Amazon PPC costs are on the rise, with the average cost-per-click (CPC) hitting $0.98 in 2025 – a 23% year-over-year increase. For sellers, managing ad spend effectively is critical to staying competitive. Here are 7 proven strategies to cut waste and improve your campaign performance:
- Organize campaigns better: Segment by product type and performance to control budgets and analyze results efficiently.
- Adjust bids smartly: Use performance data to lower bids on underperforming keywords and increase bids during peak sales hours.
- Remove bad keywords: Eliminate terms with high clicks but no conversions, and use negative keywords to block irrelevant searches.
- Focus on top campaigns: Shift budgets to high-performing campaigns with low ACoS (Advertising Cost of Sales).
- Separate campaigns by product type: Break down campaigns for sharper bid management and better ad targeting.
- Leverage Amazon’s tools: Use automation for bidding, budget rules, and performance insights to save time and manage costs.
- Track and refine regularly: Weekly, monthly, and quarterly reviews ensure campaigns stay efficient and aligned with goals.
Top 10 Amazon PPC Tips to Cut Costs and Increase Sales
1. Structure Your Campaigns Better
The way you set up your Amazon PPC campaigns can make or break your ad performance – and your budget. A poorly organized campaign wastes both time and money, while a well-structured one sets the stage for success.
Segment your campaigns by performance and product type. Why? It gives you better control over your budget and makes it easier to analyze key metrics. When high-performing and low-performing products are lumped into the same campaign, your budget gets spread too thin, making it harder to focus on what’s working.
"Your campaign structure is key to lowering ACoS on Amazon because it directly affects how well you can manage and track your ads." – upscalevalley.com
For products that are doing well, allocate stronger bids and higher budgets. For those that aren’t performing as expected, use smaller bids and more conservative budgets. This separation not only helps optimize bids but also ensures your budget is being spent where it matters most.
Keep ad groups focused on a small set of closely related keywords. Overloading your ad groups with too many keywords can make it difficult to manage bids effectively and weakens the impact of your ad copy.
The benefits of a solid campaign structure are clear. For example, Team4eCom helped one client drop their ACoS to just 16% – well below the typical "good" range of 30% to 40%. Another client saw a 47% jump in sales after implementing a more strategic approach.
2. Adjust Your Bids Smartly
Making smart bid adjustments can turn a campaign into a success story – or prevent your budget from going down the drain. The key? Let performance data guide you, not guesswork.
Start by identifying keywords that aren’t pulling their weight. These are the ones eating up your budget without delivering sales. To pinpoint them, download your Sponsored Products and Sponsored Brands search term, keyword, and targeting reports from Amazon’s campaign manager. Use bulk spreadsheets to compile this data across all your campaigns. Then, filter for keywords with over 10 clicks, more than $1 in spend, and zero orders. Also, keep an eye out for keywords with an ACoS (Advertising Cost of Sales) above 100%, as these are clear signs your bids might be too high for the returns you’re seeing.
Timing is another important factor. Adjusting bids based on peak sales hours can make a big difference. Here’s an example: In 2023, an EcomClips client noticed their ads were burning through the budget by noon with little to show for it. After analyzing hourly performance reports, they discovered that the 7:00 a.m. to 9:00 p.m. window consistently delivered the most sales. Their solution? Increase bids by 50% during those hours while cutting back spending during less productive times. This approach can be even more effective when combined with device-specific adjustments.
Speaking of devices, take the time to analyze how your ads perform on mobile versus desktop. Mobile shopping is on the rise, and optimizing your bids for mobile users can help you tap into this growing audience. Adjust bids to reflect performance differences across devices, ensuring you’re reaching shoppers where they’re most active.
Finally, consider automating your bid adjustments. For instance, increase bids for keywords with high conversion rates and low ACoS, while reducing or pausing bids for those with high ACoS or low click-through rates. Automation ensures your campaigns stay optimized, even when you’re not actively managing them. Pairing automated bids with regular keyword refinement will keep your campaigns running efficiently and profitably.
3. Remove Bad Keywords and Block Irrelevant Searches
After adjusting your bids, the next step to fine-tune your PPC campaigns is cleaning up your keyword list. This process ensures that your budget is spent on terms that actually drive results, rather than wasting money on ineffective ones.
Start by running your campaigns for a few weeks to collect enough data before making any big changes. Once you’ve gathered sufficient insights, dive into your search term reports to pinpoint underperforming keywords. Focus on terms that generate high clicks but result in few – or no – sales. These keywords are prime candidates for removal or bid reductions.
Pay close attention to keywords with low click-through rates (CTR) and poor conversion rates, as well as those with high cost-per-click (CPC) but minimal return. These are clear signs that your ads might not be reaching the right audience. Similarly, eliminate keywords that rack up impressions but fail to attract clicks. While impressions don’t cost you directly, they can indicate poor ad relevance, which can hurt your campaign’s overall performance.
Ignoring keyword cleanup can quickly become a costly mistake. In one case, an account that neglected to optimize its negative keywords wasted $10,625 in just 60 days – 40% of its total ad spend. This example highlights how failing to manage keywords effectively can drain your budget.
To combat irrelevant traffic, make use of negative keywords. These are terms or phrases that stop your ads from showing up when they appear in a customer’s search query. Regularly review your search term reports and add irrelevant terms to your negative keywords list to avoid wasting your budget on traffic that doesn’t convert.
4. Focus Budget on Your Best Campaigns
Once you’ve fine-tuned your keyword strategy, it’s time to channel your budget toward the campaigns that deliver the best results. Shifting your spending to focus on high-performing campaigns can significantly boost your return on investment (ROI).
Start by analyzing key metrics like click-through rate (CTR), conversion rates, cost-per-click (CPC), and advertising cost of sales (ACoS). These numbers will help you pinpoint which campaigns are thriving and which ones might need a second look or a budget cut.
"Our clients care the most about ROAS. Making money is the aim of the game at the end of the day." – Sam Yielder, Paid Media Executive, Squidgy
Spot your top performers by focusing on campaigns with high conversion rates and low ACoS. These are your revenue drivers and deserve a larger slice of your budget. Campaigns delivering the highest ROI should be prioritized. Make it a habit to reallocate funds quickly based on these insights.
A handy way to structure your budget is by applying the 60-20-10-10 rule. For example, if you’re working with a $5,000 budget, you could allocate $3,000 to your best-performing Sponsored Products, $1,000 to other keyword campaigns, and $500 each to product targeting and Sponsored Brands. Keep an eye on performance and be ready to shift money from campaigns that aren’t meeting expectations to those that are thriving.
Leverage Amazon’s Budget Rules tool to make budget management more efficient. This feature automatically adjusts your daily budget based on sales trends, ensuring you take advantage of peak engagement times while scaling back during slower periods.
Pause campaigns that consistently underperform and redirect that budget to the winners. With the average cost per click on Amazon hovering around $0.77, every dollar counts.
Compare performance across different time frames to identify trends and seasonal opportunities. This historical data can guide your decisions on where to focus your budget during specific periods. Break down your data by product type, campaign type, and performance level to get a clear picture of what’s working and what’s not.
Keep your budget strategy dynamic by regularly adjusting it based on real-time performance data. Stay informed about market trends, competitor actions, and shifts in consumer behavior to ensure your spending remains effective. By targeting your budget where it matters most, you’ll set the stage for even better campaign and bid management.
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5. Separate Campaigns by Product Type and Performance
Breaking down campaigns by product type isn’t just about keeping things tidy – it’s a smart way to manage costs and streamline your PPC efforts. This method allows for sharper bid management and better budget control.
Instead of lumping all your products into one massive campaign, focus on creating smaller, targeted campaigns based on product categories. For example, a pet store with thousands of products could set up separate campaigns for "Cat towers", "Cat food", and "Cat toys", grouping them under a broader cat-related portfolio. Within each campaign, organize ad groups around product variations – like size, color, or material – to maintain tight control. If you’re selling floor mats, you might separate them by different sizes or materials within the same campaign. This setup makes it easier to identify top-performing items, which helps guide bid adjustments effectively.
Keyword match types are another area where segmentation pays off. By creating separate campaigns for broad, phrase, and exact match keywords, you can refine your bidding strategies for each type. This approach prevents broad match keywords from eating up the budget intended for more specific, exact matches.
Performance-based segmentation is equally important for efficient budgeting. Allocate more aggressive bids and higher budgets to top-performing products while keeping underperformers or experimental items on a tighter budget until they prove their worth. For brands with diverse product lines, structuring campaigns by keywords can also be highly effective. Take Coca-Cola as an example: they might run campaigns centered around branded keywords like "Coke" and "Diet Coke", generic terms like "soda", and even competitor terms like "Pepsi" or "Dr. Pepper". Each type of campaign would require its own tailored bidding strategy and budget.
Clear campaign naming is another critical detail. Use straightforward names like "Kitchen-FloorMats-Exact" to avoid confusion and make adjustments easier. Keeping manual and automatic campaigns separate is also key. While automatic campaigns are great for discovering new keywords, manual campaigns give you precise control over proven performers. Separating the two ensures you can leverage the benefits of both without overlap.
This kind of segmentation not only sharpens your campaign strategy but also boosts ad relevance. When your ads align closely with what customers are searching for, you’ll see higher click-through rates, better conversion rates, and lower Advertising Cost of Sales (ACoS). Amazon rewards this relevance with better ad placements and reduced costs.
"There are loads of different ways to structure your campaigns, and everyone should customize these methods to fit their own goals and needs." – Adbadger.com
It’s a good idea to revisit your campaign structure monthly or quarterly. As your product catalog grows and performance data rolls in, you may need to reorganize campaigns. Some experimental products might turn into top sellers, while others could require adjustments or even a pause.
6. Use Amazon’s Built-in Tools and Automation
Once you’ve fine-tuned your manual strategies, it’s time to let automation handle the repetitive tasks. Amazon’s built-in tools can save you time and help control costs, especially as CPC rates in some categories have risen by 15–30% as of 2025. These tools are designed to optimize your campaigns and reduce the need for constant manual oversight.
Automated bidding is one of the most effective features. Amazon’s algorithms adjust your bids based on the likelihood of conversion. For instance, Dynamic Bids can automatically increase bids for high-performing placements while lowering them for underperforming ones. This ensures your budget is directed toward placements that are more likely to convert, which is especially useful during peak shopping seasons when manually managing every keyword becomes overwhelming.
Another helpful feature is campaign budget rules, which allow you to set conditions for adjusting daily budgets automatically. These rules are triggered by specific events, such as a spike in demand or increased competition. For businesses selling seasonal products or experiencing fluctuating demand, this tool prevents overspending while removing the need for constant manual adjustments.
The performance insights dashboard is a game-changer for making data-driven decisions. It provides real-time metrics like click-through rates, conversion rates, and return on ad spend. This data helps you refine your automated settings and identify underperforming keywords or placements. For example, you can set up automated rules to pause or reduce bids on keywords that aren’t delivering results, ensuring your budget is spent more effectively.
To get the most out of these tools, combine them strategically: use automated bidding for broader campaigns, apply budget rules to keep spending in check, and rely on performance insights to fine-tune your approach. The key is to strike a balance between automation and regular oversight. By reviewing your campaigns frequently, you can ensure they stay aligned with your business objectives and adapt to market changes.
For brands juggling multiple campaigns, these automation tools are indispensable. They allow you to maintain a competitive edge without the hassle of managing every detail manually.
7. Track Results and Make Regular Changes
Even the most well-optimized campaigns need constant attention to stay profitable. With CPC rates climbing by 15–30% in certain categories as of 2025, keeping a close eye on your data and making regular adjustments is more important than ever. A structured review process ensures you catch issues early and seize opportunities as they arise.
Weekly Reviews: Fine-Tune Your Search Terms
Start by reviewing your search term reports every week. These reports can uncover where your ad spend might be wasted. For instance, if you’re selling premium kitchen knives and your ads are showing up for "cheap plastic knives", that’s money going down the drain. Add those irrelevant terms as negative keywords immediately to cut unnecessary costs. Weekly reviews also help you identify trending keywords that could boost your campaigns.
Monthly Assessments: Dive Deeper Into Campaign Metrics
Once a month, take a closer look at your campaign structure and performance metrics. Focus on key indicators like ACOS (Advertising Cost of Sales), ROAS (Return on Ad Spend), CPC (Cost Per Click), CTR (Click-Through Rate), and conversion rates. Use this data to shift your budget effectively. For example, if Campaign A has an ACOS of 15% and Campaign B is at 40%, it’s time to allocate more resources to Campaign A. This level of analysis ensures that your budget is working as efficiently as possible.
Quarterly Evaluations: Big-Picture Strategy Check
Every quarter, step back and assess your overall strategy. Look at trends from the past three months and measure your performance against your business goals. Are your campaigns aligning with your broader marketing objectives? Consider factors like new product launches or seasonal trends that might require adjustments. This is your chance to make any major changes if your current approach isn’t delivering the results you need.
Real Results From a Systematic Approach
One seller who implemented weekly search term reviews and monthly campaign assessments saw impressive results: a 20% reduction in ACOS and a 30% increase in ROAS over just three months. These numbers highlight the value of consistent monitoring and strategic adjustments.
Leverage Amazon’s Built-In Tools
Amazon provides a range of tools to simplify this process. The Search Term Report shows exactly what customers searched for before clicking your ads, while the Campaign Performance Dashboard gives you a high-level view of key metrics. Placement reports help you identify where your ads perform best, and budget reports ensure your spending is on track.
Turn Data Into Action
Tracking data is only half the battle – you need to act on it. Use the insights to make targeted adjustments, like lowering bids on high-spend, low-conversion keywords, pausing underperforming ad groups, or increasing budgets for high-ROAS campaigns. These data-driven tweaks can significantly cut wasted ad spend.
For brands juggling multiple campaigns across various product lines, this level of tracking can feel overwhelming. That’s where professional PPC management services, such as Emplicit, come in. They specialize in handling the heavy lifting, allowing you to focus on your business while they optimize your campaigns.
Amazon PPC is not a "set it and forget it" game. Without regular monitoring and adjustments, even the best campaigns can turn into budget drains. By staying proactive, you’ll not only protect your ad spend but also position your campaigns for long-term success. These tracking strategies pave the way for the next step: comparing manual and automated bid management approaches.
Manual vs Automated Bid Management Comparison
Choosing between manual and automated bid management comes down to finding the right balance between control and efficiency. Your decision will largely depend on your business size, expertise, and advertising goals. Each method has its own strengths and challenges, which can directly influence your campaign costs and performance.
Automated campaigns rely on Amazon’s algorithm to target relevant keywords and adjust bids based on performance data. This hands-off approach works well for sellers who are just starting out, as it helps uncover new search trends and long-tail keywords. However, the trade-off is less control over specific keywords and bid amounts. This lack of oversight can sometimes lead to higher costs if the algorithm bids on irrelevant terms.
Manual campaigns, on the other hand, provide detailed control. You can handpick keywords, set individual bids, and fine-tune match types. While this approach allows for optimized spending on high-converting keywords, it requires ongoing research and active management, which can be time-consuming.
| Factor | Automated Campaigns | Manual Campaigns |
|---|---|---|
| Best for | New sellers, keyword discovery | Experienced sellers, precise control |
| Time Investment | Low – minimal monitoring needed | High – requires constant management |
| Control Level | Limited keyword and bid control | Full control over keywords and bids |
| Learning Curve | Easy to start | Requires PPC expertise |
| Budget Efficiency | Potentially higher costs from broad targeting | Optimized spending on proven keywords |
| Keyword Discovery | Great for finding new opportunities | Relies on your research and intuition |
| Risk Level | Lower risk of major mistakes | Higher risk of costly errors |
The table above highlights the key differences to help you determine which approach aligns best with your needs.
For smaller businesses with limited budgets and less PPC experience, automated campaigns can be a good starting point. They’re easy to set up and come with built-in keyword discovery, which is especially helpful for businesses just getting their feet wet. Larger businesses, however, often lean toward manual campaigns. With dedicated marketing teams and bigger budgets, these businesses can maximize their return on ad spend by fine-tuning campaigns for multiple product lines and complex structures.
A hybrid approach combines the strengths of both methods. For example, a 7‑figure health and wellness brand used a mix of manual control and AI-driven adjustments to reduce TACoS from 18% to 11% and increase conversion rates by 22% in just 60 days.
SellerApp suggests a blended strategy:
"For optimal results, SellerApp recommends running both automatic and manual campaigns concurrently. This strategy allows you to leverage the broad reach of automatic campaigns while fine-tuning performance with manual campaigns."
This approach works by using automated campaigns to identify high-performing keywords. Once identified, you can move these keywords into manual campaigns for better bid control. To avoid overlap and wasted budget, mark these keywords as negative in your automated campaigns.
AI tools can also step in to handle repetitive tasks like daily bid adjustments and keyword harvesting, freeing up your time to focus on the bigger picture. As Marketplace Valet puts it:
"Don’t outsource your thinking. Own your strategy."
With 79% of brands citing PPC as a key driver of their business, the choice between manual, automated, or hybrid strategies should align with your current capabilities and long-term growth goals. By tailoring your approach, you can make the most of your advertising efforts and scale effectively.
Conclusion
By applying the strategies outlined earlier, you can lower your Amazon PPC costs without compromising performance or sales. These seven approaches work together to create a more efficient advertising framework, ensuring you get the most out of your investment. The foundation lies in optimizing your campaign structure and making smart bid adjustments, while refining your targeting through keyword management and budget reallocation helps fine-tune results.
Research highlights that adopting a data-driven bidding strategy can reduce CPC by 10-20%, and improving product listings can trim costs by 15-25% without impacting sales. Additionally, combining negative keyword management with optimized listings can cut wasteful ad spending by 15-30%.
It’s essential to prioritize profitability over sheer sales volume. Knowing your break-even ACoS and focusing on net profit per session will help guide your decisions. For smaller brands, which typically spend three times more on Amazon ads than larger competitors, achieving cost efficiency is crucial for growth.
A balanced approach – blending automated and manual campaign management with ongoing performance monitoring – offers the best results. With the average Amazon PPC cost-per-click projected to hover around $0.98 in 2025, every optimization effort directly affects your bottom line.
For businesses seeking to streamline these strategies without a steep learning curve, Emplicit provides end-to-end PPC management and ecommerce solutions. Their services cover campaign optimization, listing improvements, inventory management, and tailored strategies to meet your marketplace goals. With expertise spanning platforms like Amazon, TikTok Shops, Walmart, and Target, Emplicit helps brands grow efficiently while keeping advertising costs in check.
Start with controlled budgets, test systematically, and scale what works. With the right mix of strategies, tools, and expert guidance, you can significantly lower your Amazon PPC costs while setting the stage for sustainable, long-term business growth.
FAQs
What are the best ways to use Amazon’s tools and automation to lower PPC costs?
To cut down on Amazon PPC costs while using built-in tools and automation, focus on features like automated bidding, negative keyword management, and campaign segmentation. These options are designed to help you make the most of your ad budget by targeting high-performing keywords and products.
With Amazon’s automated bidding strategies, your bids adjust in real-time to align with your campaign goals, ensuring smarter spending. Negative keyword management, on the other hand, helps you avoid wasting money on irrelevant searches. Campaign segmentation – whether by product, category, or performance – gives you greater control and clarity, making it easier to pinpoint areas where you can save money and boost ROI.
Using these tools wisely can help you streamline your PPC campaigns, trim unnecessary costs, and get better results from your advertising efforts.
How can I find and remove underperforming keywords in my Amazon PPC campaigns?
To keep costs in check and make your campaigns more effective, it’s essential to keep an eye on your keyword performance metrics. Pay attention to ACoS (Advertising Cost of Sales), click-through rate (CTR), and sales data. If you notice keywords with high ACoS (like over 100%) or low conversion rates, consider pausing or removing them to avoid wasting ad spend.
Take advantage of Amazon PPC reports to dive deeper into keyword performance. These reports can help you spot trends and make informed decisions. Incorporate negative keywords to block irrelevant searches and fine-tune your targeting. Regularly adjust bids on your top-performing keywords to get the most out of your budget and ensure your campaign stays efficient and focused.
How often should I update my Amazon PPC campaigns to keep costs low and meet my business goals?
To make sure your Amazon PPC campaigns stay on track and within budget, it’s smart to review and tweak them every week. This gives you the chance to keep up with performance trends, fine-tune your bids, and adjust keywords as needed.
By regularly updating your campaigns, you can spot keywords that aren’t delivering results, manage your budget wisely, and ensure your efforts are delivering the outcomes you want. Consistent monitoring is essential for keeping your return on investment (ROI) in good shape.