Targeting in Amazon PPC and why does it matter?
Targeting in Amazon PPC refers to how advertisers define the audience for which their ads should appear. It’s the mechanism that determines when, where, and to whom your product ads are shown on Amazon.
The most common form of targeting is keyword targeting, where your ads are matched to specific shopper search queries. However, Amazon also offers product and category targeting, allowing ads to appear on competitor listings or within relevant product categories.
Understanding and choosing the right targeting method is critical to the success of your Sponsored Products campaigns. This guide will break down the key targeting types, manual and automatic, when it comes to targeting on Amazon, there are two levels of choices advertisers need to make. The first level is deciding between automatic targeting and manual targeting. With automatic targeting, Amazon uses its algorithm to decide where and when to show your ads, placing them in front of various customer segments and across different placements to determine what performs best for your campaign goals. This option requires minimal setup, as Amazon handles most of the targeting decisions for you. On the other hand, manual targeting gives you full control, allowing you to specify exactly who you want to reach.
Once you choose manual targeting, you enter the second level of decision-making: choosing between keyword targeting or product targeting. Keyword targeting means your ads will appear when shoppers search for specific keywords that you choose—ideally those with high purchase intent. Product targeting, however, allows you to target specific ASINs or product categories, enabling your ads to show up on relevant product detail pages, often alongside competitor listings. Both targeting types offer unique strategic advantages depending on your campaign goals. To use each to reach relevant shoppers, optimize ad performance, and achieve your advertising goals on Amazon.
Types of Amazon Ads
Before we dive into targeting strategies, let’s quickly look at the three types of Amazon PPC ads you can run:
| Sponsored Products | Sponsored Brands | Sponsored Display |
| Promote individual listings using keyword or product targeting. These are the most common and powerful for driving direct sales. | Showcase your brand with custom headlines and multiple products. Great for brand awareness and mid-funnel engagement. | Reach shoppers across Amazon and beyond, ideal for retargeting and top-of-funnel campaigns. |
While all three ad types serve different roles in the customer journey, Sponsored Display for top-of-funnel awareness, Sponsored Brands for mid-funnel branding, and Sponsored Products for conversions, Sponsored Products offer the most control and flexibility when it comes to targeting.
Different types of targeting on Amazon in PPC Ads
In Amazon PPC, the only time there are two different options/types are within Sponsored Products campaigns, there are primary targeting methods: automatic targeting and manual targeting. Both use keywords and product data to match your ads with relevant shoppers on Amazon’s search results and product detail pages.
Sponsored display ads and sponsored brand ads are manually managed.
The difference between manual and automatic targeting comes down to control, visibility, and effort.
Automatic Targeting:
You provide the basics i.e., product, budget, bid, and Amazon decides which customer searches and listings your ad should appear on. It’s fast and easy, but less precise.
Manual Targeting:
You handpick the keywords or products to target and set specific bids per click, offering greater control over campaign performance and audience targeting.
Choosing the right method depends on your advertising goals, experience level, and how hands-on you want to be.
Understanding Amazon PPC targeting types for sponsored ads: automatic v/s manual
Automatic Targeting in Amazon PPC
With automatic targeting, Amazon’s algorithm takes the lead. It analyzes your product listing and automatically identifies relevant keywords, customer search terms, and complementary or similar products to target. Over time, Amazon uses campaign performance data, including clicks and purchases, to adjust ad placements for better conversions.
Because targeting is based on your listing content, it’s essential to optimize your product copy. Include high-traffic keywords in the title, bullet points, description, and backend search terms to help Amazon surface your ad in relevant placements.
In automatic targeting, Amazon uses four match types by default, Close Match, Loose Match, Substitutes, and Complements. Advertisers don’t select these manually; instead, Amazon automatically tests them all to determine where your ads perform best. You can later view performance data for each match type and adjust your bids accordingly.
Close Match:
Targets search terms closely related to your product.
EXAMPLE – For a product like “Titan 64oz Stainless Steel Water Bottle”, ads may appear on search queries such as “64oz water bottle” or “stainless steel water flask.”
Loose Match:
Matches with broader or loosely related terms.
EXAMPLE – For “Titan 64oz Stainless Steel Water Bottle”, ads might show for terms like “gym accessories”, “travel gear”, or “hydration bottle.”
Substitutes:
Displays your ads on pages of similar products.
EXAMPLE – The ad for “Eclipse Noise-Cancelling Bluetooth Headphones” may appear on listings for “Sony wireless headphones” or “Bose noise-cancelling earbuds.”
Complements: Targets shoppers browsing products that pair well with yours.
EXAMPLE – For a “Nighthawk WiFi 6 Router”, ads could appear on pages for “laptop stands”, “ethernet cables”, or “home office desks.”
Examples above demonstrate how Amazon’s algorithm is designed to match search terms and products accurately with the advertised item. These matches are not always ideal. Amazon may classify a men’s leather dress belt as a substitute for a pack of men’s cotton ankle socks, despite the products serving entirely different purposes. These inaccuracies highlight the importance of reviewing match type performance and refining your campaign strategy accordingly.
Negative Keyword Phrase:
Your ad will get blocked when the shopper’s search exactly matches the keyword phrase.
EXAMPLE – Negative keyword: “cheap phone case”Your ad won’t show for; “cheap phone case for iPhone”, “buy cheap phone case” and “cheap silicone phone case. But your ad may still show for; “affordable phone case” and “discounted phone cover”.
Negative Keyword Exact:
Ad will not appear if the search query exactly matches the negative keyword (or a close variation).
EXAMPLE – For negative keyword “wireless earbuds”your ad won’t show for; “wireless earbuds”, and “wireless earbud”. But your ad may still show for, “best wireless earbuds for running” and “cheap wireless earbuds Bluetooth”.
Advantages of Amazon Automatic PPC Campaigns
Beginner-Friendly:
Automatic campaigns are great if you’re new to Amazon PPC. They eliminate the guesswork by letting Amazon’s algorithm handle keyword targeting.
Keyword Discovery:
These campaigns help uncover new search trends and hidden long-tail keywords you might not think to target manually.
Seasonal & Trend-Based Targeting:
Amazon automatically adjusts based on shopper behavior, making it easier to tap into seasonal or trending keywords.
Time-Saving:
No need to manually research or bid on individual keywords, Amazon does it for you.
Disadvantages of Amazon Automatic PPC Campaigns
Lack of Control:
You can’t choose the specific keywords or adjust bids on a per-keyword basis.
Potential Irrelevance:
Your ads may appear for unrelated or low-converting search terms, which can waste budget.
Data Requires Filtering:
You’ll need to regularly review reports to find high-performing keywords and shift them into manual campaigns for better control.
How to Set Up Amazon PPC Automatic Campaigns?
Launching an Amazon automatic PPC campaign is simple, just follow this step-by-step guide to get started.
Step 1
Log into Seller Central, go to Campaign Manager, and click ‘Create Campaign’ to begin.
Step 2
Select ‘Sponsored Products’ – the go-to ad type for automatic campaigns and individual product promotion.
Step 3
Now it’s time to choose how your ads will be targeted. Go with Automatic Targeting so Amazon can do the heavy lifting by finding relevant keywords for you.
Step 4
Now it’s time to fill in the basics:
Campaign Name: Give your campaign a name that’s easy to recognize later, especially if you’ll be running multiple ads.
Start/End Date: You can set a fixed run time or leave the end date open for continuous promotion.
Daily Budget: Decide how much you’re comfortable spending each day. Keep in mind: a higher budget usually means more visibility.
These settings might seem small, but they shape how your campaign performs — whether you’re testing, scaling, or launching a new product.
Recommended Campaign Settings Based on Your Advertising Goals
| Brand Awareness | Use automatic targeting to cast a wide net and reach more shoppers.Set a higher daily budget to maximize impressions. |
| Choose Dynamic Bids – Up and Down to stay competitive in real-time auctions. | |
| Monitor Impressions and Click-Through Rate (CTR) to gauge reach and engagement. | |
| Sales & Conversions | Use manual targeting with exact and phrase match for precision. |
| Set controlled yet competitive bids to ensure profitability. | |
| Add negative keywords to reduce wasted spend. | |
| Track ACoS and conversion rate to measure ROI and optimize. | |
| Product Launches | Start with automatic campaigns to discover high-performing keywords. |
| Use higher bids to increase visibility in early stages. | |
| Review search term reports and migrate top-performing terms to manual campaigns for better control and scaling. |
Step 5
Your targeting method can make or break your campaign performance. Both automatic and manual targeting have distinct advantages — and when used strategically together, they can significantly improve visibility, efficiency, and ROI.
Step 6
Create Ad Groups, these help organize your campaign by grouping similar products under a unified bid strategy. Assign a clear name to your ad group and select the products you wish to promote.
Amazon automatically categorizes automatic campaign targeting into four match types|
Step 7
Finalize your Amazon PPC setup by reviewing your campaign name, targeting type, bid strategy, budget, and selected ASINs. When you’re ready, click “Launch Campaign” to activate your automatic ad.
Manual Targeting in Amazon PPC
In a manually targeted campaign, advertisers select the exact keywords or products they want their ads to appear for, along with setting individual bids for each. Since the entire process is hands-on, it requires active monitoring and adjustments to both targeting and bidding. This level of control allows sellers to fine-tune performance, reduce wasted ad spend, and improve return on investment.
Manual Targeting campaigns are best suited for Amazon sellers who have experience with PPC advertising or a strong understanding of their high-converting keywords. These campaigns offer greater control but require more time, effort, and ongoing optimization.
To succeed with manual campaigns, sellers should be comfortable analyzing performance metrics, adjusting bids, and refining targeting on a regular basis. This strategy is ideal for advertisers looking to maximize ROI through data-driven decision-making.
Manual targeting is especially effective for reducing Advertising Cost of Sale (ACoS) and building long-term campaign profitability. Based on your campaign goals, Amazon provides three keyword match types: broad, phrase, and exact, each offering a different level of targeting precisioN.
Keyword match types in Amazon Manual PPC
Keyword match types give you control over which customer search queries will trigger your ads in manual targeting campaigns. Because shoppers may use a wide variety of phrases when searching for products, match types help you target relevant searches without relying on exact terms.
By using match types strategically, you can improve targeting accuracy, discover high-performing keywords, reach new audiences, and reduce wasted ad spend.
Types of keyword match types
There are three match types in Amazon manual campaigns. Each one affects when and how your ad is shown based on how closely a shopper’s search matches your chosen keyword.
Exact Match:
Your ad appears only when the customer’s search term exactly matches your keyword or is a very close variation. The order must be the same, and no extra words can be included. It’s ideal when you want tight control over targeting and only want to pay for highly relevant clicks.
Example Keyword: cycling helmet
| Customer Search Term | Eligibility |
| cycling helmet | Eligible |
| cycling helmets | Eligible |
| bicycling helmet | Ineligible |
| helmet for cycling | Ineligible |
| cycling hemet (misspelled) | Ineligible |
Phrase Match:
Your ad appears when the exact keyword phrase is included in the shopper’s search in the same word order, but the query may have additional words before or after the phrase. It’s great for targeting specific shopping intent while still allowing for some search variation.
Example Keyword: meat smoker
| Customer Search Term | Eligibility |
| best meat smoker | Eligible |
| brands of meat smokers | Eligible |
| smokers for meat | Ineligible |
| beef smoker | Ineligible |
Broad Match:
Ads are triggered when the search includes all your keyword terms or close variations, regardless of word order, and may include additional words. This is useful for expanding reach and discovering new, unexpected keyword combinations, but may require negative keywords to control relevance.
Example Keyword: kids unicorn toys
| Customer Search Term | Eligibility |
| unicorn toys for kids | Eligible |
| kids plush unicorn toy | Eligible |
| kids toys | Ineligible |
| unicorn toys | Ineligible |
Pro Tip : Start with broad match for keyword discovery, refine with phrase, and then scale precision with exact match as you identify your top-converting search terms.
Negative keywords give advertisers an added layer of control by preventing ads from appearing on irrelevant or low-converting search terms. This is especially important when using broad or phrase match keywords, which can trigger ads for a wide variety of shopper queries.
Types of Negative Keyword Match Types
Negative Exact Match:
Blocks ads from showing if the search query matches the negative keyword exactly, or is a close variation.
Negative Phrase Match:
Prevents your ad from appearing if the search query contains the full negative keyword phrase, even if additional words are present.
Example
Broad Match Keyword: t shirts
Negative Phrase Match Keyword: men
| Customer Search Term | Eligibility |
| women’s t shirts | Eligible |
| t shirts for men | Ineligible |
| men’s t shirts | Ineligible |
Use search term reports to identify queries that are wasting spend or unrelated to your product. Then, block those with negative keywords to improve your targeting and reduce ACoS.
Pros and Cons of Amazon Manual PPC Campaigns
Advantages of Amazon Manual PPC Campaigns
Precise Targeting:
You choose exact, phrase, or broad match keywords and set bids accordingly.
Budget Control:
You can allocate more budget to keywords with higher intent or better returns.
Brand Protection:
By bidding on your own brand name, you reduce the chance of competitors stealing your branded search traffic.
Smarter Segmentation:
You can break campaigns into branded, niche, or long-tail keyword groups for better budget use and ROI tracking.
Disadvantages of Amazon Manual PPC Campaigns
Requires Expertise:
Manual campaigns are more complex. You’ll need to understand keyword research, match types, and bid strategy.
Higher Testing Costs:
Finding what works often requires trial and error. It can be expensive to test multiple keywords before seeing a return.
Missed Opportunities:
If you don’t continuously monitor trends or seasonal shifts, you may miss high-converting keywords that auto campaigns would’ve picked up.
Pro Tip: Expert agencies have access to broader keyword data across accounts, allowing them to make faster and smarter decisions.
How to Set Up Amazon PPC Manual Campaigns?
Launching an Amazon PPC manual campaign is simple, just follow this step-by-step guide to get started.
Step 1
Log into Seller Central, go to Campaign Manager, and click ‘Create Campaign’ to begin.
Step 2
Select your campaign type to proceed with setup.
Step 3
Choose the products you want to advertise and give your campaign a clear, easy-to-recognize name. Keep it short and descriptive so it’s easier to manage, especially when running multiple campaigns across different product lines.
Pro Tip: Always consider seasonality and current trends when deciding which products to promote. For example, if it’s back-to-school season and you sell backpacks, highlight styles with fun patterns, built-in tech compartments, or trending colors that appeal to students and parents. Connecting your ad with what shoppers are actively thinking about can improve click-through and conversion rates.
Step 4
Choose your manual targeting type and set any necessary negative keywords.
Amazon gives you three main targeting options to choose from, each suited to different campaign goals, always use these:
Keyword Targeting
Target your ads using keywords that closely align with your product. You can choose from:
Broad Match – to reach a wide audience
Phrase Match – to target specific search intent
Exact Match – to get ultra-precise
Pro Tip : Use keywords your ideal customers actually search for, leverage the Search Term Report in Amazon to discover converting terms, and use tools like Helium 10, SellerApp, or Jungle Scout to research and refine keyword lists.
Product Targeting
With product targeting, your ads appear on specific product detail pages or within related categories.This allows you to; position your product as a complement or alternative to a competitor’s listing, and appear on similar product pages within the same niche or category.
Example: If you sell a wireless gaming mouse, your ad might appear on listings for gaming keyboards or mousepads.
Audience Targeting (Available for Sponsored Display)
Audience targeting allows you to reach shoppers based on their behavioral signals, such as, past browsing activity, purchase history, and abandoned carts.
This is ideal when you want to retarget potential buyers or reach those in-market for products like yours.
Pro Tip: Use audience targeting to re-engage high-intent shoppers who didn’t convert the first time.
Step 5
Set Your Bids, Budget, and Campaign Duration
Adjust your default bid based on your product’s value and profit margin. Then, set your preferred daily budget and choose whether to run your campaign continuously or for a fixed period.
While Amazon recommends running campaigns without an end date, you always have the flexibility to pause them at any time. This approach helps maintain consistent visibility and allows your ads to align with evolving shopping trends.
In automatic targeting campaigns, Amazon dynamically updates targeting based on customer search behavior. This allows you to track performance over time and make data-driven adjustments throughout the year.
|Amazon sets a minimum daily budget requirement based on your selected currency. Below are the recommended thresholds by the marketplace.|
Step 6
Monitor Key Performance Metrics
Regularly track critical KPIs such as CTR (Click-Through Rate), clicks, impressions, ROAS (Return on Ad Spend), ACOS (Advertising Cost of Sale), and overall ad spend vs. ad sales. These performance indicators provide valuable insights into how well your campaigns are performing and where there’s room for improvement. Use this data to refine your targeting, adjust bids, and avoid missing high-converting opportunities.
Once you’ve set up at least one active campaign, ad group, product ad, and targeting expression or keyword, your campaign is considered fully configured and ready to run. If the start date is set to today and all components have an ACTIVE status, Amazon will begin serving your ads immediately.
Trying The Hybrid Strategy: Best of Both Worlds
Automatic Targeting is one of the easiest ways to launch Amazon ads, especially if you’re just getting started or need to discover new keywords and ASINs. It’s fast, scalable, and largely hands-off. However, it can come at a cost, without proper bid control and negative keyword filters, you risk increasing your ACoS and cutting into your profit margins.
On the other hand, Manual Targeting allows you to take full control of your campaigns, from keyword selection to bid optimization. But it’s not as simple as picking keywords that “sound right.” Effective manual targeting requires a data-driven, research-intensive approach, which can be time-consuming and complex to manage, especially at scale.
The good news? You don’t have to choose just one. The best results often come from using both automatic and manual campaigns together. This way, you can discover new keyword opportunities and immediately refine them for better performance.
How To Combine Automatic vs Manual Campaign Strategies: A Three-Phase Approach
Phase 1: Start with an Automatic Campaign
Step 1: Launch an auto-targeted Sponsored Products campaign.
Step 2: Let it run for at least 2 weeks.
Step 3: Download the Search Term Report from your ad dashboard – Amazon Seller Central
Step 4: Identify keywords with high impressions, clicks, and good ACoS (advertising cost of sale).
Step 5: Save these top performers for use in your manual campaign.
Phase 2: Launch a Manual Campaign
Step 1: Create a manual campaign using 30–100 top-performing keywords.
Step 2: Start with broad match to expand reach, then test phrase and exact match for precision.
Step 3: Set bids slightly higher than auto campaigns to increase visibility.
Step 4: Run it for 1–2 weeks and analyze keyword performance.
Phase 3: Run Both Campaigns Together
Step 1: Use both manual and automatic campaigns simultaneously as “always-on.”
Step 2: Use auto campaigns to keep discovering new keywords.
Step 3: Use manual campaigns to focus on high-performing keywords with controlled bidding.
|Tip: Bidding on the same keyword in both campaign types does not mean you’re competing with yourself, Amazon handles this internally when both campaigns run under the same account.
Launch Smart, Optimize Smarter
Wrapping up, launching your Amazon PPC campaign, whether through automatic or manual targeting, opens up a powerful path to increasing your product visibility, driving qualified traffic, and boosting sales directly on the world’s largest e-commerce platform.
While getting started with Amazon Sponsored Ads is relatively easy and budget-friendly, sustaining performance and scaling profitability requires strategy, continuous optimization, and an understanding of how match types, bidding strategies, and targeting options interact.
With features like automatic targeting for keyword discovery and manual targeting for precision, Amazon PPC gives sellers across industries the flexibility to match their goals—whether that’s brand awareness, aggressive sales growth, or long-term profitability. However, success doesn’t come from setting it and forgetting it. It’s essential to:
Regularly monitor KPIs like CTR, ACoS, ROAS, and conversion rate
Use search term reports to add high-performing keywords and eliminate irrelevant ones with negative targeting
Align your bids, budget, and targeting with real-time market trends and seasonal shifts.
But it’s not without challenges. Amazon’s advertising ecosystem is constantly evolving, and without reliable tools or data, sellers risk wasting ad spend, missing optimization opportunities, or getting outbid in competitive spaces. And if you ever need help, we’re here to manage it for you!
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