Learn How to Master Amazon Sponsored Display Ads

Amazon Sponsored Display Ads Full Guide: Uses, Ad Formats, Strategies and Best Practices

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What are Amazon Sponsored Display Ads?

Sponsored Display Ads are a relatively new campaign type in Seller Central campaign manager.

They allow sellers and brands to reach new customers through increased brand awareness both on and off Amazon’s platform.

These ads are designed to be a little bit different from traditional keyword targeting.

Instead of focusing on keywords, sellers and brands can target audiences to achieve multiple goals, such as:

1. Increased brand awareness

2. Increased engagement

3. A boost in sales

No other platform likely has as much customer data as Amazon.

This vast dataset allows Amazon to create highly defined audiences for targeting.

Even before Amazon released Brand Analytics for sellers, they already owned data about shopping signals like product views, purchases, and browsing patterns.

What further differentiates these ads from other ad types are premium placements.

Outside of audience targeting, sellers can now show their ads to audiences on and off Amazon's platform.

Amazon owns a network of partner websites and apps where they can also display these ads.

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What are the Key Benefits of Using Sponsored Display Ads?

Leveraging Amazon Sponsored Display Ads unlocks several key benefits for sellers and brands, including:

1. Expanded Reach and Visibility – These ads go beyond Amazon. They can appear on product detail pages, search results, related product sections, and even third-party websites and apps. This allows brands to capture the attention of potential customers throughout their entire shopping journey, not just when they're actively searching on Amazon.

2. Advanced Targeting Capabilities – Forget scattershot advertising. Sponsored Display Ads allow advertisers to precisely target their audience based on relevant factors like interests, specific products or categories, and even customer demographics. This ensures your ads are shown to the most relevant and engaged shoppers, maximizing your impact.

3. Customizable Ad Creatives – No cookie-cutter ads here. Brands can easily create and manage their ad campaigns using a variety of customizable templates. This allows for creative freedom to tailor the ads to your brand's unique image and messaging, making them more visually appealing and impactful.

4. Cost-Effective CPC Model – Sponsored Display Ads operate on a cost-per-click (CPC) basis. This means you only pay when a user clicks on your ad, ensuring a more efficient and measurable return on investment (ROI) compared to traditional advertising methods.

5. Comprehensive Reporting and Analytics – Amazon doesn't leave you in the dark. They provide detailed performance metrics and analytics tools that help advertisers track the success of their campaigns, identify areas for improvement, and make data-driven decisions to optimize their advertising strategies.

Combined, these advantages create a strong foundation for achieving successful campaign performance.

Which Targeting Options are Available for Sponsored Display Ads?

Sponsored Display Ads offer three main targeting options to reach your ideal customers:

-: Amazon Audiences :-

This targeting option leverages Amazon's vast customer data to identify and serve ads to the most relevant audiences—even if they haven't interacted with your products before.

The choices are extensive!

You can target by demographics like car ownership (owners with cars older than 7 years or by specific brands), business or industry (e.g., metal fabrication), interests (photography fans, history buffs), and even shopping habits (frequent gift givers, gluten-free grocery shoppers).

There's something for almost every niche.

-: Views Remarketing :-

This option lets you retarget customers who have previously viewed your product listings.

By re-engaging with these "warm" leads, you can increase the likelihood of conversion, as these customers have already shown interest in your advertised products.

You can target those who viewed your product pages but haven't purchased yet, offering a second chance to win them over.

Views Remarketing is perfect for recapturing cart abandoners or those needing a nudge to buy.

The lookback window extends up to 90 days, allowing you to reach customers considering longer-purchase products.

Besides this, “Similar To” audiences are also available.

They let you expand your reach by targeting users with similar behavior, even if they haven't interacted with your brand directly.

-: Purchases Remarketing :-

This option shows your ads to customers who already bought something from you.

While the lookback window is similar, smaller brands may find it challenging to build a large enough audience for this tactic.

However, for established brands with diverse product lines, this option can generate repeat sales at a potentially lower cost.

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Where Do Sponsored Display Ads Appear?

Sponsored Display Ads can appear in a variety of high-visibility locations, both on Amazon and beyond.

These placements include:

1. Amazon Product Detail Pages – Your ads can be displayed on your own product pages, competitor pages, and even those of complementary products, maximizing your exposure and reach to potential customers who might be considering similar or related items.

2. Amazon Search Results – Ads can appear above or alongside organic product listings on relevant search results pages, reaching potential customers who are actively searching for products like yours.

3. Amazon-Owned Properties – Ads can appear on a vast network of partner websites, apps, Twitch, IMDb, and Amazon-owned mobile apps, putting your brand in front of a broader audience.

4. Third-Party Websites and Apps – Through Amazon's extensive network of partner sites and apps, Sponsored Display Ads can be shown to potential customers as they browse the web and use various mobile applications.

5. Amazon Emails and Newsletters: Ads may also be included in Amazon's customer emails and newsletters, further expanding the reach and visibility of your advertising campaigns.

By leveraging this diverse range of placements, you can ensure your Sponsored Display Ads are seen by the right customers at the right time, increasing the likelihood of engagement, conversion, and ultimately, sales growth.

What Ad Formats Do Sponsored Display Ads Include?

Two main ad formats are covered with Sponsored Display Ads:

1. Static Image Ads – These eye-catching visuals include your logo, product image, headline, title, review rating, price, and a clear call to action like "Shop Now." You can choose pre-made templates or create custom images. Interestingly, sometimes the system-generated ads perform well, finding the best fit from their ad inventory.

2. Video Ads – Video creatives, being one of the most powerful tools for boosting brand awareness and engagement, are also supported. Upload your own videos (minimum size: 1920x1080 pixels) and leverage autoplay on mute across placements.  These ads are excellent for driving higher click-through rates (CTR) through continuous ad split testing.

Examples of successful product display ads on Amazon search results page.

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How to Make the Most Out of Sponsored Display Ads?

Through careful optimization and testing, you can maximize the benefits of Amazon's display network advertising. 

According to Amazon, sellers who use Sponsored Display Ads see up to 82% of their sales from new-to-brand customers, indicating the ads' effectiveness in reaching and engaging a wider audience.

This ad format can deliver higher conversion rates compared to others due to its targeted approach.

Imagine reaching in-market customers actively looking for specific products!

While the potential Return On Ad Spend (ROAS) can range from 2:1 to 6:1, it's important to remember that achieving these results hinges on campaign optimization.

So, what are the best practices for optimizing this campaign type?

1. Leverage Audience Insights – Mine the valuable data available through Amazon Brand Analytics. Understanding your target audience's demographics, interests, and behaviors empowers you to make informed targeting decisions.

2. Target "Warm" Audiences with Remarketing – Reconnect with customers who have already shown interest in your brand. Sponsored Display Ads excel at remarketing, allowing you to reach familiar users who are more likely to convert.

3. Exclude Irrelevant Traffic with Negative Targeting – When using contextual targeting, it is wise to leverage negative product targets. This prevents wasted ad spend and boosts your Click-Through Rate (CTR by attracting qualified traffic.

4. Optimize Bid Management – Take advantage of Amazon's "cost control" section (currently in Beta). Set cost-per-click or cost-per-1000-viewable-impressions limits to ensure efficient budget distribution through automated bidding strategies.

5. Embrace the Power of Split Testing – Continuously test different ad copy variations to discover what resonates best with your audience.  Gather feedback and iterate on your ad creatives for optimal performance.

6. Capture Attention with Video Ads – Don't underestimate the power of video!  Video ads are particularly captivating for younger demographics like Gen Z, but their appeal extends beyond age groups. So, if you want to achieve full coverage across all buyer personas, must include them in your portfolio.

7. Structure Your Campaigns Properly – Each ad format (static image or video) and ad type (reach, page visits, or conversions) has a specific goal. To ensure your campaigns are aligned and deliver on those goals,  structure them with one campaign per ad group. This allows for clear separation and targeted messaging.

Here's a breakdown of the three main optimization strategies:

1. Optimize for reach

2. Optimize for page visits

3. Optimize for conversions

Remember, the messaging in your ad copy should directly reflect your chosen campaign goal. Craft clear and concise ad copy that aligns with the desired action (e.g., "Visit Now" for page visits or "Shop Now" for conversions). Your message should guide users seamlessly towards accomplishing your campaign's objective.

8. Monitor Your Competition – Stay ahead of the curve by keeping an eye on your competitors. They might be doing something better, differently or take a more innovative approach. They might have a better bidding tactic. Learn from them and adapt your campaigns for a fresh, competitive edge.

9. Seasonality Matters – This strategy includes using seasonal campaigns for big eCommerce days such as Prime day, Christmas, New Year, BF/CM etc. Capitalize on changing shopping behavior by adapting your campaign strategy to seasonal trends.

Conclusion: Maximize Your Amazon Advertising Success

Sponsored Display Ads open doors to reaching new audiences, driving sales, and achieving your Amazon advertising goals.

This guide has equipped you with the knowledge to leverage their potential.

Now you can create targeted campaigns that resonate with your ideal customers and maximize your return on ad spend.

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