How to Create an Amazon Sponsored Product Campaign: Part-1

Learn how to create an Amazon Sponsored Product campaign from scratch. This step-by-step guide covers the basics to get you started.

Amazon Sponsored Product campaigns are one of the most effective ways to boost visibility and drive sales directly on the platform. Whether you’re a beginner or brushing up on your PPC skills, this guide will walk you through the fundamental steps to launching a successful campaign.

Step 1: Understand Where Sponsored Product Ads Appear

Sponsored Product Ads show up directly in Amazon’s search results and on product detail pages. These ads blend seamlessly with organic listings, increasing the chances of attracting clicks from high-intent shoppers. Their prime placement makes them a powerful tool to drive traffic and conversions.

Step 2: Start Campaign Creation from Amazon Ads Dashboard

To begin, log in to your Amazon Seller Central account and navigate to the Amazon Ads Dashboard. Click on “Create Campaign”, and select “Sponsored Products” as your campaign type. This option is specifically designed to promote individual listings.

Step 3: Name Your Campaign Strategically

Use a naming convention that helps you easily identify the purpose and target of the campaign. For example, include the product name, targeting type, and date:
“YogaMat_Manual_US_Jan2025”.
A clear naming strategy makes campaign tracking and optimization much simpler.

Step 4: Set a Realistic Daily Budget

Amazon requires a minimum daily budget of $1, but that won't get you far. Start with a budget that gives you enough data to assess performance—typically $10 to $25 for beginners. Remember, your budget determines how many people can potentially see your ads.

Step 5: Choose Between Automatic and Manual Targeting

• Automatic Targeting: Amazon selects keywords and products to target based on your listing. Great for beginners or to collect data for future manual campaigns.
• Manual Targeting: You choose the keywords or products. This gives you greater control over ad performance and optimization.

Step 6: Choose Between Keyword Targeting and Product Targeting

Within manual targeting, you’ll have two sub-options:

• Keyword Targeting: You bid on specific search terms your audience is likely to use.
• Product Targeting: You place your ads on specific product pages, categories, or competitor listings.

Choose based on your strategy. Keyword targeting is ideal for increasing search visibility, while product targeting is great for competitive takeovers and upselling.

Step 7: Select Your Keywords and Match Types

Choose keywords that are relevant to your product and buyer intent. Amazon allows three match types:

• Broad Match: Reaches a wider audience with loose matching.
• Phrase Match: Matches with queries that contain the keyword phrase in order.
• Exact Match: Targets only the exact term or very close variations.

A mix of all three types helps you test and refine what works best.

Step 8: Add Negative Keywords (Optional, but Recommended)

Negative keywords prevent your ads from showing on irrelevant searches, saving your budget. For instance, if you sell premium yoga mats, you might want to add “cheap” or “free” as negative keywords to avoid attracting unqualified clicks.

Step 9: Choose the Right Bidding Strategy

Amazon offers several bidding strategies:

• Dynamic Bids – Down Only: Lowers your bid if Amazon thinks a conversion is less likely.
• Dynamic Bids – Up and Down: Raises or lowers bids depending on the likelihood of conversion.
• Fixed Bids: Your bid remains the same no matter the situation.

For beginners, “Dynamic Bids – Down Only” is a safe starting point.

Final Step: Review and Launch

Before hitting the “Launch” button, review all your settings—campaign name, targeting, keywords, bidding, and daily budget. Make sure your product listing is optimized, as the ad’s success also depends on how well your listing converts.

Maximize Sales with a Winning Amazon Sponsored Products Campaign

Congratulations! You’ve now created your first Amazon Sponsored Product campaign. But remember—launching is just the beginning. The next phase involves monitoring performance, optimizing bids, refining keywords, and scaling what works.

Want to dive deeper into campaign optimization, analyzing reports, and A/B testing?

Read More: Create an Amazon Sponsored Product Campaign – Part 1