How Amazon PPC Is Changing in 2025 & What Sellers Need to Know

Sammy
Nov 6
9 min read

If you’ve been running Amazon ads for a while, you’ve already sensed it: clicks cost more, conversion dynamics are shifting, buyers are smarter, and the algorithm behind Amazon’s ad machine is adjusting its internal gears. According to recent data:

The average conversion rate for Amazon PPC is about 10.33%, far higher than the 1.33% of non-Amazon e-commerce sites.
CPC (cost-per-click) continues to rise—expect more competition, higher bids, and tighter margins.
New formats and technologies (video, automation, external traffic) are no longer optional—they’re increasingly mandatory.

if you ignore how Amazon PPC is changing in 2025 & what sellers need to know, you might find your ad budget eroding, your ACOS creeping up, and your visibility slipping while your competitors adapt.

Big Shifts in Amazon PPC for 2025

Let’s explore the major changes reshaping Amazon PPC—and by extension how Amazon PPC is changing in 2025 & what sellers need to know.1. Rising Ad Costs: CPCs and Cutthroat Competition

The days of bargain-clicks are fading. More sellers, more competition, more bids. As one seller on Reddit put it:

The implications:

Higher CPCs mean you must convert better to maintain profitability.
Keyword bidding must focus on high-intent, high-conversion targets—not just broad reach.
You’ll need better listing optimization, better creatives, and smarter targeting.

For example: If you’re selling a premium phone case (₹1,000), and your CPC jumps from ₹12 to ₹25, unless your conversion rate or average order value increases, your ACOS (Advertising Cost of Sale) is going to swell.

2. Algorithm & Audience Changes: The A10 Era and Beyond

One of the biggest strategic shifts: Amazon’s internal algorithm (often referred to as the A10) is placing more weight on external traffic, engagement, keywords that convert and organic relevance—not just paid fuel.

What that means:

Simply pushing budget into Sponsored Products is less effective unless the listing also converts well.
External traffic (from Instagram, YouTube, Google) that directs into Amazon helps boost organic visibility—if done right.
Audience-behaviors matter more: dwell time, click-through, conversion after click.

Analogy: Imagine you’re in a marathon and you used to rely purely on bursts of energy (ad spend) to sprint ahead. Now the race rewards steady pace, smart fuel, and strategic rest stops (organic, external traffic) equally. That is how Amazon PPC is changing in 2025 & what sellers need to know.

3. AI, Automation & Smarter Bidding How Amazon PPC Is Changing in 2025 & What Sellers Need to Know

Welcome to the “set it and semi-forget it” era—except you still need strategy. In 2025, automation and AI are doing more of the heavy lifting. From bid management to keyword clustering to creative generation: it’s happening.

Key implications:

Manual bids and broad match “spray-and-pray” approaches are becoming less effective.
AI tools help optimize bids in real time based on conversion data, stock levels, margin objectives.
But: using automation without good data, clear goals and listing quality is like driving a Ferrari with no fuel — fast but stops quickly.

Example: If you feed the automation tool poor conversion-rate data or a badly converting landing page, it will still raise bids—but you’ll burn money. One formula cited:

Starting Bid = Target ACoS × Product Price × Conversion Rate. Knowing this helps you set realistic budgets before automation takes over.

4. New Ad Formats & Channels: Video, Display, External Traffic

Gone are the days when “just run Sponsored Products” was enough. Now, how Amazon PPC is changing in 2025 & what sellers need to know includes:

Sponsored Brands Video, Display Video, Amazon DSP (Demand-Side Platform) ads.
External traffic (social, Google, influencer links) is rewarded—not ignored.
Display ads and retargeting via DSP offers scale beyond keyword bidding.

For example: A home-decoration brand uses Instagram reels to drive traffic to its Amazon listing. That external traffic boosts conversions on Amazon, which then pushes the listing higher in Amazon’s search results—not because they spent more on keywords, but because engagement improved. That’s a smart version of how Amazon PPC is changing in 2025 & what sellers need to know.

5. From Keywords to Intent – Negative Keywords & Voice Search

Keyword strategies are evolving. With voice assistants, long-tail natural speech queries and changing shopper behaviour, you can’t rely on generic keywords alone. And you need to guard your spend from irrelevant traffic.

What to do:

Use negative keywords to block irrelevant search terms (e.g., “cheap fake phone case” if you sell premium ones).
Optimize for natural language queries: “What is the best eco-friendly phone case for women” rather than just “phone case”.
Focus on intent: someone searching “best phone case 2025 drop test” likely converts better than someone just browsing “phone accessories”.

This shift is another piece of the puzzle of how Amazon PPC is changing in 2025 & what sellers need to know.

What Sellers Need to Know (And Do) Right Now

Okay, so what should you actually be doing? Here are game-plans you can put into practice.

Action Step 1 : Audit Your Listing Before You Ramp Up Ads

Before you pour more money into PPC, ask:

Is my product listing optimized (title, bullets, images, A+ content)?
Are reviews strong? Is there enough social proof? As one source explains: “Brands that look and feel polished earn higher click‐through rates and better Stay-On‐Page metrics.”
Am I tracking conversion rates and ACOS correctly? If your conversion rate is low (< 10%), ad spend alone won’t solve it.

You can think of your listing as the foundation of a house; if the foundation is shaky, spending more on the roof (ads) won’t keep the house standing.

Action Step 2 : Re-structure Your Campaigns for 2025’s Dynamics

Based on how Amazon PPC is changing in 2025 & what sellers need to know:

Break campaigns into tighter clusters: branded keywords, competitor keywords, category (non-branded) keywords. Use separate campaigns for high-intent keywords and test budget accordingly.
Use manual campaigns to discover high performers first; then automate.
Implement negative keywords and regularly prune underperforming terms.

Action Step 3 : Embrace Automation—but Stay Strategic

Because automation is a big part of how Amazon PPC is changing in 2025 & what sellers need to know—but it isn’t “set it and forget it.”

Feed high-quality data into your automation tools.
Set clear goals: Target ACOS, ROAS, budget caps.
Monitor regularly: Automation can shift bids quickly—make sure you intervene when needed.
Keep manual oversight for new launches or unique SKUs where you might want more control.

Action Step 4 : Create Cross-Channel Traffic & Leverage Video

Diversify your funnel. Don’t depend purely on Amazon keyword clicks.

Use influencer links, social media posts, email campaigns to drive external traffic. That supports “how Amazon PPC is changing in 2025 & what sellers need to know”.
Invest in video creatives: Short, sharp, product-in-use videos. Video ads convert better.
Use display/retargeting via Amazon DSP: keep your brand top-of-mind.

Action Step 5 : Focus on High-Margin Products & Smart Budgeting

Given rising ad costs, you must be strategic on margin. From one guide:

"Focusing on high-margin products ensures better ROI when scaling campaigns."

Priorities your best-selling, highest-margin SKUs for ad spend.
For low-margin products, consider organic growth or external traffic instead of bidding wars.
Use the formula: Starting Bid = Target ACoS × Price × Conversion Rate.

Action Step 6 : Monitor New Metrics & Stay Ahead of the Algorithm

With how Amazon PPC is changing in 2025 & what sellers need to know, you’ll want to pay attention to new or evolving metrics:

External traffic impact, first-click to purchase timelines.
“Stay-on-page”, bounce rates, conversion per click—not just impressions and clicks.
ACOS, but also long-term metrics like Customer Lifetime Value (CLV).
Use data from tools like Amazon Marketing Cloud (AMC) when available to analyse full paths to conversion.

Real-World Examples to Illustrate the Change

Let’s bring theory into real life to show how “how Amazon PPC is changing in 2025 & what sellers need to know” plays out.

Example 1: The Kitchenware Brand

Imagine a mid-sized kitchenware brand selling ceramic cookware on Amazon. In 2024 they ran broad keyword campaigns on “non-stick pan”, got a 15% conversion rate and ACOS of 18%.In 2025, that same keyword bidding is more expensive, conversion rate dips to 12% (because more competition) and the ACOS creeps to 25%. Without adjustment, profitability falls. What they did:

Refined campaigns into clusters: “ceramic pan non-stick”, “healthy cookware”, “eco friendly cookware”.
Leveraged an Instagram influencer to drive traffic to Amazon. The external traffic boosted the listing’s organic ranking, decreasing reliance on expensive bids.
Added a short video ad of the pan in action (pouring egg, dropping something). CTR and conversion improved by 20%.Result: They kept ACOS near target by increasing ROI through better listing + smarter traffic.

Example 2: The Small Accessories Seller (Influencer Driven)

A personal-brand influencer sells fashion phone-cases via Amazon. In early 2025 they noticed CPCs jumping, their ad budget was burning faster and ROI dropping. They asked: How Amazon PPC is changing in 2025 & what sellers need to know? Their move:

Used their own TikTok / Instagram audience to redirect traffic to their Amazon product page (external traffic). That boosted conversion and helped ranking.
Created an Amazon DSP display campaign targeting look-alike audiences who viewed but didn’t buy.
Optimized listing images, added lifestyle shots, improved review badges. Result: Although CPC still rose, conversion improved, margin held, ROAS stayed acceptable.

Pitfalls to Avoid

When you’re addressing how Amazon PPC is changing in 2025 & what sellers need to know, there are a few common errors worth calling out:

Mistake: Relying solely on old campaign structures (broad match, “spray-and-pray”) without refreshing. Fix: Restructure campaigns for 2025 dynamics (as above).
Mistake: Ignoring listing quality and conversion optimization. You’ll spend more on ads just to offset listing weakness. Fix: Make listing optimization as important as ad spend.
Mistake: Blindly following Amazon’s suggested bids or auto-bids without strategy. As one guide puts it: Amazon’s Suggested Bids often inflate costs. Fix: Calculate your starting bid using your own numbers, then automate intelligently.
Mistake: Forgetting external traffic and multi-channel strategy; assuming Amazon keyword clicks will carry you alone. Fix: Build external funnel (social, influencer, email) to supplement Amazon PPC.
Mistake: Chasing low-margin SKUs in high-cost auctions. Fix: Focus ad budget where you have margin to absorb rising CPCs.

Future-Looking: What’s Next Beyond 2025?

Because part of knowing how Amazon PPC is changing in 2025 & what sellers need to know is also looking ahead.

More voice and conversational search: As people use devices like Alexa, your keywords will shift to more natural phrasing.
Even deeper automation: The human role may shift more to strategy and creative while machines manage bids and placements.
Greater demand for brand-building and differentiation: With rising cost pressures, purely transactional product ads may see diminishing returns.
Attribution and multi-touch measurement: Knowing how each touchpoint

Let’s summarise what you should walk away with:

“How Amazon PPC is changing in 2025 & what sellers need to know” is not hype—it’s real. Costs are rising, formats are changing, automation is the norm, and external traffic matters more than ever.
To win: optimize your listing, restructure campaigns, feed your automation well, diversify traffic, focus on margin, and monitor new metrics.
Use real-world examples to guide your approach.
Avoid the common mistakes of inertia, single-channel dependency and ignoring listing quality.

Action list for you this week:

Audit your Amazon listing for conversion issues (images, reviews, A+ content).
Break down your campaigns into relevant keyword clusters and implement negative keywords.
Identify one external traffic source (Instagram, email list, influencer) to test driving to your Amazon listing.
Choose one high-margin SKU and model your bid strategy using the formula: Starting Bid = Target ACoS × Price × Conversion Rate.
Set up a weekly review with your automation tool: check bids, ACOS, conversion rate, and adjust.

If you’re serious about staying ahead, you’ll accept that how Amazon PPC is changing in 2025 & what sellers need to know isn’t just about tweaking bids—it’s about evolving your mindset. It’s about seeing Amazon not just as a marketplace, but as a dynamic advertising ecosystem, part of a broader funnel, where listing quality, cross-channel traffic, and smart automation work together.

So take a deep breath. You’re at an exciting inflection point. With the right strategy, you can turn rising costs and shifting dynamics into opportunity—outsmarting competitors who stick to “old-school Amazon PPC”.

Call to Action: Ready to super-charge your Amazon ad strategy? Let’s work smarter together.

FAQ – Frequently Asked Questions

Q1. What is the biggest single change in Amazon PPC in 2025?The biggest change is the combination of higher CPCs (cost-per-click) and the increased need for external traffic and listing quality, meaning ads alone won’t win—you need a holistic funnel.

Q2. Do I still need to use manual bidding or can I go fully automated? Automation is increasingly important in 2025, but going fully hands-off without strategic oversight is risky. Use automation for efficiency, but keep manual control for new campaigns, high-margin SKUs and troubleshooting.

Q3. How important is video now for Amazon ads? Very important. Video formats (Sponsored Brands Video, Display Video) are driving higher engagement and conversion, making them a key component of how Amazon PPC is changing in 2025 & what sellers need to know.

Q4. Should I invest in external traffic (social, influencer) for Amazon listings? Yes—external traffic is increasingly rewarded by Amazon’s algorithm and helps boost organic ranking, which in turn supports paid strategy. Drive quality traffic from social, YouTube, influencer posts or email lists.

Q5. How can I handle rising costs and maintain profitability? Focus on high-margin products, optimize your listings (so conversion improves), refine your keyword/cluster strategy, use negative keywords to reduce waste, track your metrics closely and automate bids smartly using your own performance data.

Here’s to making 2025 your most profitable year on Amazon yet—because when you know how Amazon PPC is changing in 2025 & what sellers need to know, you stop reacting and start owning the narrative.