{"id":10192,"date":"2025-05-15T11:44:03","date_gmt":"2025-05-15T11:44:03","guid":{"rendered":"https:\/\/www.aihello.com\/resources\/?p=10192"},"modified":"2026-09-23T01:20:29","modified_gmt":"2026-09-23T01:20:29","slug":"how-much-does-amazon-advertising-cost","status":"publish","type":"post","link":"https:\/\/www.aihello.com\/resources\/blog\/how-much-does-amazon-advertising-cost\/","title":{"rendered":"How Much Does Amazon Advertising Cost in 2026"},"content":{"rendered":"<div class=\"wp-block-group ah-reading-guide ah-compact-toc\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\"><style>\n.ah-reading-guide{max-width:820px;margin:0 auto;color:#26364a;font-size:18px;line-height:1.8;counter-reset:ah-section}.ah-reading-guide *{box-sizing:border-box}.ah-reading-guide p{margin:0 0 22px;line-height:1.8}.ah-reading-guide strong{color:#142d48}.ah-reading-guide h2{position:relative;margin:56px 0 24px;padding-top:24px;border-top:1px solid #dce7ef;font-size:29px;line-height:1.35;letter-spacing:-.4px;color:#142d48}.ah-reading-guide h2.ah-numbered{padding-left:54px;counter-increment:ah-section}.ah-reading-guide h2.ah-numbered:before{content:counter(ah-section,decimal-leading-zero);position:absolute;left:0;top:26px;display:flex;align-items:center;justify-content:center;width:38px;height:38px;background:#eaf4fc;color:#216faf;border-radius:10px;font-size:15px;font-weight:700;letter-spacing:0}.ah-reading-guide h3{position:relative;margin:34px 0 16px;font-size:23px;line-height:1.4;color:#163f65}.ah-reading-guide h4{position:relative;margin:28px 0 14px;font-size:20px;line-height:1.45;color:#163f65}.ah-reading-guide .ah-lead{margin:0 0 28px;padding:24px 28px;border-left:4px solid #2479ba;border-radius:0 12px 12px 0;background:#eef6fc;font-size:20px;line-height:1.75}.ah-reading-guide .ah-callout,.ah-reading-guide .ah-formula{margin:28px 0;padding:24px 26px;border:1px solid #d7e5f1;border-left:4px solid #2479ba;border-radius:0 12px 12px 0;background:#f5f9fd}.ah-reading-guide .ah-formula{font-size:20px;font-weight:600;font-variant-numeric:tabular-nums;line-height:1.9;overflow-wrap:anywhere}.ah-reading-guide ul,.ah-reading-guide ol{margin:24px 0 30px;padding-left:28px}.ah-reading-guide li{margin:0 0 12px;padding-left:7px;line-height:1.75}.ah-reading-guide li::marker{color:#2479ba;font-weight:700}.ah-reading-guide ol.ah-steps{list-style:none;counter-reset:ah-step;padding:0;display:grid;gap:14px}.ah-reading-guide ol.ah-steps>li{position:relative;counter-increment:ah-step;margin:0;padding:22px 24px 22px 64px;border:1px solid #dbe7f1;border-radius:12px;background:#f6fafd}.ah-reading-guide ol.ah-steps>li:before{content:counter(ah-step);position:absolute;top:23px;left:20px;display:flex;align-items:center;justify-content:center;width:28px;height:28px;border-radius:50%;background:#2378b9;color:white;font-size:14px;font-weight:700}.ah-reading-guide ul.ah-cards{display:grid;grid-template-columns:repeat(2,minmax(0,1fr));gap:14px;padding:0;list-style:none}.ah-reading-guide ul.ah-cards>li{margin:0;padding:20px 22px;border:1px solid #dbe8f2;background:#f7fbfe;border-radius:12px;font-size:17px;line-height:1.7}.ah-reading-guide ul.ah-cards>li:last-child:nth-child(odd){grid-column:1\/-1}.ah-reading-guide .ah-cards>li>strong:first-child{display:block;margin-bottom:8px;color:#19598d}.ah-reading-guide .ah-step-panel{margin:22px 0;padding:24px 28px;border-left:4px solid #2479ba;border-radius:0 12px 12px 0;background:#f5f9fd}.ah-reading-guide .ah-step-panel h3{margin-top:0}.ah-reading-guide .ah-step-panel p:last-child{margin-bottom:0}.ah-reading-guide figure{max-width:100%;margin:30px 0}.ah-reading-guide figure.wp-block-image{padding:7px;border:1px solid #e0e8ef;border-radius:12px;background:white;box-shadow:0 5px 18px rgba(20,45,72,.06)}.ah-reading-guide img{max-width:100%;height:auto}.ah-reading-guide figure.wp-block-image img{display:block;border-radius:6px}.ah-reading-guide figcaption{font-size:14px;line-height:1.5;color:#587086;margin-top:10px}.ah-reading-guide figure.wp-block-table{overflow-x:auto;border:1px solid #d8e5ef;border-radius:10px}.ah-reading-guide table{width:100%;border-collapse:collapse;font-size:16px;line-height:1.6}.ah-reading-guide th,.ah-reading-guide td{padding:14px 16px;border:1px solid #d8e5ef;text-align:left;vertical-align:top}.ah-reading-guide th{background:#eaf4fc;color:#163f65;font-weight:700}.ah-reading-guide tbody tr:nth-child(even){background:#f6f9fc}.ah-reading-guide blockquote{margin:30px 0;padding:22px 26px;border-left:4px solid #2479ba;background:#f3f8fc;border-radius:0 10px 10px 0}.ah-reading-guide #ez-toc-container{width:100%;margin:32px 0 42px;padding:22px 24px;border:1px solid #cbdfee;border-top:4px solid #2479ba;border-radius:12px;background:#f7fbfe;box-shadow:none}.ah-reading-guide #ez-toc-container .ez-toc-title{margin:0;font-size:20px;font-weight:700;color:#163f65;line-height:1.5}.ah-reading-guide #ez-toc-container .ez-toc-title-container{margin-bottom:14px}.ah-reading-guide #ez-toc-container ul.ez-toc-list-level-1{display:block;column-count:2;column-gap:26px;padding:0;margin:0}.ah-reading-guide #ez-toc-container ul.ez-toc-list-level-1>li{break-inside:avoid;padding:11px 0;margin:0;border-bottom:1px solid #dce7ef;line-height:1.5;font-size:16px}.ah-reading-guide #ez-toc-container ul ul{margin:7px 0 0;padding-left:18px}.ah-reading-guide #ez-toc-container li li{padding:0;margin:5px 0;font-size:14px}.ah-reading-guide #ez-toc-container a{color:#19598d;text-decoration:none}.ah-reading-guide #ez-toc-container a:hover{text-decoration:underline}.ah-reading-guide #ez-toc-container a:focus-visible{outline:3px solid #2479ba;outline-offset:4px;border-radius:3px}.ah-reading-guide :is(h2,h3,h4)>.ez-toc-section{position:absolute;top:-100px;left:0}.ah-reading-guide :is(h2,h3,h4)>.ez-toc-section-end{position:absolute;top:0;left:0}.ah-reading-guide [id]{scroll-margin-top:100px}.ah-reading-guide .gspb_container{min-width:0}@media(max-width:700px){.ah-reading-guide{font-size:17px}.ah-reading-guide h2{font-size:25px;margin-top:44px}.ah-reading-guide h2.ah-numbered{padding-left:43px}.ah-reading-guide h2.ah-numbered:before{width:30px;height:30px;font-size:13px}.ah-reading-guide h3{font-size:21px}.ah-reading-guide ul.ah-cards{grid-template-columns:1fr}.ah-reading-guide .ah-lead,.ah-reading-guide .ah-callout,.ah-reading-guide .ah-formula,.ah-reading-guide .ah-step-panel{padding:20px}.ah-reading-guide .ah-lead,.ah-reading-guide .ah-formula{font-size:18px}.ah-reading-guide #ez-toc-container{padding:18px}.ah-reading-guide #ez-toc-container ul.ez-toc-list-level-1{column-count:1}}@media(prefers-reduced-motion:reduce){.ah-reading-guide [data-aos]{opacity:1!important;visibility:visible!important;transform:none!important;transition:none!important;animation:none!important}}\n\n.ah-reading-guide .ah-process-heading{padding-left:48px;min-height:36px}.ah-reading-guide .ah-process-heading:before{position:absolute;left:0;top:0;width:34px;height:34px;display:flex;align-items:center;justify-content:center;border-radius:9px;background:#eaf4fc;color:#216faf;font-size:15px;font-weight:700}.ah-reading-guide .ah-process-1:before{content:\"01\"}.ah-reading-guide .ah-process-2:before{content:\"02\"}.ah-reading-guide .ah-process-3:before{content:\"03\"}.ah-reading-guide .ah-process-4:before{content:\"04\"}.ah-reading-guide .ah-process-5:before{content:\"05\"}.ah-reading-guide .ah-process-6:before{content:\"06\"}.ah-reading-guide .ah-process-7:before{content:\"07\"}.ah-reading-guide .ah-process-8:before{content:\"08\"}.ah-reading-guide .ah-process-9:before{content:\"09\"}\n.ah-reading-guide .ah-definition{padding:20px 24px;margin:14px 0;border:1px solid #dbe7f1;border-radius:12px;background:#f8fbfe}.ah-reading-guide .ah-definition strong{color:#163f65}\n.ah-reading-guide .ah-long-form-list>li{margin-bottom:28px}.ah-reading-guide .ah-long-form-list>li>strong:first-child{display:block;font-size:22px;line-height:1.4;margin-bottom:16px}.ah-reading-guide .ah-long-form-list li img{display:block;margin:22px auto}.ah-reading-guide .ah-formula-comparison{font-variant-numeric:tabular-nums}\n.ah-reading-guide h5,.ah-reading-guide h6{font-size:18px;line-height:1.5;color:#163f65;margin:26px 0 14px;font-weight:700}\n.ah-reading-guide h2.ah-instruction-heading{font-size:21px;margin:24px 0 18px;padding-top:18px}.ah-reading-guide h2.ah-instruction-heading:before{top:18px}\n.ah-reading-guide ul.ah-stacked-cards{list-style:none;padding:0}.ah-reading-guide .ah-stacked-cards>li{margin:14px 0;padding:20px 24px;border:1px solid #dbe7f1;border-radius:12px;background:#f8fbfe}\n.ah-reading-guide .ah-minor-label{font-weight:700;color:#1e4e64;font-size:18px;margin:20px 0 8px;}\n.ah-reading-guide h3.ah-do,.ah-reading-guide h3.ah-dont{font-size:21px;padding:18px 22px;border-radius:0 10px 10px 0}.ah-reading-guide h3.ah-do{border-left:4px solid #20877e;background:#f0faf8}.ah-reading-guide h3.ah-dont{border-left:4px solid #ae6340;background:#fff7f0}\n.ah-reading-guide p.ah-fact-row{margin:6px 0;padding:12px 18px;background:#f4f8fc;border-left:3px solid #c7dcf0;border-radius:0 8px 8px 0;font-size:17px;line-height:1.65}.ah-reading-guide p.ah-cta a{display:inline-block;padding:12px 20px;border-radius:9px;background:#135faa;color:#fff;text-decoration:none;font-weight:700}.ah-reading-guide p.ah-cta a:hover{background:#104d89}.ah-reading-guide .ah-agency-summary td:first-child{width:38%;color:#184b75}\n.ah-reading-guide details.ah-original-index{padding:16px 20px;border:1px solid #dce7f0;border-radius:10px;margin:24px 0;background:#f8fafc}.ah-reading-guide details.ah-original-index summary{cursor:pointer;font-size:18px;font-weight:700;color:#244f74}.ah-reading-guide details.ah-original-index>ol{margin-top:18px}\n.ah-reading-guide ul.ah-cycle-cards{grid-template-columns:repeat(3,minmax(0,1fr));gap:22px}.ah-reading-guide ul.ah-cycle-cards>li{position:relative;text-align:center;display:flex;align-items:center;justify-content:center;min-height:110px;font-weight:700;color:#20567d}.ah-reading-guide ul.ah-cycle-cards>li:last-child:nth-child(odd){grid-column:auto}.ah-reading-guide ul.ah-cycle-cards>li:not(:last-child)::after{content:\"\u203a\";position:absolute;right:-19px;top:50%;transform:translateY(-50%);font-size:28px;color:#3785b4}@media(max-width:700px){.ah-reading-guide ul.ah-cycle-cards{grid-template-columns:1fr}.ah-reading-guide ul.ah-cycle-cards>li:not(:last-child)::after{right:50%;top:auto;bottom:-25px;transform:rotate(90deg)}}\n.ah-reading-guide .ah-process-10::before{content:\"10\"}\n.ah-reading-guide pre.wp-block-code{background:#122238;color:#eff6ff;border:1px solid #29415f;border-radius:12px;padding:22px 24px;margin:24px 0;overflow-x:auto;font-size:15px;line-height:1.7;white-space:pre;tab-size:4}.ah-reading-guide pre.wp-block-code code{background:transparent;color:inherit;padding:0;white-space:pre;font-family:Consolas,Monaco,monospace}.ah-reading-guide p code{background:#edf3fa;color:#204d78;border-radius:4px;padding:2px 5px}\n.ah-reading-guide ol.ah-steps.ah-start-2{counter-reset:ah-step 1}\n.ah-reading-guide ol.ah-steps.ah-start-3{counter-reset:ah-step 2}\n.ah-reading-guide ol.ah-steps.ah-start-4{counter-reset:ah-step 3}\n.ah-reading-guide ol.ah-steps.ah-start-5{counter-reset:ah-step 4}\n.ah-reading-guide ol.ah-steps.ah-start-6{counter-reset:ah-step 5}\n.ah-reading-guide ol.ah-steps.ah-start-7{counter-reset:ah-step 6}\n.ah-reading-guide ol.ah-steps.ah-start-8{counter-reset:ah-step 7}\n.ah-reading-guide ol.ah-steps.ah-start-9{counter-reset:ah-step 8}\n.ah-reading-guide ol.ah-steps.ah-start-10{counter-reset:ah-step 9}\n.ah-reading-guide ol.ah-steps.ah-start-11{counter-reset:ah-step 10}\n.ah-reading-guide ol.ah-steps.ah-start-12{counter-reset:ah-step 11}\n.ah-reading-guide #ez-toc-container nav{max-height:460px;overflow-y:auto;padding-right:8px}.ah-reading-guide figure.ah-comparison-wide{max-height:650px;overflow:auto;border:1px solid #dae4ee;border-radius:12px}.ah-reading-guide .ah-comparison-wide table{min-width:760px;font-size:15px}.ah-reading-guide .ah-comparison-wide thead th{position:sticky;top:0;background:#183f65;color:#fff;z-index:1}.ah-reading-guide figure.ah-agency-summary tbody th{width:30%;background:#edf4fa;color:#244764;font-weight:700}\n.ah-reading-guide #ez-toc-container a.ez-toc-link::before{content:none!important;display:none!important}\n.ah-reading-guide .ah-comparison-wide thead th,.ah-reading-guide .ah-comparison-wide thead th *{color:#fff!important}\n.ah-reading-guide .ah-equation{display:block;margin:16px 0;padding:16px 20px;border-left:4px solid #2378b9;background:#edf4fa;border-radius:8px;font-size:20px;font-variant-numeric:tabular-nums;overflow-wrap:anywhere}\n.ah-reading-guide .ah-feature-comparison thead th:nth-child(1){width:18%}.ah-reading-guide .ah-feature-comparison thead th:nth-child(2){width:10%}.ah-reading-guide .ah-feature-comparison thead th:nth-child(3){width:50%}.ah-reading-guide .ah-feature-comparison thead th:nth-child(4){width:22%}\n.ah-reading-guide.ah-compact-toc #ez-toc-container ul.ez-toc-list>li>ul>li>ul{display:none}.ah-reading-guide h4.ah-do{color:#276044!important}.ah-reading-guide h4.ah-dont{color:#855218!important}.ah-reading-guide p.ah-tool-bullet{margin:.45em 0!important;padding:.6em 1em;border-radius:8px;background:#f4f7fa;line-height:1.65}\n.ah-reading-guide .ah-glossary-grid{display:grid;grid-template-columns:repeat(2,minmax(0,1fr));gap:20px;margin:30px 0}.ah-reading-guide .ah-glossary-entry{background:#f7f9fc;border:1px solid #dce5ef;border-radius:12px;padding:22px;height:100%;box-sizing:border-box}.ah-reading-guide .ah-glossary-entry h2{font-size:21px!important;margin:0 0 14px!important;line-height:1.4!important;border:0;padding:0}.ah-reading-guide .ah-glossary-entry p{font-size:16px!important;line-height:1.7!important;margin:0!important}@media(max-width:650px){.ah-reading-guide .ah-glossary-grid{grid-template-columns:1fr}}\n.ah-reading-guide .ah-glossary-grid{display:block}.ah-reading-guide .ah-glossary-grid>.wp-block-group__inner-container{display:grid;grid-template-columns:repeat(2,minmax(0,1fr));gap:20px;align-items:stretch}.ah-reading-guide .ah-glossary-entry{height:auto!important;margin:0!important;min-width:0}.ah-reading-guide .ah-glossary-grid>.wp-block-group__inner-container>.wp-block-greenshift-blocks-container{display:flex;min-width:0}.ah-reading-guide .ah-glossary-grid>.wp-block-group__inner-container>.wp-block-greenshift-blocks-container>.ah-glossary-entry{flex:1}@media(max-width:650px){.ah-reading-guide .ah-glossary-grid>.wp-block-group__inner-container{grid-template-columns:1fr}}\n.ah-reading-guide ol.ah-steps.ah-feature-grid{grid-template-columns:repeat(2,minmax(0,1fr))}@media(max-width:700px){.ah-reading-guide ol.ah-steps.ah-feature-grid{grid-template-columns:1fr}}<\/style><noscript><style>.ah-reading-guide [data-aos]{opacity:1!important;visibility:visible!important;transform:none!important}<\/style><\/noscript><p class=\"ah-lead wp-block-paragraph\">Over the years, the cost of Amazon <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2021\/11\/amazon-sponsored-products-brands-guide-300x204.jpg\"  data-excerpt=\"Grow your brand on Amazon! Discover how Sponsored Brands help tell your unique story, boost visibility, and connect with shoppers through custom ads and product collections.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/complete-guide-to-sponsored-ads\/\">sponsored ads<\/a> has steadily risen, posing a challenge for sellers looking to maintain healthy profit margins. Without a clear understanding of these costs and practical <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2021\/05\/Pasted-into-ACOS-Amazon-Achieve-your-target-ACOS-to-increase-profit-1-300x89.png\"  data-excerpt=\"Amazon sellers, stop losing money on ads &amp; boost sales! Master conversion rates with optimized listings, smart pricing, and crucial reviews.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/increasing-sales-by-autopilot\/\">strategies<\/a> to optimize them, you risk spending your entire profit on ads.<\/p><p class=\"wp-block-paragraph\">In this article, we&#8217;ll show you the essentials, from creating ad budgets to choosing competitive bids and, finally, how to <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2020\/11\/images-1-1-300x164.png\"  data-excerpt=\"In the last 5 years, we\u2019ve worked with over 5,000 Amazon sellers, and one key difference between the successful and unsuccessful ones is Amazon PPC optimization.&nbsp; This guide cuts through the jargon, showing you how to optimize Amazon ads, skyrocket your sales, and crush your competition. [ez-toc initial_view=&quot;show&quot;] How Does Amazon PPC Work? Amazon PPC&hellip;\" href=\"https:\/\/www.aihello.com\/resources\/blog\/the-art-of-bid-optimization-for-your-ads\/\">optimize your<\/a> <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2021\/05\/amazon_marketing_strategy_amazon_digital_marketing_amazon_online_marketing_amazon_marketing_services_4622-300x200.png\"  data-excerpt=\"Master Amazon Marketing Service (AMS)! Learn how this powerful PPC platform helps Amazon sellers boost product visibility, attract targeted shoppers, and drive sales.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/amazon-marketing-service-ams-everything-you-need-to-know\/\">Amazon advertising cost<\/a>.<\/p><h2 id=\"amazon-advertising-cost-breakdown\" class=\"wp-block-heading ah-numbered\"><span class=\"ez-toc-section\" id=\"Amazon_Advertising_Cost_Breakdown\"><\/span><strong>Amazon Advertising Cost Breakdown<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p class=\"wp-block-paragraph\"><a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2021\/11\/success4-300x200.jpg\"  data-excerpt=\"Struggling with Amazon ads? Learn to craft a competitive Amazon Advertising strategy. Set clear goals, map the buyer&#039;s journey, and choose the right ad solutions.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/the-5-elements-of-a-successful-amazon-advertising-strategy\/\">Amazon advertising<\/a> cost is simply the amount of money you spend promoting your products or brand on <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2022\/02\/boost-sales-300x200.jpg\"  data-excerpt=\"Unlock Amazon&#039;s Brand Referral Bonus! Discover how driving external traffic, especially from Google Ads, boosts your sales, increases organic reach, and earns rewards.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/boost-amazon-sales-using-google-ads\/\">Amazon<\/a>. You can measure it by looking at the following metrics:<\/p><h3 id=\"ad-budget\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ad_Budget\"><\/span>Ad Budget:<span class=\"ez-toc-section-end\"><\/span><\/h3><p>The total amount allocated for running <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2021\/04\/amazon_ppc_automation_ppc_automation_amazon_ads_automation_amazon_ppc_automation_software_4029-300x124.png\"  data-excerpt=\"Struggling with Amazon PPC visibility? Learn how AI-powered automation optimizes campaigns, slashes ACoS, and boosts your Buy Box chances for more sales.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/10-reasons-your-amazon-seller-central-business-needs-ppc-automation-software\/\">PPC<\/a> campaigns on Amazon.<br><\/p><h3 id=\"cost-per-click-cpc\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cost_Per_Click_CPC\"><\/span>Cost Per Click (CPC):<span class=\"ez-toc-section-end\"><\/span><\/h3><p>The amount you pay Amazon each time a shopper clicks on your ad.<\/p><p>On average, Amazon advertisers pay around $0.81 for each click.&nbsp;<\/p><p>But this figure is only a baseline; your actual <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2021\/05\/Pasted-into-Advertising-on-Amazon-Dos-and-Donts-2-300x151.png\"  data-excerpt=\"Dominate Amazon! Discover why advertising on Amazon (AMS) is essential for sellers. Boost product visibility &amp; sales with powerful Sponsored &amp; Display ad strategies.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/advertising-on-amazon-dos-and-donts\/\">CPC<\/a> may be higher or lower because the cost of clicks on <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2021\/11\/amazon-sponsored-products-brands-guide-300x204.jpg\"  data-excerpt=\"Grow your brand on Amazon! Discover how Sponsored Brands help tell your unique story, boost visibility, and connect with shoppers through custom ads and product collections.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/complete-guide-to-sponsored-ads\/\">Amazon ads<\/a> varies depending on the marketplace and the competitiveness of your product category.<\/p><h3 id=\"advertising-cost-of-sales-acos\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advertising_Cost_of_Sales_ACoS\"><\/span>Advertising Cost of Sales (ACoS):<span class=\"ez-toc-section-end\"><\/span><\/h3><p>The ratio of ad spend to ad <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2022\/02\/boost-sales-300x200.jpg\"  data-excerpt=\"Unlock Amazon&#039;s Brand Referral Bonus! Discover how driving external traffic, especially from Google Ads, boosts your sales, increases organic reach, and earns rewards.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/boost-amazon-sales-using-google-ads\/\">sales<\/a>, expressed as a percentage.<\/p><p><a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2021\/11\/amazon-acos-calculator-roas-cvr-300x200.jpg\"  data-excerpt=\"Confused by PPC analytics? Learn the key differences between Amazon ACoS &amp; Google ROAS to optimize ad spend and boost sales.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/understanding-good-roas-and-acos-and-how-to-calculate-it\/\">ACoS<\/a> helps measure the effectiveness of <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2020\/11\/images-1-1-300x164.png\"  data-excerpt=\"In the last 5 years, we\u2019ve worked with over 5,000 Amazon sellers, and one key difference between the successful and unsuccessful ones is Amazon PPC optimization.&nbsp; This guide cuts through the jargon, showing you how to optimize Amazon ads, skyrocket your sales, and crush your competition. [ez-toc initial_view=&quot;show&quot;] How Does Amazon PPC Work? Amazon PPC&hellip;\" href=\"https:\/\/www.aihello.com\/resources\/blog\/the-art-of-bid-optimization-for-your-ads\/\">your advertising<\/a> campaigns in generating sales.<br><\/p><h3 id=\"total-advertising-cost-of-sales-tacos\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Total_Advertising_Cost_of_Sales_TACoS\"><\/span>Total Advertising Cost of Sales (TACoS):<span class=\"ez-toc-section-end\"><\/span><\/h3><p>Similar to ACoS, <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2022\/03\/amazon-metrics-conversion-rate-click-through-cvr-ctr-acos-tacos-300x200.jpg\"  data-excerpt=\"Master Amazon PPC! Learn essential metrics like CVR &amp; ACoS to optimize your campaigns, boost sales, and improve profitability.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/the-most-important-amazon-ppc-metrics-that-you-should-track\/\">TACoS<\/a> measures the percentage of your revenue spent on ads, but rather than just ad-driven sales, it also includes <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2021\/12\/amazon_ranking_algorithm_amazon_a9_algorithm_amazon_product_ranking_algorithm_6068-300x118.png\"  data-excerpt=\"Boost your Amazon sales! Understand the A9 &amp; A10 algorithms to optimize product rankings. Learn key factors for visibility &amp; higher conversions.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/amazon-a9-and-a10-algorithms-compared-whats-new-and-how-does-it-affect-your-seo-game\/\">organic sales<\/a>.<\/p><p class=\"wp-block-paragraph\">Since pay-per-click is the dominant way that Amazon charges for <a  data-ilj-link-preview=\"true\"  data-featured-image=\"\"  data-excerpt=\"Amazon sellers seek wider reach. Explore Amazon DSP, the platform designed to connect you with non-Amazon audiences through advanced targeting, boosting brand awareness and sales.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/your-comprehensive-guide-to-the-amazon-dsp-2022\/\">ads<\/a>, many people focus on their CPC when analyzing their Amazon ads <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2022\/06\/selling-on-amazon-mexico-300x225.jpg\"  data-excerpt=\"Mexico&#039;s eCommerce boom presents huge opportunities for Amazon sellers. This guide explores the thriving Mexican online market, Amazon.mx&#039;s growth, and key considerations for successfully selling your products to millions of Mexican consumers. Learn how to navigate logistics, expand your reach, and capitalize on this expanding market.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/how-to-launch-an-amazon-mexico-business\/\">costs<\/a>.<\/p><p class=\"wp-block-paragraph\">But while CPC is a significant metric, it doesn&#8217;t solely determine the cost of advertising.<\/p><p class=\"wp-block-paragraph\">For instance, even with a high CPC, if you have a high <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2021\/05\/Pasted-into-ACOS-Amazon-Achieve-your-target-ACOS-to-increase-profit-1-300x89.png\"  data-excerpt=\"Amazon sellers, stop losing money on ads &amp; boost sales! Master conversion rates with optimized listings, smart pricing, and crucial reviews.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/increasing-sales-by-autopilot\/\">Conversion Rate<\/a> (CVR), your ACoS might still be okay.<\/p><p class=\"wp-block-paragraph\">Before we discuss the best way to estimate your <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2020\/04\/amazon_dsp-300x300.png\"  data-excerpt=\"Learn how a pandemic sales surge on Amazon led to zero profits for one seller. Dive into how Amazon&#039;s aggressive ad strategy crushes seller profitability.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/amazon-can-smell-the-blood-in-ads-and-its-going-for-it\/\">Amazon sponsored ads cost<\/a>, let\u2019s examine other factors that influence it.<\/p><h2 id=\"amazon-ad-types\" class=\"wp-block-heading ah-numbered\"><span class=\"ez-toc-section\" id=\"Amazon_Ad_Types\"><\/span><strong>Amazon Ad Types<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p class=\"wp-block-paragraph\">In addition to marketplace and product category, another major determinant of your <a rel=\"noopener\" target=\"_blank\" href=\"https:\/\/www.aihello.com\/money-saver-calculator.html\">Amazon advertising fees<\/a> is ad type.&nbsp;<\/p><p class=\"wp-block-paragraph\">This is because each ad type has its own unique cost structure and potential return on investment (ROI).<\/p><p class=\"wp-block-paragraph\">For example, some ads cost more per click, some have higher click-through rates (<a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2022\/03\/amazon-metrics-conversion-rate-click-through-cvr-ctr-acos-tacos-300x200.jpg\"  data-excerpt=\"Master Amazon PPC! Learn essential metrics like CVR &amp; ACoS to optimize your campaigns, boost sales, and improve profitability.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/the-most-important-amazon-ppc-metrics-that-you-should-track\/\">CTR<\/a>), some have higher CVR, and others are more effective for <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2020\/04\/download-5.jpg\"  data-excerpt=\"Unlock the secrets of cult brands: how they build fierce loyalty, create evangelists, and thrive through authentic storytelling and unique experiences.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/the-long-road-to-become-a-cult-brand\/\">brand<\/a> awareness.<\/p><p class=\"wp-block-paragraph\">So, your ACoS may vary depending on which ad type you use.<\/p><p class=\"wp-block-paragraph\">Additionally, the cost of each Amazon ad type depends on several factors, such as the <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2022\/10\/beat-competition-on-amazon-keyword-analysis-competitor-300x200.jpg\"  data-excerpt=\"Struggling to boost Amazon sales? Learn how Amazon PPC &amp; product targeting can help you dominate competition, increase visibility, and maximize profits.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/8-tips-on-how-to-beat-your-competitors-on-amazon-2026\/\">keyword<\/a> you\u2019re bidding on, your bidding <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2022\/06\/mistake-300x215.jpg\"  data-excerpt=\"Master Amazon SEO to beat competition! Learn how the A10 search engine works and discover strategies to boost your product rankings and sales on the Marketplace.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/amazon-seo-strategy-tips-and-tricks-for-beginners\/\">strategy<\/a>, and placement boosts.&nbsp;<\/p><p class=\"wp-block-paragraph\">Let\u2019s look at the three major types of <a href=\"https:\/\/www.aihello.com\/resources\/blog\/ads-for-amazon-sponsored-products-vs-amazon-sponsored-brands\/\">Amazon PPC<\/a> ads more closely.<\/p><h3 id=\"sponsored-products\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sponsored_Products\"><\/span>Sponsored Products<span class=\"ez-toc-section-end\"><\/span><\/h3><p>These ads feature a single product and pop up on Amazon&#8217;s SERP as well as product pages. When clicked, shoppers are taken to your product&#8217;s detail page.<\/p><p>Here are some examples<br><img decoding=\"async\" title=\"how to make money on amazon without selling | how do you automate orders on shopify | what are the top 10 best selling books right now\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/lIYy7oS0-Usc7pHE31X8hp_kks6pEqV7MEzVC7I0_XAq8Q726V79yC5Oel8Ojg3hMF88I5dQ-kDHV0SSjCCRS6QUFE1e2AIoZYrmVrGVt-hhXEQMCw1o_myU-6jqNucFdPAZJ9v5unANlPRE9GCgAHg\"><br><img decoding=\"async\" title=\"what is the most bought item on amazon | what is pdp on amazon | what is an organic keyword\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/rwvjUmshqEQD3M2sDzBHbQvHdWTNGpGJ7IWyiArhbpuPCcJ_MPYfATcyxgkXk0-R7Ej9hGazyf_GH3uF_iseOJsAUyrZNtEj8ZzP8fy-i637g_DNvLV9-cPdIVe9WcBXTN7NikgDPWxwTqstM70UW34\"><\/p><p>So how much does Amazon sponsored products cost?<\/p><p>SP ads are charged on a pay-per-click basis, and you can start with as little as $1.<\/p><p>However, on average, sellers spend 85% of their total <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2020\/04\/download-1.jpg\"  data-excerpt=\"Traditional ads fail. Consumers crave emotional brand ties. Discover how experiential marketing creates unique, memorable connections, boosting engagement and loyalty.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/the-power-of-experiences\/\">budget<\/a> on SP because it offers the highest <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2021\/11\/amazon-acos-calculator-roas-cvr-300x200.jpg\"  data-excerpt=\"Confused by PPC analytics? Learn the key differences between Amazon ACoS &amp; Google ROAS to optimize ad spend and boost sales.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/understanding-good-roas-and-acos-and-how-to-calculate-it\/\">ROAS<\/a> and is the easiest to set up.<\/p><h3 id=\"sponsored-brands\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sponsored_Brands\"><\/span>Sponsored Brands<span class=\"ez-toc-section-end\"><\/span><\/h3><p>Unlike SP ads, these ads showcase more than just a single product; they display your logo, a headline, and multiple products.<\/p><p>They can also include a 15-30-second video showcasing your product.<\/p><p>Here\u2019s an example:<br><img decoding=\"async\" title=\"how to make money recommending amazon products | how to advertise a product on amazon | what is cvr\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/DLRd7-cdPz0ZGxNIBLW4dT98y-oCiyWovHrd0rgspIct3oP8t_qdDKKHPr_8TXTGRzeTTLh33cvmeFFwQcmX2hxZUql8BNc34AESbh9VxLLYzvKQ4RYIm1rQbUfdq9twZ3w0u3CuJufcaZnsgElBbxk\"><\/p><p>SB ads are great for increasing brand awareness after seeing reasonable ROI from SP ads.<\/p><p>Compared to SP ads, <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2022\/06\/amazon-brand-analytics-guide-300x200.jpg\"  data-excerpt=\"Master Amazon sales! Discover how Amazon Brand Analytics empowers sellers to stand out, optimize products,\" href=\"https:\/\/www.aihello.com\/resources\/blog\/amazon-brand-analytics-a-complete-guide-2026\/\">sellers<\/a> only spend a small fraction of their ad budget on them, usually 13%.<\/p><p>This is expected because SB ads are more expensive and yield lower ROAS.<\/p><h3 id=\"sponsored-display\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sponsored_Display\"><\/span>Sponsored Display<span class=\"ez-toc-section-end\"><\/span><\/h3><p>These ads share similarities with both SP and SB ads. They feature only one product like SP but you can customize the image displayed and add a custom headline like SB.<\/p><p>Here\u2019s an example:<img decoding=\"async\" title=\"how much does amazon advertising cost | what is amazon market place | how does amazon&apos;s search algorithm work\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/BpT8cB3i6OlVDYb0VU9p1xsRXGR9gvbFd0HUoR_ndeoFFiURBtoAfd4Z5dPiVoOIKlPDLKi2PTKvWaQNwyMQtZpjYClqC4NcpJIf5_plA5r3uUoYdf6cYP-hfou67JKN303t7vX-yIzy0iiS9NPD9mo\">Another unique feature of SD ads is their ability to reach customers on and off Amazon based on shopping behavior.&nbsp;<\/p><p>This makes them effective for reaching shoppers who have viewed your products or similar ones before.&nbsp;<\/p><p>Despite all this, SD ads have been proven to generate lower ROAS than SP and SB ads.<\/p><p>On average, sellers only invest about 2% of their total budget in them.<\/p><div class=\"wp-block-greenshift-blocks-container gspb_container gspb_container-gsbp-f10192-1\" id=\"gspb_container-id-gsbp-f10192-1\" data-aos=\"fade\" data-aos-easing=\"ease\" data-aos-duration=\"500\" data-aos-once=\"true\"><figure class=\"wp-block-table is-style-stripes\"><table><thead><tr><th>Ad Type<\/th><th>ROAS<\/th><th>Average Spend<\/th><\/tr><\/thead><tbody><tr><th scope=\"row\">Sponsored Products<\/th><td>High<\/td><td>85% of total budget<\/td><\/tr><tr><th scope=\"row\"><a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2021\/11\/amazon-sponsored-products-brands-guide-300x204.jpg\"  data-excerpt=\"Grow your brand on Amazon! Discover how Sponsored Brands help tell your unique story, boost visibility, and connect with shoppers through custom ads and product collections.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/complete-guide-to-sponsored-ads\/\">Sponsored Brands<\/a><\/th><td>Medium<\/td><td>13% of total budget<\/td><\/tr><tr><th scope=\"row\"><a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2022\/05\/beginner-guide-to-amazon-digital-marketing-ppc-adveritsing-300x200.jpg\"  data-excerpt=\"Boost your Amazon sales! Master Amazon digital marketing &amp; advertising. Learn PPC strategies and effective ad campaigns to grow your business and ROI.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/beginners-guide-to-amazon-digital-marketing\/\">Sponsored Display<\/a><\/th><td>Low<\/td><td>2% of total budget<\/td><\/tr><\/tbody><\/table><\/figure><\/div><p class=\"wp-block-paragraph\">In summary, understanding each ad type&#8217;s cost and potential ROI and strategically allocating your budget can help optimize your <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2021\/05\/Pasted-into-ACOS-Amazon-Achieve-your-target-ACOS-to-increase-profit-300x177.png\"  data-excerpt=\"Unlock Amazon ad success! Discover ACoS: what it is, how to calculate it, and key strategies to boost your profitability and lower ad costs.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/acos-amazon-achieve-your-target-acos-to-increase-profit\/\">Amazon advertising costs<\/a> and improve overall performance.<\/p><p class=\"wp-block-paragraph\">Next, we\u2019ll examine the technicalities of how your ad budget is spent.<\/p><h2 id=\"how-does-amazon-bidding-work\" class=\"wp-block-heading ah-numbered\"><span class=\"ez-toc-section\" id=\"How_Does_Amazon_Bidding_Work\"><\/span><strong>How Does Amazon Bidding Work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p class=\"wp-block-paragraph\">To <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2021\/06\/Amazon-vs-Google-300x173.png\"  data-excerpt=\"Boost your Amazon Ad Quality Score! Learn how SEO, keyword types, and bidding strategies impact your ads on Amazon vs. Google AdWords.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/amazon-seo-optimizing-ad-quality-score\/\">advertise on Amazon<\/a>, sellers must compete for Amazon\u2019s limited ad placements. They participate in an open auction where they place a bid to show their ads and the highest bidder gets the placement.<\/p><p class=\"wp-block-paragraph\">This is known as bidding.<\/p><p class=\"wp-block-paragraph\">It\u2019s important to know that setting your bid to $0.70 doesn\u2019t mean <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2020\/04\/images-1-300x147.jpg\"  data-excerpt=\"Optimize your Amazon seller journey! Discover how FBA streamlines shipping, boosts seller ratings, and leverages customer feedback for online success.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/key-terms-you-need-to-know-when-you-start-out-as-a-seller\/\">you will<\/a> always pay $0.70 per click. Your CPC may be lower, depending on what the next highest bidder has chosen.&nbsp;<\/p><div class=\"wp-block-greenshift-blocks-container gspb_container gspb_container-gsbp-f10192-3\" id=\"gspb_container-id-gsbp-f10192-3\" data-aos=\"fade\" data-aos-easing=\"ease\" data-aos-duration=\"500\" data-aos-once=\"true\"><p class=\"ah-callout wp-block-paragraph\">For example, if they\u2019re bidding $0.50 per click, you will only pay $0.51 per click.&nbsp;<\/p><\/div><p class=\"wp-block-paragraph\">It may also be higher if you are using a dynamic bidding strategy that allows Amazon to adjust bids for you.<\/p><p class=\"wp-block-paragraph\">Additionally, using placement boosts can significantly increase your Amazon cost per click.<\/p><p class=\"wp-block-paragraph\">Having said that, let\u2019s look at what the two types of bidding entail.<\/p><h3 id=\"manual-bidding\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Manual_Bidding\"><\/span><strong>Manual Bidding<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p class=\"wp-block-paragraph\">Manual bidding involves manually changing bids to hit a pre-set <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2022\/10\/beat-competition-on-amazon-keyword-analysis-competitor-300x200.jpg\"  data-excerpt=\"Struggling to boost Amazon sales? Learn how Amazon PPC &amp; product targeting can help you dominate competition, increase visibility, and maximize profits.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/8-tips-on-how-to-beat-your-competitors-on-amazon-2026\/\">target<\/a> ACoS.&nbsp;<\/p><p class=\"wp-block-paragraph\">We usually recommend using your current ACoS if you\u2019re trying to <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2021\/05\/Pasted-into-ACOS-Amazon-Achieve-your-target-ACOS-to-increase-profit-1-300x89.png\"  data-excerpt=\"Amazon sellers, stop losing money on ads &amp; boost sales! Master conversion rates with optimized listings, smart pricing, and crucial reviews.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/increasing-sales-by-autopilot\/\">increase sales<\/a>. But if you\u2019re trying to reduce ad costs, targeting 5% less than your current ACoS is advisable.<\/p><p class=\"wp-block-paragraph\">Manual bidding can be done using two methods: RPC and rule-based bidding.<\/p><p class=\"wp-block-paragraph\">To use RPC bidding, multiply your ACoS target by your earnings per click to determine your ideal CPC.&nbsp;<\/p><p class=\"ah-formula wp-block-paragraph\">For example, if your target ACoS is 35% and you earn $6 per click on a keyword, your ideal CPC would be $2.10 (0.35 * $6.00).<\/p><p class=\"wp-block-paragraph\">RPC bidding gives you a predefined way of changing bids, so it eliminates guess work.<\/p><p class=\"wp-block-paragraph\">It is also effective for hitting a target ACoS as long as you have enough data.<\/p><p class=\"wp-block-paragraph\">Alternatively, you can set rules that guide how much to bid with rule-based bidding.<\/p><p class=\"ah-formula wp-block-paragraph\">An example of rule-based bidding is \u201cif ACoS exceeds X amount, decrease bids by Y amount.\u201d<\/p><p class=\"wp-block-paragraph\">While rule-based bidding is more advanced and difficult to learn, especially for beginners, it offers flexibility and is particularly useful when RPC bidding doesn&#8217;t align with your goals.<\/p><h3 id=\"automatic-bidding\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Automatic_Bidding\"><\/span><strong>Automatic Bidding<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p class=\"wp-block-paragraph\">With automatic bidding, you&#8217;re still aiming for an ACoS target; the only difference is you don\u2019t have to go through the pain of manually changing bids.<\/p><p class=\"wp-block-paragraph\">You just input your target ACoS, and the algorithm takes care of the rest.<\/p><p class=\"wp-block-paragraph\">Automatic bidding is more accurate than RPC bidding and simpler than rule-based bidding because it tailors <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2022\/02\/amazon-ppc-advertising-auction-how-it-works-300x200.jpg\"  data-excerpt=\"Master Amazon advertising success. Learn essential Amazon PPC bidding strategies to optimize campaigns, boost ROI, and win crucial placements.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/how-does-the-amazon-ppc-auction-work\/\">bidding strategies<\/a> to each account based on historical data and requires minimal effort.<\/p><p class=\"wp-block-paragraph\">But it requires trustworthy software.<\/p><p class=\"wp-block-paragraph\">At <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2021\/11\/hybrid-300x177.jpg\"  data-excerpt=\"Master Amazon selling with AiHello AutoPilot Hybrid. Our solution and PPC experts optimize ads, boost sales, and lower your Amazon ad costs.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/how-aihello-autopilot-hybrid-solution-with-a-dedicated-ppc-specialist-can-boost-your-amazon-store\/\">AiHello<\/a>, we developed our own software and it currently manages over 5,000 accounts.<\/p><p class=\"wp-block-paragraph\">To use it, simply select your target ACoS and the algorithm will adjust your bids based on keyword performance.<br><br><img decoding=\"async\" title=\"how to do digital marketing for amazon | how does amazon get their products | where does amazon get its products\" src=\"https:\/\/lh7-us.googleusercontent.com\/fozkANK3rlifLv_lG24DgoJi_KqUOv7OrOApFqkjo_BsrxuUQPzMtN7G0SLNt2MNoZyNZWcg0F2qhAjJaI1ZhjL1hWrZHZe6Q7JVwIUJRh1fIghCOnE3QD_F6NcXkN1UIBnDtX6du0ZkR7A5NRvi9kY\" style=\"width: 800px;\"><\/p><p class=\"wp-block-paragraph\">The <a href=\"https:\/\/www.aihello.com\/\">AiHello software<\/a> also ensures that your ads appear for relevant <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2021\/10\/amazon_seo_strategy_amazon_seo_optimization_amazon_search_engine_optimization_5650-300x200.jpg\"  data-excerpt=\"Which SEO strategy is best for your business: Amazon or Google? Explore the distinct approaches to optimize for product searches vs. general queries and drive sales.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/google-seo-vs-amazon-seo-explained\/\">keywords<\/a> at all times with little or no supervision.<\/p><p class=\"wp-block-paragraph\">This is why new sellers and seasoned sellers who want to save time and make more <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2022\/02\/boost-sales-300x200.jpg\"  data-excerpt=\"Unlock Amazon&#039;s Brand Referral Bonus! Discover how driving external traffic, especially from Google Ads, boosts your sales, increases organic reach, and earns rewards.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/boost-amazon-sales-using-google-ads\/\">money<\/a> love it.<\/p><p class=\"wp-block-paragraph\"><img decoding=\"async\" title=\"how is cvr calculated | how to get paid from amazon | how to optimize listing on amazon\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/IdSFaoQTUGici8MhAgcr4fMsK5-lF_Dm8azNsoxEWcgilbjP7-EUnH_VoQOPlygPnsjhFFnpZEIRGaHhDxZFnmcNsjRDTiGdbQj0PI2SidN1ytMYa_M9lgZoz1DnhAb0BxNPaCt6KnydeHt3OPxdpio\"><\/p><h2 id=\"how-to-determine-your-amazon-ads-budget\" class=\"wp-block-heading ah-numbered\"><span class=\"ez-toc-section\" id=\"How_to_Determine_Your_Amazon_Ads_Budget\"><\/span><strong>How to Determine Your Amazon Ads Budget?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p class=\"wp-block-paragraph\">Now that we\u2019ve explored the different factors that influence Amazon advertising costs, let\u2019s dive into how you can predict or set your Amazon ads budget.<\/p><p class=\"wp-block-paragraph\">There are two major ways to do this:<\/p><h3 id=\"set-a-target-tacos\" class=\"wp-block-heading ah-process-heading ah-process-1\"><span class=\"ez-toc-section\" id=\"Set_a_target_TACoS\"><\/span>Set a target TACoS<span class=\"ez-toc-section-end\"><\/span><\/h3><p>To set your monthly Amazon ads budget, you can start by choosing a target TACoS.<\/p><p>For example, if you want your advertising costs to be around 15% of your total revenue, you can use this percentage to calculate your monthly ad budget.<\/p><p>But if you don\u2019t have a clear picture of your total revenue at the outset, you can set a budget by multiplying expected tacos with expected revenue.<\/p><p>To estimate your potential revenue, you can use <a href=\"https:\/\/members.helium10.com\/black-box\">Helium 10\u2019s black box<\/a> to get an average of how much your competitors are selling.<\/p><p>The closer your competitors are in terms of reviews, price, and sales velocity, the more realistic your estimate will be.<\/p><p><img decoding=\"async\" title=\"what is tacos in amazon | how much should i spend on amazon advertising | what is acos in amazon\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/-3sV9cxv5M3aab0SDMDYwLFIvTRyTy74rzYKw37reLBm5z2kG8AOR4a2pDgRnG1-yZci2OcAoAMmRuW6I5DN-6pM6cCgHlt5AgmhG4JYo5XSA5TFdWmC-V5yzntRm7rvXLvVT7-pBbA0oplLPv0hy7c\"><\/p><p>Additionally, we recommend setting your TACoS target based on the stage you\u2019re in and continuing to spend as long as you\u2019re within this range.<\/p><p>We usually expect a 50%+ TACoS for new products and 10-15% TACoS for mature products.<\/p><p><em>These are average figures, not advice, and they vary by category.<\/em><\/p><p>As you start running ads and generate actual sales data, you can adjust your budget to align with your performance metrics.<\/p><p>Here\u2019s what setting your budget based on TACoS looks like in practice:<\/p><p>If your expected total revenue is $10,000 and your&nbsp; TACoS target is 15%, you would multiply $10,000 by 0.15, giving you a $1500 budget.<\/p><div class=\"wp-block-greenshift-blocks-container gspb_container gspb_container-gsbp-f10192-2\" id=\"gspb_container-id-gsbp-f10192-2\" data-aos=\"fade\" data-aos-easing=\"ease\" data-aos-duration=\"500\" data-aos-once=\"true\"><h3 id=\"leverage-cpc-and-cvr\" class=\"wp-block-heading ah-process-heading ah-process-2\"><span class=\"ez-toc-section\" id=\"Leverage_CPC_and_CVR\"><\/span>Leverage CPC and CVR<span class=\"ez-toc-section-end\"><\/span><\/h3><p>Another approach to determining your Amazon ads budget is to estimate your cost per customer acquisition (CAC) using CPC and CVR.<\/p><p>To get started, use Amazon\u2019s suggested bids to get a glimpse of your average CPC and multiply it by 1\/CVR to get your cost per customer acquisition (CAC).<\/p><p>Then multiply that by your predicted units sold (through ads).<\/p><p>Here\u2019s an example:<\/p><p>Let&#8217;s say your estimated CPC is $1.50, and your CVR is 5%.<\/p><p>To calculate your CAC, you first find the reciprocal of your CVR, which is 1 divided by 0.05, giving you 20.<\/p><p>Next, multiply your estimated CPC by the reciprocal of your CVR:<\/p><p class=\"ah-formula\">$1.50 CPC * 20 (1\/CVR) = $30<\/p><p>So, your CAC is $30.<\/p><p>Now, if you predict that you&#8217;ll sell 100 units through ads, you can estimate your ad spend by multiplying your CAC by the predicted units sold:<\/p><p class=\"ah-formula\">$30 CAC * 100 units = $3000<\/p><p>Therefore, based on your estimated CPC and CVR, you would spend approximately $3000 on ads to sell 100 units.<\/p><\/div><p class=\"wp-block-paragraph\">Finally, if you want to skip the maths and estimate things faster, get access to our <a href=\"https:\/\/docs.google.com\/spreadsheets\/d\/1yB7i9sA7MDF_zWQRGdcoLm_V3o0RE7Nm\/edit#gid=191612737\">Amazon PPC cost calculator<\/a>. It\u2019s the same one our PPC experts use.<\/p><h2 id=\"how-to-optimize-and-reduce-your-amazon-ppc-cost\" class=\"wp-block-heading ah-numbered\"><span class=\"ez-toc-section\" id=\"How_to_Optimize_and_Reduce_Your_Amazon_PPC_Cost\"><\/span><strong>How to Optimize and Reduce Your Amazon PPC Cost<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p class=\"wp-block-paragraph\">By now, you probably realize that having a low budget or a low CPC is not the same as being profitable.<\/p><p class=\"wp-block-paragraph\">If your budget is too low, you\u2019ll lose ad sales and <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2021\/12\/amazon-algorithms-a9-10-seo-keyword-product-ranking-300x185.jpg\"  data-excerpt=\"Boost Amazon sales! Understand the difference between organic rank &amp; BSR. Master Amazon SEO, A9 algorithm, and keyword strategies to rank higher.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/amazon-keyword-ranking-and-increasing-sales-organically\/\">organic rank<\/a>, so your TACoS is likely to increase.<\/p><p class=\"wp-block-paragraph\">And if your TACoS is too high, it might mean the revenue you make won\u2019t cover your advertising costs.&nbsp;<\/p><p class=\"wp-block-paragraph\">High TACoS is something you want to fix unless you&#8217;re a new seller or you\u2019re currently more interested in market share than net <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2022\/02\/boost-sales-300x200.jpg\"  data-excerpt=\"Unlock Amazon&#039;s Brand Referral Bonus! Discover how driving external traffic, especially from Google Ads, boosts your sales, increases organic reach, and earns rewards.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/boost-amazon-sales-using-google-ads\/\">profit<\/a>.<\/p><p class=\"ah-callout wp-block-paragraph\">To fix your TACoS, you need to either increase your organic sales without increasing ad spend by an equivalent amount or lower your ACoS without bringing down your organic sales.&nbsp;<\/p><p class=\"wp-block-paragraph\">Let\u2019s look at some ways to do this:<\/p><h3 id=\"optimize-your-listing\" class=\"wp-block-heading ah-process-heading ah-process-1\"><span class=\"ez-toc-section\" id=\"Optimize_Your_Listing\"><\/span>Optimize Your Listing<span class=\"ez-toc-section-end\"><\/span><\/h3><p>An optimized listing increases your CVR and ultimately leads to a lower TACoS.<\/p><p>For example, one of our businesses had only done $5k in sales when they signed up for AiHello.<\/p><p><img decoding=\"async\" title=\"when did amazon start | where does amazon get its products | how to rank higher on amazon search\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/SvIlYx8lvtGggaub018mvNvm10Fm71YHTFlGQkASpZNcAI-9meiXA35LIHKtWwOUnEX3eZnrYlYI-mdPancpP6TK0K46HT_7i2Z9bRcB0Go6_ht3Jz5jATETrXqNXSUjdPJXOIHzVSOMOZTuXnheIUE\"><\/p><p>When we analyzed their account, we saw opportunities for improving their conversion rate that they weren\u2019t maximizing.<\/p><p>So we dived right in and improved their listing content, SEO, and PPC.<\/p><p>On the listing side, we inserted high-volume keywords in the product title, uploaded more attractive images and A+ content, optimized the bullet points, and added misspells and low-volume keywords as backend search terms.<\/p><p>The result? They 4X\u2019d their revenue in 2 months.<\/p><p>After (Month 1 &#8211; January 2026):<\/p><p><img decoding=\"async\" title=\"how to buy on amazon marketplace | how to increase sales on amazon | what is amazon pdp\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/OEJe_cvUEYCi_Ek_BAy7XMpXyHHnvuFwsTKiWw0sQDy4AA_0QcNjbVPc-qtbTXb3iqTEemsfK70iOUH6fW4frZKKJ-JsRwjTUpYiT8qJO-r2NgG2aVwoWaBx0X58wTwiNnG7QrnGuWzZg51dpWIAjpM\"><\/p><p>After (Month 2 &#8211; February 2026):<\/p><p><img decoding=\"async\" title=\"how many impressions is good amazon | how to see competitors keywords | can you use google shopping for amazon products\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/Tu0OuUjDlG1qFTuokRWon-gWY1ogOLVAoNwjdrLbShailRNnvLH9-bhJqVvJwA2rDd-OcUe7eXK3UtaL_fb0t_vykgFnLv6htn6OnJMVc0mab6Vj49FTol5ZrcbeNF1LmGtbM_ZaYSjWXr3j5ARL-Kc\"><\/p><p>Here are some key things you must do to make the most out of your product listings:<\/p><p class=\"ah-callout\">A. Add 1 &#8211; 3 relevant keywords and important details to your product title.<\/p><p>Here\u2019s a good example:<br><img loading=\"lazy\" decoding=\"async\" title=\"how long do amazon lightning deals last | how to sell book amazon | is there amazon in saudi arabia\" width=\"624\" height=\"296\" src=\"https:\/\/lh7-us.googleusercontent.com\/Pyk1XajYqE8Vtl7WHO1hmCwPiyUQE12jxB740g89FHwMl6CWEfOZ30AU6IW-Jfvd1x42_Vdm_B8yMQeJgbuVfa28HEibfS8mOKD0V695hOG5zC5yD9djwcD3kh6OkK0fMwx8o7pd2p8eLZUMJmG2m_8\"><\/p><p class=\"ah-callout\">B. Use images to showcase your product attractively and persuade people to buy it.<\/p><p>Here are some good examples:<br><img decoding=\"async\" title=\"what is a good click-through rate (ctr)? | how is amazon affected by tariffs | what are the main benefits of using amazon dsp?\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/n-svgja3qTTVAKMui4xHMk2CUsUFEc3FnX9F4TxxLtVC2acoKugp9Abu67FD7V9BccO98KL2yw0Q57ES9J4Rbm8O2-SJZ5_hdSBC78Y1U94XzoMzQVCI8HDc8BvhJCqSvSBrrPUy-FQYhdiLQk4JbJg\"><\/p><p><img decoding=\"async\" title=\"how to remove negative feedback on amazon | does amazon advertise | how to open amazon seller account in germany\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/nZV2hEwb9v6olhgTK3v1q-_nUTYxCen_cwNVAduPyciYRq5ClAKMHEIWxZep-qaHAsi4hHnkpLbQKZDykDB9G63oveQGcxYFmwl99BmDO506L0dOJc9ioAsMwQ1ES-jyUaMoY9WS781q-a_GnOisNUY\"><\/p><p class=\"ah-callout\">C. Use your product listing&#8217;s bullet points to convince customers to buy by focusing on your product\u2019s benefits.<\/p><p>Here is a good example:<br><img decoding=\"async\" title=\"how to earn money on amazon | what are amazon lightning deals | what does amazon seo mean\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/AafLLY4Ub3Z9_rxsr3C4zTRy26FhiT4tGLwaNuSpHDXEoEvMLIbmxSdE-OcMGpY7C993YAT4r3LS0Bu5lFL2zqD29eePEWOF-HdITzgxFPdyvHAQQrGcp70TtAAinwvsl5EYJFGlAdHvae26ReDkY_U\"><\/p><p class=\"ah-callout\">D. Use clear images and compelling text in your A+ content, and keep it on brand.<\/p><p>Here\u2019s a good example:<img decoding=\"async\" title=\"how to find ranking on amazon | how to sell book amazon | how to sell on amazon usa from canada\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/QvFfD4B37GRx1brTgMMXiax5rFVvNOQfs4ddUzUIBPqrGLTLXBSlLFBigOXGk2e78fsgpGkhsaixhpGTTnFYXtE3le7IWaLa3_YkEyHXHCiwDCvqwQmBACUHl60PGnQ442xV77hDt93ru9gNbfoW6RU\"><img decoding=\"async\" title=\"how do i make money on amazon | what is a good acos | which inventory is available for sponsored products and sponsored brands campaigns?\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/t7vzI2LIXz9M6UtyLP-rJ3zipzmKLQoiNxvCL2dsKlYUfr5jSE16xFU9tNCEv5NOhMKjueaCMNynOtOG9g0xtcAu85U4Eyvsfpob9I28YA30KJjnYZvLYAVl2aZ1RRKXorYBb8Lw2gimOF1e8JJ7pZ8\"><img decoding=\"async\" title=\"how to sell products online internationally | how to use amazon sponsored brands ads | how to grow sales on amazon\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/tL1SM9O0v5zoc-FkmjjtkpfzWu1LALoFjTz8Aom9VwUGDYZ1n8_8ALhUVjzAoKcpWnbglndXiMQbsI0mkM1soQEWEXQe2hCELp1z2TM3CtFPsd9GbRsZ50Z3sPnJVzfASihf5bVf7Kr3pJZYq6DcN5I\"><img decoding=\"async\" title=\"how to advertise on amazon | how to promote your products on amazon | what is amazon seo\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/WIum4CMDHTSNOHDLwbMJjrM8vRMTRn8ILDCbUXNuWaD1pavgah6ur3UBI_byfa2NBB871nrsAAeX_qNwmEqkX_-QVmYpXePfmdCVMJ1nzwPLf5BnDi-0dQIrxysOx9M9i048ZWwkrllX86K2ipccTB8\"><img decoding=\"async\" title=\"how much do sponsored ads cost on amazon | how to sell on amazon fbm | how many amazon marketplaces are there\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/NYo1rE6hJZrUEJLjHK0J4H1oapky-x3iuVDOAAsiwNZGCd5zh-hQk4qups9lZLaL0iTEF99AkA78thv3JJvC3D88IkyiD_J6DGnW-EXfc6QWoimJbG1c3U3P513-JCqRkNS13FxcQyLdm80b0-nKDXQ\"><\/p><h3 id=\"keyword-harvesting\" class=\"wp-block-heading ah-process-heading ah-process-2\"><span class=\"ez-toc-section\" id=\"Keyword_Harvesting\"><\/span>Keyword Harvesting<span class=\"ez-toc-section-end\"><\/span><\/h3><p>Keyword harvesting is another way to increase your ROAS and reduce your TACoS.<\/p><p>It involves analyzing your search term report to find high-performing keywords so you can spend more money on them and less on unprofitable ones.<\/p><p>We used this strategy to add 100+ new keywords to a client\u2019s account and grew their sales from $10k\/mo to almost $40k\/mo.<\/p><p><img decoding=\"async\" title=\"what is a9 algorithm | how to sale product on amazon | what is click through rate amazon\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/6wYkMfBu4aMNBjsx1NJ2IVD3ddcwZ9QAHWk0YuPtkFtlYpmB2TCatCmg7f0lTO8Y0b4R5fjIvw-om3HYQdtFfmH8q_JfLTr8kvlxAAatH3tGFLSQxgzk_knib87CtYvNwmd5VUOfecPxUtx1JiN9YY8\"><\/p><p>To harvest keywords, download your search term report for the past 30 days and add it to a Google Sheet.<\/p><p><img loading=\"lazy\" decoding=\"async\" title=\"how do you make money with amazon | do you use or for germany amazon listing | how to grow your business on amazon\" width=\"624\" height=\"171\" src=\"https:\/\/lh7-us.googleusercontent.com\/q4A1DPrUE2lMFrBr0s2_RXrww3vaUMMsiYgm87_gO8Y3eJOc75yMfpYU8UVpl3D_ZSvRY-cO40Z_CeHkIbpc-Xyy2JmfQT4029mnuuJoEGD-F5jdkDVtfnDIPo3f09Ed2E-hSh1Uk_KJAwciFV7np3k\"><\/p><p>Next, identify search terms that have produced at least 1 conversion.\u00a0<\/p><p>Then create manual campaigns with them using different match types.<\/p><p>You can also negate search terms that have spent the product&#8217;s AOV without generating sales.<\/p><p>Doing this at least once a month will ensure your campaigns contain mosty high-performing keywords that can increase your sales and lower TACoS.<\/p><p>While you can harvest keywords manually,\u00a0 it takes time, especially for a large catalog.<\/p><p>This is why many sellers use AI tools like <a href=\"https:\/\/www.aihello.com\">AiHello<\/a> to automate the entire process.<\/p><p>AiHello automatically extracts new keywords from your auto, broad, and phrase campaigns without the stress of reviewing search term reports.<\/p><p>These keywords can then be inserted directly into manual campaigns in all match types.<\/p><p>To get started, simply select the campaign you wish to harvest from and connect it to the manual campaign where you want the keywords to be added.<\/p><p><img decoding=\"async\" title=\"how to reduce acos | what is amazon conversion rate | how to become an amazon best seller\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/3ECIu2SA7nPOfm2iYqvK40jFEMwmjK_E9lTf036GVZpPPabLyOs_lBm-D4QXaXnvN_I02kOfYzHXmAohhPcU0Ytcu_AHpxE1ExMNav4ib41Be3cwNOz5zXGpQ1LR04hT21MQqjvM5owN7QcPNdXCi-w\"><\/p><p>Once set up, AiHello will add dozens, or hundreds of new keywords automatically to your manual campaigns each month.\u00a0<\/p><p>It can also negate wasteful search terms that have spent more than the product CAC without generating sales.<br><img decoding=\"async\" title=\"what is amazon sponsored products | is amazon in sweden | how does amazon advertising work\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/SGxhTc0RCT-PaT0gT3iIPQPmT4XYMASHwnXxK8EzH7eOlVo9Ofs3tZG0jW0qoPtVjfnvtMXvvGNaFn_qp5gVb9eD6t-JzYupEsszxgYxzc0UFGI70WlrL7Pp7yNTJ-FJ5VYVQyFXgPXlTaQnz4LR3mw\"><\/p><p>For example, if your benchmark is set at 1.7\u00a0 and your cost per customer acquisition is $5, AiHello will automatically negate any keyword that spends $8.5 ($5 x 1.7) without making a sale.<\/p><h3 id=\"dayparting\" class=\"wp-block-heading ah-process-heading ah-process-3\"><span class=\"ez-toc-section\" id=\"Dayparting\"><\/span>Dayparting<span class=\"ez-toc-section-end\"><\/span><\/h3><p>Dayparting lets you adjust bids during specific periods to boost sales and lower your Amazon advertising costs.<\/p><p>This is especially useful for products in categories that do better at certain periods of the day or week.<\/p><p>For example, if your product\u2019s sales decrease and advertising costs go up on weekends, you can automatically reduce bids during the weekends with dayparting.<\/p><p>We used this strategy to decrease a client&#8217;s ACoS from 30% to 22.66% in 4 months.<\/p><p><img decoding=\"async\" title=\"what is the most sold item on amazon | when does amazon vine add new items | how to optimize my amazon sales page\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/JCEcyZ4Ej_WnC9tpqq1nDgUq85RCArj10OLPU3E90U6iGuLJo2W3CvegQK2c_rfaCqztBDegwQm8mpn2UJQctKYLsJLjux7PIZyRKoI16X6RQjc_Gc8ECxGc3H8Q9ZFlI42BCwHRca4H77uksQbIVQc\"><\/p><p>To get started, you need to first identify hours of the day when your sales are highest.<\/p><p>Analyzing your business reports can help you pinpoint these. We suggest using 5-20 days&#8217; worth of data for accuracy.<\/p><p><img decoding=\"async\" title=\"is it easy to sell books on amazon | what is the most popular product on amazon | how to boost amazon sales\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/HrJ_NkJnPeFWQljtx9RizKRgN152T9bEM8RzCNoHSTZ8fKaAPnDd8ctcQ-Xj675KkVgWHwqj5LlrZE0Qmsb9SnWEkJgMeW8BFcINMhm6oiVNKea8wx_UvYPlzxhMNuMQv5Dzu85IdBIqCrURFvfYe9o\"><\/p><p>Once you&#8217;ve identified your peak hours, navigate to the campaign manager to choose the campaign you want to use dayparting for.<\/p><p><img decoding=\"async\" title=\"how to start amazon business in canada | how dsps use ai | how to sell in amazon europe\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/o4WMo_WdS_e0VVmX1a-zZsDprAAOylnLKGNW_Kkd_zywqVw0vJrawMBV3elKP4FaothDSKoh4NJ-BEVwPv8LvECYCOepM09bs1Ilit5GfvmT0FbcdoLBZigxEUc5JU6CwPp8ica_DFM4e1ptY7Vahs4\"><\/p><p>Next, select &#8220;budget rules&#8221; and add a schedule-based budget rule to optimize spending during the peak periods you\u2019ve identified.\u00a0<\/p><p>You can also manually pause\/unpause campaigns during peak\/non-peak hours.<\/p><p><img decoding=\"async\" title=\"what are the top 10 best selling books right now | how to use amazon brand analytics | how to create product listing on amazon\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/cFdo_xU5oQP9y9K6_tUa-W9yiInzlQdkMq-098czmXyx7_sMKM6dIarO4CImHzECAY3ZDE4Kv0DjTDgVTBjUSSKEmtzHxSvCayPU0ToCJXbJvLZXbEQVIwF8_xzJtBbM4LIa1q8oDKzPTa9f2krjAus\"><br><img decoding=\"async\" title=\"what is listing optimization in amazon | how much does it cost to advertise on amazon | how to start business with amazon india\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/alt9FCmAQJa3MlnuDRH4Gicg-m5z90xNP7fuMBNKd-KUNX3Ihh2NNg2fJ3WPExkPP8ZKZ24P28o2cE00UQ-tp4wda-m38yPfHeRDl3djZm46OC1JZc-6-XUd9gF5mbgWb_iqMOqxiHh5UvcEKQnEnj0\"><\/p><p>The main limitation of this method is that the data you get is for the whole account, and each product might have its own high-performance hours.<\/p><p>So while one product might do great on weekends, another might do better on Mondays at 4 pm.<\/p><p>To really know when each product sells best, you&#8217;d have to check its individual sales history, and that&#8217;s difficult.<\/p><p>Additionally, setting budget rules for all your products one by one can take a lot of time, especially if you have a large catalog.<\/p><p>But <a href=\"https:\/\/www.aihello.com\/\">AI tools like AiHello<\/a> can solve these challenges.<\/p><p><img decoding=\"async\" title=\"how to boost sales on amazon | is fba worth it | is amazon in sweden\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/vtjsNzTT6S4crPVnG1D2o2MZH26nvS5O6-8FN_IvtPDxlHUzo-gwUX9A-dpWPv8QLAHIWPjn32XfUdEomysKQaFXAOwdZYYHd_SezH8gdZHmOYrvDVgOYaTpFh4iIyUcciNAl59qsSiFmy3DDAs4LFE\"><\/p><p>AiHello tracks relevant metrics such as ACoS, CPC, and CVR on an hourly basis using Amazon Marketing Stream at a product level.<\/p><p>Using this data, it adjusts bids intra-day for optimal ad performance.<\/p><p>This automated approach ensures maximum budget efficiency across your entire catalog, costs you less time, and eliminates the stress of manually setting up budget rules for each product.<\/p><h3 id=\"focus-on-profitable-products\" class=\"wp-block-heading ah-process-heading ah-process-4\"><span class=\"ez-toc-section\" id=\"Focus_on_Profitable_Products\"><\/span>Focus on Profitable Products<span class=\"ez-toc-section-end\"><\/span><\/h3><p>This strategy is built on the popular rule that 20% of efforts produce 80% of results.<\/p><p>So instead of promoting your entire catalog, you concentrate on maximizing the potential of the top 20% of products that generate 80% of your revenue.<\/p><p>This sounds counter-intuitive but it\u2019s how we grew one of our businesses from $60k\/month to $250k\/month and reduced the ACoS from 45% to 20%.<\/p><p><img decoding=\"async\" title=\"how to get a good acos on amazon | what are the tools helpful in optimizing amazon ads for profit not just sales | how to earn money from amazon\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/frXPt8qJGFzMGFldvP0SipxDfH_HkS5hq88arUNxtx31_oiLHCqhEUOcAn4yb3mXJP9NIYB3hgzHcY-pecNJ8Fcwswrs5hdSK6ugOxt18tu0OByJVlrgVri7CZGQlJaNvSbxL_iEdsF0Lb82_eCW_d4\"><br><img decoding=\"async\" title=\"how to increase my amazon sales | how to increase conversion rate amazon | what is the amazon a9 algorithm?\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/qrw4J2Nf1UKJ-UM9Vcgu5UtL_nZMGruLllhRDXooXFBevoAT1PyvVazFWmg8ZXnB6GHiLL7vBJ5SM_mCzoGhWPyxgjtvXNJIMDlD72Oiswj6XCMshXlLnTwDg8eN10Pl3LujT8h1lPUVOaLBZsR_03o\"><\/p><p>Before we started working with them, they were spending $25k\/month on a mix of profitable and unprofitable ASINs.\u00a0<\/p><p>Once we took over, we grew their ad spend to $50k\/month,, $46k of which went to a single ASIN.<\/p><p>This ASIN had the best reviews, CVR, and search volume &#8211; much higher than many of the other products combined.<\/p><p>It was also spending only 20% &#8211; 30% of the budget yet producing 80% of total sales, so we went all in.\u00a0<\/p><p>Today, the ASIN does multiple 7 figures in sales.<\/p><p>Here\u2019s how you can use the same strategy to increase your sales and reduce your TACoS:<\/p><p>Go to business reports and order all your ASINs by sales.\u00a0<\/p><p>Then list the top products that together produce 80% of your revenue.<\/p><p>Next, go to the \u201cproducts\u201d section in the campaign manager to check their sales and spend contribution.<\/p><p>You need to identify ASINs that have higher sales than spend contribution.<\/p><p><img decoding=\"async\" title=\"what does acos mean | will amazon be a representative in germany | is amazon fba worth it 2021\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/bWpLM8zwsGw7mtgv8B33vurwJ8S_Rf0xwuzO0Dz8KzVohkY9yZ-wtTac-f4ZzO4IQAE_1MW2i1KmVwbBy8mt9y961lYe1IgHGJhQ1IINJhy-dcJNiJkeXU1ZhKQZpI33yHQVU-oBQmVczfhoK3rYI1Q\"><\/p><p>Then use Helium 10 to see how much their top 5 competitors sell. This will help you determine whether or not these ASINs have the potential to grow.<\/p><p><img decoding=\"async\" title=\"what is your amazon advertising strategy | how to make money selling books | how to make money recommending amazon products\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/ukU5alo1JwkYXxG4LX9Ei7ddSuH_CXflJ5T3bFXOAYtnLP8vA3-_qOP_QyMZtToV1muRX4nuJz-7uV5pNR4zfZ7LiAiqSi573zWOXYMqCtao2MgD0Xc6eavHg91bY61oi9g7DerRW5Wvkwedng151QE\"><\/p><p>Once you discover a high-performing ASIN\u2014where top competitors are selling at least 2-5 times more than you, invest more money into it.<\/p><h3 id=\"get-more-reviews\" class=\"wp-block-heading ah-process-heading ah-process-5\"><span class=\"ez-toc-section\" id=\"Get_More_Reviews\"><\/span>Get More Reviews<span class=\"ez-toc-section-end\"><\/span><\/h3><p>Positive reviews can improve your CVR, leading to more sales and lower TACoS.<\/p><p>This is because they increase trust and help shoppers decide to buy your product faster.<\/p><p>For example, one of our newly launched products went from $0 to $12k in sales at a 26% ACoS thanks to reviews.<\/p><p><strong><img decoding=\"async\" title=\"how to add search terms in amazon | how to research keywords for a kindle niche | how to get your product noticed on amazon\" style=\"width: 800px;\" src=\"https:\/\/lh7-us.googleusercontent.com\/avlA03TybLR7B2GRfk0RCLVqxevBCDFgy9hYxE5cNa9RYOCXRYkt6_ILEjTNJei_Otf4frswEygw5vm0sPLDMSKWwijeGaT7sR3gaCql1C1FO3YwSs5Pc0NTT4yRh--b-gswPfT1NfPs5FoL3XfQVhk\"><\/strong><\/p><p>We enrolled it in the Amazon Vine program immediately after we launched, and we didn\u2019t run a single advertising campaign for it until we had gotten more than 20 reviews.<\/p><p>This increased our conversion rate and helped us avoid the super high ACoS sellers experience when running ads for a new product.<\/p><p>In addition to signing up for the Amazon Vine program, you need to offer good products and customer service to get as many positive reviews as possible.<\/p><h2 id=\"wrapping-up\" class=\"wp-block-heading ah-numbered\"><span class=\"ez-toc-section\" id=\"Wrapping_Up\"><\/span><strong>Wrapping Up<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p class=\"wp-block-paragraph\">Mastering the optimization of Amazon advertising costs is a fundamental step toward maximizing the ROI of your ad spend.<\/p><p class=\"wp-block-paragraph\">By applying the practical <a  data-ilj-link-preview=\"true\"  data-featured-image=\"https:\/\/www.aihello.com\/resources\/wp-content\/uploads\/2022\/06\/mistake-300x215.jpg\"  data-excerpt=\"Master Amazon SEO to beat competition! Learn how the A10 search engine works and discover strategies to boost your product rankings and sales on the Marketplace.\" href=\"https:\/\/www.aihello.com\/resources\/blog\/amazon-seo-strategy-tips-and-tricks-for-beginners\/\">tips<\/a> shared in this article, you&#8217;ll be well-equipped to efficiently handle the cost of Amazon advertising and ensure that your investments yield the best possible ROI.<\/p><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>Optimize your Amazon advertising cost! Master ad budgets, competitive bids, and key metrics to counter rising spend and maximize your Amazon PPC profits.<\/p>\n","protected":false},"author":21,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_gspb_post_css":".gspb_container-id-gsbp-f10192-1,.gspb_container-id-gsbp-f10192-2,.gspb_container-id-gsbp-f10192-3{flex-direction:column;box-sizing:border-box}#gspb_container-id-gsbp-f10192-1.gspb_container>p:last-of-type,#gspb_container-id-gsbp-f10192-2.gspb_container>p:last-of-type,#gspb_container-id-gsbp-f10192-3.gspb_container>p:last-of-type{margin-bottom:0}#gspb_container-id-gsbp-f10192-1.gspb_container.aos-animate,#gspb_container-id-gsbp-f10192-1.gspb_container[data-gs-aos],#gspb_container-id-gsbp-f10192-2.gspb_container.aos-animate,#gspb_container-id-gsbp-f10192-2.gspb_container[data-gs-aos],#gspb_container-id-gsbp-f10192-3.gspb_container.aos-animate,#gspb_container-id-gsbp-f10192-3.gspb_container[data-gs-aos]{opacity:1;transform:translateZ(0)}#gspb_container-id-gsbp-f10192-1.gspb_container,#gspb_container-id-gsbp-f10192-2.gspb_container,#gspb_container-id-gsbp-f10192-3.gspb_container{position:relative;transition-duration:.5s;transition-timing-function:var(--gs-root-animation-easing, cubic-bezier(0.42, 0, 0.58, 1));opacity:var(--gs-root-animation-opacity, 0);transition-property:opacity,transform,filter;box-sizing:border-box}","footnotes":""},"categories":[1,971,89,620,906,737],"tags":[1089,608,173,171,1090,1087,220,1088],"republish_tag":[],"class_list":["post-10192","post","type-post","status-publish","format-standard","hentry","category-advertising","category-aihello-autopilot","category-amazon","category-amazon-ppc-advertising","category-amazon-seller-tips","category-starting-out","tag-ai-ppc-automation","tag-aihello-autopilot","tag-amazon-ads","tag-amazon-advertising","tag-amazon-advertising-optimization","tag-amazon-ppc-strategy","tag-amazon-selling","tag-cost-per-click-amazon"],"_links":{"self":[{"href":"https:\/\/www.aihello.com\/resources\/wp-json\/wp\/v2\/posts\/10192","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.aihello.com\/resources\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.aihello.com\/resources\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.aihello.com\/resources\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/www.aihello.com\/resources\/wp-json\/wp\/v2\/comments?post=10192"}],"version-history":[{"count":2,"href":"https:\/\/www.aihello.com\/resources\/wp-json\/wp\/v2\/posts\/10192\/revisions"}],"predecessor-version":[{"id":14234,"href":"https:\/\/www.aihello.com\/resources\/wp-json\/wp\/v2\/posts\/10192\/revisions\/14234"}],"wp:attachment":[{"href":"https:\/\/www.aihello.com\/resources\/wp-json\/wp\/v2\/media?parent=10192"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.aihello.com\/resources\/wp-json\/wp\/v2\/categories?post=10192"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.aihello.com\/resources\/wp-json\/wp\/v2\/tags?post=10192"},{"taxonomy":"republish_tag","embeddable":true,"href":"https:\/\/www.aihello.com\/resources\/wp-json\/wp\/v2\/republish_tag?post=10192"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}