Solving for X: Amazon Automatic Targeting

As part of our commitment to client education, each month NetElixir shares what we call an Idea Forum. These insights or tactics reveal a method we’ve identified to help clients improve performance.

Consider today’s S4X a free preview.

Last November, Amazon Advertising released four new targeting settings to allow for different bid strategies. These options (Close Match, Loose Match, Complements, and Substitutes) covered search types and product detail views as a way for retailers to start thinking intuitively about where they want their ads to be seen. These new settings deliver greater efficiency between the added levers and automation assistance. They also improve upon the true strengths of selling/advertising on Amazon: incredible data-gathering capability, feedback that’s vital to product management direction, and insights that provide clues on how best to scale for sustainable growth.

Marketers can use these new settings in Amazon Advertising to improve their ROAS.

Results Speak For Themselves

What our analysts found when applying these settings was eye-opening. Close Match and Substitutes campaign strategies increased Amazon Ads generated revenue by 25%. Complements delivered improvement when the product inventory comprised of products likely to be purchased alongside another product. Loose Match proved to be excellent for lesser bids to learn other potential search terms for our inventory. Amazon continues to improve advertising and product targeting and these changes mean more opportunities for marketers.

“After testing out the different search term targeting methods, we can formulate a strategy around incorporating the profitable search terms in our manual campaigns,” said PPC Analyst, Sai Anusha Abbaraju.  

“This also gives us a considerable chance to reach a larger audience who are looking for similar products in our inventory.”

These successes tell us there are hidden opportunities in your Amazon Advertising campaign management. Savvy brands that adopt these practices will maximize the value of their spend, while investing in learning key information to optimize product direction and future offerings.

Here’s How You Can Solve For X

Hit A Plateau

With all new levers, it’s important to test and incrementally increase your spend to see if the return peters out at a certain spend threshold. We know that great marketplace management is all about learning, testing, and growing. Because every product inventory and brand has distinct needs, Amazon Advertising’s new setting combinations require strategic testing to discover their optimal use. There’s a revenue-generating opportunity here for most brands on Amazon. The key will be unlocking what’s best for your products.

Be A Product Philosopher

Thinking critically about how and why people purchase your products will lead to more effective automated Amazon Advertising campaigns. Of course, we want these ads to help generate more revenue, but how are they going to be effectively deployed? What thoughts or considerations is a customer going to have that your ad placement would answer? These questions are great prompts for identifying the overarching strategy behind these new automated settings, to direct your ads better and uncover improved efficiency.

Join us for our monthly Modern Search series to learn more about how AI is fundamentally reshaping our approach to search marketing.

Contact us to learn if there’s revenue opportunities your marketplace presence is missing.

Contributor: Sai Anusha Abbaraju, PPC Analyst at NetElixir.

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