The three Amazon ad types
Sponsored Products promote single listings in search and do most of the work — start here. Sponsored Brands show your logo and products at the top (needs Brand Registry). Sponsored Display retargets shoppers who looked but did not buy.
How pay-per-click works
You set a maximum bid — the most you will pay for a click — and pay only when someone clicks, usually a little less than your bid. No clicks, no charge. Your daily budget caps how much you can spend.
Launch your first campaign
Start with a Sponsored Products automatic campaign: Amazon picks the targets, you set a modest daily budget and a starting bid. After a week or two, read the search-term report to see what shoppers actually searched, then add winners as keywords and block losers as negatives.
The one number to watch
Watch your ACoS — the share of your ad sales eaten by ad spend. Keep it below your break-even (your margin after costs) and your ads are profitable. As you grow, automating the daily bid and negative-keyword work — like AIAdKing does — keeps ACoS in check without the manual grind.