New Keyword Targeting in OTTO Sponsored Product Ads Delivers Higher ROAS, CTR, and Strategic Growth Opportunities

New Keyword Targeting in OTTO Sponsored Product Ads Delivers Higher ROAS, CTR, and Strategic Growth Opportunities

(IN BRIEF) OTTO Advertising has introduced keyword targeting for its Sponsored Product Ads, allowing marketplace partners to match ads with specific search terms for more strategic campaign control. Beta tests showed a 120 percent increase in ROAS and a 50 percent rise in CTR compared to automated campaigns. Advertisers can identify valuable search terms via shop tools and keyword reports, supporting targeted strategies for product launches, growth, and conversions. The feature also enables brands to reach new customer segments and refine budget allocation by optimizing bids for individual search queries. Partners including Snocks and Remazing Group have welcomed the enhancement, citing its potential to drive more precise marketing and improved performance.

(PRESS RELEASE) HAMBURG, 13-Aug-2025 — /EuropaWire/ — OTTO Advertising, the retail media arm of Germany’s largest online shop, has introduced keyword targeting for its Sponsored Product Ads (SPA), enabling marketplace partners to align product ads with specific customer search queries for more precise and strategic campaign management. The enhancement has already proven its value: during beta testing, keyword-targeted product ads achieved a 120 percent uplift in return on advertising spend (ROAS) and a 50 percent increase in click-through rate (CTR) compared to automated campaigns.

“Our data shows that advertisers can significantly increase the relevance of their product ads through manual targeting,” said Sabine Jünger, Vice President of OTTO Advertising. “This gives partners another powerful option—alongside our already high-performing context-based targeting—to boost their product sales. By booking SPAs based on specific search terms, advertisers can ensure that when customers enter those terms on otto.de or in the OTTO app, their products are prioritized in search results. This improves campaign effectiveness and helps shoppers find exactly what they want, faster.”

The new feature is underpinned by detailed campaign analysis. Advertisers can identify relevant search terms using tools such as the shop’s auto-suggest function, category filters, or automated keyword reports, which show which terms customers used to discover their products. This data supports campaigns at all stages, from launching new products to driving growth or improving conversion rates.

Keyword targeting also opens the door to new customer segments. Brands can strategically reach beyond their core categories—such as a sports shoe brand targeting “trail running shoe” if the product has cross-category potential—allowing for greater market reach. Alexander Vogel, Senior Marketplace Manager at Snocks, noted: “Especially in strategic campaign planning, targeting specific search terms will continue to provide us with real added value to promote our products more precisely and grow further with OTTO.”

Philipp Merkel from the Remazing Group added: “Keyword targeting from OTTO Advertising enables us to support our clients even more effectively in developing and executing tailored marketing strategies. We are confident this strategic approach will translate into better campaign performance and goal achievement.”

By focusing on high-performing search terms and enabling bid optimization for individual keywords, advertisers can manage budgets with greater precision. This also makes cost-per-click (CPC) more comparable with market benchmarks, ensuring efficient budget allocation and stronger ROI.

Media contact:

Roman Oncsak
Corporate Spokesman for Trade, B2B & Marketing
+49 (40) 6461 7169
Roman.Oncsak@otto.de
LinkedIn

SOURCE: Otto GmbH & Co. KGaA