Sponsored Products are the most widely used ad type on Amazon. They blend seamlessly with organic search results and account for the large majority of Amazon ad spend. These are the "bread and butter" of Amazon PPC.
💡 Worth knowing: Top of search draws a large share of all clicks, and costs correspondingly more per click than the other placements.
| Targeting Type | What You Bid On | Best For |
|---|---|---|
| Keyword Targeting | Search terms (broad, phrase, exact) | Scale & discovery |
| Product Targeting | Specific ASINs or categories | Competitor conquest |
| Automatic Targeting | Amazon chooses (4 match types) | Keyword discovery |
What is an Automatic Campaign? Think of it as hiring Amazon as your keyword research assistant. You tell Amazon your product, and they show your ads to searches they think are relevant. It's like fishing with a net instead of a single hook - you catch everything and then sort out what's valuable.
What Amazon targets: Searches very similar to your product
Example for yoga mat:
Conversion Rate: Highest (5-15%) because shoppers know exactly what they want
Strategy: Bid highest here - these are your money makers!
What Amazon targets: Broader category searches
Example for yoga mat:
Conversion Rate: Medium (2-5%) because shoppers are still exploring options
Strategy: Moderate bids - test which broader terms work
What Amazon shows your ad on: Competitor product pages
Example for yoga mat:
Conversion Rate: Good (3-8%) because shoppers are ready to buy your category
Strategy: Target competitors with worse reviews or higher prices
What Amazon shows your ad on: Related but different products
Example for yoga mat:
Conversion Rate: Lower (1-3%) but great for brand awareness
Strategy: Low bids, use for cross-selling opportunities
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