TL;DR
- Australia has lower traffic but higher intent, so focus on exact and phrase match keywords for better conversions.
- Cheaper CPCs than in the US, but testing smaller budgets first helps prevent unnecessary ad spend.
- Aussie shoppers use different search terms, so copying US keyword lists without localizing can waste budget.
- Product targeting ads on competitor listings can often drive better results than keyword-based campaigns.
- FBA isn’t always an advantage since Prime adoption is lower, making competitive FBM shipping a viable option.
- Ad traffic peaks in the evenings and weekends, so scheduling ads strategically improves efficiency.
Running Amazon PPC in Australia isn’t the same as in the US or UK. With a smaller market, fewer competitors, and different shopping behaviors, the usual PPC playbook doesn’t always apply. CPCs are generally lower, but so is search volume—meaning every dollar needs to work harder. Plus, factors like limited Prime availability, fulfillment differences, and local consumer preferences make PPC strategy a whole different game. So, what should Australian sellers do differently? Let’s find out.
Quick guide:
- Key PPC differences in Australia vs. other marketplaces
- #1: Lower traffic, but high conversion potential
- #2: Budgeting & bid adjustments for a smaller market
- #3: Keyword strategy – Less search volume, but more targeted buyers
- #4: Product targeting vs. keyword targeting
- #5: The FBA vs. FBM factor in PPC performance
- Best practices for PPC success in Australia
- #1: Focus on profitability over aggressive scaling
- #2: Run exact match & phrase match campaigns first
- #3: Use lower daily budgets with frequent optimizations
- #4: Leverage product targeting for better conversions
- #5: Monitor ACoS vs. TACoS for long-term success
- Common mistakes to avoid
- 1. Copying keyword lists from the US without checking local search trends
- 2. Ignoring regional demand differences
- 3. Overbidding on broad match keywords in a low-traffic market
- 4. Not using product targeting to compete on competitor listings
- 5. Assuming FBA will always improve PPC conversions
- 6. Running ads 24/7 instead of scheduling for peak hours
- 7. Ignoring ACoS vs. TACoS when optimizing campaigns
Key PPC differences in Australia vs. other marketplaces
Amazon PPC strategies that work in the US or UK don’t always translate directly to Australia. The marketplace is smaller, customer behavior is different, and competition levels vary. If you try to copy-paste PPC strategies from larger marketplaces, you might end up wasting ad spend or missing out on unique opportunities. Working with experts who specialize in Amazon brand marketing services can help sellers navigate these differences effectively. Here’s what makes Amazon PPC in Australia different and how you should adapt.
#1: Lower traffic, but high conversion potential
Amazon Australia has significantly fewer shoppers compared to the US or Europe. Naturally, search volume is lower, meaning keywords won’t generate as many clicks. However, the silver lining is that Australian shoppers tend to be more intentional—they search with the intent to buy, not just browse.
What this means for you: Instead of focusing on high-impression keywords, prioritize high-intent ones. Go for exact and phrase match campaigns rather than a broad match to avoid wasting clicks on irrelevant searches.
#2: Budgeting & bid adjustments for a smaller market
With fewer sellers, competition is lower, and CPCs (cost-per-click) are generally cheaper than in the US. But that doesn’t mean you should go all-in with aggressive bidding. Overspending on ads in a market with lower traffic can quickly lead to high ACoS (advertising cost of sales) without enough volume to justify the spend.
What this means for you: Start with lower bids and daily budgets, and gradually increase based on performance. Adjust bids by placement (e.g., top of search, product pages) to maximize exposure where conversions are highest.
#3: Keyword strategy – Less search volume, but more targeted buyers
Since fewer people are searching for products, some keywords might not even generate impressions. On the flip side, Australian shoppers use different search terms than Americans or Brits, so blindly copying keyword lists from other marketplaces won’t work.
What this means for you: Use Amazon keyword research tools specific to Australia to find local search terms. Don’t rely too much on broad match keywords—they might drain your budget with irrelevant clicks. Experiment with long-tail keywords (more specific phrases) to target serious buyers.
#4: Product targeting vs. keyword targeting
In a smaller marketplace like Amazon Australia, product targeting ads can sometimes outperform keyword-based ads. Since customers are more likely to browse through related products, showing up on your competitor’s listings can drive solid conversions.
What this means for you: Run sponsored product ads targeting competitor ASINs. If your product is better-priced or better-rated, you can steal their traffic. Use sponsored display ads to retarget shoppers who’ve viewed similar items but haven’t purchased them.
#5: The FBA vs. FBM factor in PPC performance
Australian Prime membership isn’t as widespread as in the US, and many sellers use FBM (fulfilled by merchant) due to FBA limitations. However, PPC performance is directly tied to your fulfillment method. If your product isn’t Prime-eligible, shoppers may hesitate to buy, which can lead to higher ad spend but lower conversions.
What this means for you: If possible, use FBA for faster shipping—it improves conversion rates and helps your PPC campaigns perform better. If using FBM, make sure your shipping times and costs are competitive to avoid losing sales to FBA sellers.
Best practices for PPC success in Australia
#1: Focus on profitability over aggressive scaling
In a smaller market, scaling too fast can backfire. Unlike in the US, where more traffic means higher chances of conversions, in Australia, search volumes are lower, so a high ad spend won’t necessarily bring in more sales.
What to do:
- Instead of aiming for maximum reach, focus on improving ROAS (return on ad spend).
- Optimize your TACoS (total advertising cost of sales) to ensure ads contribute to long-term profitability, not just short-term sales.
- Don’t overspend on broad keywords—go for targeted, high-intent searches.
#2: Run exact match & phrase match campaigns first
Since traffic is lower, casting a wide net with broad match keywords can waste ad spend on irrelevant clicks. A more targeted approach works better in Australia.
What to do:
- Start with exact match and phrase match campaigns. This ensures your ads only show up for relevant searches.
- Gradually test broad match keywords, but monitor them closely to avoid wasted spend.
- Use negative keywords aggressively to filter out irrelevant traffic.
#3: Use lower daily budgets with frequent optimizations
Amazon PPC in Australia requires constant monitoring and adjustments. Since traffic is lower, setting a high daily budget can lead to unnecessary spending on underperforming keywords.
What to do:
- Start with smaller daily budgets and scale up based on performance.
- Check keyword performance frequently—don’t just ‘set and forget’ your campaigns.
- Adjust bids by placement (top of search, product pages, rest of search) to improve efficiency.
#4: Leverage product targeting for better conversions
In a marketplace where search traffic is limited, showing up on competitor listings can be more effective than traditional keyword targeting. Product targeting ads help capture buyers already browsing similar products.
What to do:
- Run sponsored product ads targeting competitor ASINs to steal traffic.
- Use sponsored display ads to retarget shoppers who visited but didn’t buy.
- Place ads on complementary products (e.g., if you sell fitness bands, target listings for yoga mats, or resistance bands).
#5: Monitor ACoS vs. TACoS for long-term success
A common mistake is focusing only on ACoS (advertising cost of sales) without considering the overall business impact. TACoS (total advertising cost of sales) is a better indicator of how ads contribute to organic growth.
What to do:
- Track TACoS along with ACoS—if TACoS is too high, it means you’re too dependent on ads for sales.
- If TACoS is decreasing over time, it means your organic sales are growing, which is a good sign.
- Balance ad spending with organic ranking strategies like listing optimization and review generation.
Common mistakes to avoid
Running Amazon PPC in Australia isn’t just about applying US or UK strategies and expecting the same results. The marketplace is different—smaller, less saturated, and with distinct shopping behaviors. Many sellers make costly mistakes because they don’t recognize these differences. Below are some real mistakes Australian sellers make, along with examples to help you avoid them.
- Copying keyword lists from the US without checking local search trends
One of the biggest mistakes is using the same keyword strategy as in the US. Australian shoppers search differently, and some terms that work in the US get little to no traffic here.
- Example mistake: A seller launches a “thongs” campaign targeting sandals, but in Australia, ‘thongs’ refers to flip-flops, not lingerie. The ad gets impressions but not the right buyers, leading to wasted spend.
- Fix: Always use Amazon Australia’s keyword research tools and look at real local search terms. Australian spelling is also different—“organizer” vs. “organiser”, “color” vs. “colour”, so check variations carefully.
- Ignoring regional demand differences
Australian seasons and holidays don’t match up with those in the US or Europe. If you blindly follow US trends, you’ll end up pushing products at the wrong time.
- Example mistake: A seller runs an aggressive winter jacket campaign in June because they copied a US launch strategy, forgetting that June is winter in Australia. Their PPC bids are high, but conversions are low because competitors aren’t pushing similar products.
- Fix: Align PPC campaigns with local demand. If you sell outdoor products, know that Aussie summers (December–February) see more demand for beach gear, camping equipment, and swimwear—not winter coats.
- Overbidding on broad match keywords in a low-traffic market
In large marketplaces, broad match keywords help capture a wide audience. But in Australia, the traffic is lower, and broad match ads can bring in too many unrelated clicks.
- Example mistake: A seller bidding on “protein powder” (broad match) starts getting clicks for “protein powder for dogs” and “protein smoothie recipes” because Amazon’s algorithm stretches broad match keywords too far. Their ad budget disappears on irrelevant clicks.
- Fix: Use exact match and phrase match first, then gradually test broad match with strict negative keywords to filter out unwanted searches.
- Not using product targeting to compete on competitor listings
Since search traffic in Australia is lower, many shoppers browse product pages instead of relying purely on search. Sellers who only focus on keyword targeting miss out on high-converting placements.
- Example mistake: A seller advertising reusable coffee cups only runs keyword-based ads. Meanwhile, a competitor targets their ASIN directly using product targeting ads, stealing their potential customers right from their own listing.
- Fix: Run product targeting ads to show up on competitor pages, especially for similar-priced products where you have an advantage (better ratings, better features, lower price).
- Assuming FBA will always improve PPC conversions
FBA works well in the US because fast Prime shipping is the standard. In Australia, Prime adoption is lower, and many regions don’t get next-day delivery, making FBA less of a competitive advantage.
- Example mistake: A seller switches from FBM to FBA, assuming PPC performance will improve. However, since Amazon’s fulfillment centers are limited, their FBA shipping times aren’t significantly faster than their FBM offering, and the extra FBA fees hurt their profits.
- Fix: Check actual FBA delivery times for your products. If they aren’t significantly faster than FBM, you might not see a big PPC boost and should weigh the cost-benefit carefully.
- Running ads 24/7 instead of scheduling for peak hours
Unlike in the US, where shopping happens at all hours, Australian traffic peaks in the evenings and weekends. Running ads 24/7 burns through your budget during low-conversion hours.
- Example mistake: A seller spends 80% of their budget by midday because their ads run overnight. By the time Aussie shoppers start browsing in the evening, their ads are out of budget.
- Fix: Use Amazon’s ad scheduling feature to increase bids during peak hours (typically 6 PM–10 PM and weekends). Reduce spend in the early mornings when traffic is low.
- Ignoring ACoS vs. TACoS when optimizing campaigns
Some sellers focus only on ACoS and pause campaigns when ACoS goes up, not realizing that TACoS (total advertising cost of sales) is a better long-term metric.
- Example mistake: A seller sees their PPC ACoS rise to 40% and panics, shutting off ads. However, their organic sales also drop, proving that ads were driving overall ranking and visibility.
- Fix: Monitor TACoS along with ACoS. If TACoS remains steady or decreases, your ads are helping boost organic sales, even if ACoS is temporarily high.
Final thoughts
Navigating Amazon PPC in Australia requires a different playbook than in larger marketplaces. The key is to focus on efficiency, precise targeting, and data-driven decisions rather than aggressive scaling. Many sellers find working with Amazon consultants helpful in refining their approach, ensuring their ad spend drives real profitability rather than just clicks.
About The Author
Jimi Patel
Jimi Patel, is a Co-founder and CEO at eStore Factory, an Amazon SPN certified agency that serves as a one-stop solution for all your Amazon business needs. Having helped countless brands increase sales and grow their footprint on Amazon, Jimi provides the most practical and effective solutions for your business. He is highly skilled in developing and executing plans that align with your specific business goals and objectives. When not working, Jimi enjoys practicing yoga and traveling to new places. He is an avid reader and enjoys staying up-to-date on the latest trends and developments in the e-commerce industry.