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What are the benefits of Amazon automatic campaigns, and what matching options do they use?
Key takeaways from this article:
Get a quick overview of what Amazon automatic ads do and the different ways to use them, including 3 bidding strategies and 4 match types.
Time required to read this article: 5 minutes
For many beginner sellers, automatic ads are a relatively easy way to advertise when they are not yet familiar with manual ads. But automated advertising isn’t just easy to get started with—it also has a lot of hidden strengths. Today, we’ll introduce beginner sellers to the six key benefits of Amazon automated advertising to help you better understand what it can do. We’ll also walk you through its bidding strategies and match types, so you can better master automated advertising and run your Amazon advertising campaigns more effectively.
What Amazon automated advertising can do: six key benefits of automated advertising
Benefit 1: Check Listing quality and how well the system recognizes your Listing.
Sellers can use data from automatic campaigns to verify Listing quality and how the system recognizes the Listing, so they can continue to optimize the Listing.
Benefit 2: Product testing: test bestselling products or the bestselling variants among multi-variant products.
Automatic campaigns can also help with product testing!Help you identify bestselling variants, run ads for them separately, and improve results.
Benefit 3: work with manual ads to improve traffic precision.
By using automatic ads effectively with manual ads, you can keep filtering out low-performing or invalid traffic and increase high-performing traffic, so you can keep improving traffic precision. In practice, we need to adjust manual ad match types, bids, and budgets based on how keywords perform in automatic ads.
Benefit 4: break the ice and find exposure.
When the products you sell are in a new category, and you haven’t done enough keyword or ASIN research or don’t yet know how customers search for our products, you can use automatic campaigns to quickly gain exposure. For familiar categories, as the market changes, customers’ search terms also change. Keeping automatic campaigns on can also help you capture changes in customer search behavior in the market at any time.
Benefit 5: continue expanding high-quality keywords.
Continuously expanding keywords can not only help us increase exposure, but also uncover more “hidden” product selling points and use cases. For non-English Marketplaces or special categories, keywords can be inherently difficult to find, so it is especially important to use automatic campaigns to keep expanding keywords.
Benefit 6: find overlooked opportunities and achieve more with less.
With a very limited advertising budget, we can try launching automatic campaigns with a very low budget and bid, so that the system can automatically match traffic to the product. Sometimes the system matches low-competition long-tail traffic. Although the traffic volume is relatively small, because the CPC is low, if it converts, the ACOS will also be low.
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How to make the most of Amazon Advertising: automatic ad matching methods and bidding strategies
Automatic ads may seem simple, but they actually include a lot of new tricks. For one ASIN, the 3 bidding strategies and 4 match types built into automatic ads can create 12 ad strategies!
3 types of bidding strategies:
1. When ads are unlikely to generate sales, lower bids in real time;
2. Raise the bid in real time (up to 100%) when the ad is likely to bring in sales; lower the bid when the ad is unlikely to bring in sales;
3. Use the exact bid you set, without adjusting it based on how likely the product is to sell.
e.g.: When FBA inventory is low, products may be transferred among FBA warehouses. If dynamic bidding is used, Amazon will not increase (and possibly lower) bids for users with shipping addresses that do not have inventory. If a fixed bid is used, the ad will be shown to users at all delivery addresses.
4 automatic ad match types:
Close match:Your ad will appear when customers search for terms closely related to your product. For example, if your product is “Doppler 400 count cotton sheets,” we’ll show your ad when shoppers use search terms like “cotton sheets” and “400-count sheets.”
Loose match:Your ad will appear when customers search for terms loosely related to your product. For example, if your product is “Doppler 400 count cotton sheets,” we’ll show your ad when shoppers use search terms like “bed sheets,” “bath sheets,” and “bath towels.”
Substitutes:
Your ad will be displayed on product detail pages where customers view products similar to yours. If your product is “Doppler 400-count Cotton Sheets,” we will display your ad on product detail pages including “300-count Cotton Sheets” and “Queen 400-count sheets.”
Complementary products:
Your ad will be displayed on product detail pages for products that complement your product. For example, if your product is “Doppler 400-count Cotton sheets,” we will display your ad on the product detail pages for “queen quilt” and “feather pillows.”
That concludes our introduction to how Amazon automatic ads work, as well as automatic ad bidding strategies and match types. We hope this helps sellers better understand Amazon automatic ads and improve their ad campaigns.
Note: The information above was published in December 2024. Follow the Global Selling website to stay up to date on the latest changes.
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