If your ads aren’t strategically placed, you’re losing sales every second. 

Did you know? 75% of Amazon shoppers never scroll past the first page.

Visibility isn’t optional—it’s survival.

With competition skyrocketing and ad costs rising, failing to master Amazon ad placements in 2025 means you’re handing over customers to competitors. This is the harsh reality of Amazon advertising in 2025.

It’s no wonder—Amazon’s ad business is booming. Global revenue jumped from $37.7 billion in 2022 to a projected $94 billion by 2026.

The rapid shift in ad formats, increased competition, and Amazon’s growing ecosystem make strategic ad placements more important than ever. 

This guide will help you navigate the complexities of Amazon ads, avoid common mistakes, and leverage data-driven strategies to maximize sales.

What is Amazon Advertising? - A Full-Funnel Approach for Decision-Makers

Amazon Ads is Amazon's pay-per-click (PPC) advertising platform that enables brands to place their products in high-visibility spots across the Amazon ecosystem. From search results to competitor pages and even external websites, Amazon Ads is a game-changer for brands looking to dominate the marketplace.

Source: Amazon Advertising 

How Amazon Ads Work

Amazon Ads function on a bidding system, where advertisers compete for ad placement by setting a maximum bid per click. The highest bidders for relevant searches or placements get their ads shown in prominent positions.

The platform enables sellers and brands to promote products across search results, competitor listings, display networks, and even streaming TV. With advertising revenue exceeding $38 billion in 2024, it’s clear that brands investing in ad placements are winning big.

Amazon’s Major Ad Types

• Sponsored Products – Keyword and product-targeted ads appearing in search results and on product pages.
• Sponsored Brands – Banner-style ads with brand logos, headlines, and multiple products.
• Sponsored Display –Ads reaching relevant shoppers on or off Amazon, using Amazon’s first-party audience insights and contextual signals to drive consideration and conversions.
• Amazon DSP (Demand-Side Platform) – Programmatic advertising extending beyond Amazon.
• Video & Streaming TV Ads – High-engagement ads on Fire TV, Prime Video, IMDb TV, and MiniTV.

Brands using a multi-placement strategy saw a higher return on ad spend (ROAS) than those relying only on search ads. Maximize your ad exposure today.

Winning the Battle for Visibility: Every Amazon Ad Placement Spot You Need to Know

1. Sponsored Products: The Core of Amazon Ads (Best for Direct Conversions)

Sponsored Products ads appear within search results and on product pages, helping individual listings stand out.

Where They Appear:

• Top of Search: The first few results after a customer searches for a product.
• Rest of Search: Mid- and bottom-page placements.
• Product Detail Pages: Below the “Sponsored Products related to this item” section.

Pro Tip: Increasing Top of Search bid adjustments by 50-100% can double your click-through rate (CTR) and conversion rates.

2. Sponsored Brands: Elevating Brand Awareness 

Sponsored Brands ads provide visibility beyond just one product, helping advertisers promote their brand with creative, engaging banners.

Where They Appear:

• Top of Search: A prominent banner above search results.
• Product Detail Pages: Featured in “Brands related to this category” sections.

Pro Tip: Sponsored Brands video ads can drive higher conversions compared to static ads.

3. Sponsored Display: Retargeting and Competitor Targeting

Sponsored Display ads help advertisers re-engage past viewers and target shoppers who have viewed similar products.

Where They Appear:

• On Amazon: Product pages, search results.
• Off Amazon: IMDb, Twitch, Fire TV, and third-party sites.

Pro Tip: Sponsored Display retargeting can increase conversions by re-engaging previous visitors.

4. Amazon DSP: Expanding Beyond Amazon’s Ecosystem

Amazon DSP (Demand-Side Platform) allows advertisers to to run programmatic ads both on and off Amazon..

Where They Appear:

• Amazon-owned sites (Fire TV, Kindle, Amazon homepage, etc.).
• Third-party websites (Google, premium news publishers, and more).

Amazon DSP advertisers have seen 40% lower customer acquisition costs by leveraging AI-driven audience targeting. 

5. Amazon Video Ads for High Engagement & Brand Storytelling

Video ads are a powerful way to tell your brand story and drive engagement on Amazon. According to Amazon Ads, 59% of surveyed shoppers are more likely to purchase from a brand they’ve seen advertised on Amazon.

Where They Appear:

• Amazon Fire TV: Premium placements with high engagement.
• Twitch: Reaching a younger, gaming-centric audience.
• Prime Video: Integrated within streaming content to reach highly engaged viewers.
• Product Detail Pages: Engaging content that increases conversions.

Pro Tip: Video ads drive significantly higher engagement rates than static ads, making them a must-use format in 2025.

Want expert guidance on optimizing Amazon ad placements? Let Algofy’s experts craft a data-driven ad strategy for you today!

Common Mistakes That Kill Ad Visibility

Despite the vast potential, many advertisers fail to maximize Amazon ads due to avoidable mistakes. Avoid these to stay ahead.

Mistake 1: Over-Reliance on One Ad Type

• The Problem: Many brands focus solely on Sponsored Products, missing out on branding opportunities.
• The Fix: Implement a full-funnel approach using Sponsored Brands, Display, and DSP ads to engage customers at different stages.

Mistake 2: Ignoring Retargeting Opportunities

• The Problem: Most shoppers don’t buy on their first visit.
• The Fix: Use Sponsored Display and Amazon DSP to retarget high-intent shoppers and recover lost sales.

Mistake 3: Not Adjusting Bids Based on Placement Performance

• The Problem: Many advertisers set bids without optimizing for high-performing placements.
• The Fix: Monitor Amazon’s placement reports and adjust bids to win top-performing ad slots.

Pro Tip: Advertisers who optimize placements see consistent increases in ad-attributed sales. 

The Future of Amazon Ad Placements in 2025 & Beyond

Amazon advertising is constantly evolving. Here’s what’s next:

Amazon MiniTV Ads: The Next Big Opportunity

• Amazon MiniTV is Amazon’s free streaming service, offering premium ad placements.
• Brands using MiniTV ads saw a higher engagement rate than traditional digital ads.

Cross-Platform Advertising: Expanding Reach Beyond Amazon

• Amazon ads now extend to Google, YouTube, and premium publisher networks.
• Brands adopting cross-platform advertising have reported higher conversion rates and brand recall.

AI & Automation in Amazon Ads

• Amazon is rolling out AI-powered creative tools and auto-optimization to better ad performance.
• Brands leveraging AI-driven insights have significantly reduced wasted ad spend..

How to WIN on Amazon in 2025

Mastering Amazon ad placements isn’t just an advantage—it’s a necessity in 2025.

• Maximize visibility with Sponsored Products, Brands, Display, and DSP ads. 
• Optimize bids, placements, and creative strategies for higher conversion rates.
• Leverage AI-driven insights to eliminate wasted ad spend.
• Stay ahead with Amazon MiniTV and cross-platform advertising.

Ready to dominate Amazon ads in 2025? Let Algofy’s experts craft a custom high-ROI ad placement strategy tailored to your brand!