Amazon PPC in 2026: What's Changed and How to Adapt =====================================================
As we enter the second quarter of 2026, it's essential for brands to reassess their Amazon Pay-Per-Click (PPC) strategies due to significant changes in the market. At Marknology, our team has helped over 300 brands navigate Amazon's complexities, managing over $200M in revenue across 11 global marketplaces.
Rising CPCs and Competition
The cost-per-click (CPC) on Amazon has increased by 20% year-over-year since 2025. This is largely due to the growing demand for Sponsored Products ads, which now account for 70% of all ad spend on Amazon. Brands must adapt their strategies to compensate for these rising costs or risk being pushed out of the market.
AI Bidding: The New Normal
Amazon introduced its AI-powered bidding tool in 2025, which has become a standard feature for many advertisers. This technology enables Amazon to optimize bids in real-time, often resulting in higher conversion rates and increased revenue. However, it also requires brands to adjust their campaign settings and strategies to work effectively with the AI.
The Rise of AMC Audiences
Amazon Marketing Cloud (AMC) audiences have become a crucial component of any successful PPC strategy. By leveraging AMC's ability to target users based on their interests, demographics, and purchase history, brands can reach their ideal customer base more efficiently. In 2026, expect to see even more emphasis on audience targeting as Amazon continues to improve its AMC capabilities.
Video Ads Growth
Video ads have become increasingly popular on Amazon, with a growth rate of 50% year-over-year since 2025. Brands are now using video ads not only to showcase their products but also to build brand awareness and drive customer engagement. As the market becomes more saturated, it's essential for brands to develop compelling video content that stands out from the competition.
Restructuring Campaigns for Success
To adapt to these changes, brands should consider the following strategies:
1. Re-evaluate Ad Groups: With rising CPCs and increased competition, it's crucial to optimize ad groups to ensure maximum ROI. Use Amazon's automated targeting features to identify underperforming ad groups and allocate budget accordingly. 2. Leverage AI Bidding: Implement Amazon's AI-powered bidding tool to optimize bids in real-time. This will help brands maximize conversions while minimizing waste. 3. Focus on AMC Audiences: Develop targeted campaigns using AMC audiences, which can lead to increased sales and revenue growth. 4. Emphasize Video Ads: Create engaging video content that showcases products and builds brand awareness.
A Data-Driven Approach
When restructuring campaigns, it's essential to rely on data-driven insights rather than intuition or guesswork. Use Amazon-specific tools like Amazon Advertising Cost of Sale (ACOS), Sales Rank, and Conversion Rate to inform your decisions.
For example, if a product has a high ACOS but low conversion rate, it may be worth re-evaluating its ad targeting strategy or adjusting the bidding algorithm.
Conclusion
The Amazon PPC landscape in 2026 is more complex than ever. With rising CPCs, AI-powered bidding, and an emphasis on AMC audiences, brands must adapt their strategies to remain competitive. At Marknology, our team has helped numerous brands navigate these changes, achieving impressive results across $200M+ in revenue.
If you're struggling to keep up with the evolving Amazon PPC landscape or need expert guidance on restructuring your campaigns, we invite you to [reach out](https://marknology.com/contact) and discuss how Marknology can help.