tools to track:

• Click-through rates (CTR)

• Conversion rates

• Advertising Cost of Sales (ACoS)

How Amazon Ads Influence Organic Ranking

More sales from ads can boost organic ranking—just like how an artist with a #1 hit gets more radio play. The more people buy, the better your product ranks.

Common Amazon Ad Mistakes & How to Avoid Them

Mistakes to Avoid:

• Bidding too high without tracking ROI

• Ignoring negative keywords

• Not optimizing product listings

Best Practices for High-Performing Amazon Ads

For a winning campaign:

• Use high-quality product images, like a well-designed movie poster

• Write compelling ad copy—think of it like a viral tweet that gets shared everywhere

• Test, tweak, and optimize, just like your March Madness bracket

Conclusion

Advertising on Amazon is a powerful way to make your products stand out in a competitive market. With the right strategy, you can make the most of Amazon ad types and build your brand into a household name.