Whether you’re launching your first product on Amazon or trying to revive a slow-moving listing, Sponsored Ads can be your growth engine. But let’s be honest-if you’re not careful, you can burn through your ad budget with little to show for it.
This guide will walk you through the three pillars of Sponsored Ads success: Budgeting, Bidding, and Keywords. By the end, you’ll be equipped with the basics to launch effective campaigns without wasting a rupee.
What Are Amazon Sponsored Ads?
Amazon Sponsored Ads are pay-per-click (PPC) ads that help products get more visibility in search results or product pages. They appear as “sponsored” listings when shoppers search on Amazon.
There are three main types:
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Sponsored Products: Promote individual listings.
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Sponsored Brands: Promote brand + multiple products.
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Sponsored Display: Retarget shoppers on and off Amazon.
In this blog, we focus on Sponsored Products, perfect for beginners.
1. Budgeting: Set It Right, Spend It Smart
Many sellers jump in with no clear budget strategy. Big mistake.
How Much Should You Spend?
A good starting point:
Daily budget = 10-20% of your product’s expected monthly revenue.
Example:
If you want to generate ₹50,000 in monthly revenue, your monthly ad spend should be ₹5,000-₹10,000 (₹166-₹333/day).
Lifetime vs Daily Budget
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Daily Budget: Best for ongoing control and regular monitoring.
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Lifetime Budget: Good for time-bound promotions or seasonal sales.
Tip: Always start with daily budgets to test performance and control ad spend.
2. Bidding: How Much Is Too Much?
Your bid is how much you’re willing to pay per click on your ad. Higher bids improve visibility, but don’t guarantee conversions.
Manual vs Automatic Bidding
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Automatic Bidding: Amazon adjusts your bid based on likelihood of conversion.
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Manual Bidding: You set the exact bid. Offers better control but needs keyword strategy.
Suggested Bidding Strategy for Beginners:
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Start with Auto Campaigns first to gather data.
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Analyze top-performing keywords.
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Then create Manual Campaigns with 3 keyword match types:
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Broad: For discovery.
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Phrase: For relevance.
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Exact: For high-intent conversions.
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Tip: Start with Amazon’s suggested bid, then optimize weekly based on performance.
3. Keywords: The Core of Every Campaign
Your ads show up only if your keywords match what customers search for.
How to Find the Right Keywords:
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Amazon’s Auto Campaign Data
After 7-10 days, download the Search Term Report to find converting keywords. -
Use Tools Like:
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Helium 10
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Jungle Scout
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Amazon Search Bar (autosuggest)
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Competitor Listings
Check their bullet points, titles, and backend search terms for inspiration.
Must-Have Keyword Types:
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High-Volume, Low-Competition: Ideal balance for visibility and conversions.
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Long-Tail Keywords: More specific and higher intent (e.g., “organic turmeric powder 250g”).
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Negative Keywords: Stop wasting budget on irrelevant clicks. (Add “free,” “cheap,” “refill,” etc., if not relevant.)
Tip: Refresh keyword list every 2-3 weeks and add/remove based on actual performance.
Example Beginner Campaign Structure:
| Campaign Type | Match Type | Budget | Goal |
|---|---|---|---|
| Auto Campaign | – | ₹300/day | Keyword discovery |
| Manual Campaign 1 | Exact | ₹300/day | High-converting keywords |
| Manual Campaign 2 | Phrase | ₹200/day | Mid-funnel shoppers |
| Manual Campaign 3 | Broad | ₹200/day | Discovery + awareness |
Track & Optimize Weekly
Once your campaigns are running, monitor these key metrics:
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ACOS (Advertising Cost of Sales) – Target < 30% for profitability
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CTR (Click-Through Rate) – Healthy: > 0.3%
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CVR (Conversion Rate) – Aim for > 10%
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Spend vs Sales – Always tie ad spend to actual returns
Don’t “set and forget” your campaigns. Regularly pause underperformers, increase budget on winners, and add negative keywords.
Final Thoughts
Sponsored Ads can skyrocket your product’s visibility and sales-but only when done with a smart strategy. By understanding the basics of budgeting, bidding, and keywords, even a first-time seller can run profitable campaigns.
Remember, data is your best friend. Start small, test fast, and scale what works.
Need Expert Help with Amazon Ads?
If you’re feeling overwhelmed or want to scale faster, eCommercean.com offers Amazon Ads Management Services tailored for growth-focused sellers. Let us handle the backend while you focus on building your brand.
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