Amazon PPC Basics and Complete guide for NEW Launches

In today’s world, building wealth and scaling a successful brand on Amazon is no longer just about having a great product. In fact, it requires comprehensive research and strategy and a full marketing and advertising plan of the product aiming for long, sustainable growth of your brand.
If you're not advertising your product on Amazon or not advertising in a proper manner or not leveraging expert Amazon PPC management services, you won’t be able to compete in the market and dominate your niche on Amazon. PPC advertising on Amazon is not as simple as it looks. It is not only about creating ads all of a sudden; in fact, for creating each ad, our experts conduct thorough research of the market and competitors, then overall on the current running campaigns for Amazon PPC optimization that helps you in standing out in this competitive market. As competition on the platform increases, sellers who invest in smart Amazon marketing and data-driven strategies from experienced Amazon PPC agencies are the ones driving exponential growth and will be able to scale their brand and dominate the market on Amazon.

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Amazon PPC advertising is not considered a luxury or optional thing to do; it is actually a necessity for every brand on Amazon. From boosting product discoverability to winning top-of-search placements, Amazon PPC is the engine behind rapid brand growth. As a full-service Amazon marketing agency, Upscale Valley provides high-level Amazon PPC advertising services designed to grow your brand on Amazon. Our expertise is in designing and managing high-performance campaigns that will meet your brand’s unique goals. Whether you're looking to launch, scale, or dominate your niche on Amazon, our expert Amazon PPC specialists and consultants are here to help you win big in 2025.

Discover how strategic Amazon PPC optimization can boost your rankings and revenue — book a free consultation with us today!

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Table Of Content 

• What is Amazon PPC Marketing?
• What are the basic terminologies in Amazon PPC?
• Types of Amazon PPC campaigns
• PPC Strategies for Different Product Stages
• Giveaways vs. Content Creation Strategy
• Content and Demand Creation
• Master Keyword List Utilization
• PPC Campaign Strategy for Launch
• PPC Agencies and Brand Scalability
• Why Use Single Keyword Exact Campaigns?
• Auto, Broad, and Phrase Campaigns
• Other PPC Campaign Types
• External Marketing and Ranking Impact
• Multi-Keyword Campaigns for Video & HSA Ads
• Phase 1: Keyword Ranking
• Phase 2: Research & Scaling
• Phase 3: Profit Optimization
• Phase 4: ASIN Targeting & Advanced Scaling
• Cost Optimization Factors
• Campaign Nomenclature & Its Importance
• Few beneficial Tips to follow
• Final Thoughts 

What is Amazon PPC Marketing?

Amazon PPC (Pay-Per-Click) marketing is a form of paid advertising on Amazon where sellers bid on keywords to display their products in sponsored positions. You only pay when a shopper clicks on your ad that is why it is called pay-per-click. If you’re running ads with proper strategy then your product will appear in high-visibility spots such as on top of search results or on the product detail pages of your competitors depending on which type of ad you are running.

In simple terms, Amazon PPC helps you put your products in front of the right customers at the right time. It plays an important role in increasing product visibility, generating sales, and ranking higher organically on Amazon. Whether you're launching a new product or scaling an existing one, PPC on Amazon is one of the most effective tools for growing your business and staying ahead of the competition.

What are the basic terminologies in Amazon PPC?

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Types of Amazon PPC campaigns

Amazon offers three main types of PPC campaigns, each with its own purpose and benefits. Whether you're working with an Amazon PPC agency or managing your own campaigns, understanding these campaign types is important for building an effective advertising strategy that fits your product, audience, and budget.

1. Sponsored Products

These are the most common and widely used PPC ads on Amazon. Sponsored Products appear in search results and product detail pages and are designed to promote individual product listings. They target specific keywords, ASINs, or shopper behavior.

• Best for: Driving visibility and sales of individual products
• Targeting Options: Automatic or Manual (keyword and product targeting)
• Ideal for: Launching new products or boosting product ranks on amazon

2. Sponsored Brands

These ads help you showcase your brand with a custom headline, logo, and up to three products. They can also appear at the top of search results through HSA ads as well as you can showcase a video of your product which will appear on the top or center of the page and help increase brand awareness.

• Best for: Creating brand awareness and driving traffic to your Store or product portfolio
• Targeting Options: Keyword targeting
• Ideal for: Registered brand owners who want to highlight multiple products or direct shoppers to a custom Amazon Store

3. Sponsored Display

Sponsored Display ads appear both on and off Amazon, allowing you to retarget shoppers who viewed your products or similar products. These ads help you stay top-of-mind even after shoppers leave Amazon.

• Best for: Retargeting, competitor targeting, and upper-funnel brand exposure
• Targeting Options: Product targeting, audience targeting, views remarketing
• Ideal for: Expanding reach beyond search and tapping into shopper behavior data

4. Sponsored TV (Amazon Streaming TV Ads)

Sponsored TV Ads are a newer and premium advertising option that allows brands to run non-skippable video ads on Amazon Freevee, Fire TV apps, Twitch, and other streaming content platforms. These ads target Amazon audiences using rich first-party data, combining the power of TV-style brand storytelling with Amazon’s performance marketing engine.

• Best for: Large-scale brand awareness, storytelling, and upper-funnel campaigns
• Targeting Options: Audience-based (demographics, interests, shopping behavior)
• Ideal for: Established brands with bigger budgets aiming to make a broad impact across Amazon and streaming audiences

PPC Strategies for Different Product Stages

Scenarios of Amazon PPC ads are different for new launches, different for established brands, and different for products or brands that are experiencing a sales drop for a significant time period. PPC Amazon strategy for a launch requires a lot of focus and effort, not just for keyword ranking and campaign expansion, but also for market research, ideal customer persona study, product financial tracking, continuous testing of different elements for listing optimization, SEO practices, launch strategies, etc.

Get a customized PPC audit from one of our Amazon PPC advertising experts — start optimizing today!”

Let’s dive In about the launch stage strategy for PPC

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Giveaways vs. Content Creation Strategy

In the past, many product launches started with giveaways. While some sellers still follow this approach, a more beneficial alternative is content creation. Producing as much content as possible for your product and engaging with 1-2 influencers per week can be a significant asset for your brand. Over time, this strategy increases branded search volume. For example, if you create around 60-80 video content pieces through influencers, at least 10,000-20,000 people may search for your brand. If a video goes viral, the impact could be even greater. Increased branded keyword search volume leads to organic sales, ensuring revenue even in highly competitive niches.

Content and Demand Creation

Nowadays, content and demand creation have become much easier compared to the past. In some niches, such as supplements, fragrances, cosmetics, growth oils, serums, and decor items, content creation is essential to staying ahead of the competition. It is recommended to allocate 15-20% of your budget to influencer marketing or content creation.

Master Keyword List Utilization

Creating a master keywords list for your product that must be well-organized and highly relevant in a very important task to do before setting up the campaigns. A single mistake in e-commerce does not only impact one aspect but can negatively affect multiple areas. Our experts in Amazon PPC management handle significant investments with care because even a small mistake can cost a brand hundreds or thousands of dollars. While uncertainty is a factor, continuously testing new strategies with proper research and planning is essential.

PPC Campaign Strategy for Launch

From your master keyword list, select mid-tail, design-specific, and mid-search volume keywords. Mid-search volume keywords depend on your niche, but if your main keyword has a search volume of 20,000-30,000, then initially select keywords with a search volume of 1,000-6,000/7,000. The number of selected keywords depends on your budget and how strategic your Amazon PPC optimization is during this critical phase.

• Single Keyword Exact Campaign Strategy:
  
  • Run single keyword exact campaigns for each selected keyword is  a strategy used by top Amazon PPC agencies to accurately focus on keyword performance.
  • If you shortlist 10 keywords, create 10 exact campaigns.
  • Avoid auto, broad, or phrase campaigns at the start to prevent algorithm confusion.
  • Exact campaigns should have healthy top-of-search (TOS) placements.
  • Monitor keyword ranking, conversion rates, click-through rates, and order patterns.
  • Allow 2-4 weeks before making significant changes.

PPC Agencies and Brand Scalability

About 80% of agencies rely solely on PPC, running optimized campaigns. However, if a product underperforms, they often label it a failure. A successful brand strategy requires looking beyond PPC. Issues might stem from listing quality, SEO, images, sourcing, or design. Variations may resolve some challenges. Identifying the real issue and testing solutions is crucial, as most problems can be fixed. We always keep in track about the affect and performance off attributes other than PPC to get our desired output

Why Use Single Keyword Exact Campaigns?

When multiple keywords are in one campaign, higher search volume keywords consume the budget first, limiting the exposure of lower search volume keywords. Additionally, multiple keywords in a single campaign make it difficult to analyze keyword performance across placements. Single keyword exact campaigns provide clear insights and maximize budget efficiency.

Auto, Broad, and Phrase Campaigns

• Not recommended at launch to avoid confusing Amazon’s algorithm.
• Video campaigns can be used, as they do not impact keyword ranking but improve brand presence.
• Only keyword targeting campaigns directly influence ranking:
  
  • Exact match have the highest impact.
  • Phrase match have a moderate impact.
  • Broad match have the lowest impact.

Other PPC Campaign Types

• Competitor (ASIN) Targeting
• Category Targeting
• Video Ads
• Sponsored Brand (HSA) Ads

These campaigns do not directly impact keyword ranking but indirectly contribute by generating revenue. Increased revenue boosts keyword rankings through overall listing performance.

External Marketing and Ranking Impact

External traffic sources like Facebook Ads, Instagram Ads, Influencer Marketing, Google Ads, TikTok Ads, and Video Ads contribute indirectly to ranking. They enhance brand awareness and drive external traffic, improving overall sales performance.

Multi-Keyword Campaigns for Video & HSA Ads

• Multiple keywords per campaign can be used for Video and Sponsored Brand (HSA) ads.
• If the goal is purely return on ad spend (ROAS) rather than ranking, multiple keywords can be added to a single exact match campaign are a preferred method in many Amazon PPC agency strategies.

Looking to launch your product with a bulletproof PPC strategy? Our expert Amazon PPC management team is here to help you do it right from day one.”

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Phase 1: Keyword Ranking

• Aim to rank on keywords (number depends on budget potential).
• Target design-specific, mid-tail, mid-search volume keywords initially.
• Use a single keyword per campaign for better control.
• Ensure TOS impression share is around or above 20-25%.
• Set competitive bids to secure top-of-page placements.
• Increase TOS placement percentage to drive traffic.
• High ACOS at the start is fine if keyword ranks are improving.
• If ranks are stuck, analyze which root keywords are performing best.
• If all keywords are stuck, check listing copy for issues.
• Some keywords may negatively impact others—pause them if necessary.
• Monitor pricing, listing copy, and images as potential bottlenecks.
• Avoid Auto/Broad/Phrase campaigns initially.
• Video ads are fine as they don’t negatively impact rankings.
• Test offers, listings, and competitive factors before scaling.
• Secure a top 3 position for mid-tail/design-specific keywords from your master list.

Phase 2: Research & Scaling

• After ranking on keywords, implement "buy and scale."
• Launch Auto, Broad, and Phrase campaigns for research.
• Set up four different Auto campaigns for all four ad groups.
• Run root keyword in Broad/Phrase campaigns, adding exact match as negatives.
• Goal: Discover new search terms for future Exact targeting.
• Classify search terms into:
  
  • Scale Campaigns: Low ACOS terms extracted into Exact campaigns to rank on.
  • Buy Campaigns: Break-even or slightly higher ACOS terms extracted into Exact campaigns for profitability.
• Don’t negate extracted search terms immediately—wait until the Exact campaign gains traction.
• Irrelevant or unprofitable search terms should be negated immediately.
• Avoid keyword duplication across campaigns.
• Keyword Match Types:
  
  • Phrase Match: Ad appears when the search query includes the keyword in exact order.
  • Broad Match: Ad appears for synonyms, related terms, and variations.
• Scale campaigns can have uncapped budgets, whereas Buy campaigns need budget caps.

Phase 3: Profit Optimization

• Maintain ranks while improving profitability.
• Optimize profits through bid, budget, and placement adjustments.
• Pause poorly performing campaigns.
• Reduce budgets for underperforming campaigns and increase for successful ones.
• Adjust bids and placements strategically.

Phase 4: ASIN Targeting & Advanced Scaling

• Set up ASIN Targeting campaigns (competitor product pages).
• Set up ASIN Defense campaigns (your own product pages).
• Use Sponsored Brand Video and HSA Ads with multiple keywords per campaign.
• Optimize ad creatives:
  
  • Custom images should align with targeted keywords for higher conversion.
  • Example: If targeting "stress ball for kids," use an image of a kid playing with it.
• Phase 4 is a pure scaling phase after ranking is established.
• Each phase ideally takes 2-3 weeks, but earlier phases continue in parallel.

Cost Optimization Factors

Key cost optimization areas include:

• Ranking
• Budget Optimization
• Placement Optimization
• Bid Optimization

How Ranking helps in COST Optimization?

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Initially, when we start to target a keyword, the ACOS and conversion rate may be miserable at the start. But with the passage of time, as the ranks of the keyword increase, the organic share of orders also increases, so the overall TACOS of that keyword is now under the target. This is how ranking helps in cost optimization..

What is Budget Optimization?

Budget optimization involves allocating more budget to well-performing campaigns and reducing budgets for poorly performing campaigns.

What is Placement Optimization?

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• Increase placement percentages of good-performing placement positions.
• Decrease placement percentages of poorly performing placement positions.
• Decrement of bids and percentages should be done by considering the current CPC. For example, if the bid is $4 and the CPC is $2.5, and you need to decrease the bid due to poor performance, then you should decrease it by focusing on CPC. For instance, a 10% decrement requires a 45% decrement of the bid.

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What is Bid Optimization?

There can be 6 possible scenarios or Bid Optimization

• We can’t specify or term any conversion rate as a bad conversion, as it totally depends on the market conversion or keyword average conversion rate, which varies from niche to niche.
• If the conversion rate is way lower than the average conversion rate of the account, then we can consider that as a bad conversion rate.
• Poor conversion might be due to irrelevant keyword selection, lack of indexing, absence in content, or improper placements, bids, or budgets.
• In order to counter poor conversion, we need to look into these things, as well as decreasing the bids or placements or pausing the campaign if needed.
• In case the conversion is good, then if the ACOS is at break-even or very near to it, then we can leave it with no change.
• If the ACOS is way higher than the targeted ACOS, then we may need to decrease the bid. Bid decrement can be not more than 10% to 20%. At the same time, if the ACOS is brutally high, then a 20% decrement can be made, and if needed, further decrement can be made after at least 2-3 days.
• If the ACOS is under our target ACOS, then we have room to slightly increase the bids, placements, or budgets and then keep track of the performance.
• In case there is no conversion, but there's a lot of clicks, for example, if the average market conversion rate is 10%, then 7% to 8% is acceptable. For example, we can wait for 15 to 16 clicks for an order, but if the number of clicks is around 25 to 30, then it is an alarming call, and we may need to pause that campaign.
• The same thing can be done in the case of impressions as well. Compare the CTR with the market average CTR, try first with an increment in bids or placements, and figure out whether the keyword is relevant and present in the listing copy. After looking into every possibility, if there are still no results, then pausing the campaign would be a wise decision.

Campaign Nomenclature & Its Importance

Campaign nomenclature refers to the structured naming system for advertising campaigns on Amazon. A well-defined naming convention helps in easy identification, tracking, and performance analysis. It ensures organized management, faster reporting, scalability, consistency, team collaboration, and better optimization.

Example Campaign Naming Structure:

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[ASIN] - [Campaign type (SP/SB/SD) ] - [ Targeting (Keyword/ASIN) ] - [ Match Type (Exact/Broad/Phrase/Broad+) OR (Exact/Expanded) OR (Auto C/Auto L/ Auto S/ Auto Comp) ] - [ Search Volume Range ] 

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Few beneficial Tips to follow

• Test everything that is in your budget. Whichever works, scale it; whichever bleeds, turn it off.
• Design the custom images for your Sponsored Brand Ads in such a way that their intent links with the search term and customer desire.
• First, shortlist those keywords for Sponsored Brand Ads that are already working well in Sponsored Product Ads, then move to the rest.
• In the starting phases, your budget distribution should be around 80-20: 80% for the Exact Ranking Campaigns and 20% for the research campaigns (Auto/Broad/Phrase). Later on, the budget distribution should be 70-20-10: 70% for Exact Keyword Targeting Campaigns, 10% for research campaigns (Auto/Broad/Phrase), and the remaining 20% for Scaling Campaigns (Sponsored Brand & Sponsored Display). Again, this is just a recommendation.
• Use Broad Match Modifier for Sponsored Brand instead of Broad, as using Broad alone will also match irrelevant search terms.
• Product Collection Ads are considered to be better than Store Spotlight Ads for Sponsored Brand.
• One of the most important things to keep in mind: When you run a Sponsored Product ASIN Targeting campaign, your ads are not just appearing on the product detail page of that ASIN but also on the keywords that the targeted ASIN is ranked on. So, do not use higher TOS Placements in ASIN Targeting campaigns, as they may create duplicates for some of your keywords. This is because the keywords you are ranked on are likely the same ones your competitor is also ranked on. Instead, use higher Product Page Placement rather than Top of Search.
• Once you have already cracked the launch and ranking phase, for scalability, try different Sponsored Display Ads.
• Running Retargeting campaigns can be very beneficial if your product is consumable, like supplements, serums, growth oils, makeup products, face or hand washes, etc.

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Final Thoughts

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In today’s hyper-competitive Amazon marketplace, mastering PPC is no longer optional—it’s essential. A well-executed Amazon PPC strategy not only drives immediate visibility and sales but also lays the foundation for long-term organic growth and brand dominance. Whether you're launching a new product or scaling an established brand, understanding each phase of PPC—from keyword research and ranking to bid optimization and advanced scaling—can make the difference between mediocrity and market leadership. By leveraging data-driven insights, continuously testing campaigns, and aligning your advertising efforts with broader brand goals, you position your brand for sustainable success. At Upscale Valley, we don’t just manage ads—we engineer strategies that scale. If you’re ready to take your Amazon growth to the next level in 2025 and beyond, our expert team is here to help you win big.

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Are You Prepared to Launch Your Product with Precision?

At Upscale Valley, we specialize in Amazon PPC strategies tailored to accelerate your product launch and maximize ROI. Whether you're a first-time seller or looking to scale your current campaigns, our team is here to guide you every step of the way.

👉 Book your FREE Amazon PPC audit today and discover hidden opportunities to grow your business.

📩 Contact Us | 📞 Let's Upscale Your Success!

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