6 – 7 minute read
Introduction
As we move through 2025, the world’s largest online marketplace remains as competitive as ever, providing brands with as many challenges as opportunities. So, to increase visibility and drive sales on Amazon, brands must keep on top of evolving trends, algorithm changes, and customer expectations. And with new advancements in AI-driven marketing, retail media, and data analytics, it’s more important than ever to stay ahead of the curve.
To help, we’ve put together a guide of what you need to know about Amazon Advertising in 2025, so you can maximise your success.
The rise of AI-driven advertising on Amazon
AI is revolutionising Amazon’s advertising ecosystem, making campaigns more data-driven, automated, and personalised. In 2025, brands must embrace AI-powered solutions to optimise bids, improve targeting, and enhance ad performance.
How AI is shaping Amazon Advertising
- Improved automated bidding: while automated bidding using AI has existed for years, the latest improvements in AI models mean that bids are now being adjusted more intelligently in real-time based on more nuanced consumer behaviour, resulting in better value from ad spend
- Predictive targeting: AI analyses shopping patterns and predicts customer intent, allowing advertisers to serve the right ads to the right audience at the perfect time
- Creative optimisation: Amazon’s AI tools can now test multiple versions of ads and automatically prioritise the best-performing creatives
- AI driven listing optimisation: Amazon has recently introduced automated AI-powered updates to listing content. These are being rolled automatically out unless a brand provides feedback via the platform. Whether these are of benefit to brands or could create more problems with inaccurate listing information etc. remains to be seen
- Amazon Brand+: A new, AI-driven optimization capability in the Amazon DSP. This is an AI-driven optimisation tool designed to make streaming TV and video ads more precise and measurable
To give you an idea of the potential Amazon Brand+ can offer your business, here’s what Kelly MacLean, Vice President, Amazon DSP has to say…
“For the first time on the Amazon DSP, advertisers can apply AI-optimized automation to purchase TV advertising that reaches unique audiences of customers most likely to buy their products or services — a significant advancement from broad demographic reach to engaging with scaled audiences based on where customers are in the marketing funnel in near real-time. With this advanced AI technology, the Amazon DSP enables advertisers and agencies to automatically reach, engage, and nurture potential customers throughout their journey, turning brand awareness into a strategic driver of conversions. Brand+ has been designed with the control and transparency that advertisers expect and need. We believe this is the future of advertising, where advanced AI works in harmony with human expertise to drive business outcomes across the entire marketing funnel.”
The Growing Importance of Retail Media on Amazon
Amazon’s Retail Media network is expanding rapidly, with the platform now offering premium advertising solutions that allow businesses to integrate their Amazon campaigns with a wider Retail Media advertising strategy. In 2025, you will need to think beyond Sponsored Ads, and adopt a full-funnel approach to Amazon advertising that leverages Retail Media solutions. That’s the key to maintaining customer engagement beyond traditional search ads.
Incorporating Retail Media into your approach
- Amazon DSP: Enables programmatic advertising both on and off Amazon, reaching customers across third-party websites and apps
- Amazon Marketing Stream: Provides real-time campaign performance insights, helping brands adjust bidding and budget allocation dynamically
- Sponsored TV and streaming Ads: Amazon’s video advertising network continues to grow, offering brands opportunities to showcase products on Prime Video, Twitch, and Fire TV
A focus on first-party data and customer insights
With increasing restrictions on third-party data and cookie tracking, brands need to harness first-party data to refine their advertising strategies. Amazon provides a wealth of valuable customer insights; first-party data that businesses should be using to drive decision-making.
- Amazon Marketing Cloud: Offers deeper insights into customer journeys, enabling more targeted and personalised advertising
- Brand metrics reports: Provides key performance indicators (KPIs) on brand awareness, consideration, and loyalty
- Amazon’s audience targeting: Helps brands reach specific customer segments based on past purchasing and browsing behaviour
In order to succeed online, advertisers must prioritise data-driven marketing, using Amazon’s analytics tools to refine targeting and improve RoI.
The shift towards video and interactive ads
Consumers are engaging with video content more than ever, and Amazon is responding by expanding video advertising opportunities. Brands that integrate video ads into their Amazon strategy will have a competitive advantage in 2025 and beyond.
Why video advertising is essential
- Higher engagement rates: Video ads capture attention faster than static ads, leading to higher click-through rates (CTR)
- Better storytelling: Video allows brands to showcase product benefits, rather than relying solely on images and text
- Amazon Live and sponsored video ads: Interactive shopping experiences on Amazon Live provide brands with a new way to engage customers and drive direct conversions
Brands should invest in video content to improve visibility and enhance product storytelling on Amazon.
Strengthening organic and paid strategy for maximum impact
Paid advertising is critical on Amazon, but in 2025, brands must align it with a strong organic strategy to maximise long-term success. The Amazon algorithm prioritises brands that have high engagement and conversions, meaning that your Amazon SEO and advertising must work hand in hand.
Best practices for organic and paid alignment
To get the most from your efforts, you need a balanced mix of PPC, SEO, and enhanced content to maintain strong visibility on Amazon.
- Optimise product listings: Use relevant keywords in titles, bullet points, and descriptions to improve search rankings
- Enhance product pages with A+ content: High-quality product images, videos, and A Plus content can boost conversions and organic ranking. Use Amazon’s Premium A+ Content if you can. This is a tool that allows registered brands to create more engaging and informative product listings with larger images, videos, interactive hotspots, and other features beyond the basic A+ Content, helping to drive brand awareness and increase sales
- Use Sponsored Ads to drive initial traffic: Paid ads should be used to boost sales velocity, which in turn improves organic ranking over time
Sustainable and ethical advertising practices
Consumers are becoming more conscious of sustainability and ethical business practices, and Amazon is reflecting this shift. In 2025, brands will need to adapt their advertising to highlight eco-friendly and socially responsible values.
How brands can adapt
- Amazon’s climate pledge friendly badge: Helps brands showcase environmentally friendly products
- Sustainability-focused ads: Emphasising ethical sourcing, eco-friendly packaging, and sustainability credentials in product listings
- Transparency in advertising: Consumers demand authenticity, so brands should focus on honest messaging rather than overpromising sustainability claims
As Amazon continues to evolve, brands must adapt their advertising strategies to keep pace. The rise of AI-enhanced automation , Retail Media expansion, first-party data insights, video ads, and sustainable marketing all point to a more complex yet opportunity-rich landscape.
By combining data-driven insights, full-funnel advertising, and a strong organic strategy, brands can not only increase visibility but drive long-term customer engagement and sales too.
