What’s changed in Amazon PPC in 2025—and why Amazon Sellers who adapt will see better profit and sales? Three big developments are reshaping the PPC landscape:
- Amazon Marketing Cloud’s (AMC) new Retail Purchases dataset: 5 years of store purchase data (not just 13 months), giving deeper insight into purchase behaviour, durable goods, replenishable & seasonal products.
- Enhanced AI-Video Generator: Amazon Ads now offers a more powerful tool to create high-motion, multi-scene, realistic videos with text animations & background music to help shoppers visualise products in use.
- Sponsored TV / Streaming TV Ads (Sponsored TV): More avenues for reaching customers outside traditional search/display, leveraging Amazon’s first-party signals across streaming content, interactive formats, and expanded reach.
These changes affect how Amazon Sellers should think about profit, ad spend, and campaign structure. In this post, we’ll show how AMC + AI Video + Sponsored TV combine to reduce TACoS, lift profit, and what you can do immediately.
Contents
What Changed & Why It Matters
AMC Retail Purchases Dataset
- Extended lookback from 13 months to 5 years of store purchase data, with detailed order‐item history.
- Enables creation of audiences like “upgrade-ready,” repeat-purchase, seasonal product buyers.
- Helps compute metrics such as Customer Lifetime Value (CLV), and improve measurement of purchase behaviour over long product lifecycles (durable goods, replenishable items).
Results: more accurate audience targeting → reduced wasted ad spend, better attribution & bidding → potential to lower TACoS and increase profit margin. (Because you can avoid over-paying for low intent or low value users.)
AI Video Generator (Amazon Ads)
- Allows brands to generate video ads from a single product image in minutes, free for Sponsored Brands campaigns.
- Produces multi-scene video creatives with enhanced motion, realism, text animations, background music.
- Offers multiple video options (e.g. six variations) for each creative, enabling creative testing and comparison.
- Supports features like transforming an image into a motion video, video summarization (extracting clips), logo/brand customization, adhering to Amazon ad specs.
Benefit to sellers: faster creative production, more variants → better optimization, avoid stagnation of ad creative, improving CTR & conversion → helps reduce ACos and overall improve profitability.
Strategy for Profit-Driven Amazon PPC Campaigns
Here’s how to organise campaign structure and operations in 2025 to take advantage of the above, to cut TACoS and increase profit.
- Use SIS Reports + AMC Audiences
- SIS (“Search Insights & Sales” or Amazon’s Search & Impression Share or Search Impression Share / Sponsored Ads reports) to understand which search terms are driving low-ACoS/high conversion sales.
- Use AMC’s custom audiences & Retail Purchases data to build segments like past purchasers, repeat purchase potential, product category loyalists, users who saw video but didn’t purchase. This allows bid boosts or custom targeting.
- Budget & Bid Rules Adjusted for Funnel Stage
- Allocate part of budget to upper funnel (Sponsored Brands Video / Sponsored TV) to build awareness & drive branded search.
- Mid funnel: Sponsored Products + Display retargeting using AMC audiences.
- Lower funnel: aggressive bids on high intent keywords, product detail pages, promotions.
- Rule examples: cap bids for new-to-brand (NTB) keywords at a certain ACOS; raise bids only if conversion rate > some threshold; reduce spend/bids on underperforming audiences.
- Creative Testing Cadence
- With AI video generator, test multiple creative variants quickly: different scenes, angles, messaging. Use video vs static, text overlays vs lifestyle; test video length.
- Refresh creative often to avoid ad fatigue, especially for Sponsored TV & Brand Video formats.
- Measurement & Attribution
- Track TACoS (Total Ad Spend ÷ Total Sales including organic) in addition to ACoS to see full profit impact.
- Monitor New-to-Brand (NTB) % (how many buyers are new), Customer Lifetime Value (CLV), repeat purchase rate.
- Use AMC & Sponsored TV insights to link upstream exposure (awareness) to downstream purchase events, organic lift.
30-Day Action Plan & KPIs to Watch
Here’s a practical plan you (as an Amazon Seller) can implement over next 30 days, with specific KPIs to measure, so you can see profit improvements.
Week 1
- Audit current PPC campaigns:
- Collect current ACoS, TACoS, NTB%
- Check creative types (video vs static)
- Examine spend by funnel segment
- Identify high-margin products & those with strong organic traction - KPIs to record as baseline:
- TACoS, ACoS per product
- NTB% (New-to-Brand percentage)
- Creative performance: CTR (Click-Through Rate), CVR (Conversion Rate)
Week 2
- Build new AMC custom audiences using the Retail Purchases dataset:
- e.g. customers who bought 1-2 years ago; repeat purchasers; users who viewed but didn’t purchase - Set up bid adjustments or retargeting campaigns using those audiences
- Begin small-budget tests for Sponsored TV / Brand Video formats
- KPIs to monitor:
- Audience performance: CTR, CVR
- Incrementality: do exposed & retargeted audiences convert better than control groups
- Cost per new customer acquisition (CPA)
- Uplift in branded search volume
Week 3
- Creative refresh: deploy new video creatives via the AI Video Generator; test multiple variants to find what works best
- Adjust budget allocation based on audience & campaign performance
- Shift spend toward campaigns/products showing higher returns
- KPIs to compare:
- New vs old creatives: performance metrics (e.g. which videos/images are converting better)
- Cost per Click; Conversion Rates
- Monitor if TACoS is falling as the combined effect of paid + organic improves
Week 4
- Evaluate outcomes of weeks 1-3; scale up the campaigns and audiences that worked best
- Pause or reduce spend on low-ROI campaigns
- Project forward Customer Lifetime Value (CLV) impacts based on NTB growth & repeat purchase rates
- Adjust NTB bid strategy accordingly
- Plan for the next cycle of creative & audience testing
- KPIs to watch:
- TACoS target (e.g. reduce by a specific % compared to baseline)
- Profit margin by product category
- Growth in NTB (%)
- Repeat purchase rate
- ROI per ad dollar spent
- Overall profit increase
KPI Benchmarks & What Good Looks Like
- TACoS Range: For many categories, an efficient TACoS is around 5-15% of total revenue. If you’re above ~20-25%, you may be over-relying on paid.
- NTB %: Aim for NTB buyers to be a significant portion (depends on your brand age) to drive future growth.
- Return on Ad Spend (ROAS) on bottom of funnel should exceed your cost of goods + overhead + desired margin.
- CLV Lift over time: Use AMC & Retail Purchases data to estimate how repeat purchases or customer value increases as you convert more NTB and upsell/cross-sell.
- Organic sales growth: Paid ads should help lift organic sales and brand recognition — important because that dual lift helps reduce TACoS.
Methodology Notes
- Using Amazon’s own published sources for AMC features, retail dataset launch, AI tools & Sponsored TV.
- Measuring TACoS rather than ACoS alone to ensure you see total business impact.
- Using metrics like NTB, CLV, repeat purchase rates to ensure decisions are informed by long-term value, not just short-term ad revenue.
- Ensuring creatives & audience targeting are grounded in data (past purchases, shopping behaviour) to avoid wasted spend.
How This Helps Amazon Sellers Gain Profit & Future-Proof Sales
- Better target & lower wasted spend → by using AMC’s 5-year dataset & custom audiences you reduce bids/impressions on low-intent users, increasing efficiency and profit margin.
- Stronger creatives via AI Video → more engagement, higher conversions → you pay less per sale. Also frees up resources & time.
- Upper funnel reach (Sponsored TV etc.) → builds awareness, which helps organic search & branded searches; reduces dependency on paid alone. Over time this reduces TACoS and improves margins.
- Sustainable growth: prioritizing NTB, CLV, repeat business; focusing on metrics beyond immediate ACoS; helps prevent boom-and-bust cycles of heavy ad spend without profit.
How We Can Help
If you’re looking to implement these strategies but want expert support, check out our Amazon PPC management services. We help sellers apply AMC audiences, creative testing, bid budgeting etc., to lift profit while controlling TACoS.
Ready to plan out your Amazon PPC strategy for 2025 based on these new tools and metrics? Schedule a PPC planning call with us to map out your 30-day action plan, uncover profit-leaks, and lift your TACoS.
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