Using Amazon Product Targeting Ads to Expand Market Share
With the increased competition for sellers on Amazon, it can be tough to get all of your targeted customers to navigate directly to your listing. Even if you have the top spot for both paid search and the highest organic listing, a certain percentage of your potential customers will click on one of your competitor’s listings. If those potential customers are on a competitor’s listing, wouldn’t it be ideal if your product could still show up somehow on their listing so you could still make the sale?
Amazon product targeting ads allow us to do exactly that.
The Power of Product Targeting Ads
Product targeting is a specific type of sponsored products advertising which allows us to select specific ASINs that we want our ad to show up for. Shown below are some examples of Product Targeting ads that appeared on a headphone listing. On this specific listing, the Sponsored Products related to this item appear a bit below the main picture and bullets and also appear at the bottom of the listing.
These ads can be a great way to increase your market share and draw more of your competitor’s customers over to your products. You know you have a better product than your competitors so you’re also doing your customers a favor by having them buy your superior product. In this case, everyone is happy (maybe except your competitors): you got the sale, the customer got a better product and Amazon made another sale while also getting paid for the click on the ad.
We’ll cover some ways you can use product targeting along with other benefits after we go through how to set up these ads.
How to Run Product Targeting Ads
When Amazon first launched the ability to target other listings with ads, the only way to utilize this feature was through auto campaigns. This limited our ability to specify which listings were targeted or to assign specific bids for different product targeting. Essentially, it was up to Amazon to choose which listings your ads showed up for and there wasn’t a great way to control them.
Earlier in 2019, Amazon added the ability to create Product Targeting campaigns. These are very similar to manual keyword targeting campaigns but instead of targeting a specific search term, we can now target the ASINs of competitors. The product targeting campaigns also have other capabilities such as targeting specific categories or products with a star rating below a certain value.
This greatly expanded our control and how we’re able to utilize product targeting in our Amazon sponsored products campaigns. We can now select specific products to target and set bids to meet our goals on overall returns, market share expansion or whatever strategy we’re utilizing.
To create product targeting ads, you can utilize your existing manual campaigns or you can also create new ones. If you’re using an existing campaign, you’ll need to create a new adgroup since we can’t combine both keyword targeting and product targeting in the same adgroup. When you’re setting up the new adgroup, make sure to select “Product Targeting” in the Targeting section of the adgroup setup page.
After creating the adgroup, you can now select any ASIN’s to target to add them to your campaigns. Amazon will give you some recommendations on what products to target. You can also search for individual ASINs or add in multiple at once in a comma-separated list.
Which Products Should I Target?
When determining what products you should target, if you already have auto campaigns running, you have a huge head start. Amazon will typically run product targeting campaigns for you in your auto campaign. You can see what listings your ads have already run on using your Search Term report. To show just product targeting terms in the Search Term report, filter the customer search terms to only include rows that start with “b0”. You can then determine which of the ASINs in the list have performed well and then move them into your manual product targeting adgroup.
Product targeting gives you more options to target users based on various criteria:
To save you some time and effort, we’ve created a free targeting funnel tool which will automatically determine what ASINs to add to your product targeting campaigns.
To identify other products that may be good to target, you can specify targets of the following two types:
Close Competitors: These are the ASINs that are your direct competitors. For example, if you sell headphones, these are other types of headphone listings. For these product targets, our key goal is to get customers to purchase your products over your competitors and win market share.
Related or Complimentary Products: These are other products that they may purchase along with your products. For example, if your headphones are typically used by athletes, you could target athletic products from sports watches to running shoes. Just realize that the more unrelated the product is, the lower your click-through-rate and conversion rate will be (which can increase what you need to bid for these ads to be shown).
To get other ideas on what would be good complementary products to include, you can review the “Frequently bought together” section of your or your competitor’s listings.
Next Steps: Bidding and Optimization
After adding the ASINs you’d like to target, you can specify the bids for each of the terms. Optimization of bidding for product targeting is an iterative process and takes the same approach that we’ve used for keyword targeting bidding.
How Ad Advance Can Help You?
Product targeting opens up a whole new world of targeting options to increase your market share and crush your competition. However, it is as complex and competitive as keyword targeting when it comes to bidding. To help you make sure you’ve got the best bids setup for each of your product targets, we have launched this free bidding optimization tool to help.
If you’d like us to take care of this for you, our ASIN Locator module will continually search for and add your competitor ASINs to target in your product targeting campaigns.
Want to make sure you’re utilizing product targeting to its full potential to maximize market share and win more sales? We’ll do a free campaign review for you where we can review your product targeting campaigns and find your biggest areas for improvement.