Imagine developing a versatile tool for outdoor enthusiasts, only to find your advertising budget disappearing without meaningful conversions. The problem likely lies in targeting - your ads aren't reaching the right outdoor enthusiasts with genuine purchase intent. Amazon's new audience targeting options for Display Advertising provide a powerful solution to this challenge, enabling advertisers to leverage user behavior data for more precise audience segmentation.
I. Amazon Display Advertising: Four New Audience Types Explained
Amazon's vast repository of user behavior data forms the foundation for these new targeting capabilities. Unlike traditional demographic-based approaches, these methods focus on analyzing shoppers' search and purchase patterns to determine interests and needs. This behavioral targeting strikes a balance between broad demographic targeting and precise product targeting, expanding brand exposure while minimizing budget waste.
1. In-Market Audiences
Definition: Targets users who have recently demonstrated purchase intent in specific product categories - essentially those with full shopping carts awaiting final checkout.
Applications: Ideal for promoting substitute or complementary products. For example, targeting coffee machine browsers with premium coffee beans or filters.
Strategic Insight: The value of in-market audiences lies in their immediacy. These users are at critical decision-making moments with heightened product interest. Ad copy should emphasize product advantages, differentiation, and compelling promotions to facilitate quick purchases.
2. Lifestyle Audiences
Definition: Categorizes users into lifestyle segments like "tech enthusiasts," "foodies," or "fitness buffs" based on shopping and viewing behavior.
Applications: Effective for brand awareness campaigns targeting specific lifestyle preferences, such as promoting smart home devices to tech enthusiasts or premium cookware to foodies.
Strategic Insight: Lifestyle segmentation reflects users' deeper interests and values. Ad strategies should align with these values, conveying brand philosophies. For example, sustainability-focused products should highlight environmental benefits when targeting eco-conscious consumers.
3. Interest Audiences
Definition: Infers user interests from frequently browsed or purchased products, essentially transforming Amazon's recommendation engine into an advertising tool.
Applications: Particularly valuable for niche market products, such as high-end audio equipment for classical music enthusiasts or gardening tools for horticulture hobbyists.
Strategic Insight: Interest targeting excels at reaching passionate niche audiences. Ad copy should emphasize product expertise and uniqueness while potentially incorporating relevant knowledge or resources to enhance engagement.
4. Life Events Audiences
Definition: Targets users experiencing or approaching significant life milestones like weddings, births, moves, or travel.
Applications: Effective for products related to specific life events, such as wedding supplies for engaged couples or baby products for expecting parents.
Strategic Insight: Major life events typically involve substantial purchasing needs. Ads should highlight both practical utility and emotional resonance while potentially offering guidance to help users navigate these transitions.
II. Data-Driven Decision Making: Should You Use These New Audiences?
The decision to use these new targeting options depends on specific circumstances and marketing objectives:
- For established sellers with sufficient budgets: These audiences represent ideal tools for expanding brand exposure when bottom and middle funnels are already optimized.
- For new or budget-constrained sellers: Prioritize bottom-funnel strategies to solidify core product conversions before expanding to upper-funnel approaches.
- For brand awareness goals: These audiences primarily serve awareness objectives rather than immediate sales. Focus on metrics like click-through rates and impressions rather than expecting direct conversions.
III. Implementation Guide: Maximizing New Audience Targeting
To effectively leverage these new targeting options:
- Conduct thorough product and audience analysis before campaign launch
- Begin with small test budgets (typically 25-33% of standard product ad bids)
- Select appropriate bidding strategies based on campaign objectives
- Continuously test and optimize ad creatives and messaging
- Regularly monitor performance metrics and adjust strategies accordingly
- Consider view remarketing as a preliminary step
- Evaluate performance through total ACOS (ACOTS) rather than individual campaign metrics
IV. Strategic Considerations: Display Advertising vs. Amazon DSP
While Amazon DSP offers more advanced targeting capabilities, it requires greater budgets and expertise. The new Display Advertising audiences serve as a more accessible alternative for small-to-midsize sellers:
- For large advertisers: DSP provides superior customization for those with sufficient resources
- For smaller sellers: Display Advertising offers more manageable audience targeting solutions
Successful Amazon advertising increasingly demands sophisticated audience segmentation and strategic optimization. These new targeting options enable sellers to balance brand exposure with efficient budget allocation, creating opportunities to stand out in competitive marketplaces.