BWD Admin

Oct 16, 2025

Is Amazon Advertising Expensive? Here’s What It Actually Costs to Rank #1

When sellers first dive into Amazon advertising, one big question always surfaces: “Is it really worth it?” or “How much does it cost to advertise on Amazon?”

Some expect it to be outrageously expensive; others think it’s dirt cheap. The truth? It’s neither it’s strategic.

The Myth About Amazon Advertising Costs

In 2025, Amazon controls over 12% of the global digital ad market, second only to Google and Meta. With over 2 million active sellers, competition is fierce, but that also means opportunity.

Whether you’re launching your first product or scaling your brand, the cost of Amazon advertising comes down to how well you play the game.

At its core, Amazon ads work on a pay-per-click (PPC) model. You pay only when someone clicks your ad, meaning every penny can work toward real results if managed properly.

How Much Does It Cost to Advertise on Amazon?

Let’s talk real numbers. The average Amazon PPC cost varies by category, competition, and ad type. But here’s a general breakdown for 2025:

Ad Type	Average CPC (Cost Per Click)	Best For
Sponsored Products	£0.60 – £1.20	Boosting visibility and sales for individual listings
Sponsored Brands	£0.75 – £1.50	Building brand awareness and storefront traffic
Sponsored Display	£0.50 – £1.10	Retargeting shoppers who didn’t purchase

Sponsored Products remain the most popular choice because they appear directly in search results, giving sellers a competitive edge.

While Amazon ads pricing has climbed slightly over the last two years (up 8–12% on average), sellers who track performance and optimize bids are still enjoying ROAS (Return on Ad Spend) as high as 4.2x, meaning every £1 spent can bring £4.20 in return.

So yes, Amazon ads cost money, but when done right, they make far more than they take.

Breaking Down Amazon Ads Pricing Models

1. Sponsored Products

These are the bread and butter of Amazon PPC. They show up when shoppers search for specific keywords, making them perfect for driving conversions.

You only pay when someone clicks, and the placement directly influences sales velocity. The more relevant your listing and keywords, the lower your cost per click.

2. Sponsored Brands

These banner-style ads feature your logo, tagline, and multiple products. They appear at the top of search results and link directly to your Amazon storefront, ideal for established brands looking to boost awareness.

Although they cost slightly more, their average CTR (Click-Through Rate) is 2.3x higher than display ads.

3. Sponsored Display

These are your retargeting heroes. If someone viewed your product but didn’t buy, these ads follow them across Amazon and even other websites.

They’re powerful for reminding potential customers to complete a purchase and typically cost less per click.

How Amazon PPC Costs Have Changed in 2025

The average cost of Amazon advertising in 2025 ranges from £0.50 to £1.50 per click, depending on the niche.

But the bigger question is, what’s the average return?

According to recent data from Ad Badger, the average ACoS (Advertising Cost of Sales) for Amazon sellers is 25–30%.

That means for every £100 in sales, sellers spend £25–£30 on ads. Top performers, however, maintain ACoS below 20%, thanks to precise targeting and keyword optimization.

Amazon is still one of the most affordable performance-driven platforms, especially compared to Google Ads, where average CPCs can hit £2.50–£3.50.

Why Your Amazon Advertising Budget Doesn’t Go as Far as You Think

The cost isn’t random; several key factors influence it:

1. Competition:

Popular categories like tech, skincare, or fitness gear attract high bids. Some sellers spend over £1.50 per click, while niche brands can rank with less than 60p.

2. Ad Placement:

Prime real estate (like the first row of search results) costs more but yields up to 3x higher conversion rates.

3. Relevance Score:

Amazon rewards well-optimized listings. Strong images, reviews, and relevant keywords lower your CPC because Amazon sees your ad as helpful, not spammy.

4. Time of Year:

Expect cost surges during Q4, Prime Day, and Black Friday, when everyone fights for visibility.

5. Bid Strategy:

Automatic campaigns can help beginners, but manual bidding gives pros the power to fine-tune costs and control ROI.

Stop Overspending! Making Every Click Count on Amazon

Worried about your Amazon ads price climbing too high? Don’t be. Here’s how smart sellers stay profitable:

● Set Daily Budgets:

Start small (£20–£50/day) and increase only when campaigns prove profitable.

● Use Negative Keywords:

Exclude irrelevant searches to avoid wasted clicks. This can reduce spend by 15–20%.

● Test Ad Creatives:

Try new headlines, images, and descriptions weekly. A/B testing can lift CTR by 25%.

● Monitor ACoS and ROAS:

Use Amazon’s built-in reports or partner with an Amazon advertising agency for deeper insights.

● Leverage Automation:

Tools like Amazon Ad Console or third-party dashboards can auto-pause low performers and reallocate budget efficiently.

With Bridgeway Digital’s in-house team, brands see average savings of 18–25% in wasted ad spend while maintaining higher conversion rates.

How Much Should Authors Spend on Amazon Book Advertising?

If you’re an author or publisher, you’ll love this.

Amazon book ads (KDP advertising) are one of the most budget-friendly ad options on the platform.

Typical KDP advertising cost:

£0.20–£0.50 per click
Minimum daily budget: £5–£10

These ads appear in search results, on competitor book pages, and in “related products” sections.

Authors who run continuous KDP ads report up to 40% more page reads and 25% more sales within the first three months.

For self-published writers, that’s a low-cost, high-impact way to build readership.

Do You Really Need an Amazon Advertising Agency? Let’s Find Out

Managing Amazon ads can feel like decoding hieroglyphics; that is why many sellers partner with a professional Amazon PPC advertising agency.

A skilled agency helps you:

Discover profitable keywords others miss
Manage bids strategically
Optimize listings for better click-through
Track and improve ROI weekly

The best Amazon advertising agencies charge either a small monthly retainer or a percentage of ad spend. While that may seem like an added cost, data shows sellers who use agencies see an average 38% higher ROI.

You wouldn’t fix your own car engine, so why gamble with your ad budget?

Why Sellers Still Invest in Amazon Advertising

Beyond the numbers, Amazon ads offer something no other platform does intent. Unlike Facebook or Instagram, where users scroll aimlessly, Amazon shoppers come ready to buy.

Here’s what makes it unbeatable:

83% of online shoppers visit Amazon before buying elsewhere.
65% of clicks go to the top three ad results.
Sponsored products convert 30% better than organic listings.

That means even with modest budgets, smart advertisers can reach thousands of high-intent shoppers daily, turning clicks into conversions effortlessly.

Bridgeway Digital Helps Brands Win the Amazon Advertising Game

At Bridgeway Digital, we don’t just manage ads, we turn them into engines for growth.Our Amazon advertising experts combine data, creativity, and technology to help sellers dominate their niches without overspending.

Here’s what sets us apart:

14+ years of digital excellence
Custom keyword strategy and bid management
Advanced analytics and conversion tracking
Multi-product campaigns tailored to your goals

From Amazon sponsored products cost optimization to storefront strategy, Bridgeway Digital is the trusted Amazon advertising agency that delivers measurable success.

Wrapping It Up

So, is Amazon advertising expensive? Only if you’re flying blind. With the right data and expert support, it’s actually one of the highest ROI channels delivering an average 4x return on ad spend for savvy sellers.

In fact, brands that partner with a trusted Amazon advertising agency see up to 38% higher conversions and 25% lower costs over time.

At Bridgeway Digital, we turn ad spend into growth fuel, helping your products climb rankings and dominate categories.

Because on Amazon, success isn’t about outspending the competition, it’s about outsmarting them, one profitable click at a time.

Frequently Asked Questions

1. How Much Does it Cost to Advertise on Amazon?

Most sellers pay between £0.50–£1.50 per click, depending on category competition and placement.

2. How Much is Amazon Advertising for Books?

KDP ads cost around £0.25–£0.50 per click, making them one of the cheapest and most effective ad types for authors.

3. Who is An Amazon Advertising Agency?

An Amazon advertising agency, like Bridgeway Digital, manages PPC campaigns, optimizes bids, and helps sellers increase ROI with data-backed strategies.