How much should I spend on Amazon PPC?

The optimal size of your Amazon PPC budget depends on your margin, your goals and your product category. As a rule of thumb: start with 10–15% of your revenue and optimize based on your ACOS. A well-optimized campaign setup can deliver significant results even with small budgets.

What is a good ACOS on Amazon?

A good ACOS is typically between 15–30%, depending on your product margin. For high-margin products, even a higher ACOS can be profitable. What matters is that your ACOS stays below your break-even margin. With automated bid optimization, you can improve ACOS continuously.

How long does it take for Amazon PPC to show results?

Initial data and trends are visible after just 1–2 weeks. For reliable optimization decisions, however, you should collect 4–6 weeks of data. Automated tools can speed up this process, because they learn continuously and adjust bids in real time.

Reduce Amazon PPC Costs: 7 Proven Strategies

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Are your Amazon PPC costs eating into your profit while your ACOS keeps climbing? You're not alone. Many Amazon sellers struggle with rising advertising costs and shrinking margins at the same time. The good news: with the right Amazon PPC optimization strategies, you can reduce your costs significantly – without losing visibility.

In this article we'll show you 7 proven methods to optimize your Amazon PPC costs and sustainably increase your return on ad spend (ROAS).

Why are Amazon PPC costs often too high?

The Amazon advertising landscape has changed dramatically over the past few years. More sellers mean more competition for the same keywords – and with it, rising click prices. On top of that come frequent mistakes in campaign setup that burn budget unnecessarily.

The most common causes of excessively high Amazon advertising cost are:

Missing negative keywords that would prevent irrelevant clicks
Keyword strategies that are too broad, with no focus on profitable search terms
Manual bid adjustments that react too slowly to market changes
No regular analysis and optimization of campaign performance

How does the Amazon PPC cost structure work?

Amazon PPC is based on an auction model. You bid on keywords and only pay when someone clicks on your ad (pay-per-click). The actual click price is often lower than your maximum bid – you only pay $0.01 more than the next-lowest bid.

Three factors are decisive for your success: the relevance of your ad, your bid and your historical performance. Amazon favors ads that convert well – which means that a higher conversion rate can lead to lower costs over the long term.

“The biggest lever for reducing costs isn't lowering your bids, but improving your campaign structure and choosing keywords deliberately. Sellers who do this cleanly can often cut their ACOS by 30–50%.”
TM
Thorsten MüllerCEO at HORAiZON & Amazon Ads expert with over 10 years of experience

7 strategies to reduce costs

With these proven strategies, you can systematically reduce your Amazon PPC cost:

Use negative keywords consistently

Review your search-term reports regularly and exclude irrelevant keywords. This prevents budget from being wasted on clicks that will never convert.

Optimize your campaign structure

Separate campaigns by match type and keyword group. That way you stay in control of bids and can invest deliberately in profitable areas.

Use automated bid optimization

Manual bid adjustments are time-consuming and react too slowly to market changes. Automated tools adjust bids in real time and maximize your ROAS.

Use dayparting strategically

Analyze which times of day deliver your highest conversions and adjust your bids accordingly. This helps you avoid expensive clicks during weak periods.

Focus on long-tail keywords

Specific, longer search terms often have lower CPCs and higher conversion rates. Identify profitable long-tail keywords in your niche.

Optimize your product listings

Better listings = higher conversion rate = lower effective cost per sale. Invest in professional images, compelling bullet points and optimized titles.

Define ACOS targets per product

Not every product has the same margin. Define individual ACOS targets based on profitability and steer your campaigns accordingly.

A real-world example

[Concrete use cases can be inserted here, e.g.:]

Case study: kitchen accessories brand

A seller in the kitchen accessories space was able to cut their ACOS from 35% to 18% by implementing automated bid optimization – while increasing revenue by 40% at the same time.

• Starting point: ACOS 35%, manual campaign management
• Measures: automated bids, negative keywords, campaign restructuring
• Result after 3 months: ACOS 18%, +40% revenue

Additional use-case ideas:

Seasonal product with sharply fluctuating CPCs
New brand in a competitive environment
Established brand with grown, unstructured campaigns
Multi-marketplace seller with different strategies per country

Summary

Optimizing your Amazon PPC costs requires a systematic approach. With the right strategies and tools, you can reduce your ACOS significantly while increasing your revenue at the same time.

The most important takeaways:

Negative keywords are the fastest lever for reducing costs
A clean campaign structure is the foundation for successful optimization
Automated bid optimization saves time and maximizes ROAS
Individual ACOS targets per product enable precise control
Better product listings lead to higher conversion rates and lower costs

Ready to optimize your Amazon PPC costs?

With HORAiZON ONE, you automate your bid optimization and reduce your ACOS sustainably.

Try it now for free

Frequently asked questions

About the author

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Thorsten Müller

CEO at HORAiZON & Amazon Ads expert

Thorsten has been working in the Amazon ecosystem for over 10 years and, together with his team, has already helped hundreds of sellers make their Amazon advertising more profitable. As the founder of HORAiZON, he develops AI-powered solutions for smart Amazon PPC.

Reduce Amazon PPC Costs: 7 Proven Strategies for More Profit in 2025

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