Marketplaces

Marketplace ads: getting started with sponsored products

How sponsored product ads work on Amazon and Flipkart, and how to start without wasting money.

EvoAstra team14 Nov 2026 · 3 min read
Key takeaways
  • 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.

A simple ad routineAnimated
  1. 1Automatic campaign
  2. 2Review search terms
  3. 3Manual for winners
  4. 4Negatives for waste
  5. 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
Example: ad cost as share of salesAnimated
Week 145
Week 234
Week 326
Week 421

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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