Optimizing Sponsored Products for Maximum ROAS

Sponsored Ads Optimized

Optimizing Sponsored Products for Maximum ROAS

Sponsored Products are the bread and butter of Amazon Advertising. Whether you’re launching a product, scaling a bestseller, or defending your brand, the way you structure your SP campaigns has a direct impact on performance — especially on ROAS (Return on Ad Spend).

In this article, we’ll walk you through how to structure your SP campaigns using a clear example, and offer tips to keep your targeting sharp and your spend efficient.

Example Setup: 4 Headphone ASINs

  • ASIN A: Premium Noise-Cancelling Headphones
  • ASIN B: Color Variant (Red)
  • ASIN C: Budget-Friendly Model (New Launch)
  • ASIN D: Older Model (Clearance Focus)

Recommended Campaign Structure

1. SP Auto – Discovery Engine

  • Use 1 ad group per ASIN
  • Let Amazon surface keywords and ASINs
  • Use it to mine new terms and placements

2. SP Manual – Branded Keywords

  • Target your own brand + product names
  • Match types: Exact and Phrase
  • Best for defending search results

3. SP Manual – Non-Branded Keywords

  • Target generic terms: “wireless headphones,” “noise cancelling earbuds”
  • Best for attracting new-to-brand customers
  • Segment by match type: Broad, Phrase, Exact

4. SP Product Targeting – Defensive

  • Target your own ASINs or variants
  • Block competitor ads on your listings

5. SP Product Targeting – Offensive

  • Target competitor ASINs directly
  • Works best with a price/feature advantage

6. SP Product Targeting – Category Expanded

  • Category targeting with refinements:
    • Price range
    • Star rating
    • Prime eligibility

Budget & Bidding Tips

  • Auto campaigns: 25–30% of budget
  • Manual keyword: ~50%
  • Product targeting: 20–25%
  • Start with low bids and optimize by placement
  • Use +50% top of search multiplier if profitable

Optimization Advice

  • Use search term reports weekly
  • Move converting terms from Auto → Manual Exact
  • Negate non-relevant terms in Auto
  • Use match type-level performance insights

Related Reads

Amazon Ads Foundations
Amazon Ad Campaign Types Explained
Try the ACOS & ROAS Calculator

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