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Amazon PPC

Profitable Amazon PPC CATEGORY Targeting - Step by Step (2026)

Chris Rawlings argues that Amazon 'category targeting' — a third PPC targeting type distinct from keyword and product targeting that targets a whole product category or a subset of one — is currently one of the best-performing 'wider' targeting types on Amazon, and he walks through how to set it up, refine it, and bid on it for profitability.

Chris Rawlings · 2025-10-02 · English

Key ideas

  1. Category targeting is a distinct Amazon PPC targeting type from keyword targeting (showing up in search) and product targeting (showing up on product pages); it targets a whole category or a subset of one and can appear in both search and on product pages.

  2. Category targeting is available across all three ad types: Sponsored Products, Sponsored Brands, and Sponsored Display.

  3. Rawlings' agency previously ignored this targeting type but has recently made it a key part of strategy because it's been 'crushing it'; on the account discussed, it was the lowest-ACoS campaign.

  4. Setup flow: create campaign → select product → manual targeting → product targeting → choose 'categories' (vs. individual products) → choose Suggested or Search.

  5. Under Suggested, Amazon auto-picks a category it thinks fits best, usually the seller's own category; under Search, you manually search or browse categories.

  6. The recommended starting point is the category your product is already listed in (visible in the product info/bestseller rank section of the listing); expand to similar/adjacent categories only after the campaign is proven.

  7. The 'Refine' button narrows a category to a smaller subset using filters: brand, price range, review star rating, and shipping.

  8. Setting a minimum price above your own product's price targets pricier competitor listings so deal-seeking shoppers see your cheaper ad.

  9. Targeting products under a chosen star-rating threshold (e.g., under 4 stars when you're 4.5) puts your better-rated offer in front of shoppers comparing weaker options.

  10. Filters can be combined (e.g., price + rating), but stacking too many risks shrinking the available target pool and starving the campaign of impressions; the fix is dropping to one filter or loosening the range.

  11. Non-prime-eligible shipping filter exists but usually overly restricts the pool, so it's normally left unfiltered.

  12. The brand filter targets an entire brand's listings; it's usually used alone (not combined with other filters) unless the brand is very large, and the brand to target is chosen by reviewing search term reports for brands you already convert well against.

  13. Recommended defaults: dynamic bids down only as bidding strategy, and no bid adjustments at launch; an audience bid adjuster of 20-30% for high shopping interest can be tested later.

  14. In the example account, sorting the refined category campaign's targets by sales shows a mix of specific products (from the refine filter) and search terms, meaning category targeting shows up in both search and product-page placements.

  15. Rawlings frames this as part of a broader shift where 'wider targeting types' are performing better on Amazon following a platform change over the past year, and references automatic targeting as another such wider type covered in a separate video.

  16. Category Targeting — A third Amazon PPC targeting type (alongside keyword and product targeting) that targets a whole product category or a subset of one, available in Sponsored Products, Sponsored Brands, and Sponsored Display. Apply: Create a campaign, select the product to advertise, choose manual targeting → product targeting, then pick 'categories' instead of individual products.

  17. Suggested category targeting — A sub-option under category targeting where Amazon automatically suggests the category it thinks has the best chance, usually the seller's own category. Apply: Click 'add category' on Amazon's suggested category when it matches your product for a fast, minimal-setup campaign.

  18. Search category targeting — A sub-option under category targeting for manually finding a category by searching its name or browsing the category tree when the suggested one isn't right or more categories are needed. Apply: Search your product's subcategory name (found under the bestseller rank in your listing's product information) or browse categories, then add the matching one(s).

  19. Refine (category filtering) — A filtering tool within category targeting that narrows a category to a smaller, more convertible subset using brand, price range, review star rating, and shipping filters. Apply: Click 'refine' on a selected category and set filter criteria to target only the competitor listings you're more likely to beat rather than the whole category.

  20. Price range filter (refine) — A refine filter that restricts category targeting to products priced above (or below) a chosen threshold. Apply: Set a minimum price above your own product's price so deal-seeking shoppers on the pricier listing see and switch to your cheaper ad.

  21. Review star rating filter (refine) — A refine filter that restricts category targeting to products under a chosen star-rating threshold. Apply: Cap the target rating below your own (e.g., under 4 stars when you're 4.5) so your higher-rated offer appears against weaker-rated competitors.

  22. Brand filter (refine) — A refine filter that targets every listing under a specific brand instead of a whole category. Apply: Pick a brand you already convert well against per your search term reports, and target it alone (avoid stacking with other filters unless it's a huge brand).

  23. Dynamic bids – down only — The default recommended bidding strategy for a new category targeting campaign. Apply: Leave this as the bidding strategy setting at campaign launch.

  24. Audience bid adjuster (high shopping interest) — An optional bid adjustment of 20-30% applied for audiences showing high interest based on shopping activity. Apply: Test adding this adjustment after the campaign has been running for a while rather than at initial launch, since it 'tends to work well, but not always.'

Insights

The refine filters effectively turn category targeting into a competitive 'sniping' tool — instead of blanketing a whole category, you isolate specific weaker competitors (pricier or lower-rated) that your own listing is likely to beat on comparison.

The recommended sequencing is narrow-then-broad: start with your own exact category/subcategory, and only add adjacent categories after the initial campaign has already proven itself — not the reverse.

Filter stacking is presented as a trade-off lever: more filters increase conversion likelihood per click but shrink the reachable audience, so the practical fix for low impressions is removing a filter or widening the range rather than abandoning the tactic.

Even though the campaign is structured around a category/refine setup rather than keywords, the actual placement data mixes specific ASIN targets and search terms — meaning category targeting doesn't map cleanly onto a single placement type despite its distinct setup path.

«This campaign is our lowest a cost campaign in this Amazon PPC account.»

— 00:00

«We used to ignore this type of targeting in our ads, but recently it's been crushing and we've been incorporating it as a key part of our strategy»

— 00:41

«this allows you to snipe sales only from the competitors that have a worse offer than you.»

— 04:16

«you're really just honing in and attacking that brand with heavy offense, going after only their listings.»

— 05:04

«I would definitely recommend at least testing it out.»

— 07:39

Reception

Viewers found the category-targeting breakdown clear and valuable, with many follow-up questions and thanks, tempered by a few unrelated complaints and one negative testimonial about a PPC agency.

The video is a practitioner walkthrough that frames category targeting as an underused but currently high-performing Amazon PPC lever, backed by one account example and Rawlings' own agency experience, structured mainly as a Seller Central setup tutorial with a closing pitch for his PPC management service.

08:42

↳ Chris Rawlings · YouTube

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