Amazon Sponsored Display ads are a powerful advertising tool for Amazon vendors and Brand-Registered sellers. These ads allow businesses to reach relevant audiences both on and off Amazon, increasing visibility and potential sales. Sponsored Display ads target customers based on audience interests, shopping behaviors, and previous product views, making them a valuable addition to Amazon’s advertising options. While their return on ad spend may be slightly lower compared to other ad types, Sponsored Display ads can still be worth it for businesses looking to maximize their advertising reach and retarget potential customers.
Key Takeaways:
- Amazon Sponsored Display ads offer businesses the opportunity to reach a wide audience on and off Amazon.
- These ads target customers based on interests, shopping behaviors, and previous product views.
- While their return on ad spend may be lower, Sponsored Display ads can still be worth it for expanding advertising reach.
- They provide valuable retargeting capabilities and increased brand visibility.
- Sponsored Display ads can be a valuable addition to an Amazon advertising strategy, complementing other ad types.
What is a Sponsored Display ad?
Amazon Sponsored Display ads are a type of advertising that allows businesses to target customers based on their interests and shopping behaviors, rather than specific keywords. Launched in 2019, these ads have gained popularity among sellers and account for 3% of Amazon’s advertising revenue.
Sponsored Display ads work by displaying products that potential customers have viewed on Amazon across various Amazon pages, competitor listings, and third-party websites and apps. This retargeting technique helps businesses make powerful impressions on potential customers and can lead to increased sales.
This targeted approach allows sellers to reach customers who have already shown interest in similar products, increasing the chances of conversion. By showcasing their ads to potential customers across different platforms, Sponsored Display ads maximize the visibility and exposure of a business’s products.
As a result, businesses can engage with potential customers at multiple touchpoints, reinforcing their brand presence and increasing the likelihood of conversions. By retargeting customers who have already shown interest, Sponsored Display ads offer businesses a strategic opportunity to stay top-of-mind and drive meaningful engagement with their products.
How do Sponsored Display ads work?
Sponsored Display ads operate on a pay-per-click (PPC) model, allowing businesses to bid against other sellers for ad placements. With no minimum investment required, sellers can set their own bids and daily budget, giving them full control of their advertising costs.
These ads offer three types of targeting options: product targeting, views remarketing, and audience interests.
- Product targeting: With product targeting, businesses can reach customers who are browsing their products or similar products and categories. This targeting option is effective in capturing the attention of potential customers who have shown interest in related products.
- Views remarketing: Views remarketing allows businesses to retarget customers who have previously viewed their listings. By reminding customers about their products, businesses can increase the chances of conversion.
- Audience interests: Audience interests targeting enables businesses to reach customers based on their browsing and shopping habits. This type of targeting leverages customer data to deliver ads to audiences with relevant interests, increasing the likelihood of engagement and conversion.
Sponsored Display ads can be a valuable addition to an advertising campaign, as they allow businesses to reach potential customers even when they’ve navigated away from Amazon. These ads serve as a gentle reminder, keeping the business and its products top-of-mind for potential customers.
Example:
“Sponsored Display ads have been instrumental in our advertising strategy. The product targeting option has allowed us to reach customers actively looking for similar products, resulting in increased visibility and sales. Additionally, views remarketing has helped us engage with interested customers who may need an extra nudge to make a purchase. Overall, Sponsored Display ads have been a powerful tool in expanding our reach and driving conversions.” – Jane Smith, Marketing Manager at XYZ Company
By leveraging the customization options and powerful targeting capabilities of Sponsored Display ads, businesses can enhance their Amazon advertising campaigns and effectively connect with their target audience.
| Sponsored Display Ad Targeting Options | Benefits |
|---|---|
| Product Targeting | – Reach customers browsing similar products – Increase visibility for specific product categories |
| Views Remarketing | – Retarget customers who have viewed listings – Increase chances of conversion |
| Audience Interests | – Reach customers based on their browsing habits – Advertise to audiences with relevant interests |
Where do Sponsored Display ads appear?
Sponsored Display ads can appear on various Amazon pages, including product detail pages and shopping results, both on desktop and mobile devices. Additionally, these ads may also be visible on third-party websites and apps, but currently only in the United States. The specific placement of the ads depends on the targeting option chosen by the seller. This wide visibility ensures that Sponsored Display ads reach a large audience and have the potential to generate significant impressions and clicks.
To give you a better understanding of where Sponsored Display ads can be displayed, let’s take a closer look:
| Placement | Description |
|---|---|
| Amazon Product Detail Pages | |
| Amazon Shopping Results Pages | Sponsored Display ads can show up in the search results when customers are actively looking for products. |
| Third-party Websites and Apps | In the United States, Sponsored Display ads can also be seen on select third-party websites and apps, allowing businesses to extend their reach beyond Amazon’s platform. |
With such versatile placement options, Sponsored Display ads provide businesses with a great opportunity to increase their visibility and drive traffic to their products. Now that you know where these ads can appear, let’s explore how to set up a Sponsored Display ad in the next section.
How to Set Up a Sponsored Display Ad
Setting up a Sponsored Display ad on Amazon is a straightforward process that can help sellers increase their product visibility and engage potential customers. To get started, sellers need to be brand-registered, granting them access to this powerful advertising tool.
In Seller Central, sellers can navigate to the “Advertising” tab and click on “Campaign Manager.” From there, they can select “Create campaign” to begin setting up their Sponsored Display ad.
Follow the step-by-step instructions provided by Amazon to set up the ad:
- Choose “Sponsored Display” as the campaign type.
- Select your targeting strategy based on audience interests, views remarketing, or specific products.
- Customize your ad creative, including headline, logo, and product image.
- Select where you want your ads to be displayed on Amazon, such as product detail pages or shopping results.
With just a few clicks, sellers can have their Sponsored Display ads up and running, ready to capture the attention of potential customers and drive sales.
Maximizing the Impact of Your Sponsored Display Ad
When setting up your Sponsored Display ad, it’s essential to consider how you can optimize your campaign for maximum impact. Here are some tips:
- Choose the right targeting strategy that aligns with your goals and target audience.
- Create compelling ad creative that grabs users’ attention and showcases the value of your products.
- Keep an eye on your ad performance and make adjustments as needed. Testing and optimizing different elements, such as headlines and product images, can help improve your ad’s effectiveness.
- Monitor your budget and bids to ensure you’re getting the most out of your advertising spend.
- Consider using additional advertising options on Amazon, such as Sponsored Products or Sponsored Brands, to complement your Sponsored Display ad and maximize your reach.
By following these best practices, sellers can increase the success of their Sponsored Display ad campaigns and effectively promote their products on Amazon’s vast marketplace.
Are Sponsored Display ads worth it?
The effectiveness of Sponsored Display ads ultimately depends on the specific goals and products of each business. While these ads may have a lower return on ad spend compared to other ad types, they can still be a valuable addition to an advertising strategy. Sponsored Display ads offer the opportunity to retarget potential customers, reach new audiences, and increase brand awareness. For businesses enrolled in Amazon Brand Registry or are vendors to Amazon, testing out Sponsored Display ads can provide valuable insights into their performance and effectiveness in driving sales.
Benefits of Sponsored Display Ads
Despite the lower return on ad spend, Sponsored Display ads bring several advantages to advertisers:
- Retargeting: Sponsored Display ads allow businesses to retarget potential customers who have shown interest in their products. By displaying the ads across various Amazon pages and third-party websites and apps, businesses have the opportunity to remind potential customers about their products and encourage them to make a purchase.
- Expanded audience reach: With Sponsored Display ads, businesses can reach new audiences who may not have encountered their products before. By targeting customers based on their interests, shopping behaviors, and previous product views, businesses can engage a broader demographic and increase their chances of generating sales.
- Increased brand awareness: By appearing in multiple locations on Amazon and third-party websites and apps, Sponsored Display ads help increase brand visibility. The repeated exposure to potential customers can create brand recall and establish brand authority in the marketplace.
While Sponsored Display ads may not offer the highest return on ad spend, they can contribute to overall brand exposure and customer engagement, which are essential elements of a comprehensive advertising strategy.
To help you understand the potential benefits of Sponsored Display ads, here is a visual comparison between Sponsored Display ads and other advertising options on Amazon:
| Advertising Option | Return on Ad Spend (%) | Targeting Options | Ad Placements |
|---|---|---|---|
| Sponsored Display ads | Lower | Retargeting, audience interests, product targeting | Amazon pages, competitor listings, third-party websites and apps |
| Sponsored Products | Higher | Keyword targeting | Amazon search results |
| Sponsored Brands | Higher | Keyword targeting | Amazon search results, brand store |
| DSP advertising (Amazon DSP) | Higher | Shopping signals | On and off Amazon |
As seen in the table above, while Sponsored Display ads may have a lower return on ad spend compared to other options, they provide unique targeting and placement opportunities that can complement and enhance an advertising campaign.
By leveraging Sponsored Display ads alongside other advertising options, businesses can create an integrated approach to reach their target audience and drive sales. It’s essential for businesses to analyze their specific advertising goals and strategies to determine if Sponsored Display ads align with their overall marketing objectives.
Amazon Sponsored Display Ads vs Other Advertising Options on Amazon
In addition to Sponsored Display ads, Amazon provides sellers with various advertising options to promote their products effectively. These options include Sponsored Products, Sponsored Brands, and DSP advertising.
Sponsored Products ads rely on keywords and exclusively appear on the Amazon website. They allow businesses to target relevant customers directly within the online marketplace.
Sponsored Brands ads also use keywords but support multiple products and are accessible only to brand-registered sellers. With Sponsored Brands, businesses can showcase their brand logo, headline, and multiple products to engage customers.
DSP (Demand-Side Platform) ads, in contrast, utilize shopping signals to power their campaigns and can be used for advertising both on and off Amazon. DSP ads offer businesses a broader reach, extending beyond the Amazon platform.
While each advertising option has its own unique benefits and considerations, Amazon’s Sponsored Display ads provide several advantages that set them apart. These advantages include:
- All-inclusive targeting options that allow businesses to reach their desired audience effectively
- Wide-ranging ad placements, including on Amazon pages and third-party websites and apps
- A higher return on ad spend compared to certain other advertising options
By leveraging the improved reach, comprehensive targeting, and effective ad placements of Sponsored Display ads, businesses can enhance their advertising strategies and maximize their promotional efforts on Amazon.
Let’s take a closer look at how Sponsored Display ads compare to other advertising options on Amazon in terms of reach, targeting, and return on ad spend.
Sponsored Display Ads vs Sponsored Products
Both Sponsored Display and Sponsored Products ads give sellers the opportunity to advertise their products on the Amazon website. However, there are some key differences between these two options.
| Sponsored Display Ads | Sponsored Products Ads |
|---|---|
| Target customers based on interests, behaviors, and product views | Target customers based on keywords |
| Appear on Amazon pages and third-party websites and apps | Appear exclusively on the Amazon website |
| Retarget potential customers and increase brand visibility | Drive immediate product visibility and sales |
While Sponsored Display ads offer more advanced targeting options and wider ad placements, Sponsored Products ads can be a great choice for sellers looking to drive immediate sales on Amazon.
Sponsored Display Ads vs Sponsored Brands
Sponsored Display and Sponsored Brands ads differ in terms of their advertising approach and capabilities. Here’s a comparison between these two options:
| Sponsored Display Ads | Sponsored Brands Ads |
|---|---|
| Target customers based on interests, behaviors, and product views | Target customers based on keywords |
| Appear on Amazon pages and third-party websites and apps | Appear exclusively on the Amazon website |
| Retarget potential customers and increase brand visibility | Showcase brand logo, headline, and multiple products |
While Sponsored Display ads offer broader reach and retargeting capabilities, Sponsored Brands ads provide an opportunity for brand-registered sellers to showcase their brand identity and multiple products in a single ad.
Sponsored Display Ads vs DSP Advertising
Finally, let’s compare Sponsored Display ads with DSP (Demand-Side Platform) advertising, which offers businesses the chance to advertise both on and off the Amazon platform:
| Sponsored Display Ads | DSP Advertising |
|---|---|
| Target customers based on interests, behaviors, and product views | Utilize shopping signals for targeting |
| Appear on Amazon pages and third-party websites and apps | Extend beyond the Amazon platform |
| Wide reach and effective ad placements | Broader reach, including off-Amazon advertising |
Sponsored Display ads offer businesses a convenient and effective way to reach their target audience on and off Amazon, while DSP advertising provides the opportunity to expand advertising efforts beyond the Amazon platform.
“Amazon Sponsored Display ads provide improved reach, all-inclusive targeting options, effective ad placements, and a higher return on ad spend compared to some other advertising options.”
Overall, Sponsored Display ads offer businesses a powerful advertising tool on the Amazon platform, allowing them to effectively target relevant audiences and drive sales. While other advertising options on Amazon have their own advantages, Sponsored Display ads stand out with their comprehensive targeting options, wide-ranging ad placements, and potential for a higher return on ad spend.
How to Get Started with Amazon Display Ads – The Checklist!
To get started with Amazon Display ads, sellers should first establish their business goals and determine what they hope to achieve with their advertising efforts. Having a clear understanding of their objectives will guide them in making informed decisions throughout the campaign setup and management process.
- Establish Business Goals: Sellers should define their desired outcomes, such as increasing product visibility, driving sales, or expanding their customer base.
- Choose Campaign Settings: Based on their goals, sellers can select the appropriate campaign settings. They should consider factors like budget, targeting options, and ad placement to optimize their campaign’s effectiveness.
- Set Up Ad Campaign: Sellers can navigate to their Seller Central account’s “Advertising” tab and click on “Campaign Manager” to create their Sponsored Display ad campaign. They will need to follow the step-by-step instructions, including selecting the campaign type and defining targeting parameters.
- Finalize Ad Creatives: Sellers should create compelling and visually appealing ad creatives that align with their brand and product offerings. These creatives should capture the attention of their target audience and entice them to click.
- Launch the Campaign: Once the ad campaign setup is complete, sellers can launch their Sponsored Display ads and start reaching their intended audience. It’s important to monitor the campaign’s performance closely and make any necessary adjustments.
- Monitor and Optimize: Ongoing monitoring and optimization are essential for success. Sellers should regularly analyze campaign metrics, such as impressions, clicks, and conversions, and make data-driven adjustments to improve performance.
Following this checklist will help sellers launch their first Sponsored Display ads campaign successfully and maximize their advertising reach on Amazon. By effectively utilizing Amazon marketing tools and strategies, sellers can enhance their brand visibility, drive sales, and achieve their business objectives.
Conclusion
Amazon Sponsored Display ads provide businesses with a powerful tool to reach a wide audience and increase brand visibility both on and off Amazon. Despite potentially having a slightly lower return on ad spend compared to other ad types, Sponsored Display ads can still be a valuable investment for businesses aiming to expand their advertising reach and drive sales.
By leveraging the customization options and powerful targeting capabilities of Sponsored Display ads, businesses can enhance their Amazon advertising strategy and remain competitive in the online marketplace. These ads allow businesses to retarget potential customers, reaching them even after they navigate away from Amazon, and reminding them about their products.
With the ability to reach relevant audiences, Sponsored Display ads offer businesses the opportunity to increase brand awareness and engage potential customers. By incorporating Sponsored Display ads into their advertising campaigns, businesses can optimize their reach and tap into the vast potential of Amazon’s advertising platform.
FAQ
What are Amazon Sponsored Display Ads?
Amazon Sponsored Display Ads are a type of advertising that allows businesses to target customers based on their interests and shopping behaviors. These ads help increase visibility and potential sales for Amazon vendors and Brand-Registered sellers.
Are Amazon Sponsored Display Ads worth it?
While the return on ad spend may be slightly lower compared to other ad types, Sponsored Display Ads can still be worth it for businesses looking to maximize their advertising reach and retarget potential customers.
What is a Sponsored Display ad?
A Sponsored Display ad is an advertising tool on Amazon that allows businesses to target customers based on their interests and shopping behaviors, rather than specific keywords. These ads can display products that potential customers have previously viewed on Amazon across various Amazon pages, competitor listings, and third-party websites and apps.
How do Sponsored Display ads work?
Sponsored Display ads work by displaying products that potential customers have viewed on Amazon across various Amazon pages, competitor listings, and third-party websites and apps. They operate on a pay-per-click model, where businesses bid against other sellers for ad placements. These ads offer three types of targeting options: product targeting, views remarketing, and audience interests.
Where do Sponsored Display ads appear?
Sponsored Display ads can appear on various Amazon pages, including product detail pages and shopping results, both on desktop and mobile devices. They may also be visible on third-party websites and apps, but currently only in the United States.
How to set up a Sponsored Display ad?
To set up a Sponsored Display ad, sellers need to be brand-registered. They can navigate to the “Advertising” tab in Seller Central, click on “Campaign Manager,” and then “Create campaign.” From there, they can choose “Sponsored Display” as the campaign type and follow the step-by-step instructions to set up their ad.
Are Sponsored Display ads worth it?
Sponsored Display ads can be a valuable addition to an advertising campaign, allowing businesses to retarget potential customers, reach new audiences, and increase brand awareness. They can provide valuable insights into performance and effectiveness in driving sales.
Amazon Sponsored Display Ads vs Other Advertising Options on Amazon
Amazon offers other advertising options for sellers, including Sponsored Products, Sponsored Brands, and DSP Advertising. Each option has its own benefits and considerations, but Sponsored Display ads offer improved reach, all-inclusive targeting options, effective ad placements, and a higher return on ad spend compared to some other options.
How to Get Started with Amazon Display Ads – The Checklist!
To get started with Amazon Display ads, sellers should establish their business goals, choose appropriate campaign settings, set up their ad campaign, finalize their ad creatives, and launch the campaign. Monitoring and optimizing the campaign for results is also crucial for ongoing success.
