Thanks Bill.
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I'm no expert, but I think the idea of targeting specific products is to get your book shown to people who might be looking for something similar. In order for it to work at maximum effectiveness, you need to find writers who are similar enough to you that someone who enjoys those writers is likely to enjoy your books as well.
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I don't get how this is different from just using keywords. I guess I didn't explain it very well. I already target specific authors and their books with keywords. But when you set up an ad you can choose keywords, or categories and products. Then when you choose categories/products you can target specific categories, eg, Science Fiction/Space Opera or specific products, eg the actual book you want to target.
One thing I think the product targeting might be useful for is targeting paperback/hardcover customers, because when you pick a specific product you can separate out the ebook, or the hardcover, or the paperback, or even audible. But that's just a guess. I don't know how AMS/AA treats those ads differently from keyword based ads, or what the advantage might be over using them.
Edit - oh and I messed up the quotes again. Sorry.