Mastering Complementary Advertising for Private Label Success
The world of private label selling on Amazon is more competitive than ever. While many sellers focus their efforts on traditional advertising methods like competitor targeting and keyword-based campaigns, there is an often-overlooked strategy that can significantly improve visibility, increase conversions, and enhance profitability: complementary advertising.
Complementary advertising offers a way to connect with consumers beyond direct competition by targeting products that align with their interests and buying behaviors. This approach is particularly valuable in a marketplace where differentiation and strategic ad placement can give sellers a competitive edge.
This article explores the core principles of complementary advertising, how it differs from traditional advertising methods, and the steps sellers can take to implement this strategy effectively.
What is Complementary Advertising?
Complementary advertising is the practice of promoting a product alongside other products that the same customer is likely to purchase—either at the same time or in the future. Unlike competitor advertising, where brands bid on products identical to their own, complementary advertising focuses on products that serve a related function or cater to the same consumer interests.
For example, a seller offering rock display cases could run ads on listings for rock hammers or mineral polishing kits. While these products are not direct competitors, they attract the same audience—geology enthusiasts, collectors, and hobbyists. This strategic pairing allows businesses to capture interest from engaged buyers who may already be in the market for related items.
“Rather than fighting for visibility in highly competitive ad spaces, complementary advertising allows sellers to step in front of an interested audience in a more strategic and cost-effective way.”
Why Complementary Advertising is a Game Changer
Most Amazon sellers follow the traditional approach of bidding against competitors in direct product comparisons. However, this method has limitations:
- Higher Advertising Costs
Amazon’s advertising system operates as an auction, where sellers bid for ad placements. As competition increases, so do bid prices, making it more expensive to achieve visibility. - Ad Saturation
Many sellers focus solely on competitor targeting, leading to overpopulated ad spaces where consumers are bombarded with nearly identical product options. - Limited Targeting Scope
Traditional PPC campaigns primarily revolve around direct search results and competitor placements, often missing opportunities to reach consumers at different points in their buying journey.
Complementary advertising avoids these pitfalls by targeting products that customers already engage with, while simultaneously reducing bidding competition and increasing exposure in less saturated areas.
“Winning on Amazon isn’t about following the crowd—it’s about identifying what others aren’t doing and doing it better.”
Understanding Customer Shopping Behavior
One of the key reasons complementary advertising works so well is that it aligns with how consumers shop on Amazon. Most customers don’t just buy a single product; they browse, compare, and often add related items to their cart before completing a purchase.
How Amazon Facilitates Complementary Shopping
- Frequently Bought Together Section – Amazon suggests related products based on past consumer behavior.
- Sponsored Ads on Product Pages – Ads appear alongside product listings, targeting shoppers actively considering purchases.
- Last-Minute Add-ons at Checkout – Buyers are frequently prompted with related product recommendations before completing their order.
A well-structured complementary advertising campaign capitalizes on these behaviors, ensuring that a product is placed in front of highly relevant buyers at the right moment.
“Amazon itself is designed to increase consumer spending by surfacing complementary products—sellers should be leveraging this exact strategy in their advertising.”
How to Identify Complementary Products
To create an effective complementary advertising campaign, sellers must identify products that align well with their own offerings. The best place to start is Amazon itself, as the platform already provides data-driven recommendations.
Practical Steps to Find Complementary Products
- Analyze Amazon’s Suggested Products
- Visit a competitor’s product page and check the “Frequently Bought Together” section.
- Browse “Customers Also Bought” suggestions to identify patterns.
- Think Like a Consumer
- Ask, “What else would a customer likely buy if they purchased my product?”
- Consider items that are commonly used alongside the primary product.
- Create Targeted Ad Groups
- Group similar complementary products into separate ad sets.
- For example, if advertising a rock display case, create one ad group targeting rock hammers and another targeting mineral polishing kits.
“Success in complementary advertising starts with understanding what customers truly need, not just what they search for.”
Setting Up and Managing Complementary Advertising Campaigns
Once complementary products have been identified, the next step is to set up structured ad campaigns that maximize results while minimizing wasted ad spend.
Key Steps for Setting Up a Campaign
- Choose the Right Bidding Strategy
- Start with a small budget to test which products generate engagement.
- Gradually scale spending based on performance data.
- Monitor Performance Metrics Closely
- Track conversion rates, click-through rates (CTR), and return on ad spend (ROAS).
- Look for trends in which complementary products drive the most profitable sales.
- Refine Based on Data
- Adjust bids for high-performing ad placements.
- Pause or remove ads that fail to generate results.
A structured approach ensures that advertising budgets are spent effectively and that every campaign contributes to increased product visibility and sales.
Kill, Keep, or Kick: Managing Campaigns for Long-Term Success
A major component of running a successful complementary advertising campaign is knowing when to kill, keep, or kick an ad placement.
- Kill: If a campaign continuously underperforms, generating little to no sales or negatively impacting profit margins, it should be shut down.
- Keep: Ads that perform consistently well and contribute to profit should be maintained with optimized bids.
- Kick: Certain ads may show potential but be limited by budget constraints. These should be “kicked” into a separate, more aggressive campaign to maximize returns.
This framework ensures that advertising campaigns remain dynamic and results-driven.
“You cannot manage what you don’t measure. What gets measured gets managed.”
Tracking and Analyzing Data for Continuous Improvement
No advertising campaign is complete without tracking results and analyzing key metrics. Sellers must go beyond simple impressions and clicks to understand how their ads contribute to overall profitability.
Important Metrics to Track
- Sessions and Click-Through Rate (CTR) – Are ads generating interest?
- Unit Session Percentage (USP) – How often do clicks turn into purchases?
- Return on Ad Spend (ROAS) – Is the campaign delivering a profitable return?
Data should be collected regularly, logged, and reviewed over monthly intervals to refine future strategies.
“Sellers who track their data effectively gain a significant edge over those who rely on guesswork.”
Conclusion: Leveraging Complementary Advertising for Private Label Growth
Complementary advertising is an underutilized yet powerful strategy for private label sellers. By targeting products that align with customer interests, sellers can increase visibility, lower advertising costs, and enhance profitability.
Actionable Next Steps:
- Research complementary products using Amazon’s “Frequently Bought Together” and “Customers Also Bought” sections.
- Set up targeted ad campaigns with separate ad groups for different product categories.
- Implement the kill, keep, or kick strategy to optimize campaign effectiveness.
- Track key performance metrics regularly to refine and improve results.
With a thoughtful and data-driven approach, complementary advertising can become a cornerstone strategy for long-term private label success. Now is the time to test, refine, and optimize—because success on Amazon is about working smarter, not just harder.