Amazon ACOS: What Top Brands Do Differently

Amazon PPC is a pretty big deal if you want your products to get noticed. It’s not just about running ads; the brands that really win do things a little differently. They get how the different ad types work and use them strategically. It’s a whole system, and getting it right can seriously boost your sales. Let’s check out what makes their Amazon PPC strategies stand out and how they manage their Amazon ACOS.

Key Takeaways

• Top brands use a mix of Sponsored Products, Sponsored Brands, Sponsored Display, and even Amazon DSP to reach customers at different points in their shopping journey.
• They don’t just stick with automatic campaigns; they move to manual campaigns for more control over keywords and bids once they have enough data.
• Understanding keyword match types (Broad, Phrase, Exact) is important, and successful sellers know when to use each, often combined with careful use of negative keywords.
• Well-organized product listings are seen as a critical part of Amazon PPC success, as Amazon’s system favors listings that convert well.
• Successful brands view Amazon PPC not just as a cost, but as a way to drive organic sales through a positive feedback loop with search ranking, ultimately impacting their Amazon ACOS.

1. Sponsored Products

Sponsored Products ads are probably the first thing most people think of when they hear "Amazon PPC." They show up right in the search results and on product pages, basically putting your item in front of shoppers who are already looking for something like it. These ads are designed to drive sales, and for many brands, they’re the main engine for their advertising efforts.

They’re great for high-intent shoppers. When someone searches for a specific product and sees your Sponsored Product ad, they’re usually ready to buy. This often means you get a better return on ad spend compared to other ad types. It’s all about catching people at the right moment.

Top brands use Sponsored Products in a few key ways:

• Targeting Competitors: They’ll often target competitor ASINs (Amazon Standard Identification Numbers) to try and snag shoppers who are comparing options. It’s a smart way to get noticed when someone is close to making a decision.
• Brand Protection: Running ads on your own brand terms is a must. This stops competitors from showing up when someone searches for your brand name. You don’t need to bid super high here; branded terms usually convert well on their own.
• Keyword Research: These campaigns are also a goldmine for finding new keywords. By looking at what search terms trigger your ads, you can discover new opportunities for keyword research and optimize your listings.

Think of Sponsored Products as your workhorse. They’re direct, effective, and form the backbone of a solid Amazon advertising strategy. Getting these right is step one for most successful sellers.

2. Sponsored Brands

Sponsored Brands ads are a pretty neat way to get your brand noticed, especially when shoppers are actively searching on Amazon. These ads show up right at the top of the search results page, which is prime real estate. They can feature your brand logo, a catchy headline you write yourself, and a selection of your products – up to three, as of early 2026.

Think of these ads as a digital billboard for your brand. They’re not just about pushing a single product; they’re more about introducing your brand as a whole or a specific collection you offer. This format is fantastic for building brand awareness and letting people know what makes your brand special.

Top brands use Sponsored Brands for a few key reasons:

• Brand Protection: Running ads on your own brand name keywords is a must. It stops competitors from showing up when someone searches specifically for your brand. You don’t need to bid super high on these terms because people searching for your brand already know what they’re looking for.
• Competitor Defense: You can also target competitor brand names or ASINs (within Amazon’s rules, of course). This can catch shoppers who are comparing different options and might be swayed to consider your product.
• Category Visibility: Use Sponsored Brands to highlight your products within a particular category. This helps you stand out from the crowd and capture attention from shoppers browsing that space.
• Storytelling: With custom headlines and multiple products, you can create a mini-showcase. This is a great way to explain what makes your brand unique or why your product is a good choice.

Sponsored Brands ads can direct shoppers to your Brand Store, a specific product page, or a curated collection page. They require Brand Registry, so make sure your brand is registered before you start.

These ads are particularly useful for introducing new products or promoting a specific campaign. They help shoppers discover more of what you offer, moving them from a general search to exploring your brand more deeply. It’s a solid step beyond just individual product ads.

3. Sponsored Display

Sponsored Display ads are a bit different from the other ad types you might be familiar with. Instead of just showing up when someone searches for a product, these ads can appear in a few different places. You’ll see them on Amazon’s own pages, like product detail pages, customer reviews, and even on other websites and apps that Amazon partners with. This means you can reach shoppers not only when they’re actively looking for something but also when they’re just browsing or even after they’ve left Amazon.

The main goal with Sponsored Display is to keep your brand in front of shoppers who have already shown some interest. Think of it as a way to gently remind people who looked at your products, or similar ones, to come back and finish their purchase. It’s also a good way to find new customers who might like what you sell, even if they haven’t searched for it directly yet.

Here’s how top brands often use Sponsored Display:

• Retargeting: This is a big one. If someone viewed your product page but didn’t buy, or added it to their cart and then left, you can show them ads later. It’s like a helpful nudge that your product is still available.
• Audience Targeting: You can target shoppers based on their interests or what they’ve bought before. For example, if someone often buys items in a certain category, you can show them your ads, even if they haven’t searched for your specific product.
• Product Targeting: This lets you place your ads directly on the product detail pages of items that are similar or complementary to yours. If someone is looking at a competitor’s product, you can show them your alternative, hoping to catch their eye.

Sponsored Display ads help you reach shoppers at different points in their buying journey, whether that’s on Amazon or elsewhere. They’re a solid tool for building brand awareness and bringing back interested shoppers.

These ads are great for capturing shoppers who are further down the buying funnel and are closer to making a purchase. They help your product stand out immediately.

4. Amazon DSP

Amazon DSP, which stands for Demand-Side Platform, is where things get a bit more advanced. Think of it as your ticket to reaching shoppers both on and off Amazon, using display and video ads. It’s not just about showing ads; it’s about reaching specific groups of people based on their behavior and interests.

This is a powerful tool for building brand awareness and reaching new customers. You can use it to target people who have looked at your products before but didn’t buy, or even people who have checked out your competitors. It’s also great for introducing new products to a wider audience, especially with video ads that can grab attention.

Here’s a breakdown of what you can do with Amazon DSP:

• Retargeting: Bring back shoppers who added items to their cart but left, or those who viewed your product pages without purchasing. The goal here is to nudge them towards a sale.
• Audience Prospecting: Find new customers by targeting shoppers who have shown interest in similar products or competitor brands. This helps you get your brand in front of people who are likely to be interested.
• Brand Awareness: Use display and video ads, including on streaming TV, to get your brand name out there. This is especially useful for new product launches or when you want to build a stronger presence in the market.
• Cross-Channel Campaigns: Combine DSP with other ad types, like Sponsored Products, to get a fuller picture of how your advertising is working across the entire customer journey.

When you start with Amazon DSP, it’s a good idea to begin with smaller audience groups and keep an eye on how much you’re spending and what you’re getting back. Measure your cost per acquisition and see if you’re getting more sales than you would have without the ads. Then, you can gradually increase your spending if things are looking good.

Amazon DSP is a programmatic advertising platform. This means ads are bought and sold automatically through technology, making it efficient for reaching specific audiences at scale. It’s a step up from the more direct advertising methods.

5. Automatic Campaigns

Automatic campaigns are kind of like your first exploration trip on Amazon. They’re set up to help you figure out what words people are actually typing into the search bar when they’re looking for stuff like yours, and what competitor products they’re checking out. For the first week or two, just let these campaigns run with a decent budget. This gives Amazon’s system enough information to start showing you which search terms and product ASINs are relevant.

The main point here isn’t to make a ton of sales right away, but to gather data. You’re looking for patterns and insights that will make your other ad efforts way more effective. Top brands use auto campaigns as a research tool to inform their manual campaigns.

Here’s what successful brands focus on with auto campaigns:

• Enough Budget: Don’t be stingy here. You need enough ad impressions to get meaningful data. A budget that’s too small won’t give you enough signals to work with.
• Adequate Run Time: Give it at least 7 to 14 days. Running it for too short a time means you won’t see the full picture, but running it too long without any changes can waste money.
• Regular Data Export: Pull your search term reports every few days. This is where the real insights are. You’ll see the exact phrases customers used.
• ASIN Discovery: Pay attention to the competitor ASINs that Amazon shows you. These can be great targets for future product targeting campaigns.

The search terms you find in auto campaigns are super useful for building out your manual campaigns later. You’ll move the best-performing terms into exact match and use the less relevant ones as negative keywords to avoid spending money on searches that don’t lead anywhere.

6. Manual Campaigns

Manual campaigns are where you really take the reins in Amazon PPC. Unlike auto campaigns that sort of guess where to show your ads, manual campaigns let you tell Amazon exactly which keywords you want to target and how much you’re willing to pay for them. This level of control is super important for getting the most bang for your buck.

Think of it like this: auto campaigns are great for finding out what people are actually searching for, but manual campaigns are for capitalizing on that knowledge. Once you’ve got some data from your auto campaigns, you can start building out your manual campaigns. You’ll want to organize them pretty carefully.

Here’s a common way to structure them:

• Exact Match: These are for keywords that you know convert really well. You’re telling Amazon, "Only show my ad when someone searches for this exact phrase." Because these are your proven winners, you’ll usually want to bid higher on them to make sure you get those valuable impressions.
• Phrase Match: This is a bit more flexible. You’re telling Amazon to show your ad when the search query includes your keyword phrase, in that order, but there might be other words before or after it. It’s good for catching variations and expanding your reach a bit without going too broad.
• Broad Match: This is the widest net. Your ad can show up for searches that are related to your keyword, even if they don’t contain the exact phrase. You have to be careful with broad match; it can waste money if you don’t have strong negative keyword lists in place. It’s often best used for discovery.

The key to manual campaigns is using the data you’ve gathered to make informed decisions about where to place your bids. You’re not just guessing; you’re strategically telling Amazon where you want your products to appear. This helps you avoid spending money on irrelevant searches and focus your budget on terms that are more likely to lead to a sale. It takes more effort than auto campaigns, but the payoff in terms of efficiency and performance is usually well worth it. Building out a solid campaign structure is a big part of this. You’re essentially telling Amazon exactly where you want your products to show up, which is a huge step up from letting the algorithm guess.

7. Broad Match Keywords

Broad match keywords are like casting a really wide net when you’re trying to catch shoppers on Amazon. They tell Amazon’s system to show your ads for searches that are related to the keyword you’ve set, even if the search doesn’t include those exact words. This can be a surprisingly good way to find out what terms people are actually typing into the search bar when they’re looking for products like yours. It’s a way to explore the edges of what your potential customers are searching for.

The main idea behind using broad match is discovery. It’s not always about getting a sale right away. Because it’s so broad, you’ll likely see your ads appear for a lot of different searches, some that are a perfect fit and others that are a bit off. This is why it’s super important to keep a close eye on how these campaigns are performing.

Here’s a bit more on how broad match works and why some brands use it:

• Discovery Engine: Broad match is great for stumbling upon search terms you might never have thought of yourself, terms that actually lead to sales.
• Needs Control: Since it can show your ads for many unrelated searches, you absolutely need a solid strategy for negative keywords. Without it, you’ll just be throwing money away.
• Lower Priority: Generally, it’s smart to set lower bids and smaller budgets for broad match campaigns compared to your exact match campaigns, which are already proven to convert.
• Inform Other Campaigns: Any search terms that do really well in your broad match campaigns should be moved over to your exact match campaigns. This is how you build a stronger manual campaign structure over time.

Top brands usually don’t rely on broad match as their main way to get sales. Instead, they use it as a tool to gather information and find new opportunities. Think of it like sending out scouts to see what’s out there before you commit more resources. You can use tools like Amazon Brand Analytics to help sort through the search terms that are showing up.

When you use broad match, treat it like an experiment. You’re testing the waters to see what kind of searches are happening. The data you get is really useful, but you have to be diligent about filtering out the noise and focusing on what actually works. It’s definitely not a ‘set it and forget it’ kind of keyword match.

8. Phrase Match Keywords

Phrase match keywords are a bit of a middle ground between the super-specific exact match and the wide-open broad match. They’re really useful for getting your ads in front of shoppers who are searching for terms that include your keyword, or close variations of it, in a specific order. Think of it like this: if your exact match keyword is "blue running shoes," a phrase match keyword might trigger for "buy blue running shoes online" or "best blue running shoes for marathon training."

This match type is great for expanding your reach beyond highly specific searches while still maintaining a decent level of relevance. It helps you discover new search terms that you might not have thought of on your own, terms that are still related to your product but perhaps phrased a little differently by potential customers.

Here’s why top brands use phrase match effectively:

• Discovering New Search Terms: While auto campaigns are good for initial discovery, phrase match in manual campaigns helps you actively find related queries that convert. You can then move the best performers to exact match.
• Scaling Reach: It allows your ads to show for a wider range of relevant searches than exact match, helping you capture more potential customers without going too broad.
• Balancing Control and Reach: You get more control than broad match because the search term needs to contain your keyword phrase in a specific order. This means fewer irrelevant impressions compared to broad match.

When setting up phrase match campaigns, it’s a good idea to start with slightly lower bids than your exact match campaigns. This is because phrase match is inherently less specific. You’re essentially telling Amazon, "Show my ad if someone searches for this phrase, or something very close to it, even if they add other words." As you gather data and see which phrases are performing well, you can adjust bids accordingly. Regularly reviewing your search term reports from these campaigns is key. Look for terms that are driving sales and consider adding them as exact match keywords in a separate campaign for tighter control and potentially higher bids. Conversely, if you see irrelevant terms creeping in, add them as negative keywords to prevent wasted ad spend.

9. Exact Match Keywords

Exact match keywords are like the VIP section of your Amazon advertising. When you use an exact match keyword, your ad is only going to show up when a shopper searches for that exact phrase, or something super close to it. No funny business, no slight variations that could lead them astray. If your keyword is "red ceramic coffee mug," your ad won’t appear for "coffee mug red" or "red ceramic mug." It has to be pretty much spot on.

This level of precision is powerful because it usually means you’re reaching shoppers who are very close to buying. They know what they want, and they’ve typed it directly into the search bar. This often leads to better conversion rates compared to broader targeting methods.

Here’s why top brands lean on exact match:

• High Intent: Shoppers using exact match terms are typically showing a strong desire to purchase. They aren’t just browsing; they’re looking to buy.
• Proven Performers: You usually move keywords into exact match campaigns after they’ve already shown success in auto or phrase match campaigns. It’s about doubling down on what’s already working.
• Control: Exact match gives you a lot of say over where your ad money goes. You know precisely which searches trigger your ads.
• Higher Bids: Because these keywords are so targeted and often convert well, brands are usually willing to bid a bit higher for them to make sure their ad gets seen.

You’ll often find that keywords that have already proven themselves in auto campaigns are the best candidates to move into an exact match manual campaign. This strategy helps you focus your budget on terms that have a demonstrated history of driving sales for your products, making your ad spend more efficient.

While exact match is great for control, it’s not the only tool. You’ll typically use it alongside phrase and broad match, and product targeting, to build a complete advertising strategy. But for those high-converting, specific searches, exact match is your go-to.

10. Negative Keywords

Negative keywords are like the bouncers at the club for your Amazon ads. They stop your ads from showing up for searches that are totally irrelevant to what you’re selling. Think about it: if someone searches for "dog sweaters" and you only sell cat toys, you don’t want your ad popping up, right? That’s just wasted money and a bad experience for the shopper.

Using negative keywords is one of the most effective ways to stop ad spend from going down the drain. They help keep your campaigns focused on people who are actually likely to buy your stuff. This not only saves you money but also tells Amazon that your ads are relevant, which can actually help your campaigns perform better overall.

Here’s how top brands use them:

• Stop Wasted Clicks: Add terms that are related to your product but not quite right. For example, if you sell new car tires, you might add "used tires" or "tire repair" as negatives.
• Prevent Internal Competition: If you have a keyword like "running shoes" in a broad match campaign and also in an exact match campaign, you might end up bidding against yourself. Top sellers often add exact match winners from broad or phrase campaigns as negatives in those broader campaigns to avoid this.
• Keep Brand Separate: If you’re running generic campaigns, you’ll want to add your own brand name as a negative keyword. This way, you can run separate, dedicated campaigns to defend your brand terms, where you can control the budget and bids more precisely.

It’s a good idea to check your search term reports regularly, maybe once a week. Look for searches that got clicks but no sales. Those are prime candidates to add to your negative keyword list. You can add them at the ad group level for specific targeting or at the campaign level to apply them more broadly. It might seem like a small thing, but it makes a big difference in keeping your ACoS in check.

Understanding negative keywords is super important for making sure your ads reach the right people. These are words you don’t want your ads to show up for, saving you money and effort. Want to learn more about how to use them effectively? Visit our website today for expert tips!

Wrapping It Up: What Top Brands Really Do

So, what’s the big takeaway from all this? It’s pretty clear that the brands killing it on Amazon aren’t just getting lucky. They’re building solid systems. They’re not just throwing ads out there and hoping for the best; they’re using data to make smart choices about where to put their money and effort. This means understanding things like ACoS, but also looking at the bigger picture – how ads help organic sales, how to manage multiple brands, and how to set up their operations so they can react fast. It’s about having the right tools and the right mindset to see what’s really going on with their business. If you want to compete at the top level, you’ve got to build that infrastructure. It’s the difference between just selling on Amazon and truly running a successful Amazon business.

Frequently Asked Questions

What are the main types of ads on Amazon?

Amazon offers several ad types to help brands reach customers. These include Sponsored Products, which appear in search results and on product pages; Sponsored Brands, which can showcase a brand’s logo, custom headline, and multiple products; Sponsored Display, which allows ads to appear on and off Amazon; and Amazon DSP, a demand-side platform for programmatic advertising across Amazon’s properties and third-party sites.

Should I use automatic or manual Amazon ad campaigns?

It’s best to start with automatic campaigns to let Amazon find relevant search terms for your products. Once you gather data on what’s working, you can then switch to manual campaigns. Manual campaigns give you more control over specific keywords and how much you bid, which is great for targeting what you know converts well.

How do different keyword match types work on Amazon?

There are three main keyword match types: Broad match, which shows your ad for searches related to your keyword, even if they don’t contain the exact words; Phrase match, which shows your ad for searches that include the meaning of your keyword; and Exact match, which shows your ad only when someone searches for that exact keyword. Top brands use a mix of these, often starting broad and then narrowing down to exact matches.

Why are negative keywords important for Amazon ads?

Negative keywords tell Amazon not to show your ads for certain search terms. This is super important to avoid wasting money on clicks that won’t lead to a sale. For example, if you sell new shoes, you’d want to add ‘used’ as a negative keyword.

How does Amazon PPC affect my product’s organic ranking?

When your ads lead to sales, it tells Amazon that customers like your product. This positive signal can help improve your product’s organic ranking in search results. It’s like a helpful cycle: ads bring sales, sales boost ranking, and better ranking brings more organic sales, potentially lowering your ad costs over time.

When should a seller start investing in advanced analytics tools?

Most sellers find that around $1 million in annual revenue, or when they start managing more than one brand or selling in different marketplaces, is the time to look beyond basic reports. At this point, specialized tools can help manage complexity and make better decisions by looking at performance across their entire business, not just one product.