Should You Segment Amazon Ad Campaigns by Match Type? Here’s What Works

Your Amazon PPC campaigns are a mess. You’re throwing everything into one campaign, hoping something sticks, but your ACOS is through the roof. It feels like you’re wasting money.

This is a common problem for Amazon sellers. You’re told to segment your campaigns, but it’s not clear how. One of the most frequent questions we get is about match types: Should you separate your broad, phrase, and exact match keywords into different campaigns?

In this article, we’ll break down the pros and cons of segmenting by match type and show you the strategy we use at AdLabs to get the best results for our clients. Let’s dive in.

The Great Match Type Debate: To Segment or Not to Segment?

Most Amazon sellers have heard that segmenting campaigns is a best practice. But segmenting by match type? That’s where things get murky.

Here’s what’s happening: Amazon advertising has evolved. What worked five years ago might not work today. The old advice was to rigidly separate match types to maintain tight control. But is that still true?

The Argument for Segmenting by Match Type

The traditional argument for separate campaigns goes like this:

• Control: You can control bids and budgets more precisely for each match type.
• Data Analysis: It’s easier to analyze performance data when match types are isolated.
• Relevance: You can tailor ad copy and landing pages to match the intent of each match type.

For example, if your broad match campaign is bringing in irrelevant traffic, you can quickly identify and negate those terms without affecting your exact match campaign.

The Problem with Strict Match Type Segmentation

The reality is, strict segmentation can create more problems than it solves.

• Complexity: Managing multiple campaigns adds complexity and takes up more time.
• Data Fragmentation: Separating data makes it harder to see the big picture and identify trends.
• Limited Learning: Smaller campaigns have less data, which can hinder Amazon’s algorithm from optimizing effectively.

Imagine managing 20+ campaigns all segmented by match type. You’d spend all day just adjusting bids!

The AdLabs Approach: A Hybrid Strategy for Amazon PPC

At AdLabs, we’ve found that a hybrid approach works best. We don’t rigidly separate every campaign by match type. Instead, we use a combination of segmented and combined campaigns based on specific goals.

Here’s how to do it:

1. Start with Combined Campaigns: For product launches or initial testing, combine all match types (broad, phrase, exact) into a single campaign.
2. Analyze Search Term Data: After 30-60 days, analyze the search term report to identify high-performing and low-performing keywords.
3. Segment High-Performing Keywords: Move high-converting, relevant keywords to a separate exact match campaign with a dedicated budget.
4. Negate Low-Performing Keywords: Negate irrelevant search terms in the combined campaign to refine traffic.
5. Iterate: Continue monitoring and adjusting bids, budgets, and negations based on performance data.

Let’s look at a real example. We had a client in the home goods niche whose ACOS was stuck at 45%. By implementing this hybrid strategy, we:

• Identified 15 high-converting keywords from their broad match campaign.
• Moved those keywords to a new exact match campaign.
• Negated 30 irrelevant search terms from the broad match campaign.

Within 60 days, their ACOS dropped to 28%, and their sales increased by 20%.

Why This Hybrid Approach Works Better

The hybrid approach offers several advantages:

• Simplicity: You’re not managing dozens of separate campaigns.
• Data Consolidation: Combined campaigns provide more data for Amazon’s algorithm to learn.
• Flexibility: You can quickly adapt your strategy based on performance data.

Most sellers don’t realize that Amazon’s algorithm is designed to optimize for conversions. By giving it enough data, you can let it do its job while still maintaining control over your high-performing keywords.

Advanced Segmentation Tactics

Once you’ve mastered the basics, you can experiment with more advanced segmentation tactics:

Brand vs. Generic Campaigns

Separate your branded keywords (e.g., “AdLabs PPC software”) from generic keywords (e.g., “Amazon PPC tool”). This allows you to:

• Protect your brand from competitors bidding on your name.
• Control your brand messaging.
• Optimize bids for higher conversion rates on branded terms.

Product Category Campaigns

If you sell a wide range of products, consider segmenting by product category. This helps you:

• Tailor ad copy and landing pages to specific product lines.
• Allocate budgets based on product profitability.
• Identify best-selling products within each category.

The key is to segment strategically, not arbitrarily. Don’t create more campaigns than you can effectively manage.

The Bottom Line: Test, Analyze, and Adapt

There’s no one-size-fits-all answer to the match type segmentation question. The best approach depends on your specific goals, budget, and product catalog.

The key is to test different strategies, analyze your data, and adapt your approach based on what works best for your business. Don’t be afraid to experiment, but always track your results and make data-driven decisions.

Segmenting your Amazon ad campaigns by match type can be beneficial, but it’s not always necessary. The hybrid approach we discussed allows you to balance control with simplicity, ultimately leading to better results and a higher ROI on your ad spend.

Key Discussion Points from the Episode

Here are some of the most valuable insights Andrew and Stephen shared during the full episode discussion:

But the truth is, and Amazon is explicitly clear about this, you cannot drive up your own CPCs through having the same keyword in multiple campaigns. Alexa, play that Amazon Ads podcast. Which one would you like to hear?

The best one. Okay, now playing that Amazon Ads podcast. This gentleman are completely changing their game.

After listening to that Amazon Ads podcast, my ads are finally profitable.

This article is based on Episode 72 of That Amazon Ads Podcast. Subscribe for weekly Amazon PPC strategies.