Should I bid on competitor ASINs on Amazon?
Bidding on competitor ASINs through Amazon product targeting places your ad directly on the detail page of a competing listing. This can expose your product to relevant shoppers who are actively comparing options, but it typically converts at a lower rate than keyword campaigns because the shopper's intent is initially directed at a competitor, not your product. Amazon's Sponsored Products product targeting feature lets you choose specific ASINs to target. When your ad is active and the targeted ASIN's product detail page is viewed, your ad appears in the sponsored placements on that page. The shopper who arrives on a competitor's product page is already interested in that category, which makes them a relevant audience. However, they arrived with the intention of looking at a different product, so converting them requires your offer to be visibly compelling by comparison. You can also target ASIN categories rather than individual ASINs, which broadens your reach to any product in a chosen category. Individual ASIN targeting is more precise: you choose exactly which competitors you appear alongside. Category targeting is wider and requires less management but also less control over which specific competitor pages your ad appears on. Competitor ASIN targeting works best when you have a specific and visible advantage over the targeted product. If your listing has a lower price, significantly more positive reviews, a better primary image, or a feature the competitor lacks, a shopper on that competitor's page may switch when they see your offer. The advantage needs to be clear at a glance: the shopper will see only your ad creative alongside the competitor listing, so there is very little room to explain a complex value proposition. It also works well for defensive purposes. If a competitor is placing their ad on your product detail page, bidding on their ASIN in return can redirect some of that traffic back toward your category. This is sometimes called reciprocal targeting and is common in competitive categories. Allocate a smaller portion of your total PPC budget to competitor ASIN targeting than to keyword campaigns. Because conversion rates are lower, the same click spend produces fewer sales and ACoS will typically be higher. A useful starting approach is to allocate 15% to 20% of your PPC budget to product targeting and the remainder to keyword campaigns, then adjust based on actual results. Review competitor ASIN campaigns monthly rather than weekly. The performance of individual ASIN targets can shift as competitor listings change their pricing, gather reviews, or update their images. An ASIN that previously converted poorly may become a better target after a competitor raises their price or receives a batch of negative reviews.
Bidding on competitor ASINs places your ad on rival product pages. Learn when it converts and when keyword campaigns are a better use of budget.