3. Using only automatic campaigns
The use of automatic campaigns may seem like a quick fix for many sellers, but it is not always the best solution. It is important to understand the pros and cons of this type of campaign to assess what is right for you:
Automatic Campaigns
Require less effort, keywords are automatically determined by Amazon's algorithm by extracting them from the title, description and other sections of your product listing.
On the other hand, the targeting of these campaigns is less accurate and you may be wasting a lot of money with showing ads to people to whom they are not relevant.
You should not bid too high on automated campaigns as the budget can skyrocket with irrelevant impressions and clicks that don't convert.
Manual Campaigns
Require much more time and dedication in terms of keyword research and bidding. However, they are much more precise in targeting and therefore ROI, if properly set up, is much higher.
To help you set up your manual campaigns, you can use your automatic campaigns by taking into account which search terms are performing the best and use them in your manual campaigns with broad match.