How to Create Effective Ad Groups in Amazon PPC
Creating well-structured ad groups in Amazon PPC is essential for optimizing performance, improving ad relevance, and maximizing return on ad spend (ROAS). A properly structured ad group ensures your ads are targeting the right keywords, audience, and product variations, leading to higher click-through rates (CTR), conversion rates (CVR), and lower advertising cost of sales (ACOS).
In this guide, you’ll learn how to structure, optimize, and manage ad groups to get the best results from your Amazon PPC campaigns.
Step 1: Understanding Amazon PPC Ad Group Structure
An ad group is a subsection of a campaign that contains:
1. Products → The items you’re advertising.
2. Targeting (Keywords, ASINs, or Audiences) → What triggers your ad to appear.
3 Bids & Budget → The amount you’re willing to pay per click.
Campaign > Ad Group > Ads Structure
•Campaign Level:
•Controls budget, bidding strategy, and targeting type (manual/automatic).
•Ad Group Level:
•Groups similar products together and applies targeting (keywords, ASINs, or audiences).
•Ad Level:
•The individual product listings that will appear in the ad.
Example of a Well-Structured Ad Group Setup:
•Campaign: “Wireless Headphones – Sponsored Products”
•Ad Group 1: “Noise-Canceling Over-Ear Headphones”
•Product: “Brand X Noise-Canceling Headphones – Black”
•Product: “Brand X Noise-Canceling Headphones – Blue”
•Ad Group 2: “Wireless Earbuds”
•Product: “Brand Y True Wireless Earbuds – White”
•Product: “Brand Y True Wireless Earbuds – Black”
By grouping similar products together, you improve ad relevancy, targeting accuracy, and budget efficiency.
Step 2: Choosing the Right Ad Group Structure
Different ad group structures work for different goals. Here are some strategies:
1. Ad Groups Based on Product Type (Best for New Sellers)
Use when: You have multiple variations of a product.
Example:
•Campaign: “Running Shoes – Sponsored Products”
•Ad Group 1: “Men’s Running Shoes”
•Ad Group 2: “Women’s Running Shoes”
2. Ad Groups Based on Keyword Intent (Best for Advanced Targeting)
Use when: You want to segment keywords based on shopping behavior.
Example:
•Campaign: “Organic Skincare – Sponsored Products”
•Ad Group 1: “Branded Keywords” → (“Brand X Face Serum”)
•Ad Group 2: “Competitor Keywords” → (“Best Vitamin C Serum”)
•Ad Group 3: “Generic Keywords” → (“Anti-Aging Serum”)
3. Ad Groups Based on Match Type (Best for Scaling Campaigns)
Use when: You want control over bidding strategies for different match types.
Example:
•Campaign: “Wireless Earbuds – Sponsored Products”
•Ad Group 1: “Broad Match” → (captures new search terms)
•Ad Group 2: “Phrase Match” → (targets relevant variations)
•Ad Group 3: “Exact Match” → (focuses on high-converting terms)
4. Ad Groups Based on Targeting Type (Best for Sponsored Display & Competitor Targeting)
Use when: You want to separate keyword-based and audience-based targeting.
Example:
•Campaign: “Smartwatches – Sponsored Display”
•Ad Group 1: “Keyword Targeting” → (“Smartwatch for iPhone”)
•Ad Group 2: “ASIN Targeting” → (Competitor product pages)
•Ad Group 3: “Audience Targeting” → (Shoppers interested in fitness tech)
Each structure has its advantages, and the best approach depends on your product category, competition, and advertising goals.
Step 3: Selecting the Right Targeting Type
Amazon PPC allows three main targeting options:
1. Keyword Targeting (Best for Search Intent-Based Ads)
•Ads appear based on search queries entered by shoppers.
•Can use Broad, Phrase, or Exact Match keywords.
2. Product Targeting (Best for Competitor ASIN Targeting)
•Ads appear on competitor product pages or related products.
•Helps steal traffic from competitors.
3. Audience Targeting (Best for Retargeting & Brand Awareness)
•Ads appear on Amazon & external sites based on shopping behavior.
•Ideal for Sponsored Display Ads.
Choosing the right targeting method will determine the success of your ad group strategy.
Step 4: Optimizing Ad Groups for Better Performance
Once your ad groups are live, continuous optimization is necessary to maximize ROAS and minimize wasted ad spend.
Key Optimization Strategies:
1. Monitor ACOS (Advertising Cost of Sales)
•Goal: Keep ACOS below 30% for profitability.
•Action: If ACOS is high, lower bids on low-performing keywords.
2. Identify High & Low Performing Keywords
•High-performing keywords: Increase bids for better rankings.
•Low-performing keywords: Remove or lower bids to reduce wasted spend.
3. Use Negative Keywords
•Prevents ads from showing for irrelevant searches.
•Example: Selling premium coffee beans? Add negative keywords like “cheap coffee” or “instant coffee”.
4. Adjust Bids Based on Match Type
•Broad Match → Lower bids (more reach but less relevance).
•Phrase Match → Medium bids (balanced performance).
•Exact Match → Higher bids (best for high-intent buyers).
5. A/B Test Different Ad Group Structures
•Compare different ad group setups to see what drives better conversions.
6. Optimize Product Listings for Better Conversion Rates
•Improve product titles, images, and bullet points for higher CTR & sales.
Final Tips for Creating High-Performing Amazon PPC Ad Groups
Keep ad groups focused → Don’t mix too many product types in one ad group.
Use different match types → Start with broad match, then refine with exact match.
Regularly analyze data → Optimize bids and remove underperforming keywords.
Monitor wasted spend → Adjust bids on low-converting, high-cost keywords.
Test multiple ad group structures → Find what works best for your niche.
A well-structured Amazon PPC ad group improves targeting, reduces wasted ad spend, and increases conversions, leading to better profitability.