Amazon is one of the largest product discovery and shopping platforms globally, with millions of high-intent shoppers searching every day.
For ecommerce sellers and advertisers, this offers real-time access to a vast, ready-to-buy audience. The key advantage? Most shoppers on Amazon are already deep in their purchase journey. Advertising here means reaching the right customers when they’re most likely to convert.
In this blog, we look at why Amazon advertising is a must-have strategy in 2025, how different ad types impact visibility, and the key tactics sellers can use to improve rankings, scale performance, and grow profitably on the world’s biggest ecommerce stage.
Why advertisers cannot ignore Amazon ads in 2025
Research shows that the average conversion rate for Amazon Ads is approximately 9.5 to 10%, significantly outperforming the average ecommerce conversion rate of around 1.33% on non-Amazon platforms.
This high conversion rate is attributed to Amazon’s ability to target users who are deep in the decision-making phase, increasing the likelihood of purchase and making it attractive to sellers.
Aside from this, Amazon’s algorithm is designed to promote:
- Products that are already selling well, and
- Clearly match what customers are looking for
So when you run ads, it directly influences both of these factors, which in turn influence your organic rankings.
Amazon’s unique edge lies in its first-party data. Advertisers get insights into shopping behavior from the data collected directly from customers who use Amazon and its services. You get to target specific customer groups, customize the data for advanced analytics, and even track off-Amazon conversions.
How to get seen: Winning visibility in competitive categories
The average customer probably sees dozens of listings for a single search. This is not surprising since it is common for thousands of brands to sell similar products on Amazon, sometimes even in the same price range.
To stand out, you would need a strong strategy that drives visibility for your products.
But before we dive into this, it is important to understand how different Amazon ad types impact visibility.
What are the different types of Amazon-sponsored ads, and how do they work
1. Sponsored Products
These are targeted ads that appear in search results and product detail pages. They are shown to shoppers actively searching for a product. Sponsored Products can be used to capture high-intent traffic and drive direct conversions.
For example, if a shopper searches “wireless earbuds,” your Sponsored Product ad can show up at the top of search results if you bid on that keyword.
2. Sponsored Brands
Sponsored Brands focus on brand awareness and allow businesses to customize ads by including their brand logo, a custom headline, and multiple products within product detail pages and shopping results.
They are great for increasing awareness across your product line and driving traffic to your Amazon store.
3. Sponsored Display
This is a type of display advertising where you can target specific audiences based on their browsing behavior on Amazon. Ads will be displayed on Amazon as well as on third-party websites and apps for a wider reach. You can reach customers who viewed your products but didn’t purchase, or even shoppers browsing competitor products.
Sponsored Display ads can be used to stay top-of-mind and bring shoppers back to your offerings.
4. Sponsored TV
Sponsored TV is Amazon’s premium video ad format that lets brands appear on streaming content via Amazon Freevee, Fire TV, and other connected TV (CTV) placements. These are non-skippable, full-screen ads that reach audiences watching shows, movies, and live sports.
Sellers can use Sponsored TV for building brand awareness at the top of the funnel, especially for launches or seasonal campaigns.
Key levers to boost visibility and sales on Amazon
1. Understand Amazon’s A9.
The Amazon A9 algorithm is the system that determines which products should rank within search results. Since Amazon’s goal is to sell products, the algorithm will prioritize products with high-performing ASINs (Amazon Standard Identification Number).
The A9 algorithm also prioritizes listings based on:
- Keyword relevance: How relevant the keywords used in your listing match a search query
- Sales velocity: How often are your products being searched for, viewed, and purchased
- Conversion rate: How many views or impressions are converting into actual sales
When you understand these ranking signals, you can optimize your listing and advertising strategy to trigger them. For example:
- Identifying high-volume, relevant keywords and incorporating them into your product title, bullet points, description, and backend search terms enhances your Amazon SEO.
- Driving immediate traffic to your listings with high-intent, keyword-targeted ads. This helps generate initial sales, which signals popularity to Amazon’s algorithm.
Optimizing your listings for conversions by working on product images, title, bullet points, description, A+ content, and price, and growing your review count.
💡Pro Tip: Use Optmyzr’s automated reports to identify keywords that are bringing in the most visibility and sales so you can prioritize them in your product listings. You can use pre-built strategies in Optmyzr’s Rule Engine to automate the report delivery so you don’t need to manually set up anything. |
2. Study competitor pricing strategy.
Amazon shoppers often view multiple product listings to compare prices before making a purchase. If your pricing does not match your customers’ expectations or what your top competitors are offering, you risk losing clicks and sales.
To improve your pricing strategy:
- Benchmark against top sellers in your category
- Look for patterns in your competitor’s pricing strategy, like bundles, coupons, or other interesting strategies like psychological pricing ($1.99 vs $2.00)
- Adjust pricing strategically to reflect the product’s value relative to others in the same category
3. Use Sponsored Brands and Sponsored Display strategically.
Sponsored Product ads are displayed to shoppers who are actively searching for a product, making them great for conversions. But if you’re in a crowded market, it’s very important to build brand recognition and trust.
A stronger strategy may look like this:
- Sponsored Brands include prominently placed ads that can improve brand awareness and engage shoppers
- Sponsored Display keeps your brand top-of-mind by retargeting shoppers who viewed your product or similar ones.
This allows you to cover every stage of the buyer journey, improving visibility and conversions, especially in competitive categories.
💡Pro Tip: Optmyzr allows you to identify campaigns hitting budget limits— ones that could scale further if given more budget. You can then use Optimize Budgets to allocate more budgets to these high-potential campaigns. |
4. Maintain stock availability.
One of the most important principles when selling on Amazon is that you don’t run out of stock. However, unexpected spikes in sales or port delays can cause stockouts even for the most well-planned brands.
During such instances, it’s important to pause your ads before your stock runs out.
While Amazon automatically stops ads once a product is out of stock, proactively pausing them helps preserve margin and gives your incoming inventory time to be received and restocked, avoiding wasted ad spend and poor customer experience.
You can set up a strategy on Optmyzr’s Rule Engine to automatically turn off ads when your inventory levels are running low.
Define the threshold for low inventory using your preferred metric, such as days of supply, and link a Google Sheet that lists ASINs below that threshold. Campaigns associated with those ASINs can be paused until inventory recovers.
You can also create a complementary rule to re-enable ads once inventory levels rise above the defined threshold, ensuring your campaigns resume without manual effort.
Watch: Supercharge Your Amazon PPC Campaigns with This Toolkit
Using ads can boost organic growth on Amazon
Amazon’s algorithm, like we discussed before, ranks products based on their sales velocity, conversion rates, and customer experience.
There’s a catch, though. New listings will struggle to rank because they lack reviews, sales, and CTR data.
Without visibility, it would be harder to get the momentum needed to improve rankings.
In scenarios like this, using ads can help you kickstart the performance of your listings and help them rank higher. Here’s how you can use them strategically:
- Use Sponsored Products to show up for top-searched terms. Focus on keywords that drive both visibility and conversions.
- Bidding on high-visibility placements helps you win shopper attention even if your organic rank is low.
- Run Sponsored Product and Display ads on competitor listings to keep your brand top-of-mind for shoppers in the consideration stage.
How to amplify what’s working for you
Once you’ve identified what’s driving results, the next step is to double down on high-performing campaigns and product lines. Here’s how brands can scale smartly:
1. Use Amazon ads to amplify top-performing products.
- Scale Sponsored Products with high sales and strong ROI by increasing budgets.
- Use Sponsored Brands to highlight top performers and boost brand recall. Run Sponsored Display to retarget past viewers and reach in-market audiences with winning SKUs.
2. Cross-sell and upsell with Sponsored Brand and Display ads.
- Use Sponsored Brands to showcase products that go well. E.g., Coffee machine + compatible coffee pods.
- Use Display ads to show add-ons or upgrades to shoppers who have already bought a product.
3. Scale profitable campaigns.
- Use the Search Term Impression Share report to find high-converting terms with low impression share. indicate strong performance but limited visibility, which could be due to low bids or budget.
- Increase the budget or bids for campaigns targeting those terms.
4. Use Amazon Attribution to get the full funnel picture.
- Use Amazon Attribution to measure how external channels impact your Amazon sales.
- Scale the campaigns that drive meaningful traffic, conversions, and ranking boosts.
5. Use dynamic bidding and placement adjustments to scale.
- For campaigns that are performing well but struggle with impressions, consider using Dynamic - Up and Down Bids to capture more high-converting impressions.
- If your campaign performs well at the top of search, apply a bid adjustment (e.g., +10%) to win that placement more often. It’s a precise way to boost performance where it matters most.
Power up your Amazon PPC with data-driven automation.
Running Amazon ads in 2025 is a crucial growth lever for e-commerce businesses. Ads can boost organic rankings, improve visibility, and drive high-intent traffic that converts into sales.
However, running successful campaigns on Amazon means making sure you have the right data on what’s working and what’s not and then using those insights to optimize performance and scale your winning strategies.
With automation tools like Rule Engine, budget optimization, and custom reporting, Optmyzr makes it easy to identify high-performing campaigns, scale them intelligently, and eliminate wasted spend.
Sign up for Optmyzr’s free 14-day trial and explore how you can scale your Amazon PPC campaigns for success.
