Amazon Ads

Amazon Ads achieve ~10% conversion rates versus Google Shopping's <2% because users are already in buying mode. The platform works best for ecommerce products with short sales cycles and strong search traffic like consumer electronics, fashion, and skincare. The strategy uses "search-term gradation"—starting with automatic campaigns to gather keyword data, then moving top performers to manual exact-match campaigns for optimization.

Key metrics include ACOS (Advertising Cost of Sales), which should align with product gross margins. The process involves setting low initial bids using the "Inch-Up Method," then applying the target bid formula: (AOV × Conversion Rate) ÷ (1 ÷ Target ACOS). Three main ad types include sponsored products (individual items), sponsored brands (product collections), and sponsored display (remarketing). Success requires continuous optimization through search term reports, negative keyword management, and performance-based bid adjustments. The guide recommends a 70/25/5 budget split across product/brand/display ads respectively.