Marketplace ads: getting started with sponsored products
How sponsored product ads work on Amazon and Flipkart, and how to start without wasting money.
- Ads work best on listings that already convert
- Start with automatic campaigns, then move winners to manual
- Watch advertising cost against margin, not just sales
Sponsored product ads place your listings at the top of search results and on competitor pages. They can accelerate sales, but they can also eat your margin if you advertise listings that do not convert.
Fix the listing first
Ads send traffic. If the listing has poor images, few reviews or a high price, that traffic will not buy. Improve the listing before increasing spend.
Start with automatic campaigns
Automatic campaigns let the marketplace match your product to searches. After a week or two, look at the search terms that brought sales.
Move winners to manual
Create manual campaigns for the search terms that convert, with bids you control. Add negative keywords for searches that waste money.
- 1Automatic campaign
- 2Review search terms
- 3Manual for winners
- 4Negatives for waste
- 5Adjust bids weekly
Measure the right numbers
- Advertising cost of sales (ACoS) or return on ad spend (ROAS)
- Margin after ad cost
- Organic ranking improvements from ad-driven sales
Budget carefully
Start small, scale campaigns that are profitable and pause the rest. Seasonal events need higher budgets planned in advance.
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