Web-based software suite to start & grow your Amazon business
Analyze marketplace data while browsing Amazon
A SaaS platform for global voice of customer and product research
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Run campaigns that drive real sales, lower your ACoS, and rank faster on Page 1 — without burning through your budget on clicks that never convert.
Amazon PPC (Pay-Per-Click) is an auction-based advertising system. You bid on keywords, and when a shopper types that keyword into Amazon's search bar, your ad competes for placement. You only pay when someone actually clicks your ad — not for impressions.
But here's what most guides don't tell you: the highest bidder doesn't always win. Amazon's ad algorithm evaluates a combination of bid amount AND relevance signals — including your product's conversion history, CTR, and listing quality. A product with a strong conversion rate can win top-of-search placements at a lower CPC than a competitor bidding more but converting worse.
PPC does two things simultaneously: it drives immediate paid sales (today's revenue) and builds organic ranking (tomorrow's free traffic). Every ad sale increases your sales velocity, which the A10 algorithm uses to push you up the organic results. This compounding effect is why smart PPC management is one of the highest-ROI activities for any Amazon seller.
The most common beginner question — and there's no one-size-fits-all answer. But here's a practical framework:
A critical rule: don't start with the budget you're comfortable with — start with the budget that generates enough data. A $3/day budget on a highly competitive keyword won't get enough clicks to tell you anything meaningful. Under-budgeted campaigns teach you nothing and miss ranking momentum.
Match types control how closely a shopper's search query must match your keyword before your ad appears. Choosing the wrong match type is one of the biggest causes of wasted ad spend.
Most sellers run a single automatic campaign and wonder why their ACoS is 50%+. Profitable PPC requires a structured 3-layer system where each campaign has a specific role:
The key insight: your auto campaign is a data collection machine. Your exact match campaign is a profit machine. Keywords earn their way from one to the other through performance data. Never skip this progression.
Before setting up your campaigns, use SellerSprite's Ad Insights tool to run a Reverse ASIN on your top 3 competitors. Instantly see which keywords they're actively bidding on in Sponsored Products — their budgets, ad positions, and targeting types. This eliminates months of guessing and gives you a proven keyword list to launch with on day one. Use code SSAM35 for 35% off.
Most sellers obsess over ACoS. The sellers who actually scale profitably obsess over TACoS. Here's why they're different — and why both matter.
Your break-even ACoS is the maximum ACoS your product can sustain before ad spend erodes all profit. Know this number before you run a single ad.
Research shows that 20–40% of ad spend in unoptimized accounts goes to irrelevant search terms that will never convert. Negative keywords are the single highest-ROI optimization you can make, and most sellers never use them properly.
Here's how to find them: go to Amazon Seller Central → Advertising → Reports → Search Term Report. Filter for search terms with 10+ clicks and zero orders. Every one of those terms is money you've spent on browsers who will never buy your product. Add them as negative exact keywords immediately.
One of the most powerful — and underused — PPC tactics in 2026 is competitor ad intelligence. If you know exactly which keywords your competitors are bidding on and how much they're spending, you can make smarter decisions about where to compete, where to avoid, and where to take market share.
SellerSprite's Ad Intelligence tool reveals which keywords your competitors are running Sponsored Products on — their ad positions, estimated spend, and targeting types. Stop guessing and start winning with data.
SSAM35
If a competitor is bidding on a keyword they already rank #1 for organically, that keyword is high-converting and high-value. Add it to your campaigns immediately and bid competitively. They know something about that keyword — now you do too.
Using SellerSprite's Reverse ASIN, look for high-volume keywords in your niche where the top sellers have NO sponsored ads. These gaps represent cheap CPC opportunities where you can get top-of-search placement at a fraction of the cost.
In Sponsored Products, you can target competitor ASINs directly — your ad appears on their product detail page. Target ASINs with lower reviews, higher prices, or weaker listings than yours. Shoppers who land on their page and feel uncertain become your customers.
This surprises people: your listing quality directly affects your ACoS. A listing with a 5% conversion rate means every click costs you twice as much in wasted potential vs a listing converting at 10%. Before adjusting any bids, audit your main image, bullet points, price, and A+ Content. A listing fix can cut ACoS in half without touching a campaign.
The fastest single action to reduce ACoS. Most unoptimized accounts see an immediate 15–25% reduction in wasted spend just from weekly negative keyword audits in the first month.
Your proven Exact match keywords are your most efficient spend. If your Broad and Auto campaigns are driving up your overall ACoS, gradually shift more budget toward the Exact match campaigns of your top-converting keywords.
In Campaign Manager → click a campaign → Placements. Check ACoS separately for Top of Search, Rest of Search, and Product Detail Pages. Adjust placement bid modifiers to increase spend on placements that convert well and reduce on those that don't.
Amazon offers three bidding options. For new campaigns with limited data, start on Dynamic Bids — Down Only. Amazon can lower your bids when it predicts a click is less likely to convert, protecting you from overpaying in low-intent moments. Switch to "Up and Down" only after you have solid conversion history.
For any keyword spending significantly above your break-even ACoS for 14+ days with consistent data, reduce the bid by 15–20%. Give it another 7–10 days. If it still can't hit your target, pause it or move it to a lower-priority campaign.
Amazon doesn't offer native dayparting (scheduling ads by hour), but third-party tools let you pause campaigns during low-converting hours. If your product targets US buyers, you may find that 2AM–6AM EST generates clicks but almost no sales — a pure waste. Reallocating that budget to peak hours can significantly improve daily ACoS.
Scaling too early destroys profitability. Scaling too late leaves money on the table. Here are the clear signals that tell you it's time to increase your ad spend:
When you do scale, increase daily budgets by 20–30% at a time, not all at once. Amazon's algorithm needs time to adjust spending patterns. Sudden large budget jumps often result in inefficient early-day spending before Amazon learns the new budget pacing.
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