Amazon Advertising in Australia: Top Trends for 2025

Amazon PPC is evolving fast, and what worked last year might not cut it in 2025. With increasing competition, rising ad costs, and new AI-driven ad placements, sellers need to stay ahead of the curve to maximize their ad spend.

This year, Amazon is rolling out more automation, refining targeting options, and pushing video ads harder than ever. If you’re not adapting, you’re losing sales. So, what should Amazon sellers expect in 2025? In this blog, we’ll break down the latest PPC trends, what’s changing, and how you can stay profitable despite the shifting landscape. 

#1: AI-powered bidding and automation will dominate

In 2025, Amazon PPC is becoming more automated, with AI-driven bidding optimizing ad spend in real time. Instead of manually adjusting bids, sellers can leverage Amazon’s machine learning algorithms to increase bids when conversions are likely and decrease them when they aren’t.

For Amazon Australia, where traffic is lower than in larger markets, AI-powered bidding ensures cost-effective spending without constant monitoring. Sellers can focus on strategy and growth while automation handles bid adjustments based on competition, time of day, and shopper behavior.

How AI-powered bidding benefits sellers and Amazon advertising specialists:

• Reduces wasted ad spend by adjusting bids automatically.
• Saves time by eliminating manual bid management.
• Improves ROI by prioritizing high-converting keywords and placements.

In 2025, AI-driven PPC is essential—sellers who embrace it will maximize efficiency while staying ahead of the competition.

#2: Rising CPCs will force sellers to optimize their ad spend

In 2025, Amazon PPC costs are rising, making cost-efficiency more important than ever. As more sellers enter the platform and competition increases, cost-per-click (CPC) rates are expected to go up, forcing advertisers to be more strategic with their budgets.

For Amazon Australia, where CPCs have traditionally been lower than in the US, this trend means sellers can no longer afford to waste ad spend on broad targeting. Instead, success will come from focusing on high-converting keywords, refining bidding strategies, and eliminating underperforming campaigns.

How sellers can adapt to rising CPCs:

• Use exact and phrase match to avoid irrelevant clicks.
• Monitor ACoS and TACoS to ensure profitability.
• Leverage negative keywords to cut wasted ad spend.

With higher CPCs in 2025, sellers who fine-tune their PPC strategies will stay profitable, while those who overspend on ineffective ads risk losing margins.

#3: Video ads will become essential, not optional

In 2025, video ads are no longer a luxury—they’re a must-have for Amazon PPC success. With Amazon prioritizing engaging, high-quality content, video ads are outperforming static Sponsored Product and Sponsored Brand ads in both click-through rates (CTR) and conversions.

Shoppers are more likely to engage with dynamic visuals over plain images, and Amazon is expanding video placements across search results, product detail pages, and even external platforms like Prime Video. This shift means sellers who invest in video ads will get better visibility and lower CPCs compared to those relying solely on traditional ad formats.

For Amazon Australia, where competition is growing but search volume is still lower than in the US, video ads help capture shoppers attention quickly, making them an effective tool for converting hesitant buyers.

Why video ads are critical in 2025:

• Higher engagement—Shoppers prefer watching product demos over reading descriptions.
• More placements—Amazon is expanding video ad spots for better visibility.
• Better conversion rates—Videos build trust and explain features more effectively.

With Amazon pushing video ads in 2025, sellers who don’t adapt will struggle to stay competitive and maintain ad efficiency in the evolving marketplace.

#4: Amazon’s DSP (Demand-Side Platform) will grow in popularity

In 2025, more sellers will turn to Amazon’s DSP (Demand-Side Platform) to expand their reach beyond traditional PPC ads. Unlike Sponsored Ads, which rely on in-platform searches, Amazon DSP allows sellers to target shoppers both on and off Amazon, using advanced audience data to deliver highly personalized ads.

With rising CPCs and increased competition, Amazon Australia sellers will look for more cost-effective ways to drive traffic and brand awareness. DSP offers a powerful solution, letting advertisers retarget past visitors, reach lookalike audiences, and even run ads on external sites like news platforms, apps, and streaming services.

Why Amazon DSP is gaining traction in 2025:

• Expands reach beyond Amazon, bringing in new potential customers.
• Uses advanced audience data to target high-intent shoppers.
• Supports retargeting, helping recover lost sales from previous visitors.

As Amazon DSP becomes more accessible, sellers who incorporate it into their ad strategy will gain a competitive advantage, increasing visibility while keeping PPC costs under control.

#5: Sponsored Display Ads will get more advanced

In 2025, Amazon is making Sponsored Display Ads smarter and more effective, giving sellers new ways to target and retarget shoppers across Amazon and external sites. These ads are evolving beyond simple product placements, offering enhanced audience targeting, dynamic creatives, and better reporting tools.

For Amazon Australia, where traffic is lower and competition is increasing, Sponsored Display Ads will help sellers stay in front of potential buyers even after they leave Amazon. With more customization options and AI-driven targeting, sellers can now reach high-intent shoppers more efficiently and improve conversion rates.

Why Sponsored Display Ads are critical in 2025:

• Better audience targeting, including interests and shopping behaviors.
• Expanded reach beyond Amazon, increasing visibility.
• Improved reporting tools for better ad optimization.

With Sponsored Display Ads becoming more powerful, sellers who leverage them effectively will benefit from higher conversions, lower CPCs, and a stronger brand presence in Amazon Australia’s growing market.

#6: Search term isolation will become crucial

In 2025, Amazon PPC is shifting towards precision, and search term isolation is becoming a key strategy for maximizing efficiency. Instead of relying on broad match campaigns that capture a mix of high and low-performing keywords, sellers will need to isolate high-converting search terms into exact match campaigns for better control over bids and ad spending.

With rising CPCs and increasing competition, Amazon Australia sellers can’t afford to waste their budget on irrelevant clicks. By separating performing keywords from underperforming ones, search term isolation ensures ads are only shown for terms that drive conversions, leading to better ACoS and improved ranking.

Why search term isolation matters in 2025:

• Prevents wasted ad spend by removing low-performing keywords.
• Allows precise bid control to optimize high-converting search terms.
• Boosts organic ranking by driving consistent, quality traffic.

Sellers who implement search term isolation will gain better ad performance, higher profitability, and stronger ranking power in Amazon Australia’s evolving PPC landscape.

#7: External traffic will play a bigger role in PPC success

In 2025, Amazon is placing more importance on external traffic, making it a key factor for PPC success. Sellers who drive traffic from outside Amazon—via Google Ads, Facebook, Instagram, TikTok, influencer marketing, and email campaigns—are likely to see higher rankings, better conversions, and lower long-term ad costs.

Amazon rewards listings that bring in external traffic because it signals strong demand and help Amazon acquire new customers. In Amazon Australia, where search volume is lower than in the US, external traffic can bridge the gap and give sellers a competitive edge. Additionally, diversifying traffic sources reduces over-reliance on Amazon PPC, which is becoming more expensive.

Why external traffic is crucial in 2025:

• Boosts organic ranking by driving off-Amazon traffic.
• Reduces PPC dependence, lowering overall ad costs.
• Increases brand visibility across multiple platforms.

Sellers who invest in external traffic strategies will have an advantage in Amazon Australia, where building brand awareness and securing additional traffic streams will be key to long-term PPC success.

#8: AI-powered ad creatives and automation tools will rise

In 2025, AI will play a bigger role in Amazon PPC, not just for bidding, but also for ad creative generation and campaign automation. Amazon is introducing AI-powered tools that automatically generate optimized ad copy, product images, and even video content based on shopper behavior and search trends.

For Amazon Australia sellers, where resources and budgets may be more limited, these AI-driven tools will help streamline PPC management, reduce manual work, and improve ad performance. AI will also enable predictive analytics, helping sellers and Amazon advertising services adjust bids, pause underperforming ads, and optimize targeting without constant monitoring.

How AI-powered tools will impact Amazon PPC in 2025:

• Automatically generate ad creatives tailored to shopper preferences.
• Optimize bids and placements in real time for better efficiency.
• Reduce manual workload, allowing sellers to focus on scaling their business.

As AI-driven PPC tools become more advanced, sellers who embrace automation will gain an edge in cost-efficiency, ad performance, and long-term growth on Amazon Australia.

#9: New audience targeting features will improve PPC efficiency

In 2025, Amazon is expanding audience targeting capabilities, allowing sellers to reach specific shopper segments based on interests, purchase behavior, and demographics. These new targeting features will enhance PPC efficiency by ensuring ads are shown to the most relevant buyers, rather than just relying on keyword-based placements.

For Amazon Australia, where traffic is lower than in larger markets, more precise audience targeting means sellers can spend less on wasted clicks and focus ad spending on high-intent shoppers. This will help increase conversions while keeping CPCs under control.

Why advanced audience targeting is a game-changer:

• Targets high-intent shoppers, reducing ad waste.
• Allows demographic-based ad placements for better engagement.
• Improves conversion rates, making PPC more cost-effective.

With Amazon’s expanded audience targeting in 2025, sellers who utilize these tools will benefit from better ad efficiency, lower ACoS, and improved overall profitability in Amazon Australia.

#10: Amazon PPC will become more complex

In 2025, running successful Amazon PPC campaigns will require more expertise than ever. With rising CPCs, AI-driven bidding, new ad formats, and expanded targeting options, Amazon PPC is no longer a simple bid-and-win system. Sellers will need to understand data analytics, automation tools, and multi-channel ad strategies to stay competitive.

For Amazon Australia, where PPC has traditionally been less aggressive than in the US, sellers will now face more competition and higher ad costs, making efficient campaign management essential. One-size-fits-all strategies won’t work anymore—instead, sellers must customize PPC approaches based on niche, audience behavior, and conversion data.

How sellers can adapt to a more complex PPC landscape:

• Leverage AI tools to automate bidding and optimize ad placements.
• Use advanced audience targeting to improve efficiency.
• Monitor ACoS & TACoS closely to ensure profitability.

As Amazon PPC evolves, sellers who embrace new tools, data-driven decision-making, and strategic budgeting will outperform competitors and maintain strong profitability in Amazon Australia.

See you next week!

As Amazon PPC becomes more sophisticated, guesswork is no longer an option. Sellers who fail to adapt to AI-driven bidding, video ads, and advanced targeting will struggle to maintain profitability. To navigate these changes effectively, many businesses are turning to Amazon consultants who provide expert insights, fine-tune campaigns, and maximize ROI in the ever-changing Amazon landscape.