How Much Should I Spend on Amazon Advertising

TL;DR 

• Over 70% of shoppers don’t go past page one, so Amazon PPC is key to visibility in 2025.

• PPC is worth it if your product is priced well, has strong reviews, and your campaigns are optimized.

• Track key metrics like ACOS, TACOS, CTR, CVR, and impressions to guide your ad decisions.

• Set your ad budget based on clear goals, product margins, and a percentage of monthly sales (5–15%).

• Use exact match keywords, negative keywords, and bid caps to control costs and improve ROI.

• Avoid common mistakes like ignoring metrics, overspending on broad keywords, and advertising too many products at once.

In 2025, more than 90% of Amazon shoppers don’t go past the first page. That means if your product isn’t there, it’s likely getting ignored. This is why Amazon PPC (pay-per-click) ads are more important than ever. 

But while advertising is necessary, spending too much can hurt your profits. The big question is—how much should you actually spend?

In this guide, we’ll help you understand if Amazon PPC is still worth it in 2025, what numbers you should track, and how to set a budget that works for your business. You’ll also find simple tips to keep your ad costs under control, improve your return on investment (ROI), and avoid mistakes that many sellers make when managing their ad budget. If you're looking to grow your sales without wasting money, this guide is for you.

Is Amazon PPC worth it in 2025?

Yes, Amazon PPC is definitely worth it in 2025 if you use it the right way. With so many products on Amazon, it’s hard to get noticed without ads. PPC helps your product show up at the top of search results, where most buyers click. This means more people see your product, which can lead to more sales.

In 2025, Amazon’s ad tools will be better than ever. You can choose exactly who sees your ad, track how your ads are doing, and make changes to improve your results. If you use the data well, you can get great returns without wasting money.

But remember, ads only work if your product is good. If your price is too high, your reviews are low, or your listing is weak, ads won’t help much. Therefore, ensure your product is ready before investing in ads. In short, Amazon PPC is still a smart way to grow your sales in 2025.

Just don’t treat it like a “set and forget” tool, instead, watch your numbers, test what works, and improve as you go. You can also choose Amazon PPC management experts so that you turn your ad spend into real growth.

Key metrics that influence ad spend

To make the most of your Amazon ad budget, you need to track the right numbers. These key metrics help you understand what’s working, what’s not, and where your money should go.

By watching these metrics closely, you can adjust your campaigns, reduce waste, and make smarter ad decisions that actually boost your sales.

How to set your Amazon advertising budget

Setting the right Amazon advertising budget is key to growing your sales without overspending. Here’s a simple way to figure out how much you should invest.

#1 Start with your goals

If you are planning to launch a new product, boost visibility, or increase profit, then your goal will affect how much you spend. For example, launching a product may require a higher ad budget upfront, while scaling profitably needs more controlled spending.

#2 Know your numbers

Before setting a budget, understand your product margins, average order value (AOV), and conversion rates. These numbers help you decide how much you can spend on ads and still stay profitable.

#3 Use a percentage of revenue

A common way to set your ad budget is by using a percentage of your monthly sales, usually between 5% to 15%. New sellers may spend more in the beginning, while established sellers can aim for a more balanced spend.

#4 Monitor and adjust weekly

Your budget shouldn’t be fixed forever. Track performance weekly and adjust based on results. If your ads are converting well, you can increase the budget. If not, pause low-performing campaigns and reallocate funds.

#5 Focus on your best products

Don’t spread your budget too thin. Start by focusing on your top-selling or highest-margin products. Once those are doing well, expand to other products.

In short, your Amazon sponsored ad management should be based on clear goals, strong data, and regular check-ins. Start small, test what works, and scale slowly. A smart budget isn’t just about how much you spend, it's about how wisely you spend it.

Tips to control costs and boost ROI

Running Amazon ads without wasting money comes down to smart planning and regular checks. Here are simple, effective tips to keep costs low and returns high.

#1: Start with exact match keywords

Broad keywords can burn your budget fast. Start with exact match keywords to show your ads only for highly relevant searches. Once you see what’s working, you can expand to phrases or broad matches.

Example: Instead of bidding on “kitchen tools,” use an exact match for “stainless steel garlic press” if that’s what you’re selling.

#2: Use negative keywords

Add irrelevant search terms as negative keywords. This stops your ad from showing on searches that don’t convert, saving money right away.

Example: If you sell premium yoga mats, add “cheap yoga mat” as a negative keyword to avoid unqualified clicks.

#3: Set daily budgets

Always set a daily budget so you don’t overspend. Use bid caps to prevent Amazon from pushing bids too high in competitive spaces.

Example: Set a $20 daily budget and cap bids at $1.00 to keep control over your total spend.

#4: Focus on high-performing products

Put more ad budget into products that already convert well. There’s no point spending on listings with low ratings or poor images.

Example: If one product has a 20% conversion rate and another only 5%, prioritize the better one.

#5: Monitor campaigns regularly

Check your campaigns weekly. Pause ads that are spending without results and double down on what’s bringing in sales.

Controlling ad spend isn’t about cutting costs, it's about spending smarter. When every dollar is tracked and optimized, your ROI naturally improves. Here, you can work with an Amazon Ads management agency to help control your costs. 

Common mistakes sellers make with ad budgets

Many Amazon sellers waste ad spend simply because they don’t set up or manage their budgets the right way. Here are some of the most common mistakes and how to avoid them:

1) Setting and forgetting: One of the biggest mistakes is running ads without regular checks. Amazon PPC needs weekly (if not daily) attention.

How to fix: Review campaigns often and adjust bids, keywords, or budget based on performance.

2) Bidding too high on broad keywords: Broad keywords can drain your budget quickly without bringing in quality traffic.

How to fix: Start with exact or phrase match keywords and slowly expand based on results.

3) Not knowing product margins: Some sellers spend more on ads than they make in profit, without realizing it.

How to fix: Always know your break-even ACOS before setting your ad budget.

4) Spreading the budget too thin: Trying to advertise every product with a small budget usually leads to poor results.

How to fix: Focus your ad spend on your best-performing or highest-margin products first.

5) Ignoring negative keywords: Not using negative keywords means you keep paying for clicks that never convert.

How to fix: Add irrelevant or low-performing search terms to your negative keyword list regularly.

Wrap up

Amazon advertising in 2025 is no longer optional; it's a key part of staying competitive. But success doesn’t come from just spending more. It comes from understanding your goals, tracking the right metrics, setting a smart budget, and optimizing your campaigns regularly.

Whether you're launching a new product or scaling your brand, controlling costs and boosting ROI is all about making data-driven decisions and avoiding common ad budget mistakes. If managing all of this feels overwhelming, you don’t have to do it alone.

Our expert Amazon consultants can help you build a custom advertising strategy, optimize your campaigns, and make every dollar count. From keyword research to budget planning and performance tracking, so you can focus on growing your business.

Ready to spend smarter, not just more? Get in touch with our team today!