Remember when Amazon ads were just those little “Sponsored” text links that showed up in search results? Yeah, those days are long gone. Today’s Amazon advertising landscape is like a sprawling metropolis of ad formats, each with its own quirks, strengths, and occasional frustrating limitations.

I’ve spent years helping brands navigate this space, and let me tell you – it’s both more complex and more powerful than most sellers realize. The platform has evolved from a simple “pay-to-play” system into a sophisticated marketing ecosystem that can either drain your budget or dramatically scale your business.
Here’s the thing though: most sellers I talk to are still using Amazon ads like it’s 2015. They’re running basic Sponsored Products campaigns and calling it a day. That’s like having a smartphone and only using it to make calls. You’re missing out on so much potential.
The Evolution of Amazon’s Advertising Empire

Back in 2012, Amazon’s advertising platform was basically a digital version of those “As Seen On TV” commercials – simple, straightforward, but limited. Fast forward to 2024, and we’re looking at a complex ecosystem that rivals Google and Facebook in sophistication (and sometimes frustration).
The numbers tell the story: Amazon’s ad revenue hit $37.7 billion in 2022, making it the third-largest digital advertising platform globally. But here’s what really matters – the average return on ad spend (ROAS) for Amazon advertisers is around 3.5x, significantly higher than most other platforms.
Why? Because Amazon’s got what other platforms don’t: buyers with immediate purchase intent. When someone’s on Amazon, they’re usually there to buy something, not just scroll through cat videos or argue about politics.
Advanced Targeting: Beyond the Basics
Here’s where the magic happens. Amazon’s targeting capabilities have evolved far beyond simple keyword matching. You’ve got options like:
- Dynamic bidding strategies that automatically adjust based on conversion likelihood
- Product targeting that lets you show up on specific competitor pages
- Category targeting for broader reach
- Lifestyle targeting based on shopping behavior
The key is understanding how these different targeting options work together. It’s like conducting an orchestra – each instrument has its role, but the magic happens when they all play in harmony. If you’re looking to become an Amazon influencer, mastering these ad types can help you monetize your content more effectively.
Broad Match: Friend or Foe?
Let’s talk about broad match keywords for a minute. They’re often misunderstood and misused. Think of broad match like casting a wide net – you’ll catch more fish, but you’ll also catch a lot of seaweed. The trick is using them strategically, especially in research campaigns.
I’ve seen too many sellers blow their budgets on poorly managed broad match campaigns. But when used correctly – usually as part of a broader keyword strategy that includes phrase and exact match – they can be incredibly powerful for discovering new opportunities.
Campaign Structure: Building for Success

Your campaign structure is like your business’s foundation. Get it wrong, and everything built on top will be unstable. Get it right, and you’ve got a platform for sustainable growth. Here’s what works in 2024:
- Research campaigns using automatic targeting to discover keywords
- Proven winner campaigns for your best-performing products
- Defensive campaigns to protect your brand terms
- Expansion campaigns to test new markets and categories
The key is segmentation. You wouldn’t put all your investments in one stock, so why would you put all your ad spend in one campaign? Diversification isn’t just for your financial portfolio – it’s crucial for your advertising strategy too.
The Core Amazon Ad Types You Need to Know
Let’s cut through the noise here. If you’re selling on Amazon in 2024, you’re essentially walking into the world’s biggest shopping mall where every store is competing for attention. And just like in that mall, standing out isn’t about screaming the loudest—it’s about being in the right place at the right time with the right message.
I’ve spent countless hours testing Amazon ad types across different categories, and I’ll tell you this: the platform’s advertising ecosystem is like a well-oiled machine… that occasionally needs some WD-40. But when you get it right? It’s pure magic for your bottom line.
Sponsored Products: Your Bread and Butter
Think of Sponsored Products as your reliable workhorse. They’re the most straightforward of all Amazon advertising services—and usually the first type of amazon marketing ads sellers experiment with. Why? Because they work. Plain and simple.
These ads show up right in the search results, looking almost identical to organic listings (except for that tiny “Sponsored” label). It’s like having a store directly in the path of shopping mall traffic, instead of tucked away in some corner.
The Secret Sauce: Targeting Options
Here’s where it gets interesting. You’ve got two main flavors of targeting:
- Automatic targeting: Let Amazon’s AI do the heavy lifting
- Manual targeting: You’re in the driver’s seat with keyword selection
Pro tip: Start with automatic targeting to gather data, then use that intel to build laser-focused manual campaigns. It’s like having an intern do your initial market research before you make the big strategic decisions.
Sponsored Brands: Your Brand’s Billboard
If Sponsored Products are your foot soldiers, Sponsored Brands are your commanding officers. These bad boys appear at the top of search results with your logo, custom headline, and multiple products. They’re basically your brand’s billboard on Amazon’s busiest highway.
When it comes to how to run Amazon ads effectively, Sponsored Brands offer some pretty sweet features:
- Video options that can stop scrollers in their tracks
- Store spotlight to showcase your brand’s full catalog
- Product collections that tell a cohesive story
Sponsored Display: Your Retargeting Ace
Now this is where things get spicy. Sponsored Display ads are like those persistent salespeople who follow you around the mall—but in a good way. They show up both on and off Amazon, reaching shoppers wherever they hang out online.
The targeting capabilities here are mind-blowing:
- Views remarketing (catching window shoppers)
- Interest-based targeting (finding your tribe)
- Category targeting (fishing where the fish are)
Budget Management: Making Every Dollar Count

The eternal question: how much are amazon ads going to cost me? Well, that’s like asking how long a piece of string is. But I can tell you this: successful Amazon online advertising isn’t about having the biggest budget—it’s about being the smartest with what you’ve got.
Daily Budget Distribution
Here’s a framework that’s worked well for many sellers:
- 60% to Sponsored Products (your reliable revenue generator)
- 30% to Sponsored Brands (your brand awareness builder)
- 10% to Sponsored Display (your experimental playground)
This isn’t set in stone—think of it as a starting point you can adjust based on your data. Because at the end of the day, the Amazon ad system is all about testing, learning, and optimizing.
Seasonal Adjustments
Your amazon advertising strategy needs to be as dynamic as the market itself. During peak seasons, you might need to crank up those bids by 20-30% just to maintain visibility. It’s like trying to be heard at a concert—sometimes you need to speak a little louder.
Remember: advertising on amazon isn’t just about throwing money at the platform and hoping for the best. It’s about understanding these different ad types, how they work together, and how to leverage them for your specific goals.
The beauty of amazon local ads and the broader amazon targeting ecosystem is that it’s all measurable. Every click, every impression, every sale—it’s all data you can use to refine your approach. And in this game, the ones who win aren’t necessarily the biggest spenders, but the smartest optimizers.
Advanced Targeting and Optimization Techniques for Amazon Ad Types
Let’s be honest – most sellers approach Amazon ads like throwing spaghetti at the wall. They create a few campaigns, set some basic targeting parameters, and hope for the best. I’ve been there, done that, and learned the hard way that success requires a more nuanced approach.
Think of Amazon’s targeting capabilities like a Swiss Army knife – there are multiple tools at your disposal, but knowing which one to use and when makes all the difference. Let’s dive into the strategies that actually move the needle.
The Art and Science of Keyword Targeting
Remember when broad match keywords were the go-to strategy for Amazon advertising? Those days are long gone. Today’s successful amazon marketing campaigns require a sophisticated blend of match types and targeting approaches.
Here’s what’s actually working in 2024:
- Phrase Match: Your bread and butter for capturing relevant traffic while maintaining control
- Exact Match: Perfect for your proven winners and high-converting search terms
- Broad Match: Use sparingly for research, but watch those costs like a hawk
ASIN Targeting: Your Secret Weapon
If you’re not using ASIN targeting in your amazon advertising strategy, you’re leaving money on the table. This approach lets you advertise on specific product pages – including your competitors’. It’s like setting up shop right in front of their store.
But here’s the thing about how to run Amazon ads effectively: don’t just target the obvious competitors. Look for complementary products where your offering makes sense as an add-on purchase. The conversion rates can be astronomical.
Measurement Metrics That Actually Matter

Let me tell you something about Amazon advertising services that might ruffle some feathers: your ACoS (Advertising Cost of Sale) isn’t everything. Yes, I said it. While everyone’s obsessed with how much are amazon ads costing them relative to sales, they’re missing the bigger picture.
Beyond ACoS: The Real KPIs
- New-to-Brand Metrics: Understanding customer acquisition costs
- Branded Search Rate: Measuring brand awareness growth
- Search Term Impression Share: Gauging market presence
Future-Proofing Your Amazon Advertising Strategy
The landscape of Amazon online advertising is shifting faster than ever. With AI and machine learning becoming more integrated into amazon advertising programs, we’re seeing new opportunities emerge almost weekly.
Remember when Amazon local ads seemed like a far-fetched idea? Now they’re a reality, and they’re just the tip of the iceberg. The key is staying adaptable while maintaining a solid foundation in the basics.
Emerging Trends in Amazon Advertising
We’re seeing a fascinating evolution in types of amazon ads, with new formats and capabilities being rolled out regularly. The platform is becoming more sophisticated in how it handles advertise with amazon requests, offering increasingly granular amazon targeting options.
The AI Revolution in Amazon Advertising
Here’s something that might blow your mind: the future of amazon advertisements isn’t just about better targeting or new ad formats. Pairing these strategies with the right Amazon seller tools can give you a competitive edge in optimizing your campaigns. It’s about AI-powered optimization that can predict and adjust to market changes before they happen. We’re talking about systems that can automatically adjust bids based on real-time market conditions, competitor behavior, and customer sentiment.
Action Plan: Putting It All Together
Let’s wrap this up with a concrete action plan for your amazon marketing campaigns. Because theory without practice is about as useful as a screen door on a submarine.
- Audit your current campaigns and identify gaps in your targeting strategy
- Implement a structured testing framework for new ad types
- Develop a clear measurement framework beyond basic metrics
- Create a quarterly review and optimization schedule
Final Thoughts on Amazon Ad Success
Success in advertising with Amazon isn’t about following a rigid playbook – it’s about understanding the principles and adapting them to your unique situation. The brands that win aren’t necessarily the ones with the biggest budgets; they’re the ones who test, learn, and iterate fastest.
Think of your Amazon advertising journey like training an AI model – you need quality inputs, constant refinement, and patience to see the best results. The platform will continue to evolve, but the fundamentals of good marketing will always remain: know your customer, test your assumptions, and never stop optimizing. If you ever decide to sell Amazon business, having a well-documented and optimized advertising strategy will significantly increase its value.
Remember, in the end, advertising on amazon is both an art and a science. The science gives us the tools and data to make informed decisions, but it’s the art of interpretation and application that separates the good from the great.
Now get out there and start testing these strategies. Your future self will thank you for it. And if you’re looking for tools to create compelling visuals, consider using our AI image generator to enhance your ad creatives.
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Frequently Asked Questions
What are Amazon local ads?
Amazon Local Ads are designed to help businesses reach customers in specific geographic locations. They allow advertisers to promote their products or services to users based on their location, increasing relevance and the likelihood of conversion. This type of advertising is particularly beneficial for local businesses or services looking to draw in nearby consumers.
How many types of ads are there on Amazon?
Amazon offers a variety of advertising options to cater to different marketing strategies, including Sponsored Products, Sponsored Brands, Sponsored Display, and Amazon DSP. Each type serves unique purposes, from promoting individual products to building brand recognition and driving external traffic to a product listing. Advertisers can choose the most suitable format based on their goals and target audiences.
What are the three types of Amazon PPC ads?
The three main types of Amazon PPC (Pay-Per-Click) ads are Sponsored Products, Sponsored Brands, and Sponsored Display ads. Sponsored Products focus on individual product listings, appearing in search results and product detail pages. Sponsored Brands, formerly known as Headline Search Ads, allow sellers to showcase their brand logo, a custom headline, and multiple products, while Sponsored Display ads target shoppers based on their interests or shopping behaviors across Amazon.
What are the types of Amazon?
Amazon offers various types of services and platforms, including its online retail marketplace, Amazon Prime for fast shipping and media streaming, Amazon Web Services for cloud computing, and devices like the Kindle and Echo. Each service caters to different consumer needs, from shopping convenience and entertainment to tech infrastructure for businesses.
What is Amazon ad system?
The Amazon ad system is a comprehensive platform that allows sellers and vendors to create, manage, and optimize advertising campaigns to promote their products on Amazon. It includes tools for Sponsored Products, Sponsored Brands, Sponsored Display, and more, providing detailed analytics and targeting options to enhance ad performance. This system is designed to help advertisers reach potential customers effectively and boost sales through strategic advertising efforts.
About the Author
Vijay Jacob is the founder and chief contributing writer for ProductScope AI focused on storytelling in AI and tech. You can follow him on X and LinkedIn, and ProductScope AI on X and on LinkedIn.
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