Did you know that nearly half of Amazon sellers generate only $1,000–$2,500 per month in revenue? Breaking out of that range requires more than just a well-optimized listing—it demands a smarter growth strategy. That’s where Amazon Ads (formerly Amazon Marketing Services, or AMS) comes in.
Amazon Ads is a powerful pay-per-click (PPC) advertising platform designed specifically for sellers who want to stand out in Amazon’s highly competitive marketplace. With millions of products vying for shopper attention, relying on organic visibility alone is no longer enough.
Through strategic keyword and product targeting, Amazon Ads ensures your listings appear at the exact moment shoppers are searching for what you sell—dramatically increasing the likelihood of conversion. From Sponsored Products and Sponsored Brands to Sponsored Display, Amazon Ads offers a full suite of ad solutions to boost visibility, accelerate sales, and scale your business.
How Does Amazon Marketing Services Work?
Amazon Marketing Services runs on a straightforward pay-per-click (PPC) model. Think of it like this – you create targeted ad campaigns and only pay when someone clicks. In practice, it works in a few simple steps
- Set up a campaign with your goals. Decide what you want (more sales, brand awareness, etc.) and pick an ad type (Sponsored Products, Brands, or Display).
- Amazon displays your ads to relevant shoppers. Based on your keywords, products, or audience targets, Amazon will show your ad in search results or on product pages
- You pay per click, not per impression. Only pay when someone actually clicks your ad ( the PPC model)
- Use the data to optimize. Amazon provides analytics on clicks, sales, and ACoS (Advertising Cost of Sales). You review this data to tweak bids, keywords, and budgets for better ROI.
By continuously refining campaigns based on performance insights, AMS helps you improve ROI and reduce wasted ad spend. In other words, you get smarter and more efficient with each campaign cycle.
Key Benefits of taking Amazon Marketing Services
Using AMS offers clear advantages for any Amazon seller. Some of the biggest benefits are:
- Increased product visibility. Paid ads appear above organic results on Amazon. That means your sponsored products can show up on page one for target keywords, giving you exposure you wouldn’t get otherwise.
- Higher conversion rates. AMS targets shoppers who are already searching for products like yours. These customers have high purchase intent, so ads tend to convert much better than general display ads on other platforms.
- Better brand awareness. Sponsored Brands (banner ads with your logo) and Sponsored Display ads keep your brand in front of customers. These formats let you showcase multiple products or run video ads, which boosts brand recognition
- Advanced targeting options. Amazon lets you target by keywords, product categories, interests, or even by shopping behaviors and demographics. This precision means your ads reach the right customers, not just anyone.
- Measurable, data-driven results. Amazon’s analytics are detailed. You can track clicks, sales, ACoS, and more in real time. This data lets you adjust your strategy quickly – for example, adding negative keywords or reallocating budget to winning products.
- Competitive edge. Investing in AMS helps you outbid competitors on crucial terms. If you’re competing in a crowded niche, ads ensure your products show up before others, helping you gain market share..
Many sellers find that even a well-optimized listing gets little traction without ads. A smart AMS campaign can make all the difference in long-term success on Amazon.
Popular Ad Types in Amazon Marketing Services
AMS includes several ad formats, each serving a different goal:
- Sponsored Products Ads: These are the most common PPC ads. They promote individual product listings. When a shopper searches for a keyword you bid on, your product appears (often near the top) just like an organic result. These ads blend seamlessly with search results – customers often don’t even realize they’re looking at an ad. They’re ideal for driving immediate sales of a specific product.
- Sponsored Brands Ads: Formerly called “Headline Search Ads,” these appear as banner ads at the top of search results. They feature your brand logo and multiple products in one ad Sponsored Brands are great for increasing brand awareness and cross-selling, since you can showcase up to three products and even include a custom headline or video.
- Sponsored Display Ads: These are retargeting ads that can appear both on Amazon (e.g. on related product pages) and off Amazon (third-party sites and apps). They specifically target customers who have viewed or searched for products like yours. Sponsored Display is perfect for recapturing interest – for example, reminding a shopper about a product they looked at but didn’t buy.
- Amazon DSP (Demand-Side Platform): For larger brands with bigger budgets, the DSP lets you programmatically buy video, display, and audio ads across Amazon properties (like IMDb) and external sites. It’s a more advanced solution for reaching broad audiences beyond Amazon’s site.
Each ad type has its strengths. As a beginner, most FBA sellers start with Sponsored Products and maybe Brands. (These formats account for the bulk of AMS usage.)
Sponsored Products ads blend into Amazon’s search results. Shoppers often don’t realize they’re viewing an ad – in fact, Sponsored Products are the most preferred Amazon ad format among consumers. This stealthiness lets your product stand out naturally: when someone searches for “wireless earbuds,” for example, your sponsored earbuds ad can appear at the top with a small “Sponsored” label. Because these ads look like normal search results, they drive high click-through rates and sales.
Real-Life Success Story
AMS isn’t just theory – it delivers real results. For example, Roomify, a startup furniture brand, used a targeted Amazon ad campaign to jump-start sales. By optimizing listings and running Sponsored Products ads on their key SKUs, they saw sales skyrocket: total revenue increased 273%, with 80% of that growth coming directly from the AMS ads. Their ACoS (Advertising Cost of Sales) also dropped by half while sales doubled.
In the chart above, notice the 273% increase in revenue (orange bar) and the 50% drop in ACoS (blue line) after ads were launched. This case shows how, in just a few months, AMS turned the tide for a new seller. By getting their products in front of more buyers, Roomify not only gained immediate sales but also improved their organic ranking – half of their sales were coming from Amazon in just the third month.
If your products are good but languishing on page 2 or 3, AMS can help push you to page 1 where the sales are. Many sellers (including some I’ve worked with) see a dramatic bump in weekly sales once their campaigns are dialed in. The key is targeting the right keywords and continually optimizing based on the data.
Getting Started with Amazon Marketing Services
Ready to dive in? Setting up an AMS campaign is simple. Here’s a quick roadmap:
- Access the Amazon Advertising console. Log into your Seller Central account and click on the “Advertising” tab. This opens the Campaign Manager where you create and manage ads.
- Choose your ad type. Most new sellers start with a Sponsored Products campaign, since it’s easy and drives direct sales. If you have a registered brand, also experiment with Sponsored Brands.
- Select products and keywords. Pick the product listing(s) you want to advertise, and choose relevant keywords (or let Amazon suggest them). You can start with Automatic Targeting (Amazon picks keywords for you) to gather data, or Manual Targeting if you have specific terms in mind.
- Set bids and budget. Decide how much you’ll pay per click (your bid) and how much you’re willing to spend each day. Amazon will only charge up to your bid when someone clicks. (For example, a $1.00 bid means you’ll never pay more than $1.00 for a click.)
- Launch and watch it run. Once your campaign is live, Amazon will begin showing your ads to shoppers. In the first few days, don’t panic over data – just let it accumulate clicks and impressions.
- Monitor performance and optimize. After your ads have run a bit, check the Campaign Manager. Key metrics to watch are Click-Through Rate (CTR), Conversion Rate, and ACoS (Advertising Cost of Sales). Identify which keywords and products are performing. Pause underperforming keywords, add negative keywords to cut irrelevant clicks, and increase bids on your top performers. Continual tweaks like this improve profitability over time.
- Refine your targeting. If a keyword is getting clicks but not conversions, consider using it in a manual campaign or lowering the bid. If a product listing isn’t converting well, review the listing itself (titles, images, reviews) – better listings and images can dramatically improve ad ROI.
Each campaign can be broken into multiple ad groups and used for different products or goals. As you get comfortable, try testing different strategies: one approach is to use an automatic campaign to discover good keywords, then harvest those into a manual campaign for precise control.
Expert Tips for Success
- Start with your best products. Focus ad spend on listings that have great reviews, clear images, and a price point that sells. AMS will only amplify what’s already working.
- Use negative keywords. This prevents your ads from showing on irrelevant searches. For example, if you sell premium headphones, add “cheap” as a negative keyword to avoid bargain hunters.
- Leverage brand advantages. If you use Fulfillment by Amazon (FBA), emphasize Prime eligibility. Shoppers see Prime tags and are more likely to buy. Your ads are even more powerful when the product ships fast for free.
- Experiment with budgets. In a new campaign, it’s okay to spend modestly at first (e.g. $20–$50/day) to gather data. Once you see which ads perform, you can safely scale up your daily spend on proven keywords.
- Stay patient and data-driven. It often takes a week or two of data before you know what’s working. Use Amazon’s reports (search terms, placement reports) to guide your decisions.
By treating AMS as an ongoing strategy rather than a one-time fix, you’ll gradually improve. Think of it like a snowball – the results compound as you refine your targeting and bids.
Amazon Marketing Services (Amazon Ads) is a must-have tool for any FBA seller who wants to boost sales. It puts your products in front of customers with high purchase intent, at exactly the right moment. We’ve seen how even small brands can explode their growth using AMS – as in the furniture brand example where revenue jumped 273%.
If you’re serious about growing your Amazon business, now is the time to take action. Don’t let your products stay invisible on page 3: start an AMS campaign today. Log into Seller Central, open the Advertising console, and give it a try. Remember, every successful Amazon business today was once where you are – the difference is that they embraced targeted ads.
Ready to get started? Launch your first Amazon ad campaign this week and track the results. If you need extra help, consider partnering with an experienced Amazon PPC Agency, Growthxllc, who can manage your campaigns and maximize your ROI. With the right strategy and a bit of budget, Amazon Marketing Services can become the engine that drives your FBA success. Go ahead – your customers are out there searching, waiting to discover your products!