Amazon PPC in 2024: The Year in Review for Advertisers

Amazon PPC in 2024: The Year in Review for Advertisers

If you thought Amazon PPC in 2024 would be a walk in the park, surprise—it was more like running a marathon uphill… while juggling. With competition fiercer than ever, CPCs climbing like they were on a mission, and new tools dropping left and right, Amazon advertisers were kept on their toes all year long.

So, what happened in 2024? From AI taking the wheel in campaign optimization to video ads stealing the show, this year wasn’t for the faint of heart. If you weren’t fine-tuning bids or mining keywords in your sleep, you probably felt like you missed the memo.

This article wraps up the chaos, the breakthroughs, and the trends that defined Amazon PPC in 2024. Ready to see what kept sellers awake at night—and what made the winners stand out? Let’s dive in.

In this article, Ad Badger will talk about:​

Understanding Amazon PPC in 2024

Amazon PPC in 2024 wasn’t just about running ads—it was about staying ahead in a rapidly changing battlefield. With competition fiercer than ever and rising CPCs squeezing budgets, advertisers had to rethink their strategies and adapt quickly.

Staying visible this year required more than just bidding on keywords; it demanded smarter tools, better targeting, and a deep understanding of new trends.

Amazon introduced enhanced automation tools that promised more efficient campaign management, like smarter bidding algorithms and streamlined setups. For those who embraced automation, the results were promising, but advertisers who relied too heavily on default settings risked overspending and underperforming.

Targeting options saw major upgrades. Amazon refined its keyword capabilities and audience segmentation, allowing sellers to retarget shoppers with incredible precision. Sponsored Display ads became more sophisticated, enabling brands to reach customers at every stage of the buying journey.

Sponsored Display Ads on mobile and desktop

Another defining trend of 2024 was the domination of video ads.

Sponsored Brands Video emerged as a key player, with Amazon pushing video placements across search results. Sellers who invested in high-quality, engaging video content saw better click-through rates and conversions, while others struggled to keep up.

Behind the scenes, data became more powerful. Amazon Marketing Cloud provided deeper insights into customer journeys, ad performance, and ROI. Advertisers who tapped into these analytics gained a competitive edge by optimizing spend and fine-tuning their campaigns with surgical precision.

In 2024, Amazon PPC was about precision, automation, and adaptability. Advertisers who ignored these changes and relied on outdated strategies faced rising costs and missed opportunities.

Why Amazon PPC is Crucial for Sellers in 2024

Gone are the days when basic keyword targeting and modest bids were enough to win on Amazon.

In previous years, sellers could rely on straightforward Sponsored Product campaigns to gain visibility, while CPCs remained manageable, and competition wasn’t overwhelming. Fast forward to 2024, and the game has changed entirely.

This year, Amazon PPC became less of an option and more of a necessity for survival. With the platform now oversaturated with sellers, product visibility has become fiercely competitive. Higher CPCs have forced advertisers to focus not just on spending but on spending smart. The days of running broad campaigns with little strategy are over—2024 demanded precision, strategy, and adaptability.

One of the biggest shifts has been the buyer’s behavior. Amazon shoppers are savvier than ever. They expect relevant, personalized results and often interact with multiple touchpoints before purchasing. In response, Amazon PPC has evolved to meet this need with more advanced tools. Sellers now leverage:

  • Sponsored Products for visibility,
  • Sponsored Brands to build brand recognition,
  • and Sponsored Display to re-engage shoppers at every stage of their buying journey.

Sponsored Products, Sponsored Brands, and Sponsored Display ads

What truly defined 2024, however, was the role of AI and automation in campaign optimization. Advertisers no longer rely solely on manual adjustments; instead, they use smarter bidding strategies powered by AI to balance visibility with profitability. Tools like automated keyword harvesting, AI-driven bid management, and refined targeting allow sellers to maximize conversions while controlling ad spend.

Furthermore, video advertising became a non-negotiable in 2024. With Sponsored Brands Video placements expanding across search results and product pages, sellers who invested in engaging, high-quality video content reaped the rewards. Those who ignored this trend were left behind, outperformed by brands that embraced the power of storytelling through video ads.

Amazon PPC in 2024 also reflected a stronger focus on data and analytics. Tools like Amazon Marketing Cloud gave sellers unparalleled insights into customer journeys and ad performance. Advertisers could now identify the most profitable touchpoints and optimize campaigns accordingly, ensuring their budgets worked harder and smarter.

The result? Amazon PPC has shifted from being a quick fix for boosting sales to a long-term strategy for building brand dominance.

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Benefits of Amazon PPC in 2024

In 2024, the benefits of Amazon PPC have become more nuanced and vital than ever. What once was a simple tool for boosting product visibility has now evolved into a cornerstone strategy for both short-term sales and long-term growth.

First and foremost, Amazon PPC continues to provide unmatched visibility in an increasingly crowded marketplace. With competition intensifying and organic placements becoming harder to secure, targeted ads ensure that your products appear in front of shoppers actively looking to buy. In 2024, sellers who utilized advanced targeting options—like audience retargeting and refined keyword strategies—saw their ads outperform competitors, leading to increased clicks, conversions, and market share.

Beyond immediate visibility, PPC campaigns now play a larger role in influencing organic rankings. Amazon’s algorithm favors products that generate consistent traffic and sales. In 2024, a well-optimized PPC campaign became one of the most reliable ways to drive this momentum. Successful sellers leveraged PPC not just for short-term wins but to build organic dominance—ensuring their products climbed higher in search results and stayed there.

Another major benefit in 2024 has been control and precision. Sellers now have more tools than ever to target specific audiences, fine-tune bids, and monitor performance in real-time. AI-driven optimizations, such as automated bid adjustments and keyword harvesting, allowed advertisers to focus their budgets on the most profitable opportunities, reducing wasted spend while maximizing ROI.

Finally, Amazon PPC in 2024 offered opportunities for brand building like never before. Tools like Sponsored Brands and Sponsored Display allowed sellers to showcase their brands through engaging videos, eye-catching banners, and remarketing campaigns.

remarketing conversion rate facts

Cost Per Click (CPC) and Ad Spend in 2024

In 2024, Cost Per Click (CPC) on Amazon reached new heights, reflecting the platform’s growing competition and the increasing number of sellers vying for prime ad space. While the typical CPC range historically hovered between $0.50 and $1.00, this year saw noticeable spikes, particularly in high-demand categories where keywords became premium real estate. For some niches, CPCs regularly exceeded $2.00, with ultra-competitive markets pushing closer to $5.00 per click.

The driving force behind rising CPCs has been the sheer volume of sellers competing for visibility. As more brands entered the platform, bidding wars intensified, forcing advertisers to sharpen their strategies. Sellers could no longer afford to throw budgets at broad keywords and hope for the best; 2024 demanded smarter allocation of ad spend.

Amazon’s flexible budget management tools also played a critical role in 2024. Sellers gained deeper insights into ad performance with refined reporting features, enabling them to make data-backed decisions about where to invest.

Advanced Amazon PPC Strategies for 2024

As we move into 2024, advanced strategies are essential for optimizing Amazon PPC campaigns and staying ahead of the competition.

Leveraging AI for campaign optimization, utilizing enhanced targeting options, and employing advanced analytics tools are key tactics that can significantly improve campaign performance.

 

Leveraging AI for Campaign Optimization in 2024

In 2024, AI has changed the way Amazon PPC campaigns are managed, making everything faster, smarter, and more efficient.

AI tools automatically adjust your bids based on real-time performance. They increase bids when your ads are likely to convert and lower them when results drop. Features like day parting help you spend more during peak shopping hours and save money when traffic slows down.

AI analyzes huge amounts of data quickly to find trends and opportunities you might miss. It can identify long-tail keywords, seasonal trends, or rising product demand so you can act before your competitors do.

AI tools take care of the repetitive work. They pause low-performing ads, shift budgets to your best campaigns, and refine keyword targeting—all without constant manual tweaks.

Using AI means less effort, lower costs, and better results. Sellers in 2024 who embraced AI saw higher conversions and smarter spending. Simply put, AI helps you do more with less and keeps you one step ahead of the competition.

If you’re not using AI yet, now’s the time to start because every click counts in PPC.

Enhanced Targeting Options

In 2024, Amazon has introduced new targeting options that allow for more sophisticated audience segmentation. Sellers can now target audiences based on detailed behavioral data, including demographics and purchase behaviors. This improved targeting enables more precise ad placements, increasing the likelihood of conversions.

The expansion of Sponsored Display options also allows advertisers to reach audiences on and off Amazon, enhancing their marketing reach. By utilizing these advanced targeting methods, sellers can fine-tune their campaigns to reach the most relevant and high-performing audiences.

Utilizing Advanced Analytics Tools in 2024

In 2024, advanced analytics tools became a game-changer for Amazon PPC, giving sellers real-time insights to optimize campaigns with precision. These tools provide detailed performance metrics like impressions, clicks, and conversions, helping advertisers see exactly what’s working and what’s not.

Sellers can analyze Sponsored Brands campaigns to understand audience behavior, ad placement effectiveness, and overall ROI, making it easier to refine strategies for better results.

A key advantage of these tools is the ability to run A/B tests on ads. By testing different headlines, images, or ad copy, sellers can identify which versions resonate best with shoppers. This removes the guesswork and helps boost engagement and conversion rates.

A/B testing for Amazon product images

Real-time data has also changed how quickly sellers can adjust campaigns. Instead of waiting for trends to emerge, advertisers can now make immediate changes—like reallocating budgets to high-performing ads or pausing underperforming campaigns—ensuring no ad spend goes to waste.

In a competitive landscape like Amazon, understanding the data behind every click and impression is no longer optional. Sellers who utilize advanced analytics tools make smarter decisions, reduce wasted spending, and drive better results. Success in 2024 belongs to those who let the numbers lead the way.

Creating Effective Amazon PPC Campaigns

Creating effective Amazon PPC campaigns requires a combination of clear goal-setting, thorough keyword research, and optimized ad content. 

In this section, we’ll discuss the essential components of creating a successful PPC campaign.

Setting Clear Goals

Defining clear objectives is crucial for accurately measuring the success of PPC campaigns.

Whether your goal is to increase sales, improve brand visibility, or enhance organic rankings, having a clear target helps in shaping your strategy and evaluating performance effectively.

Keyword Research and Selection

Conducting thorough keyword research is essential as it lays the foundation for effective PPC campaigns on Amazon. Prioritize relevant search terms that directly relate to your products, ensuring that your ads are shown to the right audience. Utilize tools like the Keyword Placement Report and the Search Term Report to track and optimize keyword performance.

Auto Keyword Harvesting can streamline the keyword management process, ensuring continual optimization and relevance.

Regularly reviewing and updating your keyword list helps you stay ahead of market trends and maintain campaign effectiveness.

Optimizing Ad Content

Creating compelling ad content is essential for driving high click-through and conversion rates.

AI technology can generate lifestyle images that enhance ad performance, making your products more appealing to potential customers. Single Keyword Ad Groups can significantly improve the effectiveness of Sponsored Brand Ads, ensuring that your ads are highly relevant to the search terms used.

Optimizing product listings is also crucial for improving both organic and PPC click-through and conversion rates. By continually refining your ad content and experimenting with new ad formats, you can keep your audience engaged and drive better results from your campaigns.

an amazon product listing for powdered peanut butter that shows the product being used in several ways

Managing and Optimizing Your PPC Budget

Effective budget management is key to running successful Amazon PPC campaigns. By understanding your break-even ACoS and adjusting bids and budgets based on performance metrics, you can ensure that your ad spend is allocated efficiently.

In this section, we’ll discuss strategies for managing and optimizing your PPC budget.

Calculating Break-Even ACoS

Knowing the break-even ACoS is crucial for maintaining profitable advertising. ACoS is calculated by dividing total ad spend by total sales, and it should not exceed a certain percentage of revenue to ensure profitability.

ACoS Formula

Considering your profit margin and break-even, ACOS helps determine a target ACoS that aligns with your advertising goals.

For Amazon PPC beginners, a good ACoS is approximately 29%. However, this value can vary depending on individual profit margins and advertising objectives. Sellers should ensure they never run out of budget if their ACoS is profitable, allowing for sustainable growth and consistent ad performance.

Adjusting Bids and Budgets

Adjusting bids based on daily performance metrics can significantly enhance the effectiveness of Amazon PPC campaigns. Sellers should allow time between bid adjustments to gather sufficient performance data, ensuring that changes are based on accurate insights. Hourly day parting enables sellers to adjust bids based on performance at different times of the day, optimizing ad spend for peak periods.

Bid adjustments can be more effective and frequent with tools that enhance bid management. Incorporating negative keywords to reduce high ACoS or low conversion rates and aligning bids with your daily budget helps avoid overspending and maximize incremental sales.

What are Negative Keywords in Amazon Advertising?

This balanced approach ensures that your budget is utilized efficiently across multiple campaigns.

Future Trends in Amazon PPC

The future of Amazon PPC is shaped by emerging technologies and evolving advertising strategies. Automation tools, advanced analytics, and new Amazon ad formats are transforming the digital advertising landscape, making it essential for sellers to stay informed about the latest trends.

In this section, we’ll explore key trends that are expected to impact Amazon PPC in 2024 and beyond.

Integration with Amazon Marketing Cloud in 2024

In 2024, integrating with Amazon Marketing Cloud (AMC) became a powerful tool for sellers looking to gain a competitive edge. AMC allows brands to seamlessly combine and analyze data, offering a more unified, data-driven approach to Amazon PPC campaigns. This deeper understanding of performance and customer behavior enabled sellers to make smarter decisions and optimize their strategies like never before.

With AMC, sellers gained access to advanced audience segmentation and targeting capabilities. By analyzing shopper behavior, purchase patterns, and engagement across multiple touchpoints, brands could tailor their campaigns to reach the right customers at the right time. This not only improved ad efficiency but also enhanced customer experiences throughout the buying journey.

Integration with Amazon Marketing Cloud in 2024

In 2024, integrating with Amazon Marketing Cloud (AMC) became a powerful tool for sellers looking to gain a competitive edge. AMC allows brands to seamlessly combine and analyze data, offering a more unified, data-driven approach to Amazon PPC campaigns. This deeper understanding of performance and customer behavior enabled sellers to make smarter decisions and optimize their strategies like never before.

With AMC, sellers gained access to advanced audience segmentation and targeting capabilities. By analyzing shopper behavior, purchase patterns, and engagement across multiple touchpoints, brands could tailor their campaigns to reach the right customers at the right time. This not only improved ad efficiency but also enhanced customer experiences throughout the buying journey.

 

The ability to share and connect data across campaigns gave sellers a clearer picture of what drives results. For instance, AMC’s tools allowed advertisers to see how Sponsored Products, Sponsored Brands, and Display Ads influenced conversions and revenue collectively.

By leveraging these insights, sellers fine-tuned their budgets, prioritized top-performing channels, and minimized wasted ad spend.

Rise of Video Ads and Interactive Ads in 2024

In 2024, video ads and interactive ad formats became the rising stars of Amazon PPC, transforming how brands engage with customers. As the digital advertising space grew more competitive, sellers quickly realized that static ads alone weren’t enough to stand out.

Video ads, in particular, offered a richer, more engaging experience, capturing attention faster and keeping shoppers hooked. 

Interactive ad formats also gained momentum, offering sellers a unique way to connect with customers through dynamic content. Features like shoppable video ads and engaging product showcases allowed shoppers to interact with ads directly, reducing friction in the buying process and increasing the likelihood of purchases. 

The rise of these ad types in 2024 wasn’t just a trend; it was a response to evolving customer behaviors. Shoppers now expect more visually engaging and interactive content when browsing, and brands that adapted to this shift gained a competitive advantage. 

Looking ahead, video and interactive ads are essential tools for driving visibility, engagement, and sales on Amazon. Brands that fail to embrace these formats risk falling behind as the advertising landscape continues to evolve.

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Summary

In 2024, the winners were those who embraced advanced strategies.

Leveraging AI for smarter bidding, tapping into enhanced targeting options, and using advanced analytics tools allowed sellers to optimize campaigns with laser precision.

Integrating Amazon Marketing Cloud unlocked deeper insights, while video and interactive ads stole the spotlight, turning browsers into buyers with engaging, dynamic content.

The message is clear: Amazon PPC in 2024 rewards those who stay sharp, adapt fast and think ahead.

Sellers who ride these trends and keep fine-tuning their strategies won’t just keep up—they’ll dominate. So, if you’re ready to crush your PPC goals, take what you’ve learned here, get creative, and start optimizing. Page one is waiting.

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