SPA’s is probably the most effective Amazon Advertising Method and 80% of your Amazon Advertising Budget should be focused on this area of Advertising. Sponsored Product Ads look just like a normal search result, but have a small “Sponsored” watermark above the title in search results:

Many strategies are commonly used for SPAs. The most common strategy we use is called Keyword Mining. Once we make sure that all of the product page content is built out, we start with either an aggressive or conservative approach mostly depending on a product history. If a product is new or newer to Amazon perhaps with little or no reviews, we opt for a conservative approach meaning that we start the CPC bids low target an ACOS from a lower percentage, and grow into the target ACOS. If a product has strong reviews or BSR (Best Seller Rank), then we will apply a more aggressive CPC, expecting a higher ACOS, and then work towards the target ACOS. We will start with an Automatic Campaign(s) in which Amazon will select when our product appears in paid search based on our content, bid amount, and relativity score about the customer’s search term. As we continue to capture impressions, clicks, and conversions, we are then able to make some data-driven decisions such as adding negative keywords or lowering bids for poor performers and creating phrase and exact manually targeted campaigns for those keywords that are performing. We carry out this process until we feel confident that we have mined out the converting keywords and move forward with our manual campaigns to explore more opportunities in additional keyword stings.

Another one of the strategies we use includes boxing out competitors which is usually what larger brands with bigger budgets can deploy to outspend and outplace the competitors in paid search results. The idea here is to soften sales and increase spending for their competitors while dominating a category or search term(s). Another common strategy is targeting specific keywords to convert which moves organic rankings higher in indexing for each sale made on that targeted keyword. A process like this can take some time and may yield some higher ACOS in the short term so products selected for this type of strategy must be in it for the long haul. Similarly, when a brand has a new product launch Sponsored Product Ads can be used as a tool to get products to index faster organically by accelerating Impressions, Clicks, and Conversions which are all factors in organic indexing on Amazon.