Overview

Amazon’s Pay‑Per‑Click (PPC) platform is built on a three‑level hierarchy that dictates ad delivery, budget distribution, and performance tracking. Mastering this structure lets sellers allocate spend more precisely, boost ad relevance, and scale campaigns without eroding profit margins.

Key Points

• Three‑tier hierarchy — Campaigns sit at the top, followed by ad groups, and finally individual keywords or product‑targeting entries; each tier isolates data for clearer decision‑making.
• Distinct campaign types — Sponsored Products, Sponsored Brands, and Sponsored Display each require a separate logical layout because they serve different shopper intents and creative formats.
• Budget set at campaign level — Daily spend limits are applied to the entire campaign, enabling sellers to prioritize high‑margin SKUs by assigning them larger budgets.
• Ad‑group granularity — Grouping SKUs with similar performance or target audiences into the same ad group improves relevance scores and reduces the number of bids a seller must manage.
• Layered match‑type strategy — Using exact, phrase, and broad match keywords within an ad group captures traffic across low, medium, and high intent searches while allowing bid optimization per intent level.
• Tiered reporting — Amazon delivers metrics (impressions, clicks, spend, sales, ACOS) at the campaign, ad‑group, and keyword/product‑target level, giving sellers the data needed to fine‑tune each component.

How Amazon PPC Campaign Structure Works

1. Choose the campaign type — Decide whether the goal is direct sales (Sponsored Products), brand visibility (Sponsored Brands), or audience retargeting (Sponsored Display).

   • Example: A private‑label vitamin brand launches a Sponsored Products campaign to drive immediate purchases and a Sponsored Brands campaign to showcase its logo and tagline on the search results page.

2. Set a descriptive campaign name and daily budget — Use a naming convention that reflects the product line, season, or objective, then assign a daily budget that aligns with the product’s profit margin and target ACOS.