Amazon has become far more than an online store. For millions of shoppers, it is the first place they go to search for products, compare prices, and read reviews. With so many sellers competing for attention, simply listing a product is no longer enough to guarantee visibility. That is where Amazon's advertising tools come in. Many sellers and marketers still refer to these tools as AMS, short for Amazon Marketing Services. In this article, we will explain what AMS is, how it has evolved into Amazon Ads, the main advertising formats available, how campaigns work, and strategies to maximize your return on ad spend.
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What Is AMS (Amazon Marketing Services)?
Amazon Marketing Services was Amazon's original self-service advertising platform for vendors, the businesses that sell products wholesale to Amazon. It allowed them to create sponsored ads that appeared in search results and on product pages. Sellers who sold directly to customers used a similar tool within Seller Central.
In 2018, Amazon consolidated its advertising offerings under a single brand: Amazon Advertising, later renamed Amazon Ads. Although the AMS name has been officially retired, many people still use the term to describe Amazon's advertising platform. Today, Amazon Ads serves both sellers and vendors, offering a variety of ad formats both on and off Amazon.
Why Amazon Advertising Matters
A large share of online product searches begin on Amazon. Shoppers on the platform have high purchase intent, meaning they are often ready to buy. Advertising helps products appear at the top of search results and on competitor product pages, increasing visibility, clicks, and sales. Improved sales velocity can also boost organic rankings within Amazon's search algorithm, creating a positive cycle of growth.
Main Types of Amazon Ads
Sponsored Products
Sponsored Products are the most common Amazon ad format. They promote individual product listings and appear in search results and on product detail pages. Advertisers pay per click, and campaigns can be targeted by keywords or products. Sponsored Products are ideal for driving sales of specific items and are often the starting point for new advertisers.
Sponsored Brands
Sponsored Brands ads showcase a brand logo, custom headline, and multiple products. They appear prominently at the top of search results and can link to a Store page or custom landing page. Sponsored Brands video ads are also available, offering an engaging way to capture attention.
Sponsored Display
Sponsored Display ads allow advertisers to reach audiences both on and off Amazon. They can target shoppers based on viewing behavior, interests, or specific products. This format is useful for retargeting people who viewed a product but did not purchase.
Amazon DSP
The Amazon Demand-Side Platform enables programmatic buying of display, video, and audio ads across Amazon properties and third-party websites. It offers advanced audience targeting using Amazon's shopping data and is typically used by larger brands with bigger budgets.
Amazon Stores
Amazon Stores are free, multi-page brand storefronts within Amazon. While not an ad format in itself, a Store provides a branded destination for Sponsored Brands campaigns and helps tell a cohesive brand story.
How Amazon Ad Campaigns Work
Most Amazon ads operate on a cost-per-click auction model. Advertisers set bids for keywords or product targets, and Amazon determines which ads to show based on bid amount and relevance. Campaigns can use automatic targeting, where Amazon selects relevant keywords, or manual targeting, where advertisers choose keywords and products themselves.
Key metrics include impressions, clicks, click-through rate, conversion rate, advertising cost of sales (ACoS), and return on ad spend (ROAS). ACoS is calculated by dividing ad spend by attributed sales and is one of the most important indicators of campaign efficiency.
Strategies for Amazon Advertising Success
Optimize product listings first. Ads drive traffic, but listings close the sale. Use high-quality images, keyword-rich titles, clear bullet points, detailed descriptions, and A+ content.
Start with automatic campaigns. Automatic campaigns reveal which search terms convert. Use these insights to build manual campaigns with refined targeting.
Use negative keywords. Prevent wasted spend by excluding irrelevant search terms that generate clicks without sales.
Structure campaigns logically. Organize campaigns by product category, brand versus generic keywords, and match types to make management and optimization easier.
Monitor and adjust bids regularly. Increase bids on high-performing keywords and reduce or pause underperformers.
Encourage reviews. Positive reviews improve conversion rates and ad performance. Use Amazon's approved review request tools.
Driving External Traffic to Amazon
Amazon rewards listings that attract external traffic. Brands can use social media marketing, influencer partnerships, email, and Google ads to send shoppers to their Amazon listings. Amazon's Brand Referral Bonus program even offers credits to eligible brands that drive outside traffic. A strong brand website supported by search engine optimization also builds credibility and captures shoppers who research products before buying.
Conclusion
AMS, or Amazon Marketing Services, was the original name for Amazon's advertising platform, now known as Amazon Ads. It offers powerful tools including Sponsored Products, Sponsored Brands, Sponsored Display, and Amazon DSP to help sellers and brands reach high-intent shoppers. By optimizing listings, structuring campaigns carefully, monitoring performance, and supporting Amazon efforts with broader digital marketing, businesses can increase visibility, sales, and long-term growth on the world's largest marketplace.
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