Amazon PPC fundamentals
The premium lane, explained without mystery
Amazon PPC is the skill that carries this niche's ~$50/hr ceiling, and it's less mysterious than its reputation. Sellers bid in an auction to appear in search results; most run their ads on autopilot and quietly bleed money; the specialist who reads the reports and adjusts with discipline is rare enough to name their rate. The barrier isn't genius — it's that the work is arithmetic plus patience, weekly, forever. Good news: you can learn the arithmetic in one lesson.
The three campaign types
| Type | What it is | When it matters |
|---|---|---|
| Sponsored Products | Your listing placed in search results and on product pages | The workhorse — 80%+ of most budgets lives here |
| Sponsored Brands | Banner with logo + several products (brand-registered sellers) | Brand building, defending your own branded searches |
| Sponsored Display | Retargeting shoppers on and off Amazon | Later-stage; after Products is profitable |
Within Sponsored Products: auto campaigns (Amazon picks the searches — your research scout) and manual campaigns with three match types — broad (loose), phrase (contains your phrase), exact (that search only). The classic structure a VA maintains: auto campaign discovers converting search terms; winners graduate into a manual exact campaign at controlled bids.
ACOS and TACOS: the two numbers that run everything
ACOS = ad spend ÷ ad-attributed sales. TACOS = ad spend ÷ total sales (organic included) — the health metric sellers watch long-term. Worked example, one campaign, last 30 days:
Is 25% good? Depends entirely on margin. If the product's pre-ad profit margin is 30%, then breakeven ACOS is 30% — at 25% the ads make money. If margin is 20%, that same campaign loses a nickel per ad dollar. This is why "what's our breakeven ACOS per product?" is the first question a competent PPC VA asks — and why generic advice like "keep ACOS under 20%" marks an amateur. Context: launch campaigns often run above breakeven on purpose to build rank; mature products should run below it.
Negative keywords: where the wasted money hides
Open the search term report weekly and you'll find the leaks: searches that spend and never convert. A garlic press getting clicks for "garlic seeds" — every click is wasted spend until someone adds "seeds" as a negative keyword. The weekly ritual: sort search terms by spend, find terms with (say) 10+ clicks and zero orders, add irrelevant ones as negative exact/phrase, and graduate the converters into your manual exact campaign. Thirty minutes a week, and it's often the single highest-ROI task in the entire account.
Bid adjustments: cadence beats cleverness
Do this now
Twenty minutes of arithmetic that doubles as interview prep. In a doc titled PPC Math Drill, work this scenario: product price $25, landed cost + fees $17.50, campaign spent $450 last month with $1,500 ad sales; total sales $5,000. Compute: (1) profit margin and therefore breakeven ACOS; (2) actual ACOS; (3) TACOS; (4) verdict — profitable or not, in one sentence. Then decide three moves: keyword A (ACOS 12%, high impression share available), keyword B (ACOS 55%), search term "garlic seeds" (18 clicks, $22 spend, 0 orders). Write the action and reason for each.
Answers you should reach: margin 30% = breakeven ACOS 30%; actual ACOS 30% = breakeven exactly; TACOS 9%; raise A, trim B's bid, negative the seeds. If you got those, you just did real PPC management.
Tip: use your ← → arrow keys.