Amazon PPC

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. 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

Amazon’s Sponsored Display ads just got an upgrade! The new optimized targeting feature allows advertisers to reach the most relevant audiences based on data-driven insights. This shift is going to have a significant impact on how you target and engage with customers. We’ll dive into what this feature means for sellers and how you can leverage it to improve your conversions and ad performance. What Does Optimized Targeting Mean? Optimized targeting automatically selects the most relevant customers for your Sponsored Display ads, based on Amazon’s insights into customer behavior, purchase intent, and more. Sellers no longer need to manually set up complex targeting; Amazon’s AI now does the heavy lifting. This new feature allows for greater ad visibility, more precise targeting, and ultimately better conversion rates with minimal manual work required. Why This Matters for Sellers? The goal of every seller is to improve Return on Ad Spend (ROAS) and maximize visibility. With optimized targeting, sellers can now: Reach the right audiences at the right time without wasting budget on irrelevant clicks. Increase sales with minimal effort. Focus more on strategic decisions rather than manually adjusting targeting parameters. Additionally, the feature allows flexibility, with the option for sellers to add manual targeting alongside the automatic recommendations. Whether you’re running Remarketing or Contextual Targeting campaigns, optimized targeting can supplement these strategies to drive higher engagement. How Big Internet Ecommerce Can Help At BigInternetEcommerce.com, we specialize in optimizing Amazon advertising strategies. Here’s how we can help you get the most out of Amazon’s new feature: Set up optimized Sponsored Display campaigns that reach the right customers automatically. Use manual targeting alongside optimized targeting for even more control over your audience. Track and analyze campaign performance to ensure your ad spend is effectively driving conversions. Amazon’s new optimized targeting feature for Sponsored Display ads offers a powerful, automated way to reach the right customers and improve conversion rates. Sellers can focus on scaling their business with less effort and greater accuracy. Whether you’re new to Amazon ads or a seasoned pro, this update is a game-changer that can enhance your campaign performance. Want to see results with optimized targeting?  Schedule a call with our experts today and start boosting your sales!