What is Working and What is Not for Amazon PPC in 2025

What is working for Amazon PPC in 2025

#1: Video ads and Sponsored Brands video campaigns

Amazon is becoming a visual-first marketplace, and video ads are dominating in 2025. Shoppers want quick, engaging content that helps them understand a product without reading long descriptions. That’s why Sponsored Brands video campaigns are delivering higher click-through rates (CTR) and conversions compared to static image ads.

Amazon auto plays video ads in search results, making them more attention-grabbing than regular Sponsored Products. Short, high-quality clips showcasing product benefits, features, and real-life use cases perform the best. If you’re not running video ads in your PPC strategy, you’re missing out on one of the most powerful tools for boosting visibility and sales in 2025.

#2: AI-powered bid automation and smart bidding strategies

Gone are the days of manually adjusting bids every few hours. In 2025, AI-powered bid automation is taking over Amazon PPC, allowing sellers to optimize their bids in real time based on competition, conversion likelihood, and ad performance.

Amazon’s machine learning algorithms can now increase bids for high-converting searches while lowering bids for low-performing placements—all without human intervention. Smart bidding strategies, like dynamic bidding (up and down) and rule-based automation, help sellers maximize ROI while reducing wasted ad spend.

#3: Exact match and long-tail keyword targeting

In 2025, broad match is losing effectiveness, while exact match and long-tail keyword targeting are proving to be the most efficient ways to boost conversions and reduce wasted ad spend. Instead of casting a wide net, sellers are focusing on high-intent search terms that bring in shoppers who are ready to buy.

For example, instead of bidding on a “yoga mat,” sellers are winning with an “extra thick non-slip yoga mat for home workouts.” These long-tail keywords may have lower search volume, but they convert better and cost less per click.

The key to success? Amazon keyword research. Sellers who analyze search term reports and refine their targeting strategy stay ahead of the competition and improve PPC profitability.

#4: Retargeting with Amazon DSP for high-intent shoppers

Most shoppers don’t buy on the first visit—but that doesn’t mean they’re lost forever. In 2025, Amazon DSP (Demand-Side Platform) is a game-changer for retargeting, helping sellers bring back high-intent shoppers who viewed their product but didn’t purchase.

With Amazon DSP, you can show display and video ads across Amazon, IMDb, Twitch, and even third-party websites. This means your brand stays top of mind as shoppers browse online. Retargeting works especially well for cart abandoners and repeat buyers, increasing conversions with personalized, data-driven ads.

To make the most of DSP, many sellers are working with an Amazon DSP agency that specializes in advanced targeting and bid optimization. This ensures you’re maximizing ad spend and not missing out on potential customers.

#5: Dayparting strategies to optimize ad spend

Running ads 24/7 might seem like a good idea, but in 2025, dayparting (scheduling ads to run at peak hours) is helping sellers cut wasted spend and boost conversions. Not every hour of the day delivers the same results—some time slots have high-intent shoppers, while others bring window shoppers who don’t convert.

With Amazon Marketing Stream, sellers now have real-time insights into when their ads perform best. By increasing bids during peak sales hours and reducing spend during low-conversion times, brands can get more sales for the same budget.

Sellers who use dayparting strategies are seeing higher RoAS and lower ACoS, making their Amazon PPC campaigns far more efficient.

#6: Brand storytelling through Sponsored Brands and Stores

In 2025, selling on Amazon is no longer just about product listings—it’s about building a brand. Shoppers are looking for authenticity, trust, and a connection with the brand they buy from, which is why Sponsored Brands ads and Amazon Stores are working better than ever.

Sponsored Brands allow sellers to feature their logo, tagline, and multiple products in search results, creating a stronger brand presence beyond just one product. Meanwhile, Amazon Stores act as a mini-website, giving customers a curated shopping experience with rich visuals, storytelling, and cross-selling opportunities.

Sellers who invest in brand storytelling through these formats are seeing higher customer loyalty, increased average order value (AOV), and stronger conversion rates. If you’re only running Sponsored Products ads, you’re missing out on a powerful branding advantage.

#1: Over-reliance on broad match keywords

In 2025, broad match keywords are becoming a budget trap for many sellers. While they used to be great for discovering new search terms, Amazon’s algorithm has expanded broad match targeting too loosely, causing ads to appear for irrelevant or low-converting searches.

For example, bidding on “wireless earbuds” might make your ad show up for “wireless headphones for kids” or “Bluetooth hearing aids”—wasting ad spend on clicks that won’t convert.

Sellers who rely too much on broad matches are seeing higher ACoS and lower RoAS, while those shifting to exact match and phrase match are achieving better targeting, higher conversion rates, and reduced wasted spend.

#2: Not testing different ad types and placements

Many sellers in 2025 are limiting their growth by sticking to just one ad type—usually Sponsored Products—without experimenting with Sponsored Brands, Sponsored Displays, or Amazon DSP. This one-dimensional approach caps visibility and sales potential, especially as Amazon’s ad landscape evolves.

Different ad types serve different purposes:

• Sponsored Products: Best for direct sales and product visibility.
• Sponsored Brands: Strengthens brand awareness and cross-sells multiple products.
• Sponsored Display: Retargets past shoppers and expands reach beyond Amazon.

Similarly, sellers who fail to test ad placements (Top of Search, Product Pages, and Rest of Search) miss out on potential high-performing spots. The best advertisers are constantly A/B testing ad formats and placements, refining their approach based on real performance data to maximize their ad spend.

#3: Running static campaigns without optimization

Amazon PPC in 2025 is not a set-it-and-forget-it game. Sellers who launch campaigns and let them run without frequent optimizations are wasting ad spend and missing out on potential sales. The marketplace is dynamic—competition, CPCs, and shopper behavior change constantly, and campaigns need regular adjustments to stay profitable.

What happens when you don’t optimize?

• Bids become outdated, leading to overpaying or losing impressions.
• Irrelevant search terms creep in, draining your budget.
• High-performing keywords get ignored instead of scaled up.

Successful sellers analyze search term reports, adjust bids, refine targeting, test creatives frequently, and hire Amazon PPC experts in case they are too busy to do routine optimization.

#4: Using outdated bid strategies with manual adjustments only

Amazon PPC in 2025 is all about automation and AI-driven optimization—yet some sellers are still stuck in the past, making manual bid adjustments without leveraging Amazon’s advanced bidding tools.

Why is this a problem?

• Manual bidding is slow—competitors using AI-powered automation adjust in real-time.
• Missed opportunities—Amazon’s algorithms can predict conversion likelihood better than manual tracking.
• Higher wasted spend—without dynamic adjustments, you overpay for low-converting clicks.

Winning advertisers are using Amazon’s AI-driven bidding strategies, like dynamic bids (up and down), placement adjustments, and rule-based automation to optimize ad spending without constant manual intervention. Those who adapt stay ahead of the competition and maximize PPC efficiency.

#5: Targeting irrelevant audiences without data insights

Amazon PPC is no longer just about bidding on keywords—it’s about targeting the right audience based on real shopper behavior. Sellers who fail to analyze data insights and blindly target broad audiences waste ad spend on shoppers who are unlikely to convert.

Why does this hurt your PPC performance?

• Clicks from the wrong audience = higher ACoS and lower RoAS.
• Irrelevant impressions lower your CTR, reducing ad efficiency.
• Missed opportunities to reach high-intent buyers with better targeting.

Winning sellers use Amazon’s audience data, search term reports, and Sponsored Display targeting to refine their ads, exclude irrelevant traffic, and focus on high-converting shoppers. Smart targeting boosts conversions, lowers wasted spend, and increases profitability—while guesswork just drains budgets.

#6: Neglecting mobile-first ad creatives

In 2025, mobile shopping will dominate Amazon, yet many sellers still design ads with a desktop-first mindset, leading to poor engagement and lost conversions. With most shoppers browsing on their phones, your ad creatives need to be optimized for small screens to stand out.

Why mobile-first matters:

• Tiny text and cluttered images don’t work on mobile.
• Slow-loading videos or overly complex ads lose shoppers’ attention.
• Mobile users scroll fast—ads must be clear, engaging, and instantly eye-catching.

Winning sellers focus on clean, high-contrast product images, bold headlines, and short, impactful video ads that grab attention within the first 3 seconds. If your ads aren’t built for mobile-first viewing, you’re losing out on the majority of Amazon’s traffic in 2025.