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An advertiser on Amazon buys clicks on its products through three ad products, organizes them into campaigns, and chooses targets: the searches or products its ads should appear on. How loosely a target matches a search decides which shoppers see the ad.

The three ad products

  • Sponsored Products (SP). An ad for one product, shown in search results and on other products’ pages. The bulk of most accounts’ spend.
  • Sponsored Brands (SB). A banner-style ad for the brand: a logo and headline with a collection of three products, a video with one to three products, or a spotlight of the brand’s store.
  • Sponsored Display (SD). Ads for one product shown to audiences and on product pages, on and off Amazon.
Amazon also sells Amazon DSP (demand-side platform): programmatic display and video ads across Amazon and other sites, bought outside the sponsored ads auction.

How a campaign is built

Ads are organized as campaigns, which hold ad groups, which hold the ads, the targets and the negative targets. A campaign carries the daily budget and the bidding settings; each target carries its own bid, the most the advertiser will pay for one click. There are two kinds of target:
  • Keyword. A search text the ad should appear on, with a match type that controls how loosely it matches.
  • Product target. A specific product (ASIN) or a category the ad should appear on, usually on product pages.
An AUTO campaign has no keywords; Amazon chooses where the ad appears through four groups: close match, loose match, substitutes and complements.

Match types

Exact is not exact. Amazon also serves an exact keyword on close variants of its text. On our own search-term reports, lowercasing, punctuation, dropped function words and plurals explain almost all of the traffic an exact keyword gets on a differently written search. Of the impressions where the search added or dropped a word, 60% involved just “be” or “for”. So two of our exact keywords whose texts differ only that way are, to Amazon, one target with two bids.

Negative targets

A negative keyword blocks an ad from searches that match it (negative exact or negative phrase). A negative product target blocks it from a product’s page. Negatives keep spend off irrelevant searches and keep each search on the campaign meant for it.

Bids, budgets and placement modifiers

Each target has a bid. Each campaign can raise its bids for particular placements on the page with a placement modifier (a percentage boost), and can let Amazon adjust bids at auction time with dynamic bidding. How those settings turn into a price is on The Auction; how the placements differ is on Placements.

What we have measured