How to Run Your First Amazon Ads: Complete Beginner’s Guide

Before You Start: The Golden Rule

Build a solid foundation first, then drive traffic.

How to Run Your First Amazon Ads: Complete Beginner’s Guide. If your product listing isn’t optimized, even the best ads will waste your money. Your product must be ready to convert before you spend a single rupee on advertising.

Phase 1: Pre-Launch Checklist (Do NOT Skip This!)

1. Optimize Your Product Listing

Your listing is your salesperson. It must convince customers to buy .

Element	What to Do
Title	Include core keywords, brand, size, color. Format: [Main Keyword] + [Brand] + [Key Features] + [Size/Pack]
Bullet Points	Highlight 5 key benefits. Focus on “what’s in it for the customer”
Description	Tell a story. Use HTML formatting (bold, line breaks) for readability
Backend Keywords	Add synonyms, misspellings, related terms (not visible to customers)
A+ Content	If brand registered, use enhanced content with images and comparison charts

2. High-Quality Images Are Non-Negotiable

Amazon is a visual platform. Your images must :

• Have a pure white background for the main image (RGB 255,255,255)
• Show the product from multiple angles
• Include infographics highlighting features
• Show the product in use (lifestyle images)
• Follow Amazon’s image requirements (at least 1000 pixels on longest side for zoom)

Pro Tip: Use tools like Promeo or Canva to create professional-looking images with AI-generated backgrounds if you don’t have a photography studio .

3. Pricing and Offers

New products need an edge :

• Price slightly below competitors (you can increase later)
• Run a coupon (10-20% off) — the green “Save” tag attracts clicks
• Consider “Buy One Get One” or bundle offers for perceived value

4. Get Your First Reviews

Zero reviews = low conversion = wasted ad spend .

The Solution: Enroll in Amazon VINE Program (formerly VINE Voice) immediately upon launch. You’ll give away free units to trusted reviewers in exchange for honest reviews. This is the safest, most effective way to get 10-30 quality reviews quickly.

5. Stock Up!

Nothing kills momentum like going out of stock during an ad campaign . Amazon punishes out-of-stock products by reducing ranking. Have at least 30-60 days of inventory in Amazon’s warehouses before launching ads.

Phase 2: Understanding Amazon PPC Basics

What is Amazon PPC?

PPC stands for Pay-Per-Click. You only pay when someone clicks your ad, not when it’s shown .

Types of Amazon Ads

Ad Type	Best For	Eligibility
Sponsored Products	Promoting individual products	All professional sellers
Sponsored Brands	Building brand awareness, showing multiple products	Brand Registry required
Sponsored Display	Retargeting customers who viewed your product	Brand Registry required

For your FIRST campaign: Start with Sponsored Products only. They’re simplest and most effective for beginners .

Key Terminology You MUST Know 

Term	Meaning	Formula
Impressions	Number of times your ad was shown	–
Clicks	Number of times shoppers clicked your ad	–
CTR (Click-Through Rate)	% of impressions that became clicks	(Clicks ÷ Impressions) × 100
CPC (Cost-Per-Click)	Average amount you pay per click	Total Spend ÷ Clicks
ACoS (Advertising Cost of Sale)	% of sales spent on ads	(Ad Spend ÷ Ad Revenue) × 100
RoAS (Return on Ad Spend)	Revenue per rupee spent	Ad Revenue ÷ Ad Spend

Healthy Benchmarks for Beginners :

• CTR: 0.35% – 0.50% (anything above is great)
• ACoS: 15% – 30% (for new products, higher is okay initially)
• CPC: Varies by category ($0.50 – $2.00+)

Phase 3: Keyword Research — The Foundation of Success

How to Find Keywords

Method 1: Reverse ASIN Lookup (Most Effective) 

Use tools like SellerSprite, Jungle Scout, or Helium 10 to “reverse engineer” successful competitors:

1. Find 3-5 best-selling competitors in your niche
2. Enter their ASINs into keyword tools
3. Extract ALL keywords they rank for
4. Separate into:
   • High-volume head terms (e.g., “water bottle”)
   • Mid-volume core terms (e.g., “stainless steel water bottle”)
   • Long-tail specific terms (e.g., “32oz insulated water bottle with straw”)

Method 2: Amazon Search Bar 

Type your core keyword into Amazon search and note all autocomplete suggestions. These are real customer searches.

Method 3: Competitor Listings

Manually review top 10 competitor listings. What keywords appear in their titles and bullet points?

Keyword Match Types 

Match Type	Example	Shows For	Reach	Relevance
Broad	“women hats”	“ladies headwear”, “caps for women”	Widest	Lowest
Phrase	“wool winter hats”	“red wool winter hats”, “wool winter hats for women”	Medium	Medium
Exact	[men beanie]	Exactly “men beanie”	Narrowest	Highest

Beginner Strategy: Start with Broad + Phrase for discovery, move winners to Exact later.

Phase 4: Setting Up Your First Campaign (Step-by-Step)

Step 1: Access Campaign Manager 

• Log in to Seller Central
• Hover over Advertising tab
• Click Campaign Manager

Step 2: Create Your First Campaign

Field	Recommended Setting for Beginners
Campaign Type	Sponsored Products
Campaign Name	Format: [Product SKU] – [Auto/Manual] – [Date] (e.g., “WBT01-Auto-032026”)
Start Date	Today
End Date	No end date (you can pause anytime)
Daily Budget	Start with ₹500-1000 ($6-12 USD) minimum
Targeting	Start with Automatic targeting for first 2 weeks

Step 3: Choose Targeting Type 

For Your First 2 Weeks: AUTOMATIC CAMPAIGN

Let Amazon’s algorithm learn. It will show your ads for:

• Close match: Searches closely related to your product
• Loose match: Searches somewhat related
• Substitutes: Products similar to yours
• Complements: Products often bought with yours

Budget allocation within Auto: Initially, all 4 categories get equal budget. Watch which performs best.

After 2 Weeks: Add MANUAL CAMPAIGN

Once you have data, create manual campaigns using:

• Keywords that converted in Auto
• Keywords from your research
• Competitor ASINs

Step 4: Set Your Bids 

Default Bid: Start with Amazon’s suggested bid (usually ₹15-50 or $0.20-0.60). You can adjust later.

Bidding Strategy Options:

Strategy	What It Does	Best For
Dynamic bids – down only	Lowers bid for clicks unlikely to convert	Beginners, cost control
Dynamic bids – up and down	Increases bid up to 100% for likely conversions, lowers otherwise	Experienced, maximizing sales
Fixed bids	No automatic adjustment	Testing, exact control

For First Campaign: Choose Dynamic bids – down only to protect your budget.

Phase 5: Budgeting for Your First Campaign

How Much Should You Spend? 

Realistic Expectations for New Products:

• Initial ACoS may be 50-100% — yes, you might lose money on ads initially 
• This is NORMAL. You’re buying data and rankings
• As conversion improves, ACoS should drop to 15-30%

Daily Budget Calculation:
If your average CPC is ₹20 ($0.25) and you want 50 clicks/day:
50 clicks × ₹20 = ₹1000/day ($12 USD)

Minimum Recommended Daily Budget: ₹500-800 ($6-10 USD) 

The 30-Day Test Rule

Don’t judge a campaign in 3 days. Let it run for 30 days minimum before major changes. Amazon needs time to optimize delivery and learning .

Phase 6: Optimization — What to Monitor and Adjust

Daily Tasks 

1. Download Search Term Report
Go to Campaign Manager → Reports → Create Report → Search Term Report

2. Look for These Patterns

Signal	Action
High clicks, no sales	Add as Negative Keyword (wasted spend)
High clicks, good sales	Move to Exact match campaign, increase bid
Irrelevant search terms	Add as Negative Exact immediately
Good CTR, low sales	Check listing quality — maybe images or price issue

Weekly Tasks 

• Review ACoS trends
• Check keyword rank for top terms
• Adjust bids for top performers (+10-20%)
• Reduce or pause terms with high spend, no sales

Monthly Tasks

• Review campaign structure
• Move winning keywords to dedicated Exact campaigns
• Test new keywords from search term reports

Advanced: 2026’s New Approach — Persona-Based Campaigns

The Algorithm Has Changed 

Amazon’s algorithm now focuses on WHO the customer is, not just WHAT they search for. By 2026, personalized search results comprise 60%+ of Amazon searches, and AI-assisted shopping (Rufus, Cosmo) is projected to reach 35-40% of purchases .

Old Structure (2024 and earlier):

• Campaigns organized by keyword match type (broad, phrase, exact)
• Focus on ranking for individual keywords

New 2026 Structure: 

• Campaigns organized by customer persona
• Focus on training Amazon’s AI about your ideal customer

How to Apply This as a Beginner

Even on your first campaign, think about:

1. WHO is your ideal customer? (e.g., fitness enthusiast, busy parent, professional chef)
2. WHAT else do they buy?
3. WHERE do they shop on Amazon?

Example: If you sell yoga mats:

• Target fitness apparel ASINs (lululemon, gym shorts)
• Target yoga blocks, straps (complementary products)
• Use Sponsored Display later to retarget viewers

Budget Allocation for 2026 Algorithm 

• 30% keyword targeting (traditional search)
• 40% product/ASIN targeting (complementary products)
• 30% Sponsored Display (retargeting + lookalike audiences)

*Note: As a beginner, focus on keyword targeting first, but start thinking about ASIN targeting after 2-3 months.*

Common Beginner Mistakes to Avoid

First 60-Day Action Plan Summary

Timeline	Focus	Key Actions
Before Launch	Preparation	Optimize listing, VINE reviews, stock inventory, keyword research
Day 1-14	Data Collection	Launch Auto campaign, ₹500-1000/day budget, monitor search terms, add negatives
Day 15-30	Manual Expansion	Launch Manual campaign with top converting Auto keywords, test Phrase/Broad
Day 31-60	Optimization	Move winners to Exact campaigns, adjust bids, reduce ACoS, consider ASIN targeting

Final Pro Tips

1. Patience is key. Amazon advertising is a marathon, not a sprint. 
2. ACoS isn’t everything. A high ACoS on a new product is an investment in future organic rankings .
3. Sales velocity matters. More sales = better organic rank = lower long-term ad costs.
4. Track everything. Use spreadsheets or tools to monitor performance trends.
5. Learn from competitors. Use reverse ASIN tools to spy on winning strategies .

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Your first campaign will not be perfect — and that’s okay. Every rupee spent on your first campaign is tuition in the world’s most powerful e-commerce advertising platform. Learn, adjust, and improve. Within 60-90 days, you’ll have a profitable, data-driven advertising machine.

Ready to launch? Start with your automatic campaign today, and come back to this guide weekly as you optimize!

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