This episode explores optimal budget allocation strategies within Amazon Ads campaigns. The discussion centers around the debate of auto versus manual campaigns, with the hosts advocating for a predominantly manual approach (80% manual, 20% auto). More significantly, within manual campaigns, they recommend prioritizing exact match keywords (80%) over broader match types (20%), emphasizing the scalability and control offered by exact match. For instance, they highlight that while broader matches might initially show higher conversion rates, this is often due to capturing high-volume search terms that can be better targeted with exact matches for improved efficiency and sales volume. Against the backdrop of this 80/20 rule, exceptions are noted for product launches, where focusing almost entirely on exact match keywords initially helps establish product indexing and visibility. In contrast, for sponsored brand campaigns, a similar but slightly less extreme approach (80% exact, 20% phrase) is suggested due to the higher cost of this ad type. Ultimately, the hosts emphasize that these allocations are not rigid rules but rather reflect natural outcomes of effective bid management and keyword optimization, with the goal of maximizing return on ad spend.
