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Amazon Advertising is evolving rapidly, and understanding its costs is crucial for sellers aiming to stay competitive in a saturated marketplace. From sponsored products to display ads, the cost of Amazon ads can vary based on ad type, bidding strategy, and seasonal demand.
Amazon advertising costs in 2025 range from $20 to $300 per day, according to the size of the brand and its main goal. The average cost per click is between $0.80-$1.20 for sponsored products, $1.50-$2.50 for sponsored brands and $0.70-$2.50 for sponsored display. Knowing your ACoS and mastering pay-per-click dynamics can make or break your ROI.
With over $56 billion in global advertising revenue generated by Amazon in 2024, sellers must now make more data-driven decisions than ever before.
Amazon Advertising is a platform that allows sellers and brands to promote their products directly on Amazon. Whether you're launching a new item or trying to boost sales for a bestseller, advertising on Amazon helps you get your product in front of shoppers who are already looking to buy.
There are different types of ads to choose from—like Sponsored Products, Sponsored Brands, and Sponsored Display—each offering unique ways to showcase your items. These ads appear in high-visibility areas, such as search results or product detail pages, making it easier to grab the attention of potential customers.
Amazon ads work on a pay-per-click (PPC) model, which means you only pay when someone clicks on your ad. This makes it easier to control your budget and track your return on investment.
Amazon offers two main advertising models: Pay-Per-Click (PPC) and Demand-Side Platform (DSP). PPC ads—like Sponsored Products and Sponsored Brands—let you bid on keywords and only pay when someone clicks your ad. DSP, on the other hand, allows you to programmatically buy display and video ads both on and off Amazon, reaching audiences based on their shopping behavior and interests. While PPC is ideal for driving immediate sales, DSP is great for building brand awareness and retargeting.
The cost of Amazon advertising has two key elements: cost per click and the type of ad you choose. By understanding these components, you'll be able to understand how much Amazon advertising costs and keep this in mind for future campaigns.
Cost per click (CPC) is a key part of Amazon Advertising’s pay-per-click (PPC) model, where you pay only when someone clicks on your ad. Unlike platforms that charge based on impressions or time, Amazon’s PPC model ensures your budget is tied directly to user engagement. As of 2025, the average CPC on Amazon is $0.98, though this can vary depending on the product category, competition, and season.
Amazon uses a dynamic bidding system for CPC. You set a maximum amount you're willing to pay per click, but the actual cost can fluctuate depending on real-time competition for ad placements. This means you may often pay less than your bid. Monitoring CPC over time can help you gauge ad performance, understand customer interest, and adjust your campaigns to get better results.
Amazon advertising costs will vary significantly depending on the type of ad you choose. There are three main types: sponsored products, sponsored brands, and sponsored displays. Below is a breakdown of each.
In 2025, Amazon advertising cost for sponsored products range from CPC: $0.80-$1.20 (around $500-$2000 per month), sponsored brands between CPC: $1.50-$2.50 ($1000-$5000 monthly), and sponsored display is $0.70-$2.50 per click and $4.00-$12.00 per thousand impressions.
Sponsored product ads are the most common type of Amazon advertising and the most affordable. These ads promote a specific product, ensuring that the people who click on them are interested in purchasing that product. These ads appear in the product search and product details section, so they are heavily focused on conversions.
The average cost per click (CPC) for sponsored products ranges from $0.80 to $1.20. It can vary depending on the season (if there's high demand), the product category, and competition between brands. The average monthly budget for pay-per-click sponsored product campaigns is $500–$2,000. Because it's pay-per-click, you only pay for the number of times your ad is clicked, and there's no fixed cost.
Sponsored brand ads help you promote multiple products from your brand in a single ad. They're often used to gain brand visibility or to promote a series of related products—for example, complete skincare routines, tech products from the same ecosystem, etc.
The cost per click for sponsored brands ranges from $1.50 to $2.50 on average. You should consider a monthly budget of $1,000 to $5,000 to maximize your chances of success. In this case, you can opt for daily or permanent budgets, with the former being the best option when you're just starting out.
Sponsored display ads are a feature outside of Amazon and target audiences based on their online presence. They can appear on social media, other websites, or in Amazon itself, and will direct viewers to your brand or product on Amazon.
Sponsored Display has two options: cost per click (CPC) and cost per mille (CPM). CPC ranges from $0.70 to $2.50 on average, while CPM (which refers to “Cost Per Thousand Impressions”) ranges from $4.00 to $12.00. Either option is effective, so you'll want to choose based on your campaign objectives: if you want to achieve brand awareness, CPM will reach a larger number of users; if you want to convert sales, CPC typically connects you with your targeted audience right away.
There are numerous factors to consider that affect Amazon's advertising costs. Here's an overview to help you keep them in mind:
The type of ad is one of the most important factors influencing Amazon advertising prices. As we explored earlier in the article, some ad types are more expensive than others, with the most common being $0.75 to $1.25 per click. At this point, you'll want to choose the one that best suits your brand's needs—whether you prefer to focus on sponsored product ads or sponsored brands.
The price of keywords depends on their search volume, and the more searched they are, the more coveted they are by brands. This makes some keywords with many bidders extremely expensive, and in some cases, it reduces profit potential—especially for small brands. Therefore, it's important to choose them strategically, ensuring they are effective without raising the cost per click to unaffordable levels.
Some pay-per-click models and keyword selection work through bids. If you're in a competitive niche (such as technology or beauty), you'll need to invest more heavily in your bids, as costs rise quickly and multiple brands are competing for the same product. You can choose to invest more or opt for less desirable keywords, which will result in a lower price but perhaps less chance of success.
When choosing the target audience you'll reach with your ads, it's best to be strategic. If you choose a broad target audience, you'll reach more people, but they might not be interested in your products; they'll ignore you completely, and you'll end up losing money.
If you adjust your target audience, you'll get fewer clicks, but there's a greater chance that they'll be potential customers of what you're selling. You can choose your target audience based on your objective: if you want visibility, opt for a broader target, while for sales, choose a more specific one.
If the ad you run has a good quality score for Amazon's parameters, combined with targeted keywords, then it has a better chance of being effective. A lackluster ad still costs you money, but it doesn't generate as much profit, so you will lose money in the long run.
Amazon advertising costs increase during peak demand periods, such as Christmas, Mother's Day, Father's Day, Valentine's Day, and more. During these times, you'll face greater competition during bidding, as all brands, large and small, want to advertise, generating higher CPCs.
Optimizing your Amazon ad costs doesn’t mean spending less—it means spending smarter. Whether you're just starting out or looking to improve an ongoing campaign, these strategies will help you get the most out of your budget.
To maximize your return on investment (ROI), focus on both your ad content and the way it’s presented. Here are a few ways to do that:
Managing your budget is all about striking the right balance between visibility and cost. Here’s how to stay in control of your ad spend:
Amazon’s Advertising Console gives you access to real-time data and insights that can shape your advertising strategy. Here’s how to make the most of it:
Reducing your Amazon ad spend without sacrificing performance comes down to strategy. Start by optimizing your keywords—focus on high-converting, relevant terms and remove underperforming ones. Use negative keywords to avoid paying for irrelevant clicks.
Regularly monitor your ad performance metrics like ACoS (Advertising Cost of Sales) and CPC to identify where to cut costs or reallocate budget. Also, consider starting with automatic targeting, then shifting to manual campaigns with tighter keyword control as you gather data. Testing different ad creatives and adjusting bids based on performance can also help lower costs over time.
Planning your Amazon ad budget depends on your business stage and marketing goals.
Before launching your campaign, define your goals:
A simple budget formula:
To get the estimated monthly ad budget you have to multiply your target monthly sales for your target ACoS.
For example, if you aim for $5,000 in monthly sales with a 20% ACoS, your ad budget would be around $1,000.
Using Amazon’s campaign planner or third-party tools can help fine-tune your budget and avoid overspending.
ACoS is the Advertising Cost of Sales on Amazon, and it's the perfect metric for measuring the success of an advertising campaign.
To calculate it, you must compare the amount of money you invested in PPC (pay-per-click) campaigns with the amount of money you received in sales.
To find out a campaign's ACoS percentage, simply divide advertising investment by advertising revenue and multiply by 100 (ACoS = Advertising Investment % Advertising Revenue] x 100). For example, if you invested $100 and had revenue of $200, your ACoS percentage would be 50%.
There's no exact number to determine a good ACoS, as different factors vary, such as the niche the products belong to. However, a good standard percentage is between 15% and 30%.
For brands seeking to boost their brand visibility, the percentage can exceed 30%. While if you sell products from a brand already established in the market, the ideal percentage falls between 15% and 20%.
Amazon sellers assure that Amazon Advertising is a good investment when used strategically. If your products or brands aren't yet recognizable in the market or aren't generating organic traction, it's one of the best options to start gaining momentum and increasing sales.
Strategy is crucial to determining the success of a campaign, as even the most economical budget goes a long way if it's targeted. Success will depend on factors such as ad optimization, product quality, and price.
Ultimately, if you're willing to test, analyze, and adjust your strategy, Amazon Advertising can absolutely be worth the cost—especially in competitive categories.
In 2025, understanding and optimizing your Amazon Advertising costs is key to staying competitive. By selecting the right ad types, refining your keyword strategy, and monitoring key metrics like CPC and ACoS, sellers can maximize ROI while maintaining budget control.
Whether you're a seasoned brand or just starting out, smart advertising decisions will help boost visibility and drive sales. Stay informed, test often, and use Amazon’s data tools to make every advertising dollar count in the evolving eCommerce landscape.
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