When it comes to selling on Amazon, one of the most common questions I hear after "How do I list my product?" is: "Is Amazon PPC worth it?" With over 14 years in digital advertising and having run countless Amazon PPC campaigns across both Amazon India (Amazon.in) and the global marketplace, I can confidently say: Yes, Amazon PPC is worth it. However, like any investment, it requires strategy, understanding of costs, and ongoing optimization.
In this blog, I’ll break down the value of Amazon PPC for both Indian sellers and those on Amazon’s global platforms, exploring all the advertising options—Sponsored Products, Sponsored Brands, Sponsored Display, Sponsored Video, and DSP Ads—so you can maximize your ROI regardless of your market.
What is Amazon PPC?
Before diving into whether it’s worth it, let’s clarify what Amazon PPC actually is. Amazon Pay-Per-Click (PPC) is an advertising model where sellers bid on keywords in order to have their products appear in sponsored placements. The cost is based on a "per-click" model, meaning you pay only when a potential customer clicks your ad.
Amazon offers a wide variety of ad types, each suited to different business goals:
- Sponsored Products: These are the most common and appear in search results and product pages.
- Sponsored Brands: These show up at the top of search results and feature a brand logo and a selection of products.
- Sponsored Display Ads: These ads appear on and off Amazon, targeting specific audiences based on browsing behaviour.
- Sponsored Video Ads: These ads are displayed on product detail pages, on search results, and within the Amazon mobile app, allowing you to showcase your products in a dynamic video format.
- Amazon DSP (Demand-Side Platform): DSP ads let you target audiences both on and off Amazon. They offer more advanced targeting options for remarketing to previous site visitors, and they help you reach users on other websites and apps, extending your reach beyond Amazon.
Is Amazon PPC worth it?
For Amazon Global Sellers (US, UK, EU, etc.)
The global Amazon marketplace is hyper-competitive, especially in lucrative categories like electronics, beauty products, home goods, and apparel. For established brands and even new sellers, Amazon PPC can be an essential tool for gaining visibility in crowded markets.
Here’s why Amazon PPC is worth it globally:
- Increased Visibility & Sales: With millions of products listed, standing out without PPC can be tough. PPC allows your product to appear at the top of the search results, making it far more visible to potential buyers. This exposure can directly drive sales.
- Highly Targeted Campaigns: Amazon’s PPC system allows you to target keywords, demographics and behaviours with precision. You can focus on what works—whether that’s bidding on high-converting keywords or using advanced targeting like product targeting and audience segmentation.
- Scalable & Measurable: You can start small with a limited budget and scale as you see returns. The beauty of Amazon PPC is that it's highly measurable, so you can track your ad spend and sales to calculate your ROI (return on investment). Plus, it’s easy to tweak campaigns as you go.
- Brand Awareness & Loyalty: With Sponsored Brands ads, you get more than just a product listing. You get to showcase your brand logo and multiple products, helping you establish brand presence and loyalty. This is especially beneficial for new sellers trying to break through the noise.
The Cost of PPC Globally:
For global sellers, the cost can vary widely depending on competition, product category, and the bidding strategy you use. CPC (Cost per Click) for Sponsored Products ranges between $0.70 to $1.50 on average, with categories like electronics and fashion pushing costs higher.
However, by optimizing your campaigns (e.g., using negative keywords, adjusting bids, targeting long-tail keywords), you can reduce your cost per conversion, making PPC a more profitable investment.
For Amazon India Sellers (Amazon.in)
Amazon India offers a slightly different landscape, with less competition than some of the larger global marketplaces, but it is rapidly growing. If you’re a seller on Amazon.in, PPC is still very much worth it—but with a few different considerations.
Here’s why Amazon PPC is worth it for Indian sellers:
- Cost-Effective Advertising: Compared to Amazon's US or UK marketplaces, PPC in India tends to be more affordable. The CPC (cost per click) for Sponsored Products in India can range between ₹15 to ₹45, making it a great entry point for sellers who are looking for a cost-effective advertising solution. This lower cost also makes PPC accessible to small businesses and new sellers.
- Expanding E-commerce Growth: With the Indian e-commerce market rapidly expanding, Amazon is becoming a significant player in the online retail space. As competition increases, PPC is an important tool to maintain visibility, especially in crowded categories like mobile phones, fashion, and FMCG (Fast Moving Consumer Goods).
- Tailored Targeting: Amazon India’s PPC system allows you to target specific keywords, categories, and regions within India, helping you fine-tune your ads to reach the right audience. Given the diverse and fragmented nature of the Indian market, this level of targeting is essential to driving sales.
The Cost of PPC in India:
The cost per click (CPC) in India is relatively affordable, with Sponsored Brands ranging from ₹20 to ₹60 and Sponsored Display from ₹18 to ₹50. However, the competition in popular categories like electronics or clothing can still push up costs, so continuous campaign optimization is necessary.
Different Amazon Ad Types and When They’re Worth It
As you get deeper into Amazon PPC, you’ll encounter different ad types that are valuable for specific goals. Here’s an overview of each ad type and when it’s worth using:
1. Sponsored Products
These are the most basic and widely used Amazon ads. They appear in search results and product detail pages, allowing you to bid on specific keywords related to your product.
- When It’s Worth It: If you have a product that’s already listed and you want to drive more traffic and increase sales. These ads work great for both new and established sellers looking to improve visibility.
2. Sponsored Brands
These ads show up at the top of search results, allowing you to showcase your brand logo and multiple products.
- When It’s Worth It: Perfect for building brand awareness and targeting high-converting, branded search terms. It’s also useful for cross-selling multiple products in your range.
3. Sponsored Display
Sponsored Display ads allow you to target customers both on and off Amazon. They are typically shown on product detail pages, customer review pages, or other product listings.
- When It’s Worth It: Ideal for retargeting previous visitors to your product pages or for showing ads to shoppers who have shown interest in similar products. Sponsored Display is particularly useful for remarketing and targeting specific audiences based on behaviour.
4. Sponsored Video Ads
These video ads appear on product detail pages, on search results, and within the Amazon mobile app.
- When It’s Worth It: Video ads are perfect for creating a visual experience of your product, especially for items like gadgets, beauty products, and lifestyle goods. They capture attention better than static images and can lead to higher engagement and conversions.
5. Amazon DSP Ads (Demand-Side Platform)
Amazon DSP allows you to programmatically buy display, video, and audio ads on and off Amazon. This type of advertising is more advanced and lets you target specific audiences across websites, apps, and video content.
- When It’s Worth It: Ideal for larger businesses or brands looking to expand beyond Amazon and build remarketing strategies. DSP is a great tool for targeting audiences who are likely to be interested in your products, even if they haven't directly visited your Amazon listings yet.
Final Verdict: Is Amazon PPC Worth It?
Is Amazon PPC worth it? Absolutely—whether you’re a seller on Amazon India or in the global marketplace. While the cost can vary, and success depends on optimization, PPC offers a clear path to increased visibility, sales, and long-term growth.
If you’re not using Amazon PPC yet, now’s the time to get started. As the e-commerce landscape continues to grow, PPC is more essential than ever to stay competitive. Get strategic, optimize your campaigns, and watch your business scale.
Additional Tips:
- Explore Amazon’s Sponsored Brands for brand-building and cross-selling.
- Optimize your product listings (images, descriptions, A+ content) for higher conversion rates.
- Use video ads for product categories that benefit from visual engagement.
If you’d like help creating a custom Amazon PPC strategy tailored to your product and market, feel free to reach out—I’m here to help!