Amazon Marketing Services Explained: Beginner’s Guide to Amazon Ads

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Alan Watt

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You’ve completed your manuscript. You’ve gone through revision and editing. You’ve nailed down the cover and written a blurb you’re ecstatic about.

You’ve hit Publish on KDP. Then . . . crickets.

Your book is there on Amazon, technically accessible by millions of people, and yet it is virtually unseen. You’ve been preparing for the former, but making your book discoverable involves a different skill set with its own lexicon and internal rhythm.

Amazon Marketing Services (AMS), as Amazon’s advertising platform is still frequently called, even though it has rebranded to “Amazon Ads,” is a crucial tool to bridge that disconnect. In simple terms, this marketing service helps you show your book to readers who are actively engaged in searching for their next read. 

In this article, I’ll break down exactly what “Amazon Ads” is and how its system works beneath the jargon. You’ll get a quick overview of the three main ad types you can run; and I’ll examine some of the top mistakes many new and experienced authors make, leading to wasted ad spend without any return. Lastly, I’ll give you a Story Weapon: a framework to help you organise your ad campaign as strategically as possible.

Amazon Marketing Services (now Amazon Ads) is the pay-per-click advertising platform that determines whether your book gets found after you hit publish — and understanding how its auction system, three ad types, and targeting options work is the difference between a campaign that builds readership and one that quietly drains your budget. The most common mistakes aren’t technical; they’re strategic — bidding on terms too broad to convert, ignoring negative keywords, and advertising a weak listing that no amount of ad spend can fix.

What is Amazon Ads for authors?

If you’ve never explored ads before, think of Amazon Marketing Services as the system that helps your book actually show up in front of real readers. It is similar to Google AdWords but solely designed around shopping for goods on Amazon — and yes, that includes books.

And here is the exciting part for writers: it is designed on a pay-per-click basis. You only pay when someone clicks your ad. If 1,000 people see your ads and don’t click through, that costs you nothing. But if 100 of those people click on your ad, you’ve got 100 chances to make the sale.

You’re essentially testing the traffic flow of people looking for book recommendations, and paying for clicks with the hope that some visitors will convert into buyers. 

The auction you don’t see

Before we get into ad types, you need to understand one thing: the auction system. 

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When a reader searches for a term, say, “time travel romance,” multiple authors and publishers may have bid on that exact term, or on terms close to it. Amazon decides whose ad gets shown based on a combination of how much you bid and how relevant your ad is to what the reader is searching for. Bid amount matters, but it isn’t the whole story. A lower bid can still win the placement, if your keywords, category, and sales history make you a closer match to what the reader is actually looking for.

And here’s something that surprises a lot of first-time advertisers: you don’t necessarily pay your full bid. If you bid sixty cents and the next highest bid is forty cents, you’d typically pay just one cent more than the other bidder. The goal isn’t just to throw the highest number at the wall. It’s to bid intelligently and refine your approach as you collect data.

This is usually where people start burning money without realizing it. They either bid too cautiously and never get enough visibility to learn anything, or they bid aggressively on broad, competitive terms and burn through a budget in hours without anything to show for it.

3 ad types authors actually use

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Amazon Marketing Services offers a handful of ad formats, but for authors there are three types that matter most.

Sponsored Products are the entry point, and for good reason. These ads promote a single book and appear in search results as well as on the product pages of competing books. This format is recommended for anyone just getting started with Amazon Ads, and it’s available to every author, regardless of how many books you’ve published. If you’re advertising your first book, this is almost always where you start.

Sponsored Brands work differently. Instead of promoting a single title, these ads showcase multiple books together under your name or imprint — useful if you’re running a series, or if you’ve built a backlist worth showing off as a group. This format requires at least three eligible titles claimed under your author name. It’s not available to brand-new authors with only one book out. If that’s where you are right now, file this one away for later.

Sponsored Display is the retargeting layer. These ads follow readers who’ve already viewed your book or something similar to it and remind them it exists, even after they’ve moved on elsewhere within Amazon. This is the ad format most people forget about, but it’s often where some of the most efficient spending happens. Here you’re not introducing your book to a cold audience, you’re nudging someone who’s already shown interest.

Each format serves a different purpose, and a well-built campaign generally uses more than one. The most common approach is to start with Sponsored Products to build data, layer in Sponsored Display once you have some traffic to retarget, and consider Sponsored Brands later on when your catalog grows.

Automatic vs. manual targeting

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When you first start your ad campaigns with Amazon, they give you the choice between targeting your customers using automatic or manual targeting methods. This choice may seem trivial, but it’s more important than it looks. Amazon’s Automatic Targeting is where the software uses their algorithms to try out different keywords and see what works best for your book.

A good strategy to follow is using Amazon’s automated campaign first to let them do the experimenting for search term data and placement data. Then, as you gain more data, you can transfer money into manually targeted campaigns.

Manual targeting involves you taking direct control over what terms you want your product to appear in. Although you have full control over the process, it’s only of any real value if you know how readers behave and what terms work. That’s the reasoning behind using the automatic campaigns as part of the research process and the manual campaigns as a refining tool rather than vice-versa. 

Where authors lose money without realizing it

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Almost every new author runs into these mistakes at some point. 

  • Bidding on terms too broad to convert: A keyword like “fiction” or “romance novel” might generate a flood of impressions, but most of those readers aren’t looking for your specific book — they’re browsing a category. The strongest campaigns are built around your book’s real buying intent — genre, series, and where the reader is in their decision, whether they’re still discovering options or ready to buy right now.
  • Ignoring negative keywords: This is one of the most underused tools in the whole system. Negative keywords prevent your ads from showing up for searches looking for specific words or phrases. Adding negative keywords and tightening your campaign segmentation stops irrelevant clicks from quietly draining your budget — clicks from readers who were never going to buy your book in the first place, but who clicked anyway because your ad showed up for a search term that was technically related but not actually relevant.
  • Running a weak listing: This mistake can cost authors dearly over time. Ads do not make up for a weak listing — they amplify an already good or bad offering. If the cover is not unmistakably fitting for your genre, or if your blurb is not capturing attention in the first two sentences, or if the pricing isn’t in the right range, then the advertising will never make it profitable. 
  • Pulling the plug prematurely: Amazon Advertising is a marathon. While results may not happen quickly — they can take a few days, even a few weeks — the information gathered over that time accumulates and will benefit you greatly when learning how your specific reader “thinks” about your book. Killing a campaign after three days because of a lack of sales is the same as throwing away valuable data.

The numbers worth actually watching

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You don’t need to track everything Amazon’s dashboard throws at you. A few numbers matter more than the rest.

Click-through rate is simple—it tells you how many people saw your ad and actually clicked on it. Though it seems low at first, a figure over 0.3% generally denotes a successful ad. 

The most important metric for advertisers is Advertising Cost of Sales (ACoS) – which is calculated as your ad spend divided by the sales generated by those ads. An ACoS below 70% is considered profitable for ebooks. For print books, which have narrower profit margins, this figure should be hitting below 40%.

Many skilled marketers prefer a more comprehensive metric known as Total ACoS. This metric not only includes direct sales resulting from advertising but also accounts for sales generated organically as a result of that advertising.

Sometimes a campaign that looks bad on paper in terms of numbers is actually helping your book’s discoverability and organic ranking in ways you can’t see. A low conversion rate when your ad generates clicks suggests your cover image, book description, or customer reviews require refinement. 

The primary role of your advertisements is solely to direct relevant readers to your book page. Events that transpire after they land on your page are a separate concern.

Your story weapon: Advertise the promise, not the plot

Most authors make a common mistake when they sit down to write ads or pick keywords. They focus on what their book is about when they should be thinking about what the book promises. When a reader is scrolling through search results, they aren’t really judging your plot. They are trying to see if your book will give them the specific feeling they are looking for. Someone searching for a vampire romance isn’t just looking for a synopsis.

They want to know if the story will give them what they are craving at that moment. Before you write any ad copy or choose your keywords, ask yourself the same thing you would ask about your protagonist: What does my reader want, and what are they afraid of not getting? A reader looking for a slow-burn romance wants tension that pays off and is afraid of an ending that feels rushed or unearned.

Someone looking for a mystery wants to be outsmarted fairly and is afraid of a twist that feels like a cheat. Your keywords, your cover, and your blurb should all speak to that specific want and fear. 

Don’t just advertise your plot. Advertise the experience the reader is looking for. That is the promise they clicked for, and it is the promise your book needs to keep.

When you get this right, your ads don’t just get clicks. They bring in the right readers who were always going to love your writing. That is the difference between an ad campaign through Amazon Marketing Services that just wastes money and one that builds a loyal following, one reader at a time.

Successful book marketing is built on the same principles as successful storytelling: understanding your audience, making deliberate choices, and refining your approach through experience. If you’re ready to strengthen not only your publishing strategy but every stage of your writing journey, join one of my next workshops: The 90-Day Novel, The 90-Day Memoir, Story Day.

Alan Watt

Writing Coach

Alan Watt is a bestselling novelist and filmmaker, and recipient of numerous awards including France’s Prix Printemps. He is the founder of alanwatt.com (formerly L.A. Writers’ Lab). His books on writing include the National Bestseller The 90-Day Novel, plus The 90-Day Memoir, The 90-Day Screenplay, and The 90-Day Rewrite. His students range from first-time writers to bestselling authors and A-list screenwriters. His 90-day workshops have guided thousands of writers to transform raw ideas into compelling stories by marrying the wildness of their imaginations to the rigor of story structure.
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