Advertising on Amazon: It’s Not About Ad Types—It’s About Targeting

Amazon advertising success hinges on targeting—not just ad types. As Joon Choi, Senior Vice President of Sales at Xnurta, emphasizes, understanding who you’re reaching and what you’re targeting to connect with that audience is the foundation of a winning strategy.

Many advertisers approach Amazon advertising with the wrong perspective—focusing on ad types first. Auto vs. Manual, Sponsored Products vs. Sponsored Brands—these are important but secondary decisions.

The real key? Targeting.

Before you even think about campaign structure, ask yourself two questions:

Who is my ideal customer?

What am I targeting to reach them?

Get these right, and your ad performance will improve significantly. Get them wrong, and no amount of tweaking campaign settings will save you.

Start with Targeting, Not Ad Type

Too many brands launch campaigns without a clear targeting strategy. They throw budget at Auto campaigns or pick a handful of keywords and put them into broad match, leading to excessive discovery spend. That’s how you burn money fast.

Here’s how to fix it:

1. Identify Your Buyer Persona

Amazon shoppers vary widely. Are you targeting first-time buyers, brand-loyal repeat customers, or deal hunters? Each group behaves differently and requires different messaging, keyword strategies, and bidding approaches.

For example:

• A premium product targeting high-end buyers? Focus on higher-intent audiences—those with a greater affinity for premium purchases—along with competitor conquesting and strategic placements.

• A budget-friendly option for price-sensitive shoppers? Target deal-related search terms and run price comparison ads on competitor listings.

2. Define What You’re Targeting

Instead of picking random keywords, take a structured approach:

• Keyword Targeting: Use high-intent search terms that buyers use at the moment of purchase. Avoid vague, high-traffic terms that drain your budget without conversions.

• Competitor Targeting: Identify specific rival ASINs and run product-targeting ads on their listings.

• Category Targeting: If your product appeals to a broad audience or needs greater visibility in a competitive category, Amazon’s category targeting can place your ads where they naturally fit.

• Retargeting & Audience Targeting: If your brand has traction, focus on reconnecting with past visitors and engaged audiences to encourage repeat interactions.

The Auto vs. Manual Debate: A Means to an End

Advertisers often treat Auto and Manual campaigns as an either/or decision. Wrong approach. Both serve a purpose, but only if used strategically.

• Auto Campaigns: Use them for discovery — to identify winning keywords and ASIN placements. Then, analyze performance and shift what works into Manual campaigns.

• Manual Campaigns: Use these for more precise targeting to drive market share and top-line sales, leveraging insights from Auto campaigns to optimize bids effectively.

A winning approach? Run Auto and Manual campaigns together, monitor search term reports, and systematically refine targeting.

Build a Campaign Structure Around Your Targeting

Once you know your audience and target market, structure your campaigns like this:

1. Discovery Campaigns (Auto + Broad Manual): Test broad search terms and competitor placements to gather data.

2. Performance Campaigns (Exact + Product Targeting Manual): Scale proven search terms and ASIN placements.

3. Branded Campaigns (Branded Keywords + Retargeting): Prevent competitors from stealing your customers.

This structure keeps your budget optimized and prevents inefficient spending.

Final Thought: Perspective Matters

Most brands struggle with Amazon advertising because they start at the wrong end—picking ad types before defining their audience and targeting strategy. Flip the script. Focus on who and what you’re targeting first, then structure your campaigns around that.

Amazon advertising isn’t a guessing game. Get your targeting right, and the results will follow. Watch the full conversation here.