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The Full Question:
Broad, Phrase, and Exact targeting a different kind of customer... Are you able to explain this concept? Is it because Exact would be very specific and thus the audience is more narrow vs broad which could cover a much wider array of products and thus customer avatars? Why would these ads not compete with each other?
The Answer:
These match types do not compete with one another.
The idea of refining Amazon PPC targeting by going from Broad to Phrase and then to Exact is a Google PPC strategy that helped an advertiser to focus more on specific keyword targeting.
The key difference with Amazon is that it is trying to get a sale.
The algorithm determines how likely a shopper is likely to order based on their buying patterns. Buying patterns include (but are not limited to), the time of day they usually make a purchase, the day of the week they normally order, the number of times/length of time a person searches before committing to a product, and so on.
If Amazon feels that there is a high chance of a sale, it will show an ad from an Exact campaign. If it thinks there is a low chance, it will show to a Broad where the need to match the search term accurately with the keyword is less important.
I hope this helps to answer your question.
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