Amazon Sponsored Display Ads: An Ultimate Guide

As an online seller, standing out in a competitive marketplace is a major challenge. After all, capturing your customer’s attention and persuading them to click on your product listing becomes undeniably hard when hundreds of sellers try to do the same.

This is where Amazon display ads offer a crucial advantage

Now, Amazon PPC Ads can give you an edge. However, not all ad types are designed the same way.

Amazon display ads can effectively put your product in front of a shopper who is there to buy exactly that product. This kind of ad helps to zoom in on the audience of those who have shown interest in similar products/ categories or are browsing through related ones. 

In this article, we will understand Amazon Sponsored display ads and how it work, and how to create Sponsored display ad campaigns. So let’s dive in.

Quick Guide

• What are Sponsored Display Ads on Amazon?
• Where Do Sponsored Display Ads Appear?
• Why Should You Use Amazon Sponsored Display Ads?
• Eligibility to Create Sponsored Display Ads
• What Are Targeting Options in Sponsored Display Ads
• Optimization Strategies in Sponsored Display Ads
• How To Create Sponsored Display Ads On Amazon?
• Sponsored Display Ads Best Practices
• Conclusion

What are Sponsored Display Ads on Amazon?

Amazon’s sponsored product ads and Sponsored brand ads are effective for launching products. Especially, if you want your ads to show up on the first page of search results. But Sponsored display ads program is different from these two ads. 

Amazon Sponsored Display ads give you a better opportunity to target your audience. Apart from the other two Amazon ads, display ads can be seen off Amazon pages. These ads are used to mainly target the:

• Complementary products 
• Competitors in the same niche
• Interests of shoppers

The interest of shoppers means that Amazon display advertising can take advantage of the information on the purchasing and browsing behaviors of the customers to pinpoint their interests. For example, if a shopper looks frequently on fitness gear then your display ad for a yoga mat can appear to them. 

Sponsored display ads can appear on several Amazon online sites including product detail pages, search results, and also on online websites and applications. You can select your own space for advertising and also use other options like simple images, detailed price or star ratings, and CTA buttons which will help maintain high visibility and engagement. 

Where Do Sponsored Display Ads Appear?

Sponsored Display Ads can appear in a variety of locations both on and off Amazon. Here is a detailed breakdown of where these ads can be found:

1. On Amazon

Product Detail Pages

Sponsored Display Ads can be shown on the product detail pages of similar or competitors’ products. This location is rather strategic as it aims at those shoppers who are in the buying decision moment. 

For instance, another ad for the equivalent or complementary product could appear right below the description of the competitor’s listing, thus being viewed by potential customers as they decide on their purchase. Here’s a sponsored display ads example, 

Shopping Results Pages

These ads may also show up on the search result pages if the customers are searching for products that are related to the brand. It is in this position that brands draw the attention of browsing customers as they scan through a wide range of products. Here’s an example of Sponsored display ads on the Amazon result page. 

Across Devices

With Sponsored Display Ads, they are flexible and they are displayed on different devices, including desktops, mobile devices, and the Amazon app. This ensures that the ads reach a bigger target audience through Amazon, regardless of how they are getting access to the Amazon site.

2.Off Amazon

Third-Party Websites and Apps

Besides being present on the Amazon platform, Sponsored Display Ads may also appear on third-party sites and applications like Twitch and IMDB. This feature is only available for the U. S. but does not place any limitations on the network beyond the Amazon ecosystem. 

Using the vast audience data available with Amazon, these ads can consistently reach relevant customers even when they are exploring other parts online, which in turn creates brand visibility and personal interaction with potential buyers regardless of the sites they visit.

Why Should You Use Amazon Sponsored Display Ads?

Amazon Sponsored Display Ads offer numerous advantages that can significantly benefit your business. Here are some compelling reasons why you should consider using them:

1.Targeted Advertising

In targeted advertising, potential customers are targeted based on a variety of factors, such as their demographics, online habits, and interests.

Precision Targeting: Sponsored Display Ads can give you the chance to focus on shoppers’ behavior, interests, and browsing history. You can show your ads to people who have looked at similar products, shopped similar things, categories, or even your product pages. Be sure that your ads are seen by the relevant audience only.

Product Targeting: You can place ads on the actual product pages of competitors or comparable products. Such kind of positioning attracts the attention of every customer who is searching for those products.

2.Broadened Reach

The Amazon-sponsored display ads placement is not limited to Amazon’s product detail pages, search results, and review pages. Instead, they are also shown on third-party websites and apps in the U.S. The extended reach of the feature allows your products to be seen by consumers who are not only within the Amazon ecosystem.

3.Enhanced Brand Visibility

Through continual display of your ads to customers that you wish will buy from you across the different platforms, you improve your brand’s familiarity and visibility. Through this, it is possible to increase brand recognition and ensure that your products remain among the typical shopper’s most favorite items.

Also read: Amazon Sponsored Display Product Targeting to Expand Your Brand Presence and Reach

4.Cost-Effective Advertising

Sponsored Display Ads work on a cost-per-click (CPC) model where you pay only for the customer who clicks on your ad. This structure offers the chance to avoid wasting money on just any shopper who passes by your ad but only spends on the ones who are already interested in your products.

5.Boosted Sales and Conversions

The Sponsored Display Ads campaign aims to attract shoppers who are already interested in similar or related products, and in this way, it increases the chance of conversion. Using a retargeting strategy to the product pages visited by previous visitors also boosts making window shoppers into buyers.

Eligibility to Create Sponsored Display Ads

To start with Sponsored Display Ads, you must be a professional seller registered on the Amazon Brand Registry, and your products must be from the eligible categories for advertising.

These ads are available in the following marketplaces:

America: United States, Canada, Mexico, and Brazil

Europe: United Kingdom, Germany, Spain, France, Netherlands, Italy, Sweden, Poland, and Turkey

Asia Pacific: Australia, Japan, India, and Singapore

Middle East: Saudi Arabia and the United Arab Emirates

What Are Targeting Options in Sponsored Display Ads

As stated earlier, you have the flexibility to select from various targeting options that align with your campaign objectives. 

Let’s delve into each targeting option individually for a better understanding.

1.Contextual Targeting

You may find here two alternative options for targeting your audience: ASIN or category. Let’s understand the difference between the two:

ASIN Targeting

According to ASIN targeting, your ads will be displayed to customers who look at products identical or corresponding to yours. Therefore, it is possible to increase the chances that they can notice your products too. After the shopper clicks on the ads, they get redirected to the product detail page, where they learn more and can also buy. This tactic of targeting can be used to trigger additional purchases.

Category Targeting

Through category targeting, you can display your Sponsored Display ads to buyers who are exploring products of the same or similar categories as you, which also improves the chances of them stumbling upon and thinking about your products.

You can fine-tune your targeting of category through different retail-centric metrics like reviews, price, brand as well as Prime shipping eligibility.

2.Audience Targeting

Targeting audiences allows you to reengage or engage shoppers according to their experience in a shop or the same products. This means with display ads you retarget your audiences. Moreover, you can design specific audience groups to promote the presentation of your products. Amazon display ads are also known as remarketing display ads. 

Views Remarketing

This is an option that is directed towards an audience of people who have visited a specific product detail page in a specified period. It is not only meant to boost the brand but also features the consumers by motivating them to buy and stay with customers who abandoned the cart. You can target particular shoppers who have viewed your product pages within lookback windows of 7, 14, 30, 60, or 90 days, as well as other shoppers who have been browsing similar products.

Purchases Remarketing

This tactic centered on targeting customers based on their past shopping habits. It helps us achieve goals such as stimulating repeat purchases, building customer loyalty, developing cross-sales, and obtaining new customers. The span of lookback periods can be selected to be 7, 14, 30, 60, 90, 180, and 365 days. The customers who bought your products or similar ones can be targeted in the specified timeframe.

3.Amazon Audiences

Amazon provides audience segments based on buying behaviors or streaming and watching content. These audiences fall into four main categories: lifestyle, interest, in-market, and life events.

In-market: These are a type of shoppers who have a past shopping behavior indicating that they are the ones likely to purchase items of a specific product category.

Lifestyle: These customers show certain behavior patterns and preferences for particular content, like regular home shopping on Amazon or watching Prime service videos.

Interests: Engage with groups of shoppers who share a common interest, as identified by Amazon based on their browsing and purchase signals.

Life Events: Such are the people who have made purchases that are known to mark a major life event, for example moving to a new home.

Optimization Strategies in Sponsored Display Ads

Amazon offers three optimization strategies for Sponsored Display Campaigns:

1.Optimize for Reach

Amazon bidding cost will be calculated based on your viewable impression to gain high month-on-month growth, charging you per 1000 impressions viewable (vCPM). This strategy best fits campaigns that employ strategies of either visibility or impression maximization.

2.Optimize for Page Visits

Amazon ads aid you to optimize bids hence bringing more clicks to your site, charging you by your click (CPC). Employment of this method enables you to target consumers who are likely to click on your ad and this contributes to the number of people driven to your product pages.

3.Optimize for Conversions

An Amazon bidding system is geared towards the improvement of conversions, in addition to charging you pay-per-click (CPC). With this approach, your ad will only be served to people with a high probability of spending, thus improving the chances of conversing clicks to sales.

How To Create Sponsored Display Ads On Amazon?

To create an Amazon Sponsored Display advertising campaign, follow these steps

1. Log in to your Amazon Seller Central, and click on the Campaign Manager option.

2. Click on “Create campaign” and select the “Sponsored Display” option from the list.

3. Enter the name of your campaign as well as the date range, your preferred budget, and the portfolio you want to choose.

Note: An Amazon Ads portfolio makes it possible to organize your campaigns at once and control them towards models of efficient advertising which allows you to track the performance of the individual. In this view, you can manage multiple campaigns at a time, simplifying your job and letting you gain knowledge of overall performance.

4. Enter the name of the ad group you desire to label yours.

5. Choose the ‘Optimization Strategy’ for the campaign We have already dealt with the example of all three above-mentioned types of optimization strategies. 

Note: In case you still doubt which option is pertinent for the purpose of optimization, choose the ‘optimize for conversion’ choice, as it often has a better ROAS compared to the other 2.

6. Next, choose the ad format displaying your campaign.

7. Select the products (ASIN) that you want to run the advertising in the ad group.

8. You need to decide whether the targeting is “contextual” or “audience” in the group of the ad. As we have discussed earlier, they are different.

9. Next, add the targets that you want to target in your ad group. 

10. Then, add a logo, a headline, and an image for your ad.

Those features are comprised of finally letting you be able to see and even submit your Sponsored Display campaigns.

Sponsored Display Ads Best Practices

Here are some key strategies to enhance your Sponsored Display Ads:

• Add all your products to the campaign and organize the campaign structure over time.
• Ensure your campaign has enough ad budget and bid to stay live throughout the day. Track your campaigns regularly to check if they are running or missing out on potential impressions
• Use campaign metrics to make informed bidding decisions.
• Always audit your campaigns. Measure their performance against your campaign goals.

Points to remember:

• Negative targeting is not available for view remarketing at the moment.
• You can optimize bids individually based on targeting options.
• Vendors can customize their views remarketing campaigns with a custom brand logo and headline.

Conclusion

Now you know everything about Sponsored display ads! These ads are a great way to improve your top funnel regain market share advertising and re-engage the targeted audience. Have trouble with Amazon PPC campaigns? 

SellerApp has got your back! Reduce ACoS and increase your ROI with our state-of-the-art machine-learning algorithms. Our team of Amazon experts will strategize and optimize your PPC campaigns to ensure that your brand attains maximum profitability.

Additional read:

Amazon Sponsored Display Ads – Retarget and Re-engage Your Potential Customers

Ultimate Guide to Amazon Retargeting Ads

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