What's new in Amazon advertising for 2025?

In this article, you'll learn the main strategies and tips for running successful Amazon Advertising campaigns in 2025 and how to improve your Amazon Advertising campaigns.

Main strategies and tips for running successful campaigns:

1. Use AMC (Amazon Marketing Cloud) to build better audiences and see what's driving conversions.

2. Run sponsored video ads. Now, they are available in more placements, including Prime Video and Twitch.

3. Try Amazon's AI bidding tools. They can help you save time and cut ad spend waste. 

4. Test Sponsored Brands with video. This can help you stand out in the search. 

5. Track your ads better. New conversion analytics and cross-channel insights can help you with that. Advanced eCommerce performance analytics is crucial for improving your ad campaigns and maximizing ROI through data-driven optimization, audience targeting, and real-time performance adjustments.

Amazon Advertising, formerly called Amazon Marketing Services (AMS), is a service that resembles pay-per-click ads on Google. In a nutshell, it is a service that allows businesses to promote their products on Amazon marketplaces. There are various ad formats and placements to choose from, which makes Amazon Ads fit for any business size. Both new and professional sellers can advertise unique products and new products, helping customers discover the right products and driving more sales through sponsored ad campaigns.

Amazon is one of the largest marketplaces in the world. It is fair to say that in many countries, customers look no further than Amazon to get everything and anything they need. So, no wonder Amazon Ads is all the rage right now, and the competition among the sellers is fierce. Amazon sellers use Amazon Advertising to advertise their products and gain more visibility in a crowded market, using different ad types and targeting options to stand out. Getting noticed on such a massive platform is a dream that comes true only for the sellers who master the art of effective advertising and product positioning. Only those who combine data-driven decisions with compelling creatives can turn their listings into top-selling ones and thrive in such a competitive marketplace. 

The reach of Amazon Ads is massive. Amazon Ads helps advertisers reach over 275 million ad-supported viewers each month in the U.S. through exclusive platforms like Prime Video and Twitch, as well as tens of millions more via direct integrations with premium streaming publishers.

Amazon Ads supports every marketing goal with tailored products and solutions. If you are new to advertising, Amazon recommends starting with sponsored ads.

Amazon Sponsored Ads help advertisers of all ranges to reach out to their target audience effectively and get a lot of benefits.

The main advantages of Amazon PPC ads are:

With all the benefits, from better visibility to smart decision-making, it's clear that Amazon advertising can help your business grow and flourish. 

Let's take a look at the evolution of Amazon Ads in 2025. These updates reflect Amazon Advertising's ongoing innovation in the digital advertising space.

Sponsored Products are still the top way to get sales on Amazon, but they have changed a lot. Sponsored Products are especially effective for a successful product launch, helping sellers quickly reach relevant audiences from day one. They are not simply better looking in 2025; they work better, too: 

All in all, instead of using just one ad type, brands are combining them to guide shoppers from first look to final purchase. 

Amazon's data tools have become more useful. And it's not just for big brands anymore. 

Now, you can:

These advanced targeting options help sellers reach consumers who are most likely to be interested in their products. So, smarter targeting is now available for everyone. If you're not using it, you're missing big opportunities.

Video ads on Amazon used to be something only big brands could do. Now, smaller brands can get the most out of them as well. New advantages of video ads include:

It all means that videos are not simply a part of a brand image anymore - they help brands to sell their products. 

In 2025, the most popular Amazon Ad types are Sponsored Products, Sponsored Brands, and Sponsored Display. To successfully implement these, you need to focus on videos and advanced targeting strategies. Let's discuss each of the types one by one. 

Selecting the right products is crucial to maximize the effectiveness of your Amazon advertising campaigns, as it helps improve sales conversions and overall campaign success.

Sponsored Products is still a top way to get sales on Amazon in 2025, as long as you know how to manage them well. Launching a new product or campaign with Sponsored Products can help you gain early traction and visibility, making it easier to stand out in a competitive marketplace.

Here are a few tips for a successful Sponsored Products strategy:

Sponsored Brands help build your image and drive more sales. This type of campaigns can also be used to highlight unique products within your catalog, increasing their visibility and appeal.

Some of the best strategies you can use:

Even with a small budget, you can see great results with Sponsored Brands in 2025. 

In 2025, Sponsored Display became a key tool for reaching audiences at scale throughout the shopping journey, both on and off Amazon.

To succeed with Amazon Display Ads, try these tactics:

Amazon Advertising cost is one of the biggest concerns of businesses considering starting advertising on the platform.

To avoid any possible confusion, let's start with how Amazon Ad spend and billing work. First, billing is based on valid events only. It means that you are charged only for valid ad clicks or viewable impressions. If Amazon notices any invalid activity, it will automatically adjust your charges. 

Another thing to note is that credit limits start small and grow after successful payments. It increases in stages: $10, $25, $50, $150, $200, $350, up to $500. You get charged when you reach your credit limit. You also get charged on the 3rd of each month if you have a balance, even if you haven't reached your credit limit. If your spending exceeds your limit, you get charged multiple times per month. 

Most campaigns on Amazon use a cost-per-click (CPC) model. However, Sponsored Display and some Sponsored Brands campaigns use the vCPM model (cost per 1,000 viewable impressions). When setting up your campaign, you can specify the maximum amount you are willing to pay per click or impression. This maximum amount directly influences your ad placement and cost efficiency, as Amazon will not charge you more than your set limit. 

Now, let's get to how Amazon Sponsored Ads cost in real-life cases. According to SellerMetrics, the average CPC on Amazon is between $0.81 and $1.30. However, the actual price depends on the type of ad you pick and on the competitive level of your keywords. In general, the CPC of Sponsored Products is lower compared to other ad formats. 

For Amazon Sponsored Brands Ads, the average CPC in 2025 is $1.10 – $2.50. The actual cost mostly depends on the competition level of the category. It's also important to remember that Sponsored Brands Ad requires a lot of input from the advertiser to make the content visually appealing to the customer. Based on the type of visuals you provide (logos, images, videos), the cost can go up from hundreds to thousands of dollars. 

The average CPC cost of Amazon Sponsored Display Ads is $0.80 – $1.60 in 2025. This ad type requires a lot of creative input as well, as for this type of ad to be successful, you need to provide lifestyle photos and videos featuring the products.

To display Amazon Ads on your website, you can use either Amazon Associates or Amazon Publisher Services (APS), depending on your traffic and business model:

Select the option that aligns with your website's scale and monetization strategy.

Amazon product ads can be highly effective. However, they are not a one-size-fits-all solution. Let's take a quick look at the pros and cons of Amazon Advertising solutions to determine whether they are a good idea for your business.

Sponsored ad formats allow Amazon sellers to advertise new products and help customers discover them, making it easier to reach a wider audience and boost sales. 

Let's start on the bright side and knock things off with the pros. 

Now, what are the possible drawbacks of Amazon Advertising?

Here's a step-by-step overview of how to get started with advertising on Amazon.

By following these steps, you can launch and optimize effective Amazon ad campaigns to grow your brand and reach more customers.

Speaking of targeting, Amazon Ads allow targeting based on user behavior, demographics, and interests in shopping. 

Amazon's target audience is: 

Amazon uses shopping and browsing data to show the right ads to the right people.

If you wonder how to monitor Amazon Ads, worry not - Amazon Ads offers advertisers a comprehensive measurement ecosystem built on real-world data and case study insights to empower precise optimization, performance tracking, and making optimal data-driven decisions. 

Key features of Amazon Ads analytics.

Together, these linked tools let brands track real shopper behavior, measure multi-channel impact, run custom attribution models, and validate upper-funnel effects, all in a privacy-safe environment to improve ad performance and maximize ROI.

Between late 2022 and mid‑2024, Amazon Ads found that using both DSP display and video ads (like on Prime Video and Twitch) more than doubled brand awareness compared to using video alone. Combining streaming and display ads also led to a 2.4× increase in brand recognition and a 3× boost in how much people liked the brand. For example, beauty brand Kérastase used Amazon Marketing Cloud and streaming ads to reach 13.3 million people, increase brand searches by 80%, grow awareness by 6.5%, and raise sales by 30%.

Together, all of these features help brands see what is working, understand their audience better, and improve their advertising strategies for better RIO. 

1. Set up your sGTM container.

2. Install Amazon Ads Template in sGTM.

In your server GTM container, go to Templates → Search Gallery.

Add a template: 

Amazon Advertising Tag - Server Side

3. Create the Amazon Ads Tag in sGTM.

In Tags → New, choose your Amazon Ads template.

Enter your Tag ID (from Amazon DSP).

Map parameters (e.g., transaction ID, product value, currency) using variables from incoming requests.

4. Set up a trigger.

Use a trigger like “Event Name equals purchase” or whatever event your client (from the web container) sends.

You can use GA4 or custom HTTP requests as the incoming signal.

5. Test and publish.

Use the Preview mode in both web and server containers to ensure data flows correctly.

Check Amazon Ads tag fires with the correct data.

Publish your changes.

You can also check our guide to debugging and monitoring server-side tracking configuration.

Using Amazon Ads with sGTM helps you track things like purchases more accurately and safely. It sends data from your website to Amazon through your own server, so it works better with ad blockers and gives you more control over what information is shared.

It's a smart choice if you want better tracking, faster pages, and stronger privacy for your users.

Amazon Ads target users with strong purchase intent directly on the Amazon platform, making them highly effective for driving conversions. In contrast, Facebook Ads serve a different role by focusing on upper-funnel objectives like brand awareness and audience development. 

Facebook's strength lies in its ability to reach users based on interests and behaviors, often at a lower cost per click, but typically with lower immediate conversion rates. Amazon Ads are more expensive but offer a stronger return when the goal is product sales. Facebook is best used to introduce products and build demand, while Amazon is where that demand is captured. 

When comparing Amazon Ads to Google Ads, the difference lies in intent and context. Google Ads reach users searching across the web, often at an earlier decision-making stage. This makes Google ideal for driving discovery and traffic. 

Amazon Ads, however, reach users further down the funnel, already browsing with the intent to purchase. While Google offers broader reach and a wider variety of formats (Search, Shopping, Display, YouTube), Amazon Ads deliver higher conversion rates within a commerce-focused environment. For performance marketing, Amazon is stronger on last-click attribution, whereas Google supports more flexible, full-funnel strategies.

YouTube Ads and Amazon Ads serve complementary functions. YouTube is designed for brand storytelling, product education, and awareness through video. It reaches users early in their journey and is ideal for introducing new products or building recognition. 

Amazon Ads, on the other hand, are optimized for direct response and immediate sales. Used together, they form a powerful full-funnel strategy: YouTube builds interest, Amazon closes the sale.

Each platform plays a specific role in the customer journey. The key is alignment with campaign goals, like awareness, consideration, or conversion, and leveraging the strengths of each ecosystem accordingly.