Shopping habits have changed. More people now buy everyday products like snacks, vitamins, and toothpaste online, especially on Amazon. In fact, 57% of U.S. adults begin their product searches on Amazon when planning to make a purchase.
If your product isn’t showing up when they search, they probably won’t find it.
That’s why Amazon Sponsored Ads are so important for CPG (consumer packaged goods) brands today. These ads can help your products stand out, reach more shoppers, and grow your sales if you use them the right way.
People aren’t just shopping online for big things anymore. Now they’re buying their groceries, baby wipes, and pet food on Amazon too. For many shoppers, Amazon is the first place they look. That means if your product doesn’t appear high in the results, shoppers might never even see it.
It’s not about brand loyalty like it used to be. People often choose what’s easiest, fastest, and cheapest. If your product doesn’t show up or look appealing, they’ll just buy something else, maybe even your competitor.
In physical stores, getting your product at eye level was the goal. On Amazon, it’s the same idea, but now it’s the search results page that matters.
Sponsored Ads help you show up at the top, where shoppers are most likely to click. Whether it’s a simple product ad or a banner with your brand logo, these placements can give you a big advantage.
If you’re not using ads, your product might get buried under dozens of others. That makes it much harder to compete, especially if you're a smaller or newer brand.
Amazon offers a few different types of ads. The most common is Sponsored Products, which show your item in search results or on other product pages. Then there are Sponsored Brands, which highlight your logo and a group of products. And finally, Sponsored Display helps you show ads to people who have looked at your products or similar ones.
Each type has a purpose.
Together, they make sure you stay top of mind during the shopping journey.
A click is a good start, but not every click turns into a sale. That’s why you should also track how many shoppers add your product to their cart or actually buy it. If people click but don’t buy, you might need to improve your product page.
You should also look at whether more people start searching for your brand name over time. That’s a good sign your ads are doing more than just selling, they’re helping people remember your brand.
Sometimes, a shopper might see your ad, click later, and buy even later than that. But Amazon might only credit the last click. That makes it hard to know which ad really worked. And if your product is cheap or gets bought often, this problem grows.
There are tools like Amazon Marketing Cloud (AMC) that help brands see the full picture, but these tools can be confusing to use if you’re not an expert. Still, it’s important to understand that not all sales get tracked correctly with basic reports.
The more brands that advertise, the more the prices go up. Cost-per-click (CPC) is rising in popular categories like snacks, skincare, and supplements. If you're not careful, you can spend a lot without seeing results.
You're also not just competing with other brands; you’re sometimes competing with Amazon itself. Their private-label products often show up first, and they can undercut your prices.
That’s why it’s important to keep an eye on your bids and budgets and to spend money only where it counts.
Some brands just set up one or two ad campaigns and hope for the best. But that’s not enough. You need to build your ads around how each product is doing. For example:
Even how you group your keywords matters; if your setup is messy, it’s hard to know what’s working and what’s not.
Ads only bring people to your product. They don’t guarantee a sale. If your images aren’t clear, if your title is confusing, or if your reviews are bad, shoppers will click away.
Your product page needs to be strong. Great photos, helpful bullet points, and clear benefits make all the difference. If your page doesn’t feel trustworthy or doesn’t answer a shopper’s question, you’re wasting your ad spend.
Many brands only focus on ads that close the sale. But it helps to think bigger. Use Sponsored Display to get your product in front of new people. Use Sponsored Brands to build recognition. Then use Sponsored Products to catch people who are ready to buy.
You don’t need a giant budget to do this. Just a simple setup that brings people in, follows up, and reminds them again if they didn’t buy.
One smart trick is to run ads on your product pages. That way, competitors can’t sneak in and show their ads on your listings. You can also use this space to promote other products you sell, like pairing a shampoo with a conditioner.
This keeps shoppers in your brand’s world instead of sending them to someone else.
The most effective brands don’t rely on just one type of ad. They combine them.
When a shopper sees your product in multiple places, it builds trust. They’re more likely to choose you when it’s time to buy.
If your CPG brand isn’t using Amazon ads, you’re already falling behind. With so many products and so many shoppers, it’s not enough to just be on Amazon. You need to show up in the right place at the right time.
But just showing up isn’t enough either. You need the right structure, the right budget, and the right message to turn clicks into customers.
If you’re tired of spending money without seeing results, we can help you build a plan that works. Let’s make your ads actually pay off.