Amazonโs marketplace is more crowded than ever and sellers everywhere are feeling the pressure. As competition increases, the cost to get your products noticed by shoppers is going up. More than 84% of all retail media ad spending in 2025 will come from Amazon and Walmart, making it more challenging for brands to stand out without overspending.
If you donโt stay on top of your Amazon PPC optimization, your profits might shrink as costs keep rising. Sellers who adapt with smart Amazon bid management and actively use negative keywords protect their margins and drive growth. The upside? With the right plan, you can lower Amazon advertising spend and still see solid results.
Understanding Key Metrics: ACoS, TACoS, CPC and ROAS Explained
To reduce Amazon PPC costs, itโs important to understand your key metrics. Focus on these four:
- ACoS (Advertising Cost of Sale): The percentage of your sales spent on ads. Lower numbers mean better efficiency.
- TACoS (Total Advertising Cost of Sale): Your ad spend as a percentage of all sales, including those not directly from ads.
- CPC (Cost-per-click): The amount you pay for each ad click. In 2025, the average Amazon CPC is about $0.91 per click.
- ROAS (Return on Ad Spend): Revenue earned for every dollar spent on ads.
Understanding these metrics is your first step to Amazon PPC optimization and smart budget allocation. For more detail, review our Amazon PPC Audit and Amazon PPC Checklist.
Top Proven Strategies to Lower Amazon PPC Spend
1. Structure Campaigns and Ad Groups for Better Control
Strong Amazon PPC optimization starts with a clear campaign structure. Segment your campaigns by product type, performance, or target audience, so you can manage spend and review results easily. Sellers with detailed campaign segmentation spot and fix underperforming areas faster.
- Keep similar products and keywords together for better targeting.
- Separate your branded keywords from non-branded ones.
- Create single-keyword ad groups for important searches.
This approach helps you avoid wasted spend and keeps your negative keywords manageable. For more on structuring campaigns, see our Ultimate Amazon Advertising Strategy Guide. Learn how our team simplifies the process with Amazon account management strategies.
2. Smart Bid Management: Mix Manual and Automated Bidding
Bid management affects your bottom line more than you might expect. Manual bidding puts you in control but can take a lot of time. Automated tools, like Sellerboardโs Smart Portfolios, allow you to set a target ACoS or profit margin and then handle bids and budgets to hit your goals. Automated bid optimization helps keep Amazon PPC campaigns on track and profitable.
- Use automation for everyday bid changes and managing many campaigns.
- Switch to manual for important launches or high-priority products.
- Always review suggested changes before approving them.
Want to go deeper? See our Bidding Strategies or work with an Amazon PPC Management Agency for expert help.
3. Use Negative Keywords to Block Irrelevant Clicks
Negative keywords are simple but powerful. By stopping ads from appearing on irrelevant searches, you make sure your ads are only shown to shoppers interested in your products. This can significantly lower Amazon advertising spend and improve your campaign results.
- Check your search term reports to catch and filter out irrelevant clicks.
- Add negative keywords to both campaign and ad group levels.
- Update your list as your product lines and market trends change.
Follow our Amazon PPC Checklist for a step-by-step process. Ready to scale? Schedule a 1:1 growth call with our account managers to discuss custom strategies.
4. Focus Your Budget on Top-Performing Campaigns
Not every campaign deserves the same budget. The most successful sellers move their advertising dollars from low-performing to high-performing campaigns after regular analysis. This ensures your Amazon ad group structure is aligned with achieving your key business goals.
- Give priority to Sponsored Products for the highest ROAS.
- Review and adjust budgets weekly or monthly based on performance.
- Donโt hesitate to pause or cut spend on poor performers.
Stick to these Amazon PPC budget allocation best practices to stretch your ad dollars. For more tips, check out the guide to Reducing Amazon Advertising Costs.
5. Choose Low CPC, High ROI Keywords
Success on Amazon is about making smart choices, not just spending more. Use Amazon bid management tools and competitor analysis to find keywords that have strong sales potential at a relatively low cost-per-click. Tools such as AMZScoutโs Keyword Search help uncover keywords that bring the best ROI by balancing high sales and low CPC.
- Study your competitorsโ keywords to find unique opportunities.
- Focus on long-tail keywords, as they usually cost less and convert better.
- Regularly refresh your keyword list to stay ahead.
For more on keyword optimization, see our Amazon SEO Services and our guide on how to Create An Amazon PPC Strategy.
6. Use Amazonโs Automation Tools and Rule-Based Budgeting
Amazon PPC automation tools like Sellerboardโs Smart Portfolios can be a game-changer. These tools let you set your targets, then automatically handle bid adjustments, keyword discovery, and budget allocation to improve profits. Smart Portfolios help direct your spend toward campaigns and keywords that really matter, saving time and boosting results over time.
- Set up automation for daily tasks like bidding and budgeting.
- Use real-time analytics to guide every decision.
- Keep full visibility over your campaigns with your PPC dashboard.
This approach is perfect for sellers aiming to scale smartly and efficiently.
7. Use Ad Scheduling for the Best Results
Timing makes a big difference in Amazon PPC. Running ads during peak hours and special events like Prime Day or Black Friday can help your products stand out. According to experts, holiday PPC boosts come from early action, flexible pacing, and automation that focuses on profit rather than just traffic.
- Check your sales data to find out when shoppers buy the most.
- Raise bids and budgets shortly before and during big shopping events.
- Use ad scheduling to pause or reduce spend when traffic is low.
This ensures your advertising budget is used when it matters most.
8. Target Competitive and Complementary ASINs Wisely
Targeting specific ASINs lets your ads reach the right audience. By looking at competitor product listings with tools like AMZScoutโs Reverse ASIN Lookup, you can target high-performing competitor ASINs with your ads. This helps you reach shoppers who are already considering products similar or related to yours.
- Use competitor ASIN targeting to have your ads show on their product pages.
- Target complementary products for cross-selling and increasing order size.
- Frequently refresh your targeted ASINs to keep up with the market.
Strategic ASIN targeting can really improve your campaign segmentation and conversions.
9. Keep Improving: Monitor Metrics and Test Ad Copy
The best way to reduce Amazon advertising spend is to constantly improve. Testing new ad copy, closely watching campaign performance, and making regular tweaks to your bids pays off in better results. Automation tools like Sellerboardโs Smart Portfolios allow you to automate keyword discovery, bid changes, and budget allocation, keeping your ad spend focused on whatโs working.
- Regularly A/B test headlines, images, and calls to action.
- Track ACoS, ROAS, and conversion rates every week.
- Use live dashboards to spot trends quickly and act on them.
Grab our Amazon PPC Audit for a full checklist and see how smart reporting can help your bottom line.
10. Plan for Seasonality: Adjust for Big Shopping Periods
Sales spike during key shopping events like Prime Day, Black Friday, and the holidays. Leading sellers plan ahead by raising bids and budgets before these times, and then use automation to respond in real time. Industry experts say holiday PPC success relies on engaging early, pacing budgets, and using automation that keeps profit in mind.
- Adjust your bids 24-48 hours before major shopping events.
- Watch campaign performance closely during big days so you donโt lose sales.
- Use dynamic pacing to keep campaigns active through sales surges.
This makes sure your Amazon PPC optimization efforts are most effective when competition is highest.
11. Balance TACoS with Organic Growth for Profit
Smart Amazon PPC strategies boost both ad and organic growth. If your TACoS holds steady or drops as your total sales climb, your ads are improving organic rank and helping you scale without overspending. A declining TACoS alongside rising sales shows your ads are supporting organic growth, not just paid conversions.
- Watch TACoS and ACoS to make sure your profit improves over the long term.
- Use ads to support, but not completely replace, organic sales.
- Update your strategy as your products grow in popularity.
For more, see our Amazon PPC Audit and Amazon SEO Services.
Amazon PPC Tools Comparison: Manual, AI, and Hybrid Solutions
The tool you choose can really shape your Amazon ad results. Manual tools give you control but need a lot of time and attention. AI-based solutions like AMZScoutโs PRO AI Extension automate keyword research, competitor tracking, and reporting, helping you spot high-return opportunities quickly. Hybrid platforms offer a flexible balanceโautomation handles repetitive tasks while you keep strategic control as needed.
Learn more about AI-driven sales reporting and how SalesDuoโs dashboard smooths Amazon PPC optimization.
Common Mistakes That Increase Amazon PPC Costs (And How to Avoid Them)
Plenty of sellers lose money on Amazon due to avoidable errors. The most common problems include picking overly saturated niches, skipping in-depth product research, and launching ads without proper keyword analysis. Entering crowded markets and ignoring data when choosing products or keywords is why many sellers lose out in 2025.
- Donโt launch in highly competitive categories unless you have a real advantage.
- Always rely on solid data and competitor insights before picking your next product or keyword.
- Consistently monitor and adjust your campaigns to keep spend efficient.
You can find a full breakdown in our Amazon PPC Audit and Ultimate Amazon Advertising Strategy Guide.
Conclusion: Achieving Sustainable Amazon PPC Savings in 2025
Key Takeaways and Next Steps for Amazon Sellers
Saving on Amazon PPC in 2025 isnโt just about reducing spend. Itโs about working smarter through strategy, automation, and ongoing improvement. Focus on organizing campaigns, smart bid management, using negative keywords, and data-led decisions for the best results with your ad budget.
As Amazon keeps changing, brands need more than just visibilityโthey need to deliver real, measurable performance. At SalesDuo, we blend strategy, data, creativity, and the latest AI to grow your business. With 85% of our team made up of ex-Amazon pros and our exclusive AI dashboard powering every campaign, weโve helped over 250 eCommerce brands succeed on Amazon. Want to see whatโs possible? Book your 1:1 growth call today!
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About the Author
Meet Nandita Nair, an Associate Content Writer at SalesDuo, passionate about creating impactful content that helps Amazon businesses grow and thrive. When sheโs not writing, she finds joy in listening to music, exploring art, and getting lost in the world of novels.
