How to use Amazon’s automatic targeting for PPC

Author:

How to Use Amazon’s Automatic Targeting for PPC

Amazon’s automatic targeting is one of the easiest ways for sellers to start advertising on the platform. Unlike manual campaigns, where advertisers must select their own keywords, Amazon’s algorithm automatically determines which search terms and product pages will display the ad. This feature is particularly useful for discovering high-converting keywords, understanding customer search behavior, and optimizing ad performance over time.

To make the most of automatic targeting, sellers must understand how it works, how to structure their campaigns, and how to refine their approach based on performance data.

Understanding How Automatic Targeting Works

When creating an Amazon Sponsored Products campaign with automatic targeting, Amazon uses its internal data and machine learning algorithms to match ads with relevant search queries and product pages. The system analyzes product details, including the title, bullet points, description, and backend keywords, to determine where the ad should appear.

Automatic targeting offers four different match types, which control how Amazon displays ads:

Close Match – Ads are shown to shoppers whose search terms closely relate to the product listing.

Loose Match – Ads appear for broader search queries that are still somewhat related to the product.

Substitutes – Ads are displayed on product detail pages of similar competitor products.

Complements – Ads are placed on product pages of items that complement the advertised product (e.g., a phone case ad appearing on a smartphone product page).

By default, Amazon enables all four match types, but sellers can adjust their bids individually to optimize performance.

Setting Up an Automatic Targeting Campaign

To launch an automatic targeting campaign on Amazon, sellers need to follow these steps:

1.Go to Amazon Advertising Console and create a new Sponsored Products campaign.

2.Choose the product to advertise from the inventory.

3.Select ‘Automatic Targeting’ as the targeting method.

4.Set the campaign budget and duration, ensuring there is enough daily budget to gather meaningful data.

5.Adjust bids for the four match types, increasing or decreasing bids based on strategic goals.

6.Launch the campaign and monitor its performance regularly.

Optimizing Automatic Targeting for Better Results

While automatic campaigns require less initial setup than manual campaigns, they still need regular optimization to maximize efficiency and ROI. Sellers should:

1.Monitor Search Term Reports – These reports reveal which keywords triggered ads, helping sellers identify high-performing keywords to transfer to manual campaigns.

2.Use Negative Keywords – Adding negative keywords prevents ads from showing for irrelevant searches, reducing wasted ad spend.

3.Adjust Bids Strategically – Increasing bids for close match and substitutes can improve conversion rates, while lowering bids for low-performing match types can help control costs.

4.Test and Iterate – Running multiple automatic campaigns with different bid structures can help identify the best-performing setup for specific products.

When to Transition to Manual Targeting

After running an automatic targeting campaign for a few weeks, sellers should analyze the Search Term Report to identify keywords that generate the most sales. These high-performing keywords can then be transferred to a manual campaign, where sellers have more control over bids and match types. A combination of automatic and manual campaigns allows for continuous keyword discovery and precise targeting.

Final Thoughts

Amazon’s automatic targeting is an excellent tool for beginners and experienced sellers alike. It helps uncover valuable keywords, provides insights into customer behavior, and allows for a hands-off approach to PPC management. However, to maximize effectiveness, sellers must continuously refine their campaigns, add negative keywords, and adjust bids based on performance data. By strategically using automatic targeting alongside manual campaigns, sellers can improve ad efficiency, reduce wasted spend, and increase overall sales on Amazon.