Author How Much Do Amazon Sellers Spend on Ads in 2025?

How Much Do Amazon Sellers Spend on Ads in 2025?

Selling on Amazon in 2025 isn’t just about having a great product—it’s about visibility. With competition at an all-time high and the platform becoming more ad-driven than ever, sellers are investing heavily in advertising to stay ahead. But how much are Amazon sellers really spending on ads this year? The answer varies widely depending on the size of the business, the type of products being sold, and the target markets. However, one thing is clear—advertising is no longer optional. It’s essential.

In this article, we explore what UK and global Amazon sellers are spending on ads in 2025, what’s driving up those costs, and what strategies are helping brands manage their budgets more effectively.

The Rising Cost of Advertising on Amazon

Over the past few years, Amazon has quietly transitioned into a pay-to-play platform. While organic rankings still matter, it’s increasingly difficult to achieve visibility without paying for it. Sponsored Products, Sponsored Brands, Sponsored Display, and Amazon DSP are now standard parts of a seller’s toolkit. And with rising demand comes rising costs.

In 2025, the average cost per click (CPC) for Amazon Sponsored Products in the UK ranges between £0.55 and £1.20, depending on the product category. Highly competitive niches like supplements, electronics, and home fitness often see CPCs exceeding £2.00. This has pushed average monthly ad spend for small to mid-sized sellers to around £1,000 to £5,000, while large brands routinely spend £10,000 to £100,000+ per month—especially those leveraging Amazon DSP for display and video ads.

Monthly Ad Budgets by Seller Type

Not all sellers spend the same, and several factors, including business model, goals, and product type, influence their budgets. For example, a UK-based private label brand launching a new skincare product may invest more aggressively in PPC than a reseller with a small catalogue. However, some general spending trends are emerging.

New sellers or solopreneurs typically begin with a monthly budget of around £500 to £1,500, focusing on Sponsored Products to generate traffic and initial reviews. Mid-tier sellers with established product lines spend £2,000 to £8,000 per month, often combining Sponsored Brands and Display ads with more refined targeting. Enterprise-level brands and agencies managing multiple accounts can spend £20,000 or more, especially during peak seasons or major promotional events, such as Prime Day.

It’s not uncommon for large sellers to allocate 20% to 30% of total revenue towards Amazon advertising, especially when launching new products or scaling across multiple marketplaces.

Why Sellers Are Spending More in 2025

There are several reasons why ad spend has increased across the board in 2025. First, Amazon’s algorithm has become more dependent on paid metrics like click-through rate (CTR), conversion rate (CVR), and engagement. Products that receive consistent paid traffic are more likely to be rewarded with better organic placement, creating a cycle where paid ads feed organic success.

Second, the growing popularity of video ads, Amazon Live, and Sponsored Display campaigns has expanded the available formats, encouraging sellers to spread their budgets across more channels. These formats tend to be more expensive than traditional Sponsored Product ads, but often offer higher engagement and brand recall.

Third, the competitive landscape is tighter than ever. With more brands entering Amazon’s marketplace, bidding wars for high-intent keywords are driving up CPCs. Sellers who once saw success with low bids are now forced to compete more aggressively or risk losing visibility.

How Successful Sellers Manage Their Budgets

Despite the rising costs, successful Amazon sellers aren’t just throwing money at ads—they’re being more strategic than ever. One of the key approaches in 2025 is precision targeting. Instead of bidding broadly, sellers are using keyword isolation, product targeting, and audience segmentation to reach the most relevant shoppers.

Another shift is the increased use of Amazon Attribution to track external traffic from platforms like Google, Instagram, and TikTok. Brands that combine external ads with Amazon’s Brand Referral Bonus can reduce total ad spend while still driving significant sales.

Many UK sellers are now partnering with an Amazon PPC Agency to help allocate budget efficiently across campaigns, manage bid automation, and create data-driven strategies that balance performance with cost control.

Seasonal and Event-Based Spikes

Ad spending also fluctuates significantly around key shopping periods. During Q4, which includes Black Friday, Cyber Monday, and Christmas, ad budgets often double or triple. Sellers are willing to spend more during these events due to the spike in traffic and increased buyer intent.

Similarly, Amazon Prime Day now rivals Black Friday for many brands, resulting in significant spending spikes. It’s common for sellers to plan their entire ad strategy around these moments, investing heavily in short bursts to drive long-term ranking gains.

Is the Spend Worth It?

For most sellers, the answer is yes—but only when campaigns are managed effectively. Advertising on Amazon is no longer about simply running ads; it’s about optimising every penny. Poorly run campaigns can quickly eat into margins, while well-managed strategies can deliver long-term growth, increased brand equity, and stronger customer loyalty.

The key to success is not in outspending the competition, but in outsmarting them. That means knowing when to push, when to pull back, and how to measure success using metrics that go beyond just ACoS (Advertising Cost of Sales). Today’s sellers are looking at total contribution margin, customer acquisition cost, and lifetime value to assess whether their ad spend is delivering real business impact.

Final Thoughts

In 2025, Amazon advertising has become a central pillar of eCommerce success. Whether you’re a first-time seller or a household brand, ad spend is now a necessary investment—not just a marketing experiment. But while costs are rising, so are the opportunities.