If you’re looking for a simple, beginner-friendly explanation of Amazon PPC, this guide will walk you through everything you need to know: what Amazon PPC is, how the system works, how much it costs, and the exact steps to launch your very first campaign.
This guide is intentionally written for sellers who want clarity, not complexity — especially those launching a first product or testing PPC for the first time.
By the end, you’ll understand:
- What Amazon PPC actually does
- How bidding and placements work
- How much PPC realistically costs
- The difference between automatic and manual campaigns
- How to launch your first PPC campaign correctly
- What mistakes beginners need to avoid
Let’s break it down step by step.
What Is Amazon PPC? (Beginner-Friendly Explanation)
Amazon PPC (Pay-Per-Click) is Amazon’s internal advertising system that shows your product at the top of search results, on competitor listings, and within placements across the platform. When a shopper searches for a keyword, Amazon decides which products appear in prime positions — and PPC is the mechanism behind those placements.
The most important thing to understand is this:
You only pay when someone clicks your ad — not when they see it.
This is where the “pay-per-click” model becomes powerful. If nobody clicks your ad, you pay £0.00.
If someone clicks and your bid is £0.70, you pay £0.70.
Amazon PPC accelerates:
- Initial visibility
- Early sales velocity
- Organic ranking
- Listing discovery
- Keyword data gathering
This is why beginners use PPC. Without it, you rely on organic traffic — which is slow, inconsistent, and competitive.
Why Amazon PPC Matters for New Sellers
For beginners, Amazon PPC isn’t optional — it’s foundational. Here’s why:
1. Organic ranking doesn’t happen without PPC
Your product starts with zero visibility. Without paid traffic, Amazon has no reason to rank you.
2. Amazon rewards sales velocity
When your PPC keywords convert, Amazon boosts their organic rank — which means cheaper sales long-term.
3. PPC produces data you cannot get anywhere else
Search terms, click costs, conversion rates — this is how you learn what buyers actually want.
4. Competitors are using PPC
If your competitors are bidding and you aren’t, you lose visibility by default.
This is why PPC is often described as “launch infrastructure” rather than optional marketing.
How Amazon PPC Works (The Simple Version)
When someone searches “stainless steel water bottle,” Amazon runs a real-time auction. Sellers bidding on the keyword compete for ad placements.
But here’s the part most beginners get wrong:
The highest bid does NOT automatically win the auction.
Amazon considers a mix of:
- Keyword relevance
- Listing quality
- Click-through rate
- Conversion rate
- Historical performance
- Customer experience
This means a strong listing can often win placements at a lower cost compared to weaker competitors.
Amazon’s goal is NOT to show the highest bidder. Amazon’s goal is to show the product most likely to get the sale.
Where Amazon PPC Ads Appear
Your ads can show in three primary formats:
1. Sponsored Products
These are the most common. They appear:
- At the top of search results
- Within the search feed
- On product detail pages (competitors’ listings)
2. Sponsored Brands
Banner-style ads that appear above search results. Mostly used by established brands.
3. Sponsored Display
Used for retargeting and cross-category exposure.
For beginners, the focus is almost always:
➜ Sponsored Products campaigns only
Because they are simpler, cheaper, and directly tied to keyword intent.
How Much Does Amazon PPC Cost? (Realistic Numbers for 2024–2025)
Cost depends on your niche, competition, and product price — but here are realistic averages for beginners:
CPC (Cost-Per-Click):
£0.30 – £1.00 per click in most categories
Daily Budget:
£10 – £20 per day to start safely
Beginner ACOS Range:
30% – 50% (perfectly normal in learning phases)
Launch Objective:
Not profit. Not low ACOS.
Your goal is data — discovering:
- Which keywords bring traffic
- Which keywords bring sales
- Which keywords waste money
Once you have data, you can optimise toward profitability.
Automatic vs Manual Campaigns (Beginner Breakdown)
Automatic Campaigns
Amazon chooses which keywords your ad appears for.
Pros:
- Fastest discovery system
- Quick to set up
- Great for early keyword research
Cons:
- Amazon may target irrelevant keywords
- Requires negative keywords
- Less control
Manual Campaigns
You choose the exact keywords, match types, and bids.
Pros:
- Highest control
- Easier optimisation
- Best long-term performance
Cons:
- Requires keyword research
- Needs more management
Which should beginners use?
Both.
The best starter structure is:
✔ 1 Auto Campaign (for discovery)
✔ 1 Manual Exact Match Campaign (for control)
✔ 1 Manual Phrase Match Campaign (for variations)
This gives you perfect balance: Amazon learns, and you optimise.
How to Launch Your First Amazon PPC Campaign (Step-by-Step Guide)
This is the part most beginners get wrong — so follow this sequence exactly.
Step 1: Choose Your Core Keywords (10–15 Terms)
Pick the most relevant, high-intent keywords for your product.
Example for “insulated water bottle”:
- insulated water bottle
- stainless steel water bottle
- metal water bottle
- thermal water bottle
- reusable water bottle
These become your manual campaign foundation.
Step 2: Launch Your Automatic Campaign
Navigation:
Campaign Manager → Create Campaign → Sponsored Products → Automatic Targeting
Settings:
- Daily Budget: £10–£15
- Bidding Strategy: Dynamic bidding (down only)
- Placements: Leave default
- Negative Keywords: Add obvious low-intent terms (“free”, “DIY”, “replacement”)
Auto campaigns will gather the early data you need.
Step 3: Launch Your Manual Campaign (Exact Match)
This is your highest-intent, most profitable targeting.
Steps:
- Create new Sponsored Products campaign
- Select manual targeting
- Add exact match keywords
- Set bids slightly below Amazon’s suggestion
- Use a £10–£15 daily budget
This campaign will show you which keywords truly convert.
Step 4: Launch Your Manual Campaign (Phrase Match)
Phrase Match allows keyword variations.
Example:
“insulated water bottle” → can trigger for
- “blue insulated water bottle”
- “kids insulated water bottle”
- “large insulated water bottle”
Why this matters:
- Phrase match expands your reach
- Helps you find profitable sub-niches
- Cheaper than broad match
Keep bids moderate.
Step 5: Wait 3–7 Days Before Making Changes
Beginners often panic and adjust too soon.
Let campaigns run to collect enough meaningful data.
Step 6: Review Your Search Term Report
This is where optimisation begins.
Focus on:
1. Converting Keywords: Increase bids by 10–25%.
2. Expensive Non-Converters: Lower bids or add negatives.
3. Irrelevant Search Terms: Add as negative exact keywords.
4. New Discoveries: Move good search terms into your manual exact campaign.
This loop — test → measure → optimise — builds long-term PPC profitability.
Beginner Mistakes to Avoid
These mistakes cost sellers money every day:
❌ Using only automatic campaigns
You miss control, structure, and profitability.
❌ Ignoring negative keywords
Irrelevant clicks drain budgets fast.
❌ Treating suggested bids as the “right” bids
Amazon’s suggestions are high — you must test.
❌ Expecting immediate profits
Launch phases are for data, not profit.
❌ Not fixing the listing first
Bad images, weak titles, and poor reviews make PPC impossible.
❌ Turning off campaigns too early
You need meaningful data before making decisions. Avoid these, and your PPC performance will improve dramatically.
Is Amazon PPC Worth It for Beginners?
Yes — and here’s why:
1. You can’t rank without traffic: Ads feed the algorithm.
2. PPC creates momentum for organic sales: Your organic rank improves as your PPC keywords convert.
3. PPC exposes real buyer behavior: You learn which keywords matter and which don’t.
4. PPC validates your product and pricing: If you don’t convert, you quickly learn why.
5. PPC is cheaper than waiting: Every day without PPC is a day without data.
PPC is not optional — it’s part of the operating system for selling on Amazon.
Final Thoughts: Your First Campaign Doesn’t Need to Be Perfect
Most beginners waste money not because PPC is hard — but because they start with the wrong structure.
If you follow:
- Auto + manual exact + manual phrase
- Proper bidding
- Keyword relevance
- Search term optimisation
…you’ll be ahead of 90% of new sellers.
Your first campaign will teach you more than any tutorial ever could.
Start simple.
Start structured.
Start smart.
Amazon PPC rewards consistency — and the earlier you start, the faster you grow.