Amazon Advertising costs vary greatly, but you can expect to start with a daily budget of $5-$10 and scale up to $50-$100 as you optimize.
These costs are clearly adding up for many businesses. Last reported quarter 2024 Q4 Amazon advertising cost was $17.29 billion, up by 18% year-over-year from $14.65 billion. From $46.91 billion in 2023, it increased by 20% to $56.22 billion in 2024.
With those figures in mind, it’s important to answer these questions. What is Amazon’s advertising price, where do sellers spend most of their advertising budget, and how can you keep the costs at bay?
Table of Contents
Part 1- How much does Amazon advertising cost?
Let’s break down those costs. And provide specific numbers to guide your Amazon advertising budget:
- Daily Starting Budget:
- Begin with $5 to $10 per day.
- Scale up to $50 to $100 per day as you optimize.
- Monthly Starting Budget:
- Aim for $150 to $300 initially.
- Expect $1500 to $3000 monthly when your campaign has been optimized.
- Spending by Marketing Stage:
- New Product Launch: $50 to $100 daily for the initial weeks.
- Established Product: $10 to $50 per day to maintain sales.
- Seasonal Peaks: Increase your daily budget by 2x to 3x.
- Sky’s the Limit:
When you see strong results and high ROAS, daily budgets can reach $2000-$3000 or even higher.
Factors That Influence These Costs:
Amazon advertising costs depend on several factors, including the type of ad, competition, and bidding strategy.
- Product Category: High-competition categories cost more.
- Keywords: Competitive, high-volume keywords raise costs.
- Ad Type: Different ad types (Sponsored Products, Brands, Display) vary in cost.
- Targeting: Refined targeting can increase but improve ROI.
- Bidding: Your bidding strategy impacts cost-per-click (CPC).
- Listing Quality: Optimized listings reduce wasted ad spend.
- Seasonality: Peak shopping times mean higher CPCs.
- Competitor Activity: Competitor bidding drives up keyword costs.
- Match Type: the level of keyword matching you set within your add effects cost also.
Key Factors That Impact Ad Costs:
| Factor | High CPC Impact? | Low CPC Impact? |
| Competition | Highly competitive niches | Low-competition products |
| Keyword Type | Broad, high-search keywords | Long-tail, niche keywords |
| Ad Placement | Top of search results | Product pages |
| Conversion Rate | Low conversions, high ACoS | Optimized listings |
By optimizing these factors, you can lower your advertising costs while improving your return on ad spend (RoAS).
Part 2- What is the average cost-per-click (CPC) for Amazon ads?
In 2025, the average cost-per-click (CPC) for Amazon ads is:
| Ad Type | Avg CPC (USD) | Best For | Budget Control? |
| Sponsored Products | $0.81 | Individual product promotion | Yes |
| Sponsored Brands | $0.89 | Brand awareness & multiple products | Yes |
| Sponsored Display | $1.25 | Off-Amazon remarketing | Yes |
Amazon ad costs vary based on several factors, including competition, industry, and ad type. On average, Amazon PPC (Pay-Per-Click) ads cost between $0.81 to $1.20 per click in 2025.
Estimated CPC Ranges for Amazon Product Categories (2025)
1- High-CPC Niches (Average $1.00 – $3.50+ per click):
High Competition, High Demand:
- Consumer Electronics: $1.00 – $2.50+ (Smartphones, laptops, gaming consoles, home theater systems)
- Cell Phones & Accessories: $1.00 – $2.50+ (New phone releases, popular accessories)
- Personal Computers: $1.00 – $2.50+ (Gaming PCs, laptops, components)
- Major Appliances: $1.00 – $2.50+ (Refrigerators, washing machines, dishwashers)
- Automotive & Powersports: $0.90 – $2.00+ (Car parts, accessories, performance upgrades)
Specialized or High-Value Products:
- Health & Personal Care: $1.00 – $2.50+ (Supplements, medical devices, personal care electronics)
- Beauty: $0.80 – $2.00+ (Brand names, skincare, trending makeup)
- Software: $1.00 – $3.50+ (Niche software, professional tools)
- Industrial & Scientific: $0.80 – $2.00+ (Specialized equipment, lab supplies)
- Fine Art: $0.80 – $2.00+ (Paintings, sculptures, photography)
- Watches: $0.80 – $2.00+ (Luxury brands, high-end watches)
Amazon Devices and Accessories:
- Amazon Device Accessories: $0.80 – $1.80 (Cases, chargers, mounts)
- Amazon Kindle: $0.70 – $1.50 (E-readers, Kindle Fire tablets)
- Kindle Accessories and Amazon Fire TV Accessories: $0.60 – $1.50 (Cases, remotes, stands)
2- Moderate-CPC Niches (Average $0.50 – $1.80 per click):
Home and Living:
- Home & Garden: $0.60 – $1.50 (Furniture, appliances, gardening supplies)
- Tools & Home Improvement: $0.70 – $1.80 (Power tools, hand tools, building materials)
- Kitchenware: $0.60 – $1.20 (Cookware, bakeware, kitchen gadgets)
- Home Decor: $0.50 – $1.00 (Decorative items, furniture, wall art)
Fashion and Accessories:
- Clothing: $0.50 – $1.20 (Apparel, shoes, accessories)
- Shoes: $0.70 – $1.50 (Athletic shoes, boots, sandals)
- Accessories: $0.40 – $1.00 (Jewelry, bags, hats)
Hobbies and Interests:
- Outdoors: $0.70 – $1.80 (Camping gear, hiking equipment)
- Sports: $0.60 – $1.50 (Sports equipment, apparel)
- Musical Instruments: $0.70 – $1.80 (Guitars, drums, keyboards)
- Toys & Games: $0.50 – $1.20 (Toys, board games, puzzles)
- Video Games: $0.80 – $2.00+ (New releases, popular games)
Other:
- Baby Products (excluding apparel): $0.70 – $1.50 (Baby gear, feeding supplies)
- Beauty and Personal Care:
- Makeup: $0.70 – $1.50
- Haircare: $0.60 – $1.20
- Fragrances: $0.80 – $1.80
- Camera & Photo: $0.70 – $1.50 (Cameras, lenses, accessories)
- Office Products: $0.50 – $1.20 (Stationery, printers, office furniture)
- Pet Supplies: $0.60 – $1.50 (Pet food, toys, accessories)
3- Lower-CPC Niches (Average $0.30 – $1.20 per click):
Media:
- Books: $0.30 – $0.80 (Generally lower competition)
- Music and DVD: $0.40 – $1.00 (CDs, vinyl records, DVDs)
- Video, DVD & Blu-ray: $0.50 – $1.20 (Movies, TV shows)
Other:
- Collectible Coins: $0.60 – $1.50 (Niche market, rare coins may have higher CPCs)
- Entertainment Collectibles: $0.50 – $1.20 (Action figures, memorabilia)
- Grocery & Gourmet Foods: $0.50 – $1.20 (Specialty foods, snacks)
- Independent Design: $0.50 – $1.20 (Handmade crafts, unique items)
- Sports Collectibles: $0.50 – $1.50 (Trading cards, signed memorabilia)
Disclaimer:
CPC data here is based on internal analysis, public information, and machine learning. Actual costs may vary. Use keyword tools for precise data.
Part 3- Where do sellers spend most of their advertising budget?
Most sellers start with Sponsored Products. It’s often seen as the most direct path to sales. But, more and more sellers are using Sponsored Brands and Sponsored Displays as they get more experienced. The selection of ads will depend on the goal of marketing.
Here’s the ad type-wise distribution.
Sponsored Products:
- This is the biggest chunk. It targets individual product listings.
- Sellers use this a lot because it gets products right in front of shoppers searching for them.
Sponsored Brands:
- Brand-registered sellers use this.
- It pushes brand visibility and showcases multiple products.
- Sellers find it very effective in brand recognition.
Sponsored Display:
- This targets audiences on and off Amazon.
- It helps sellers do retargeting and build general awareness.
- Useful for those wanting to bring people back to their store.
Read more information about 6 Reasons You Should Work with a Proven Amazon PPC Expert
Part 4- What’s the best strategy for launching your first Amazon advertising campaign and effectively managing costs?
Here’s a strategic roadmap to help you launch effectively and keep costs under control:
Step 1: Optimize Your Product Listing
- Make It Shine: Treat your product listing as your storefront. High-quality images, compelling descriptions, and competitive pricing are essential. A well-optimized listing attracts clicks and converts them into sales, maximizing your ad spend.
Step 2: Conduct Thorough Keyword Research
- Find the Right Keywords: Keywords are the backbone of your campaigns. Identify relevant keywords with high search volume and low competition. Tools like Sonar and Keyword Scout can be invaluable in this process.
Step 3: Launch Your First Sponsored Products Campaign
- Simplicity and Effectiveness: Sponsored Products are the ideal starting point for new advertisers. They directly promote individual product listings, making it easier to track results and optimize campaigns.
- Budget Wisely: Begin with a modest daily budget (around $5-$10) and gradually increase it as you gather data and see positive returns.
Step 4: Master Targeting Options
- Automatic Targeting: Initially, leverage Amazon’s automatic targeting option. This allows Amazon to match your ads to relevant customer searches, providing valuable insights into keyword performance.
- Manual Targeting: As you gain experience and data, transition to manual targeting. This gives you more control over keyword selection and bidding, enabling finer optimization.
Step 5: Monitor and Optimize Campaign Performance
- Regular Performance Reviews: Regularly review your campaign performance. Identify keywords with high click-through rates (CTR) and conversion rates. Adjust bids and targeting based on this data.
- Negative Keywords: Use negative keywords to prevent your ads from showing for irrelevant searches, minimizing wasted spend.
Step 6: Explore Advanced Strategies
- Sponsored Brands: Once you’ve established a brand presence, explore Sponsored Brands to increase brand visibility and showcase multiple products.
- Sponsored Display: Use Sponsored Display for retargeting and reaching audiences off Amazon, expanding your reach and brand awareness.
Cost Management Tips Throughout Your Journey:
Goal-Oriented Approach: Set clear campaign goals and track relevant metrics. This allows you to measure success and identify areas for improvement.
Cost Control Features: Utilize Amazon’s cost control features to set budget limits and prevent overspending.
Continuous Optimization: Continuously optimize your campaigns by adjusting bids, targeting, and ad creatives based on performance data.
Read more about 12 Amazon PPC Advertising Tips.
Part 5: How to Lower Your Amazon Advertising Costs?
We’ve covered the basics. But now let’s explore some less common strategies that can yield significant cost savings.
Tip 1: Identify and Eliminate High-Cost, Irrelevant Search Terms
- Action: Regularly review search term reports to pinpoint search queries that are triggering your ads but not leading to conversions.
- Impact: Adding these irrelevant terms as negative keywords prevents wasted ad spend.
- Potential Loss: Up to 20% wasted ad spend on irrelevant clicks.
Tip 2: Schedule Ads for Peak Conversion Times
- Action: Analyze your sales data to identify peak conversion times and adjust your bids or ad schedules accordingly.
- Impact: By focusing your ad spend on the most effective hours, you maximize your budget and minimize wasted impressions.
- Potential Loss: 10-15% wasted ad spend on low-converting hours.
Tip 3: Boost Product Page Conversion Rates to Reduce Ad Spend
- Action: Optimize your product listing pages to improve conversion rates, including high-quality images, compelling descriptions, and A+ Content.
- Impact: Higher conversion rates mean you need fewer ad clicks to achieve the same sales, reducing your overall ad costs.
- Potential Loss: 15-25% higher ad spend due to poor conversion rates.
Tip 4: Target Competitors’ Product Pages with Product Targeting Ads
- Action: Use product targeting ads to place your ads on your competitors’ product detail pages, specifically targeting competitors with higher prices or lower reviews.
- Impact: This strategy captures customers who are already considering similar products, potentially leading to more efficient conversions.
Tip 5: Exclude Low-Performing Ad Placements
- Action: Regularly audit your placement reports to identify placements with low conversion rates and exclude those placements from your campaigns.
- Impact: By focusing your ad spend on high-performing placements, you increase the efficiency of your campaigns and reduce wasted spend.
- Potential Loss: 5-10% wasted ad spend on low-converting placements.
Learn more about Avoiding 9 Amazon PPC Optimization Mistakes Click here.
Part 6- Should You Manage Amazon PPC Yourself or Hire an Expert?
DIY PPC vs. Hiring an Amazon PPC Agency
| Criteria | DIY PPC | Hiring an Expert |
| Cost | Lower upfront costs | Higher upfront but better ROI |
| Learning Curve | Steep | Expert knowledge & experience |
| Time Required | High | Saves time |
| Performance | Trial & error | Optimized campaigns |
Signs You Need an Expert
- You are spending too much without seeing results.
- Managing ads takes too much time from your core business.
- You need to scale but lack expertise.
FAQs
What should my monthly budget be when starting?
Initially, aim for a monthly budget of roughly $150–$300. Once your campaign is refined, you may spend between $1,500 and $3,000 monthly.
What is the average Advertising Cost of Sale (ACoS) for Amazon ads?
The average ACoS varies depending on product category and competition factors. However, a good target ACoS is typically between 20-30%. This means that for every $100 in sales, you’d spend $20-$30 on advertising.
How can I track the performance of my Amazon ads?
Amazon provides detailed campaign performance reports within Seller Central. You can track key metrics like impressions, clicks, click-through rate (CTR), conversion rate, and ACoS to measure the effectiveness of your campaigns.
Is Amazon PPC worth it for small businesses?
Yes, Amazon PPC is highly beneficial for small businesses if appropriately managed. It helps increase product visibility, drive targeted traffic, and boost sales. Strategic ad placements and optimized bidding can generate high returns even with a small budget. By focusing on long-tail keywords, refining ad campaigns, and leveraging negative keywords, small businesses can maximize ROI while maintaining a reasonable ad spend.
Conclusion:
Mastering Amazon advertising costs is key to success. By understanding the different ad types and how to optimize your campaigns, you can ensure you’re getting the most out of your budget. Remember to start small, track your results, and adjust your strategy. Stay informed about the latest trends and best practices to stay ahead of the competition and achieve your advertising goals.
