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Glossary

Sponsored Products

Last updated: January 12, 2025

What are Sponsored Products?

Sponsored Products are the most popular ad format on Amazon. These Pay-per-Click (PPC) ads promote individual product listings and appear in the search results as well as on product detail pages. They look like regular search results but are labeled “Sponsored”.

This Amazon PPC ad format is suitable for all sellers and vendors who want to increase the visibility of their products and grow sales. Costs are only incurred when a user clicks on the ad.

How do Sponsored Products work?

Sponsored Products are based on an auction system. Advertisers bid on keywords or products, and Amazon decides which ads to serve based on the bid and relevance.

The ads appear prominently in the search results, often in the very first row, as well as on the product detail pages of similar items. The product image, title, price, and reviews are pulled automatically from the listing.

Targeting options for Sponsored Products

Automatic targeting

Amazon automatically selects relevant keywords based on the product listing. Ideal for getting started and for keyword research.

Manual targeting

The advertiser chooses the keywords themselves (broad, phrase, exact match) or specific products/categories to target. This offers more control and more optimization possibilities.

Advantages of Sponsored Products

  • High visibility: Appear prominently in the search results.
  • Direct sales: Send buyers straight to the product page.
  • Flexible budget: No minimum budget, full cost control.
  • Easy to start: Quick campaign setup.
  • Data-driven: Detailed performance reports.

Optimization strategies for Sponsored Products

Regular analysis of the search-term reports is decisive. Well-performing search terms should be added as keywords, while irrelevant ones should be excluded as negative keywords.

Bids should be adjusted based on performance. An optimized product listing with strong images and reviews improves the conversion rate of the ads.

Frequently asked questions (FAQ)

Who can use Sponsored Products?

Sponsored Products are available to all professional sellers and vendors who offer products in eligible categories. The products must be able to win the Buy Box.

How much do Sponsored Products cost?

There is no minimum budget. You only pay when someone clicks on your ad (CPC). The cost per click varies depending on competition and your bid, typically between €0.20 and €2.00.

What is a good ACoS for Sponsored Products?

A good ACoS depends on your product margin. As a rule of thumb: the ACoS should be below your profit margin to stay profitable. Values between 15-30% are often a good benchmark.

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