A Complete Guide to Amazon Ads for 2025 Success

Amazon: More Than an Online Marketplace—A Leading Ad Platform

In 2025, Amazon is more than the world’s largest e-commerce marketplace—it’s now the third-largest digital advertising platform in the U.S., projected to capture over 15% of total digital ad spend by year’s end[^1]. Its advertising reach spans multiple touchpoints, including Amazon.com, Fire TV, IMDb, and a growing array of third-party apps and websites through the Amazon Demand Side Platform (DSP). For businesses looking to connect with millions of consumers at every point in the buying journey, Amazon Ads has become indispensable.

What Are Amazon Ads?

Amazon Ads are digital advertisements displayed across Amazon’s own ecosystem (such as product pages, the home page, search results) and extended network (third-party websites and apps). Much like Google Ads, Amazon Ads use a pay-per-click (PPC) model—advertisers only pay when someone clicks. The targeting is powered by Amazon’s deep insights into users’ browsing, shopping, and demographic data, making it possible to serve ads to the right audience precisely when they’re most likely to convert.

Types of Amazon Ads

Amazon offers various ad types, each designed to help you meet different marketing objectives and engage with potential customers at every stage of the funnel.

1. Sponsored Products

Sponsored Products highlight individual product listings, displaying them prominently in search results and on product pages. These ads help increase visibility and sales opportunities for specific items, making them ideal for boosting conversions on bestsellers or newly launched products.

2. Sponsored Brands

Sponsored Brands are banner ads that appear at the top of search results. These ads offer an excellent way to spotlight your brand’s identity, showcase multiple products, and drive traffic to a customized landing page. They’re particularly effective if you’re looking to build brand recognition and drive consideration across your full product line.

3. Sponsored Display

Sponsored Display ads appear on product detail pages, customer review pages, search results, and under the “Featured offer.” This format is excellent for retargeting shoppers who have shown interest in your or similar products. Sponsored Display also extends your reach beyond Amazon by displaying ads on third-party sites, leveraging Amazon’s audience data.

4. Amazon DSP

Amazon Demand Side Platform (DSP) uses real-time bidding to deliver display and video ads across Amazon-owned sites, apps, and third-party publishers. With DSP, advertisers can apply advanced targeting options—such as lifestyle segments or in-market audiences—to reach consumers both on and off Amazon.

5. Custom Ads

For brands looking for standout, tailor-made creative, Amazon’s Custom Ads offer an innovative approach. These ads are typically higher cost but can deliver significant impact through unique placements, interactive elements, and brand storytelling—perfect for major launches or brand awareness campaigns.

Understanding Amazon Ad Placements

Where your ads show up can be as important as the ads themselves. Amazon’s platform offers five main placements:

1. Product Detail Pages: Appear directly on pages where consumers view product information.
2. Search Results: Capture users actively searching for specific or related products.
3. Third-Party Websites: Leverage Amazon DSP to display ads off Amazon—expanding your reach.
4. Amazon Devices: High-impact, full-screen placements on Fire TV, Kindle, or Echo devices.
5. Amazon Owned & Operated Sites: Extend visibility on properties like IMDb, Goodreads, and DPReview.

Who Can Benefit From Amazon Ads?

Just about any business aiming to boost product visibility and revenue can find value in Amazon Ads. According to internal Amazon data, advertisers that strategically optimize campaigns can see a significant return on ad spend (ROAS). Brands of all sizes—from household names to emerging startups—can tap into the platform’s deep user insights to drive growth.

Hospitality Brands

Hotels, resorts, and other businesses in the travel sector have benefited from an expanded set of video and display options on Amazon DSP. A luxury hotel chain, for instance, can show immersive, full-screen ads on Fire TV devices, allowing users to see exactly what a resort has to offer. This tactic often results in higher booking rates, with Amazon reporting a 40% increase in expected gross bookings in 2024[^2].

eCommerce Brands

For both established retailers and new sellers, Sponsored Products, Sponsored Brands, and Sponsored Display ads can put your products in front of in-market shoppers. As shoppers on Amazon often have high purchase intent, even small gains in visibility can translate into meaningful revenue increases.

Financial Brands

Banks, insurance companies, and credit card issuers are increasingly using Amazon Ads to reach targeted audiences. A credit card brand, for example, can run a Sponsored Brands campaign promoting a new cash-back offer. Because Amazon has robust targeting, these ads can focus on users who frequently purchase from certain categories or meet specific demographic criteria.

B2B Brands

Amazon Business has grown substantially, making it a prime channel for B2B sellers. From industrial equipment to office supplies, B2B advertisers can leverage Amazon DSP or Sponsored Display to retarget potential buyers who previously explored their listings.

Amazon Ads: A Powerful Alternative (or Companion) to Google Ads

As the digital advertising landscape continues to evolve, Amazon Ads stands out by letting advertisers capitalize on real-time, high-intent shopping behaviors. While Google Ads targets users across the broader web, Amazon Ads can zero in on active shoppers—often those ready to buy. For many businesses, running both platforms in parallel is the best strategy, as it covers users researching on Google and purchasing on Amazon.

With the right audience insights, ad formats, and ongoing optimizations, Amazon Ads can deliver impressive growth and profitability. As 2025 unfolds, we’re seeing even more features—like Generative AI-driven ad creative and refined targeting—making Amazon Ads an ever-stronger force in the industry.

Ready to Scale Up with Amazon Ads?

Success on Amazon Ads hinges on understanding your target audience, selecting the right ad types, and continuously refining your strategy based on real-time performance data. If you’re ready to explore how Amazon Ads can elevate your brand:

Contact the experts at Fruition and discover how our team can optimize your Amazon advertising strategy for maximum ROI.

[^1] Amazon.com Announces Q1 Results (2023)
[^2] Hospitality Marketing with Amazon Ads