Optimize Amazon Ads Using Product Tags | FBA Strategy

In today’s highly competitive Amazon marketplace, launching ads isn’t enough—you need the right listings to power them. The platform’s new advertising update is reshaping how sellers approach their campaigns. Now, with the introduction of Amazon’s new ads feature, sellers can finally answer the big question: What does Amazon think of my listings?

As a verified Amazon advertising services partner operating in the USA and India, we know that most sellers are sitting on untapped ad potential simply because their listings aren't optimized or properly categorized. With this new feature, Amazon gives you direct insight into the quality and ad-readiness of your product pages—something we’ve all been waiting for.

Let’s break it down and show you how to optimize Amazon ads with product tags and drive better results, faster.

Why Listing Quality is Now Central to Amazon Ads

Until now, many sellers have approached ads with a trial-and-error mindset. You pick a product, set a budget, and hope the clicks roll in. But if your listing quality is poor, your ad spend turns into a black hole.

This is where Amazon’s update flips the script.

Amazon now evaluates your product listing quality before you launch ads—and tells you exactly how it perceives your product. This evaluation happens during the ad creation process within Amazon Campaign Manager, where Amazon assigns product tags based on your item’s performance, conversion potential, and category relevance.

Why does this matter? Because Amazon’s algorithm prioritizes listings it deems relevant and high-quality. With this transparency, you’re no longer flying blind. You're given a strategic roadmap for which products to push, which ones to fix, and how to fine-tune your Amazon seller ad strategy for 2025.

What Is the Amazon New Ads Feature?

The Amazon new ads feature is integrated into your existing Campaign Manager. When you go to create a new campaign—whether its Sponsored Products, Brands, or Display—Amazon now presents contextual tags next to your selected products.

These tags serve as a performance-based evaluation system. Instead of guessing which product will perform best with ads, you now get Amazon’s data-driven recommendation.

Some of the tags include:

• Suggested

• Benchmarking

• Brand Building

• Top Selling

• High Growth

• Trending

• Coupons

• Inventory

• Upcoming Deal

Each tag points to specific strengths, weaknesses, or marketing opportunities associated with the product. And with a simple “Learn More” link, you can drill into what each tag means, making this a self-coaching tool built into the ad platform.

This is a huge step toward Amazon PPC product categorization that gives sellers better control, quicker feedback, and reduced guesswork.

How Amazon Rates Product Listings for Ads

Amazon’s evaluation is based on a mix of your product’s historical performance and its algorithmic expectations.

Here are a few key tags and what they mean:

Benchmarking Tag

If your listing has a Benchmarking tag, it means Amazon has identified that your product’s sales or conversion rate is below the average for similar products in the same category. The implication? This product may benefit significantly from advertising, but only if you address conversion issues like poor images, vague descriptions, or weak review scores.

Pro Tip: Benchmarking doesn't mean failure—it signals opportunity. Use this insight to refine your listing and relaunch with a fresh ad strategy.

Brand Building Tag on Amazon

This tag indicates your product has the potential to attract engagement and establish your brand identity. It may not be your highest-selling item, but it could be the one that increases customer loyalty or helps grow awareness for new arrivals.

Use Case: Promote a beautifully packaged, mid-priced item tagged for Brand Building in a Sponsored Brands campaign. It may not convert today, but it introduces your brand to your ideal customer.

Suggested Products

These are Amazon’s top picks from your catalog—products it believes are best suited for advertising based on listing quality, inventory health, reviews, and pricing. If Amazon is recommending it, chances are it’s worth the ad spend.

This proactive categorization enables sellers to align their Amazon PPC efforts with Amazon’s internal evaluation, which results in lower cost-per-click (CPC), higher click-through rates (CTR), and better return on ad spend (ROAS).

How to Use This Feature Inside Campaign Manager

Here’s how to take full advantage of Amazon’s new ad evaluation feature:

1. Log in to Seller Central and go to Campaign Manager.

2. Start a new campaign—Sponsored Products is the best place to begin.

3. Scroll down to the product selection section.

4. Observe the tags that appear next to each ASIN.

5. Click “Learn More” on any tag to understand how Amazon categorizes that product.

6. Use this insight to:

• Select high-potential products for ads

• Revise listings that are underperforming

• Strategize cross-category campaigns

When you follow this approach, you’re not just launching campaigns—you’re launching campaigns backed by Amazon’s internal validation.

Watch our quick video walkthrough on how to use Amazon’s new product tags in Campaign Manager and learn how to spot ad-ready listings in under 3 minutes.

Can You Still Advertise Non-Suggested Products?

Yes. But should you?

If a product doesn't receive any tags or isn’t “Suggested,” you can still advertise it. However, it means Amazon’s algorithm currently sees it as less relevant, competitive, or ad-ready.

Advertising such products might:

• Take longer to generate impressions

• Require more budget to achieve visibility

• Deliver lower conversion rates

That said, if you must advertise a non-suggested product (maybe it’s new or niche), make sure you first optimize it using Amazon product listing services. This includes:

• Clear, SEO-rich titles

• High-quality images

• Keyword-rich bullet points and descriptions

• Backend search terms

• A+ content (if available)

Once these upgrades are made, Amazon may reclassify your product, making it more eligible for targeted ads and tags.

Why This Update Is a Game-Changer for Sellers

Before this update, sellers had to test every product with small campaigns, gather months of data, and then scale up. This was time-consuming, expensive, and often frustrating.

Now, Amazon provides instant feedback.

You’ll immediately know:

• Which products to prioritize

• Which ones need improvement

• What type of campaign is each product best suited for

Whether you’re selling 5 products or 500, across one or multiple categories, this feature allows you to build a campaign structure around data, not guesswork.

For new sellers in India or scaling brands in the USA, this is a major advantage. You can start advertising with clarity and precision, reducing waste and boosting profitability.

Amazon Advertising Tips for Sellers in the USA and India

Here are actionable tips for both markets:

For USA Sellers:

• Leverage brand-building tags to scale brand-focused campaigns

• Push Suggested and Trending products during seasonal peaks

• Use Amazon advertising algorithm 2025 insights to allocate budget across Sponsored Products and Sponsored Brands

For Indian Sellers:

• Start with Suggested Products to see early traction

• Avoid launching ads for under-optimized ASINs—optimize first

• Use Amazon PPC services to monitor tag shifts and reoptimize listings

Final Thoughts: Mastering Ads Starts with Listings

Amazon has made it crystal clear: listing quality drives ad success. With this new update, you’re no longer in the dark. Amazon is offering sellers something incredibly valuable—internal feedback based on its advertising algorithm.

Use these insights to:

• Prioritize your ad budget

• Fix weak listings before launch

• Choose the right campaign types for each product

• Shorten your path to profitability

As competition grows in both the USA and Indian marketplaces, leveraging these internal signals will help you stay ahead.

Partner with Pros Who Understand Amazon’s Algorithm

At YourSeller, we help Amazon brands succeed by blending expert Amazon product listing services, strategic Amazon PPC services, and up-to-date insights on Amazon’s evolving tools.

If you're ready to stop guessing and start growing, let’s talk.

✅ Custom listing evaluations

✅ Data-driven campaign management

✅ Amazon-suggested ad strategies that get results

Contact us at +1 510 648 3933 (USA) or at +91 9909513312 (India) to get started and let your listings do the heavy lifting for your ads.