How Much Does It Cost to Advertise on Amazon? A Friendly Guide
September 29, 2025

How Much Does It Cost to Advertise on Amazon? A Friendly Guide

Hey there! If you’re thinking about advertising on Amazon, you’re probably wondering, “How much is this going to cost me?” Great question! Amazon Advertising is a powerful way to get your products or brand in front of millions of shoppers, and the best part is, it’s flexible enough to fit almost any budget. Whether you’re a small business owner, an e-commerce seller, or a self-published author, this guide will break down the costs of advertising on Amazon in a simple, human-friendly way. I’ll cover the different ad types, what affects your costs, and how to make your budget work hard for you. Plus, I’ve included a FAQ section to answer common questions and packed it with SEO-friendly tips to help this article shine on Google. Let’s dive in!

What Is Amazon Advertising?

Before we talk dollars and cents, let’s quickly cover what Amazon Advertising is. It’s a pay-per-click (PPC) platform that lets you promote your products, brand, or content on Amazon’s website, apps, and even external sites. You only pay when someone clicks your ad, which makes it cost-effective since you’re not shelling out for just “views.” Amazon offers ad types like Sponsored Products, Sponsored Brands, Sponsored Display, and Amazon DSP, each with different goals, like boosting sales or building brand awareness. Costs vary depending on the ad type and your strategy, so let’s unpack it all.

How Much Does Amazon Advertising Cost?

The short answer? It depends! Amazon Advertising costs are flexible and driven by your choices—your budget, ad type, keywords, and competition all play a role. Here’s a breakdown of the key factors and what you can expect to spend.

1. Pay-Per-Click (PPC) Model

Most Amazon Ads (Sponsored Products, Sponsored Brands, and Sponsored Display) operate on a PPC model. This means you set a bid—how much you’re willing to pay for a click—and you’re only charged when someone clicks your ad. Bids typically range from $0.10 to $5 or more, depending on the product category and keyword competition. For example:

  • Low-competition keywords (e.g., “organic lavender pillow spray”) might cost $0.50–$1 per click.
  • High-competition keywords (e.g., “wireless headphones”) could cost $2–$5 or more per click.

You control your spending by setting a daily budget, which can be as low as $1 but is often $5–$20 for small businesses to see results. There’s no minimum spend, so you can start small and scale up.

2. Seller Account Costs

To advertise products on Amazon, you need a Professional Seller Account (via Seller Central), which costs $39.99/month in the U.S. This fee isn’t specific to advertising—it covers access to Seller Central’s advanced tools, like analytics and ad creation. If you’re not selling products (e.g., promoting a book or app), you can use a regular Amazon account for some ad types, skipping this fee.

Vendors (who sell to Amazon via Vendor Central) don’t pay this fee, but Vendor accounts are invitation-only. If you’re brand-registered, there’s no extra cost for Brand Registry, but you need a trademark, which can cost $225–$400 to file.

3. Ad Type Costs

Each Amazon ad type has its own cost structure. Here’s a look at the main options:

Sponsored Products

These ads promote individual products in search results or on product pages. They’re the most affordable and popular choice for beginners.

  • Cost: Bids range from $0.10–$5 per click, depending on keywords. A daily budget of $10–$50 is common for small campaigns.
  • Example: If you sell yoga mats and bid $1 per click with a $20 daily budget, you could get 20 clicks before hitting your limit. If only 10 people click, you pay $10.

Sponsored Brands

These banner-style ads showcase your brand and multiple products, linking to a custom page or Amazon Store. They’re pricier due to their visibility.

  • Cost: Bids are often $0.50–$7 per click, as they target broader keywords and brand-focused searches. Budgets typically start at $20–$100/day.
  • Example: A $50 daily budget with a $2 bid might get 25 clicks, costing $50 if fully spent.

Sponsored Display

These retargeting ads appear on Amazon and external sites, targeting shoppers who viewed your products or similar items.

  • Cost: Bids range from $0.20–$3 per click. Budgets of $10–$50/day are common for small campaigns.
  • Example: A $30 budget with a $1.50 bid could yield 20 clicks, costing $30 if maxed out.

Amazon DSP (Demand-Side Platform)

DSP is for advanced advertisers, offering display and video ads across Amazon’s sites (e.g., IMDb) and the web. It’s not PPC-based but uses programmatic buying.

  • Cost: Minimum budgets start at $50,000 USD (sometimes lower for self-service), making it suitable for big brands. Costs vary based on impressions and targeting.

Example: A $50,000 campaign might run for a month, targeting specific audiences with video ads.

4. Keyword and Category Competition

Costs depend heavily on the keywords you target and your product category. Competitive categories like electronics or fashion have higher bids due to demand. For example:

  • Electronics: Keywords like “Bluetooth speaker” might cost $3–$5 per click.
  • Niche Products: Keywords like “handmade ceramic vase” might cost $0.30–$1 per click.

Long-tail keywords (specific phrases like “non-slip yoga mat for beginners”) are often cheaper and convert better, saving you money.

5. Advertising Cost of Sale (ACoS)

ACoS measures your ad efficiency: it’s your ad spend divided by ad-driven sales. For example, if you spend $10 on ads and earn $50 in sales, your ACoS is 20% ($10 ÷ $50). A good ACoS is typically 15–30%, but it varies by category. High ACoS means you’re spending more than you’re earning, so optimize keywords and listings to keep costs down.

Typical Costs for Beginners

  • Small Budget: $5–$20/day ($150–$600/month) for Sponsored Products, plus $39.99/month for a Professional Seller account.
  • Medium Budget: $50–$200/day ($1,500–$6,000/month) for Sponsored Products or Brands, plus the seller fee.
  • Advanced Budget: $1,000+/day or $50,000+ for DSP campaigns, with no seller fee for non-sellers.

Since you’ve explored Amazon PPC strategies and low ACoS campaigns (from our past chats), starting with a $10–$20 daily budget for Sponsored Products targeting long-tail keywords could align with your goal of cost-effective advertising.