What Are the Costs of Amazon Sponsored Product Ads?

If you are considering advertising on Amazon and are doing your preliminary research (or are working to optimize an existing campaign), chances are you will want to know the costs of Sponsored Product advertisements so you can properly allocate ad spend and factor it into your overall Amazon selling costs. These ads — Amazon’s most popular workhorse ad type that are seen in organic search results and on product detail pages — promote individual product listings and when clicked on, a consumer is brought to the product detail page for a specific item.

To begin, there is no upfront or monthly fee associated with advertising on Amazon. Sponsored Products use a cost-per-click (CPC), auction-based pricing model. You set the maximum amount that you are willing to pay when a shopper clicks on your ad and you will never be charged more than your bid amount. The more competitive your bid is, the more likely it is that your ad will be displayed. Take advantage of real-time algorithmic bidding optimization by using an AI-first solution for Amazon Advertising.

How Sponsored Products Daily Budgets Work

You set, or allow Amazon to suggest, a maximum daily amount that you are willing to spend on your campaigns. With Sponsored Products, the amount you enter is the average daily amount you are willing to spend over a calendar month. For example, if you set your daily budget at $100, you may receive up to $3,100 worth of clicks in that calendar month (assuming a 31-day month).

Although the minimum daily budget is $1, Amazon recommends a minimum of $10 to ensure your ads do not stop showing in the middle of the day. The company notes that you will typically see performance results — such as impressions, clicks, and sales — with a beginner budget of just $10 a day. Avoid setting a budget that you are not completely comfortable with. You can start small and invest more as you scale and test what ad types work best for your business.