June 1, 2020

Amazon Sponsored Product Targeting Ads: How To Set Up It Correctly?

Do you want to know how to set up Amazon Sponsored Product Targeting Ads but don’t know where to begin? Look no further because this post got you covered! Read further to know more!

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Perhaps you have heard it already. Recently, Amazon advertisers have more control over the way they target consumers along with Amazon Sponsored Product Targeting Ads. With that in mind, advertisers are somewhat thrilled to adopt this new feature.

In case you didn’t know yet, Amazon Product Targeting makes it much simpler to reach customers as they look at the detail pages and sort search results for particular products that are identical to yours.

What Is Amazon Sponsored Product Targeting Ads?

To make it short, Product Targeting is an extension of Sponsored Products Ads. It is where you make ad campaigns, targeting particular brands, categories, and display your ads. You could further polish your campaigns with attributes such as star ratings and price range. That will enable you to increase your visibility by targeting your top-selling competitors and get a piece of their market share.

Benefits of Using Amazon Sponsored Product Targeting Ads

You will find numerous advantages to the improved version of targeting in Sponsored Products. It might include the following:

  • More accurate targeting based on marketing goals. It’s simpler to get in touch with shoppers as they browse detail pages and sort search results for particular products that are identical to yours. You can effectively target groups of ASINs through category or modify your category target by price, star reviews, or brands.
  • An additional source of traffic that can be effectively used. The high target traffic allows you to target brands you wish your ad to show up for. That feature could be advantageous for nearly any product.
  • It increases brand awareness for both well-known brands and those that have just entered the marketplace. Category Targeting is an excellent way to receive a huge amount of visibility. That’s an advantage if you’re trying to establish brand awareness or product launch.
  • It offers an ability to bypass competitors whose products have a low rating or overpriced, and entice buyers to your product page.
  • It features negative targeting and fine-tuning advertising options. Negative testing is a feature enabling you to enhance the efficacy of your campaigns. That is done by listing keywords or ASIN for which you do not like to show your ads.
  • Detailed reports on the effectiveness of the advertising campaign, based on which it is easier to control and optimize the advertising strategy. You can easily isolate what is working and make new campaigns around efficient ASINs and categories. The keyword report will be retitled to the targeting report.

Targeting Types

Amazon enables sellers to pick the target where you like your ads to show by picking the targeting type from the following:

  1.   Targeting by Categories.

It is the type of targeting where you can target a category of products. The category could be picked from the searched bar or could be refined by brand name, price range, reviews. Take note that you can search for categories that are close to your product, as well as categories for which your product can be a complement.

Use the Suggested option to select one of the suggested categories. Or use the Search option to find a category relevant to your marketing goals.

  1.   Targeting by Individual Products (ASIN).

You can also target recommended individual products, which are the same to your products or upload/search particular ASINs. You can determine the ASINs with the highest conversion rate in your Automatic Campaign report.

  1.   Negative Targeting.

Did you know you can also utilize the ASIN Amazon Targeting to stop your ad from being displayed for low-performing competitor ASINs? Also referred to as negative targeting, it enables you to avoid the ads from showing on particular items.

That type of targeting could help you lessen your ad spending. On top of that, it is also an excellent reputation management tool, helping you prevent the brands you do not wish to be linked with.

New Bidding Options

Now you can increase your ad performance using two bid adjustment options:

1) Bid adjustment for the selected ASIN or category you are targeting.

2) Bid adjustment for different placements where your ad will be shown.

Dynamic Bidding

The platform changes your Amazon bid based on the profitability of a sale with Dynamic Bidding. Today, you have here different alternatives to choose from:

  1. Dynamic Bids (down only).

The bid is lowered by up to 100 percent if a click is less likely to convert the bid. Only search queries, which are not likely to convert with will lower a bid to 0.

  1. Dynamic Bids (up and down)

Amazon will increase your bid for at least 100 percent for placements at the top of the first page of search results and at least fifty percent for other placements if a click is likely to convert.

  1. Fixed Bids.

Ultimately, dynamic bidding is disabled, and bids stay the same. The platform will utilize your default bid.

In fact, before the introduction of such features, all existing companies were launched with the option Dynamic bidding Down Only. And now, by default, when starting a new campaign, this option is activated.

Placement Bid Adjustments

You can let the Amazon system adjust bids to suit your marketing strategy to increase the performance of your ads in various places. 

Today there are two options for displaying ads:

  • Top of Search - ads that appear at the top of the Amazon search page.
  •  Product Pages - ads might be showed together with search results or on product pages.

For each type of placement you can set bid adjustment between 0% and 900% to influence where your ads will appear on Amazon.

Keep in mind that both options (Dynamic Bidding and Placement Bid Adjustments) work together. Therefore, to determine the final cost of the bit, you need to consider both parameters.

Strategies to Dominate Amazon PPC with Product Targeting

Do you like to maximize your Product Targeting on Amazon? Below are some methods you can use to dominate.

  • Target competitor's highly rated products. This is especially making sense if your product outperforms peers in price or quality. When buyers see your product and can compare it with the one they’ve selected based on the search results, you can attract their attention. But remember that your product must be superior to competitive products one way or another.
  • Target specific ASINS. When starting automatic Ad Campaigns, you may notice that certain competitors' ASINS help you sell your product better. The fact is that when using automatic Advertising Campaigns, Amazon often shows your ads on listings with other similar products. You just have to get the data from the search terms report and target those ASINs for which the results were the best (high conversion rating).
  • Target relevant brands. Companies that successfully compete in the market are a good way to drive some traffic for your own products. Choose the brands that are on top in your niche, and then identify the products that are relevant to your product by price or rating. This can be done using the Refine option.
  • Target your own products. If you have a line of products related to the same brand, you can target them. This is a winning cross-selling strategy that helps maintain brand loyalty. If the products you are targeting have a high rating, they will help drive traffic to your other listings. In this way, you can also increase sales of your unpopular goods.
  • Target complementary products. By targeting goods for which your product can be a complement, you also use one of the effective strategies. Buyers often look at related products and may pay attention to your ad.
  • Target relevant categories (use a small Ad budget at first). Often such targeting brings very good results. However, it’s important to use small budgets at first just to figure out which relevant categories will work best for your product. Then you need to set up an Advertising Campaign more precisely, focusing on previously found categories to get the maximum number of conversions.
  • Use the negative targeting option. If you can’t compete with large brands or promoted goods, perhaps you should just exclude them from the list of potential places where your ad may be displayed. Add the selected ASINS, brand names in the appropriate section to exclude spending on ads that are not effective. 


You shouldn’t have any question if you like to use Amazon Product Targeting or not. After all, you must be able to follow the advancements that you’ll notice more often on Amazon if you wish to stay ahead in the game.

The new update endows sellers with the perks of the Amazon ads evolution and sophisticated targeting options to target better. It provides excellent ways to grow your business. So make sure you maximize it!