What’s Changing in Amazon Advertising for UK Sellers in 2025

#1: More AI-powered advertising features

Amazon is rolling out AI like it’s the next big thing—and to be fair, it kind of is. AI-driven ad targeting, automated bidding, and predictive analytics are all set to take center stage in 2025. Sounds great, right? Smarter ads, better targeting, effortless optimization? In theory, yes. In reality? That depends on how much control Amazon lets you keep.

AI-powered bidding can tweak your ad spend in real time, but let’s not pretend it’s working to save you money—it’s working to spend it. The more sellers rely on automation, the more Amazon’s system can drive up cost-per-click (CPC), often beyond what’s necessary. Then there’s audience segmentation, which promises to serve ads to “the right customers at the right time,” but who’s defining what right means? If the AI starts broadening your audience too much, you’ll end up paying for clicks from shoppers who were never going to buy in the first place.

What UK sellers and Amazon advertising agencies should watch out for:

• AI-driven bidding can inflate CPC – Automated bidding may aggressively push your ad spend higher, even when manual strategies could deliver better results.
• Overly broad audience segmentation – AI may expand targeting too much, leading to wasted ad spending on shoppers who won’t convert.
• Performance recommendations that favor Amazon – “Suggested” bid increases and additional ad placements often serve Amazon’s bottom line more than yours.
• Reduced control over campaign adjustments – With AI handling more decisions, sellers may have fewer options to fine-tune ads the way they want.

#2: Rising cost-per-click (CPC) and ad competition

If you thought CPC was expensive in 2024, brace yourself—because it’s only going up in 2025. More sellers, more brands, and more deep-pocketed advertisers mean higher bids, fiercer competition, and shrinking margins. Amazon ads aren’t just about bidding smart anymore; they’re about outsmarting the system before it drains your profits.

Here’s the reality:

• More brands are flooding Amazon UK – Everyone from new sellers to retail giants is fighting for the same ad space.
• Amazon keeps tweaking ad placements – With more ads appearing on product pages, search results, and even off-Amazon, brands are bidding aggressively just to be seen.
• AI-driven bidding is driving up costs – Automated bidding sounds smart, but when everyone’s AI is competing, CPCs can spiral out of control.

For UK sellers, this means ROI is at risk. A high CPC is manageable if conversion rates stay strong, but if ad spending rises while sales stagnate, it’s a one-way ticket to a wasted budget.

So, what’s the strategy? Sharpen your ad targeting, refine your creatives, and stop bidding blindly. Focus on high-intent keywords, leverage video ads for better engagement, and double down on retargeting past shoppers. Most importantly, track every penny—because in 2025, Amazon advertising isn’t just about getting traffic. It’s about making sure that traffic converts.

And if managing this feels overwhelming, Amazon PPC management services can help you optimize your campaigns, control ad spend, and maximize ROI. Because in a year where every click costs more, wasting ad spend is not an option.

#3: Expansion of video and streaming ads

Amazon is making one thing clear in 2025—video is the future of advertising. If you’re still relying only on static Sponsored Products ads, you might as well be whispering in a crowd of screaming competitors.

Video ads are getting more placements, better visibility, and stronger engagement. Amazon is expanding Sponsored Brands Video in search results, pushing video placements onto product pages, and integrating video ads into Amazon Prime Video and Freevee. This means brands that invest in video content will get more exposure—not just on Amazon, but across its entire advertising network.

Here’s why sellers need to pay attention:

• Video ads get higher click-through rates (CTR) – A moving image beats a static one, especially when it comes to stopping the scroll.
• Amazon is prioritizing brands with video content – More video placements mean sellers who don’t use video will start falling behind.
• Streaming ads bring new opportunities – Brands can now reach shoppers beyond Amazon, on Prime Video and Freevee, opening doors to a bigger audience.

But before you rush to create an ad, quality matters. A low-effort slideshow with stock music won’t cut it. Videos need to be short, engaging, and product-focused. Show your product in action, highlight key benefits in the first three seconds, and make sure there’s a clear call to action.

The bottom line? Video isn’t optional anymore—it’s your ticket to staying competitive. Either get on board or risk watching your competitors steal the spotlight.

#4: Enhanced reporting and attribution tools

Amazon is giving sellers more data than ever in 2025—but here’s the catch: more data doesn’t always mean more clarity. While new reporting and attribution tools promise better insights, they also mean more metrics to track, more dashboards to navigate, and more ways for Amazon to “suggest” you spend more.

So what’s changing?

• Better visibility into customer journeys – Amazon’s attribution tools are expanding beyond last-click tracking, so you can see how shoppers interact with your ads across multiple touchpoints before converting.
• More detailed campaign performance metrics – Expect deeper insights into what’s working (and what’s not), but be prepared to sift through a mountain of reports to find the data that matters.
• Cross-channel tracking – If you’re running external ads on Google, Facebook, or TikTok, Amazon Attribution now provides better tracking of how those ads contribute to your sales.

For UK sellers, this is a double-edged sword. More insights mean more power, but only if you know how to use them. If you’re not careful, you’ll end up drowning in reports instead of making smart, data-driven decisions.

The move for 2025? Cut through the noise. Focus on metrics that impact your bottom line—like conversion rate, ACoS, and new-to-brand customers. Because at the end of the day, knowing your numbers isn’t enough. Knowing what to do with them is what keeps you profitable.

#5: Sponsored Brands and Sponsored Display improvements

Amazon is polishing up Sponsored Brands and Sponsored Displays in 2025, giving sellers more ways to advertise—but let’s be real, this also means more ways to spend money fast.

Here’s what’s changing:

• Sponsored Brands get more customization – Expect better ad creatives, more control over branding, and even video enhancements. Amazon wants these ads to look slicker and perform better, but only if you know how to use them right.
• Sponsored Display gets smarter retargeting – More refined audience targeting, better remarketing features, and AI-driven placement optimization mean these ads can follow shoppers across Amazon and beyond.
• New placements for both ad types – Amazon is testing new spots for these ads, which means sellers who adapt quickly will get the best results.

Sounds great, right? Not so fast.

If you don’t know how to fine-tune your targeting, manage bids, and analyze performance, these updates could turn into a money pit. Just because Amazon offers new placements doesn’t mean they’re all worth paying for.

So, what’s the strategy? Be selective. Test new features carefully, monitor ROI like a hawk, and don’t fall for every “recommended” bid increase. Because in 2025, the sellers who win won’t be the ones who spend the most—they’ll be the ones who spend smart.

#6: New ad placements and storefront integration

Amazon is opening up more ad placements than ever, which means more ways to get seen—but also more ways to burn through your budget. If you’re not paying attention, you could pay premium prices for low-converting clicks.

So, what’s new?

• Sponsored ads in more places – Expect to see Sponsored Products, Sponsored Brands, and Sponsored Display in fresh spots across search results, product pages, and even off-Amazon placements.
• Storefront ads are getting a boost – Amazon is pushing brand storefronts harder, meaning more visibility for sellers who actually use their storefronts as a conversion tool.
• Amazon is expanding beyond Amazon – Ads will now follow shoppers across Amazon-owned platforms and external websites, which means sellers must think beyond just on-platform marketing.

Here’s the problem: more placements don’t automatically mean better conversions. Amazon will happily take your money for new ad slots, but not every placement is worth it.

What should UK sellers do? Be strategic. Don’t just “set and forget” your ads—test different placements, compare performance, and double down on what drives sales. If Amazon is giving storefronts more exposure, make sure yours is optimized, well-designed, and actually built to convert. Because in 2025, ads aren’t just about getting clicks—they’re about turning those clicks into cash.

#7: Stricter compliance and ad approval policies

Amazon’s cracking down in 2025, and if you’re not playing by the rules, your ads might never see the light of day. Stricter compliance means more scrutiny on ad copy, creative assets, and targeting—so expect more rejections, longer approval times, and way less room for error.

Here’s what’s changing:

• Tighter restrictions on claims – If your ad even hints at misleading wording (think “#1 Best Seller” or “Cures XYZ”), expect it to get flagged fast.
• More scrutiny on restricted keywords – Even harmless words could trigger rejection, so double-check what Amazon allows before launching.
• Harsher penalties for violations – Repeated infractions won’t just get ads rejected—they could lead to account warnings or even suspensions.

For UK sellers, this means compliance isn’t optional—it’s survival. If your ads get blocked, your competitors get the advantage while you scramble to fix things. And don’t expect clear explanations from Amazon, either. More often than not, you’ll get a vague rejection notice and be left guessing what went wrong.

The move? Get proactive. Stay updated on Amazon’s latest policies, avoid making bold claims, and always review ad guidelines before launching new campaigns. And if an ad gets rejected? Appeal fast, tweak smart, and don’t waste time arguing with Amazon’s bots.

See you next week!

Amazon’s advertising game in 2025 is a mix of new opportunities and new headaches. AI-driven automation, skyrocketing CPCs, video dominance, and stricter policies mean one thing: sellers who adapt will thrive, and those who don’t will pay the price—literally.

This isn’t the year to throw money at ads and hope for the best. You need a strategy that works, data that makes sense, and a smart approach to bidding, placements, and compliance. If you’re not optimizing every pound spent, you’re leaving money on the table—and handing it straight to Amazon.

So, what’s next? You can take control of your ads, or Amazon can take control of your budget. And if you’re not sure where to start, an experienced Amazon consultant can help you cut through the noise, maximize ad performance, and keep your profits where they belong—in your pocket.

The sellers who win in 2025 aren’t just spending money. They’re spending it smart. Are you one of them?