Amazon made $47 billion from ads in 2024, making it the third-biggest digital ad platform after Google and Meta. For CPG (consumer packaged goods) brands, that number should grab your attention. Competition is tough, and if your PPC strategy doesn’t keep up, your products will get pushed aside.
In this blog, we’ll walk you through the top Amazon PPC strategies for 2025. You’ll learn how to reach the right shoppers, run smarter campaigns, and grow your brand without wasting money on ads that don’t work.
CPG brands already operate on slim margins. That means every dollar you spend on advertising has to earn its place.
If you’re only looking at ACoS and ignoring TACoS (Total Advertising Cost of Sales), you could be overvaluing short-term performance while undercutting your long-term profits.
Shoppers often make quick decisions and easily switch between brands. Their choices are usually based on habit, not loyalty. That means you need ad campaigns that keep your brand in front of them. Otherwise, you’ll have to keep chasing the same customers again and again.
CPCs (cost-per-click) have gone up in nearly every CPG category. More brands are flooding the platform, more agencies are bidding aggressively, and Amazon’s pushing ads in more placements. If you’re still running Sponsored Products alone, you’re missing the bigger picture.
Amazon Marketing Cloud (AMC) lets you analyze customer behavior beyond basic clicks and purchases. You can build custom audiences based on time since last purchase, basket size, or even product combinations.
That means you’re no longer guessing who to target; you’re using actual data to re-engage buyers at the right time.
For example, if your product is usually reordered every 30 days, you can serve ads right when customers are due for a refill. That’s how top CPG brands are reducing churn while increasing lifetime value.
If you’re not running defensive campaigns on your brand name, your competitors probably are. Sponsored Brands and Sponsored Products should both include keyword variations of your brand name and top-selling SKUs.
This stops others from poaching your traffic and ensures you show up first, even when someone searches directly for your product.
Your new product shouldn’t be in the same campaign as your best-seller. Products in the launch phase need aggressive bidding and broader targeting.
Growth-phase SKUs require scaling the budget, but with tighter targeting. Mature products can often be optimized for profitability, while slow-movers may need liquidation strategies.
Setting up your campaigns based on a product’s stage, like launch or growth, helps you match your budget, keywords, and goals to what that product needs at the time.
Sponsored Brands Video is dominating click-through rates right now. It’s short, auto-playing, and often the only motion on the screen. For CPG products, video helps you communicate ingredients, use cases, and brand feel in seconds. But lazy videos won’t cut it.
Test different angles like lifestyle footage, how-tos, or even influencer UGC and track what drives action. A 15-second video that answers the customer’s “why buy” question can outperform any text-heavy ad.
You’re not only trying to win keyword searches, you’re also fighting for space on other product pages. With Sponsored Display and Product Targeting ads, your products can show up under “Similar Products” or “Sponsored Products” on a competitor’s listing.
When you place several ads on the same product page, your brand stands out more and pushes other options out of view.
Buying behavior isn’t random; it follows patterns. CPG purchases often spike during specific hours or days. Tools like Pacvue and Quartile help automate dayparting, so your ads show up when shoppers are most likely to convert.
You’re not wasting budget overnight or during low-performing hours. This level of timing precision helps stretch your budget and sharpen your ROI.
Not all products need to hit the same TACoS (Total Advertising Cost of Sales). Your top-selling items can handle lower profit margins if they help get your brand noticed or lead to more sales down the line. On the other hand, lower-priority items might need stricter goals to stay profitable.
When you group products based on their role in your catalog, it’s easier to set smart budgets. TACoS should guide your overall brand strategy, not be the same for every product.
Amazon will push campaign recommendations through your console, but not all of them are built for your business goals.
Some will inflate your bids or expand your targeting too broadly. Use them as a starting point, but always validate with your data. What looks like a smart move on paper might be a budget drain in practice.
Amazon Brand Metrics offer insights into how shoppers move from awareness to purchase. If your conversion rate is low, but consideration is high, your product detail pages may need work. If awareness is low, you likely need more top-of-funnel visibility.
Sponsored Display is great, but for deeper audience building and retargeting, DSP (Demand Side Platform) gives you more control. You can target people who saw your ad but didn’t buy, visited your storefront, or purchased from you before.
CPG brands use DSP to keep their products top-of-mind in crowded categories, and the results show in repeat purchases.
CPG products perform well on TikTok and Instagram because people love seeing them in action. With Amazon Attribution links, you can now track that traffic directly back to your listings or storefront.
When paired with a branded storefront, this combo improves trust, raises conversion rates, and gives your PPC a boost through external traffic lift.
Winning with Amazon PPC in 2025 isn’t about spending more money; it’s about using smart strategies that fit your brand.
For CPG businesses, that means knowing when to promote, who to target, and how to adjust your ads as your products grow. When you get that right, you’ll see better results without wasting your budget.
Need help building a plan that works? Brandefyn works with CPG brands to create smart, easy-to-manage PPC strategies that actually drive growth. If you want a trusted partner to help you scale, we’re here when you’re ready.