As the year-end shopping season approaches, cross-border e-commerce sellers are gearing up for their annual challenge. However, many sellers report that Amazon's Advertising Cost of Sale (ACOS) has been steadily increasing, squeezing profit margins. In an increasingly competitive market, improving advertising efficiency has become a critical priority.
Amazon recently rolled out a series of upgrades to its Sponsored Products advertising features. These enhancements aim to help sellers better target audiences and optimize ad strategies during the peak season. This article examines five key new features that can help sellers gain a competitive edge.
I. The Holiday Season: Early Preparation for Competitive Advantage
Amazon's Sponsored Products ads remain one of the most effective tools for sellers, improving keyword rankings and product visibility. For new products, these ads accelerate browse ranking growth, increase conversion rates, and help accumulate customer reviews faster.
Data shows that new products with Sponsored Products campaigns reach the top 50 browse rankings 26% faster than those without ads (Source: Amazon research, U.S. advertisers, June 2020-June 2022, measuring performance 30-90 days after product launch).
Browse rankings directly correlate with sales volume. Higher visibility drives more sales, which in turn improves rankings. Products that rank higher within their category typically see corresponding sales increases. Additional data reveals that new products launching Sponsored Products campaigns four weeks before Black Friday/Cyber Monday see 44% higher return on ad spend (ROAS) and 162% better conversion rates compared to those starting during the peak week (Source: Amazon research, Chinese advertisers, four weeks preceding Black Friday/Cyber Monday, November 2021).
With less than four weeks remaining before Black Friday, now is the ideal time for sellers to establish promotional strategies for new products and leverage Amazon's advertising tools for peak season success.
II. Five New Features: Enhanced Advertising Performance
Amazon's upgraded Sponsored Products features fall into two categories: campaign recommendations and campaign optimization tools.
A. Campaign Recommendations: Smart Predictions for Targeted Ads
1. Automatic Targeting Performance Predictions (Beta): Performance Forecasting for Better Decisions
This beta feature provides performance estimates when creating new Sponsored Products campaigns. Based on the advertised product and bidding strategy, it forecasts weekly click volume and order numbers. Sellers can use these projections to evaluate whether to proceed with the campaign or adjust their strategy.
For example, U.S. sellers creating new automatic campaigns can view expected performance metrics directly on the setup page. These data-driven estimates help sellers make more informed advertising decisions.
2. Pre-Set Campaigns: Simplified Launch for New Products
New products often lack historical data to guide daily budgets, bids, targeting methods, or keyword selection. The pre-set campaigns feature addresses this challenge by automatically populating campaign settings based on insights from similar products' historical performance.
Sellers can quickly understand a new product's advertising potential, review optimized settings, and launch campaigns with one click. This feature particularly benefits inexperienced sellers by lowering the barrier to effective advertising.
B. Campaign Optimization: Precise Adjustments for Better Results
After launching campaigns, sellers can use these optimization tools to refine performance:
1. Expanded Product Targeting: Broader Reach with Precision
This feature extends product targeting to closely related items, helping sellers discover high-performing placements. Key advantages include:
- Targeting only closely related products based on past interactions and browsing history
- Daily updates to include top-performing placements
- Cost-efficient targeting of relevant products
- Detailed reporting on expanded targeting performance
Previously limited to specific ASINs, the upgraded feature now targets related products. For example, a keyboard ad can reach other keyboards (similar products) and accessories like mice or headphones (complementary products), expanding traffic channels.
2. Rule-Based Bidding: Smart Adjustments for Higher ROAS
This feature automatically adjusts bids based on campaign performance rules to improve return on ad spend. Requirements include:
- Currently available only for U.S. Sponsored Products campaigns
- Applicable to all targeting types (automatic, keyword, or product targeting)
- Minimum 30-day campaign duration with at least 30 conversions in the past 30 days
- Minimum $10 daily budget
When combined with budget rules, this feature helps sellers better manage peak season advertising investments.
3. Bulk Spreadsheet Downloads for ASIN Eligibility: Efficient Campaign Management
This tool enables bulk operations to quickly identify and address ASIN eligibility issues (like out-of-stock items) that might otherwise require time-consuming manual checks. Key capabilities include:
- Managing all search ad campaigns (Sponsored Products, Brands, and Display)
- Adjusting campaign and ad group names
- Adding multiple ad groups within single campaigns
- Adding, pausing, or archiving thousands of keywords simultaneously
- Viewing performance metrics and adjusting bids directly
Bulk eligibility status visibility helps sellers make faster, more informed optimization decisions.
III. Conclusion: Leveraging New Tools for Peak Season Success
Amazon's Sponsored Products upgrades focus on providing clearer campaign recommendations and more powerful optimization tools. Features like performance predictions and pre-set campaigns help sellers develop better strategies, while expanded targeting, rule-based bidding, and bulk management tools improve execution efficiency.
As the holiday season approaches, sellers who master these new features and implement early, data-driven strategies will be best positioned to stand out in a competitive marketplace and maximize seasonal sales.