Step-by-step tutorial covering Sponsored Products, Brands, Display & DSP campaigns. From account setup to ACOS optimization — everything a seller needs to start advertising profitably on Amazon India.
Amazon Ads (formerly Amazon Marketing Services / AMS) is Amazon's self-serve advertising platform that lets sellers and brands promote their products directly within Amazon search results and product detail pages. The platform operates on a pay-per-click (PPC) model — you only pay when a shopper clicks on your ad.
With over 60% of product searches starting on Amazon rather than Google, Amazon PPC has become the most effective way to drive product visibility and sales in India's ₹7 lakh crore e-commerce market.
Keyword-targeted ads that appear in search results and product pages. Your product looks like a regular listing with a small 'Sponsored' label. This is where 80% of Amazon ad spend goes — and where you should start.
Banner ads at the top of search results featuring your brand logo, custom headline, and 3+ products. Drives brand awareness and directs traffic to your Amazon Brand Store.
Display ads that appear on and off Amazon. Target shoppers who viewed your products, competitor products, or specific audience segments. Great for retargeting and conquesting.
Programmatic display and video ads across Amazon properties (IMDb, Twitch, Fire TV) and third-party websites. Reach shoppers at the top of the funnel with precise audience targeting.
Go to Seller Central → Advertising → Campaign Manager. Click 'Create campaign' and select 'Sponsored Products' for your first campaign.
Use a clear naming convention like 'SP_Auto_ProductName_Date'. Set a daily budget of ₹500–1,000 to start. Choose 'No end date' initially.
Start with 'Automatic targeting' — Amazon shows your ad for relevant searches based on your listing. This helps discover converting keywords you may not have thought of.
For automatic campaigns, set a default bid of ₹10–15. Amazon will show your ad when it estimates the CPC will be near your bid. Choose 'Dynamic bids — down only' for budget safety.
Choose products with optimized listings (good images, bullet points, competitive pricing). Products with at least 10 reviews convert better with ads.
Let the campaign run for at least 7 days before making changes. Amazon's algorithm needs time to learn. Don't panic at initial high ACOS.
Download the Search Term Report. Identify keywords with 3+ orders and good ACOS. Move these to a manual exact-match campaign with higher bids.
Any search term with 15+ clicks and 0 orders should be added as a negative keyword. This stops wasted spend immediately.
| Strategy | How It Works | Best For | Risk Level |
|---|---|---|---|
| Fixed Bids | Amazon uses your exact bid for all placements | Testing, data gathering | Medium |
| Dynamic — Down Only | Amazon lowers bid when conversion is less likely | Beginners, budget control | Low ✅ |
| Dynamic — Up & Down | Amazon raises bid up to 100% for high-converting placements | Scaling proven campaigns | High |
| Rule-Based Bidding | Set rules like "increase bid if ACOS < 20%" | Advanced sellers, agencies | Medium |
Advertising Cost of Sales
Ad Spend ÷ Ad Revenue × 100
Target: 15–25%
Return on Ad Spend
Ad Revenue ÷ Ad Spend
Target: 4x–7x
Total ACOS
Ad Spend ÷ Total Revenue × 100
Target: 8–12%
Click-Through Rate
Clicks ÷ Impressions × 100
Target: 0.3–0.5%
Conversion Rate
Orders ÷ Clicks × 100
Target: 10–15%
Cost Per Click
Ad Spend ÷ Total Clicks
Target: ₹5–₹25
Our Amazon Ads certified team manages ₹10Cr+ in annual ad spend with an average 18% ACOS. Get a free PPC audit and see where you're leaving money on the table.
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