← All articles
FOR AUTHORS

Amazon ads for authors: how they work and when to get help

How Amazon ads work for KDP authors in the UK: ad types, targeting, bids and budgets, how to judge profit including Kindle+ page reads, and when to get help.

The Limelight Company · 6 min read · Updated
A man holding a paperback while checking charts on a laptop at a wooden table in warm evening light

Amazon ads for authors (Amazon PPC) put your book in Amazon search results and on other books’ pages. You pay only when a reader clicks. They work when your book page sells and someone manages targets and bids closely, judging results on profit (Kindle+ page reads included) instead of clicks. Left alone, they can cost more than they earn.

Plenty of readers buy their books on Amazon, so for an author it’s prime advertising space. Someone typing “Scottish crime thriller”, or browsing a bestseller in your genre, is already in the mood to buy. Amazon ads for authors put your book in front of that reader at exactly that moment.

The catch? The tools are powerful but easy to get wrong. Lots of authors try them, spend more than they make and decide ads don’t work. Usually it was the set-up that failed, or the management. This guide walks through each piece.

What are Amazon ads for authors, and how do they work?

KDP authors can advertise through Amazon Ads, and the UK is one of the marketplaces where ads are available for KDP titles. There are two main types.

Sponsored Products promote a single book in shopping results and on book detail pages. Amazon says they can show up on Amazon, Kindle and Goodreads. Most authors start here.

Sponsored Brands can put several of your books together in one ad, or run a video ad. They suit authors with a series or a growing backlist.

Sponsored Products are cost-per-click. You set a budget and the most you’ll bid per click, and you pay only when someone clicks. Every marketplace is billed separately, so your UK and US campaigns run and get paid for independently of each other.

How does targeting work?

There are three ways to decide where your ad can appear:

  • Automatic targeting. Amazon picks where to show the ad from details of your book, such as its genre. It’s a good way to find out which searches and books bring readers in.
  • Keyword targeting. You pick the search terms your ad should show up for. Think genres and sub-genres, themes and tropes, comparable authors.
  • Product targeting. You pick particular books or categories to appear next to. Amazon’s own example: if you’re advertising Wuthering Heights, you might target Jane Eyre.

You can also add negative targets. These are keywords or books you never want to appear for, and they’re one of your best weapons against wasted spend. Amazon suggests letting an automatic campaign run for about two weeks before you build manual campaigns from what it’s learnt.

What do bids and budgets actually control?

Your bid is the most you’ll pay for a click. Amazon gives you three bidding strategies. With the first, it can lower your bid when a click looks less likely to lead to a sale. With the second, it can lower it or raise it (by up to 100% for top-of-search placements). The third is a fixed bid that it never touches. Your daily budget gets averaged over the month, so spending can swing from day to day without going over the monthly total. A daily budget of £10 caps a 30-day month at £300, for example.

How do you know if your ads are profitable?

Clicks and impressions aren’t the goal. Profit is. These are the numbers to watch:

  • ACOS (advertising cost of sales). Ad spend divided by the sales credited to the ads. Spend £30, get credited with £100 in sales, and your ACOS is 30%.
  • Your break-even point. You earn a royalty, not the full price, so a campaign can show sales and still lose money. Work out what share of the list price you keep on each sale. If your ACOS is higher than that, every attributed sale is costing you.
  • TACOS. Amazon describes this as ad spend as a percentage of total sales, which tells you whether ads are lifting your whole catalogue or only the book you’re advertising.
  • Kindle+ page reads. Lots of authors misjudge their ads right here. KDP says the ad sales attributed to your books do not include Kindle+ pages read, although the ads account shows an estimate of the pages your campaigns drove. If your book is in KDP Select, part of your ad-driven income won’t show in the sales figure. Judge campaigns on both.
  • Read-through. In a series, someone who buys book one may go on to buy the rest. An ad that only breaks even on book one can make very good money across the series.

Why do so many authors lose money on Amazon ads?

The biggest mistake is advertising before the page is ready. Ads send readers to your cover, description and reviews. If those don’t persuade, you’re paying for clicks that never turn into sales.

Targeting too broadly is next. Turning up for loosely related searches burns budget on readers who were never going to buy. Skip negative targets and the same irrelevant searches keep costing you, week after week.

Then there’s set and forget. Campaigns drift, and what worked in spring can be losing money by autumn as competition and costs shift. Timing catches people out too: switching a campaign off after three days, or leaving a loser running for three months.

Finally, people read the wrong numbers. They celebrate clicks, or ignore page reads and read-through.

What does Amazon PPC management involve?

Good Amazon PPC management is a routine you keep up every single week, and the one-off set-up is only the start of it. It usually covers:

  • Researching keywords and comparable books in your genre, then building a campaign structure that keeps them organised.
  • Launching test campaigns, then moving the targets that work into tightly controlled manual campaigns.
  • Going through search-term reports regularly, adding winners and blocking waste with negative targets.
  • Adjusting bids by placement and performance, and pausing whatever doesn’t convert.
  • Tracking profit across sales, page reads and read-through, and reporting it in plain English.
  • Lining ads up with launches, price promotions and new releases so everything pulls the same way.

Should you manage Amazon ads yourself or hire help?

You can certainly learn to run them yourself. Plenty of authors do. It makes sense to hand them to a team once campaigns eat more hours than you want to give, or you’re spending real money without clear results. The same goes if you’ve got several books or marketplaces to juggle, or if launches are coming up and you want ads working hand in hand with social media and email, as part of a wider plan for marketing for authors. The right partner will show you exactly where your money goes and what it brings back.

How we can help

We started as the in-house team for our co-founder, the USA Today bestselling author Jack Cartwright. We ran his ads alongside his covers and social media, and his website too. We can set up and run your Amazon, Facebook and Instagram ad campaigns. Before you spend a penny we’ll check your book page is ready, and we report results in profit, never in clicks. We agree a clear brief and scope with you, along with the fee, before any creative work begins. For the full picture, see our marketing services for self-published authors.

Frequently asked questions

How much should an author spend on Amazon ads?

Start with a budget you’d be comfortable losing while you test, and only scale up what proves profitable. There’s no single right figure. It depends on your genre and royalty, how many books you’ve got, and whether readers go on to buy the series.

How long before Amazon ads start working?

Give a new automatic campaign about two weeks, as Amazon suggests, before you build on it. Expect several weeks of testing before you’ve got enough data to judge a campaign fairly.

Do Amazon ads work for a single book?

They can, but the sums are tighter because there’s no read-through to fall back on. A single book needs a strong cover and a persuasive description, plus good reviews, before ads are likely to pay.

Are Amazon ads better than Facebook ads for books?

Neither is better. They do different jobs. Amazon reaches readers who are already shopping. Facebook and Instagram reach people who aren’t looking yet but fit your audience. Many authors use both, and the best results usually come from running them together around a launch or promotion.

Can I advertise paperbacks as well as ebooks?

Yes. You can advertise any of your books that are eligible on your KDP Bookshelf and available in the marketplace, and the campaign builder shows which editions you can pick. Audiobook ads are currently limited to the US.

Sources

KEEP READING

More from the journal

A brand is nothing without the individual.

Step into the Limelight.

See where we’d start with you →
START HERE

Where are you right now?

Four quick questions, and we’ll show you where we’d start. Your answers come straight to us with your message, so you won’t have to explain it twice.

What best describes you?

Choose the one that fits best.