If you sell on Amazon and want to reach a new audience, Sponsored Display ads could be just what you need.

This unique Amazon advertising format enables you to expand your reach to relevant people both on and off the Amazon platform. This means you can engage with customers throughout their buying process and reach a larger audience than ever before.

Amazon Sponsored Display ads carry a lot of unique features that you may not have experienced with the more familiar Sponsored Products or Sponsored Brands ads.

So, in this article, we’ll breakdown down exactly what those differences are and how to best set up your Sponsored Display ads for success. Amazon offers a unique remarketing advertisement tool ‘Sponsored Display Ads’ which gives you control over who or what your ad is targeting and where your ad can appear.

1. What Is Amazon Sponsored Display Ads?

Amazon Sponsored Display Ads are a type of advertising on Amazon that allows businesses to reach potential customers across various locations, both on and off the Amazon website.

Furthermore, it provides the flexibility to select various bidding tactics tailored to cater to customers at different stages of their shopping journey.

Here’s an example of Sponsored Display ads:

If you’re a vendor or professional seller enrolled in Amazon Brand Registry, Sponsored Display can help you grow your business as you reach relevant audiences everywhere they spend time. Sponsored Display gives you the opportunity to help drive awareness and support sales on Amazon.

2. How Do Amazon Sponsored Display Ads Work?

Amazon Sponsored Display ads can be created and managed from within the same Campaign Manager dashboard that you’re likely already familiar with. Key differences and benefits include

While other formats are best suited to middle and bottom-of-funnel marketing designed to drive immediate sales, Amazon Sponsored Display ads are suitable for a full-funnel marketing approach.

3. Where Do Sponsored Display Ads Appear?

Sponsored Display ads are typically shown in the sidebar of the Amazon search results page. Sponsored Display Ads can appear in a variety of locations, both on and off Amazon, depending on your targeting strategy. Here’s a breakdown of the possibilities:

On Amazon Product Detail Pages: These include your own product listings, competitor listings, and pages for similar or complementary products.

Search Results Pages: While not the primary placement for Sponsored Display Ads (that’s handled by Sponsored Products ads), they can still show up on relevant search results.

Customer Review Pages: On review pages, there is a single ad placement next to customer reviews.

Other placements: This could include the Amazon homepage, customer review sections, and potentially even native ads on devices with screens like Fire tablets and Echo Show.

Off Amazon Third-party websites and apps: These websites and apps partner with Amazon to display targeted ads. (Availability in specific locations may vary).

Amazon-owned properties: This includes websites and apps like Twitch, IMDb, and potentially others owned by Amazon.

4. Sponsored Display Ads Eligibility

Sponsored Display Ads are a type of advertising option available on Amazon, allowing advertisers to promote their products both on and off Amazon. Eligibility for using Sponsored Display Ads involves several criteria:

Seller Eligibility:

• While Amazon Brand Registry offers the most features, it’s not the only option. Here’s a breakdown:
  • Brand Registry: Ideal for brands with access to all functionalities, including product targeting.
  • Vendor Central: Vendors who directly supply Amazon are also eligible.
  • Seller Central with Agency: Agencies can manage Sponsored Display Ads for their third-party seller clients on Amazon.

Geographic Eligibility:

• Clarification on available marketplaces is accurate:
  
  • America: US, Canada, Mexico, Brazil
  • Europe: UK, Germany, Spain, France, Netherlands, Italy, Sweden, Poland, Turkey
  • Asia Pacific: Australia, Japan, India, Singapore
  • Middle East: Saudi Arabia, United Arab Emirates

5. Should You Use Amazon’s Sponsored Display Ads?

Whether or not you should use Amazon’s Sponsored Display Ads depends on your specific business goals and resources. Here’s a breakdown to help you decide:

Potential Benefits:

• Increased Brand Awareness: Reach a wider audience on and off Amazon, both those actively searching and those browsing elsewhere.
• Improved Targeting: Target customers throughout their shopping journey, including those who have previously interacted with your brand or similar products.
• Drive Sales and Traffic: Increase clicks to your product listings and potentially convert more browsers into buyers.

Things to Consider:

• Costs: Sponsored Display Ads operate on a pay-per-click model, so you’ll pay each time someone clicks on your ad.
• Management Time: While user-friendly, running successful ad campaigns requires ongoing monitoring and optimization.
• Competition: The Amazon advertising space can be competitive, so you’ll need to have well-optimized campaigns to stand out.
• Product Eligibility: Not all product categories are eligible for Sponsored Display Ads.

Who can benefit most:

• Brands looking to expand their reach beyond Amazon.
• Businesses with products in eligible categories facing high competition organically.
• Sellers with the budget and resources to manage and optimize ad campaigns.

Alternatives to Consider:

• Amazon Sponsored Products Ads: Target specific keywords to reach users actively searching for products.
• Organic Optimization: Optimize product listings for relevant keywords to improve organic ranking.

If you’re a new seller or have limited resources, consider starting with organic optimization to improve your product listing visibility. Once you’ve established a good foundation, Sponsored Display Ads can be a powerful tool to reach a wider audience and drive sales.

6. Benefits Of Amazon Sponsored Display Ads

With views remarketing Sponsored Display ads enable you to re-engage the remaining 96% of the audience.

They are an effective advertising strategy to retarget and reintroduce your products and brands to shoppers and increase sales. Additional benefits of Sponsored Display ads are:

Increased Visibility: 

Sponsored Display Ads appear both on Amazon’s platform and on third-party websites and apps, broadening your reach.

Increased Targeting: 

Go beyond just keywords. Sponsored Display Ads allow you to target customers based on their browsing behavior and interests. You can retarget past product viewers and purchasers, reach audiences similar to your existing customer base, or target those who have interacted with complementary products. This laser focus ensures your ads are seen by people most likely to be interested, maximizing the effectiveness of your campaigns.

Management and Budget Control:

Don’t be discouraged by the term “advertising.” Sponsored Display Ads are designed with ease of use in mind. Setting up and managing campaigns is relatively straightforward. Additionally, you have complete control over your budget. Set a spending limit that fits your needs and adjust it as your campaign progresses, ensuring you stay within your financial comfort zone.

Improved Brand Awareness: 

By displaying your ads across various platforms, you can maintain consistent brand visibility, helping to build and reinforce brand recognition. Sponsored Display Ads can give you an edge in competitive markets by keeping your products top-of-mind for potential customers.

Increased Conversion Rates: 

By reaching the right audience with relevant ads, you can increase the likelihood of conversions and drive more sales. Remarketing helps capture potential customers who showed initial interest but didn’t complete a purchase, thereby increasing conversion rates.

Moreover, using a combination of Sponsored Products ads, Sponsored Brands ads, and Sponsored Display ads has been shown to result in up to a 15% year-over-year increase in sales and a better return on ad spend compared to only using Sponsored Products.

7. Sponsored Display Ads Targeting Options:

Amazon Sponsored Display Ads offer a variety of targeting options to help advertisers reach the right audience and maximize their advertising effectiveness. 

Here are the main targeting options available:

Audience Targeting

• Behavioral Targeting: Targets shoppers based on their browsing and purchase behaviors on Amazon. This can include categories they’ve explored or items they’ve previously bought.

• Lifestyle Targeting: Targets shoppers based on their lifestyle interests, inferred from their browsing and purchase patterns. For example, targeting fitness enthusiasts or tech-savvy individuals.

• Interest-Based Targeting: Targets shoppers who have shown interest in specific topics or categories, helping to reach potential customers likely to be interested in your product.

• Remarketing: Re-engages shoppers who have previously viewed your product, similar products, or visited your detail page but did not make a purchase. This is effective for converting interested visitors into buyers.

Product Targeting

• Product ASIN Targeting: Allows you to target specific product ASINs (Amazon Standard Identification Numbers), including your own and competitors’ products. This is useful for targeting related or complementary products.

• Category Targeting: Enables you to target entire product categories. You can refine this targeting by choosing subcategories, price ranges, brand preferences, and product ratings.

8. How To Create Amazon Sponsored Display Campaign?

There are some options to select for Sponsored Display Campaign Optimization Strategy. Every option has a different motive to run a campaign. Amazon will optimize bids for higher conversion rates. Drive sales by showing your ad to shoppers more likely to purchase your product.

You can run a Sponsored Display Campaign by using the guide. And select your items or store

Select items to run SD campaigns. You have to select at least one item to run a campaign.

Featuring advanced targeting capabilities, including interests, specific products, categories, or customer demographics which enable advertisers to segment their audience with greater precision and relevance.

Advertisers have the flexibility to choose from various customizable templates first to create display ads campaigns or use Amazon’s auto-generated ad creatives to also create the ad campaign itself. Moreover, sellers can also upload their creative elements for a more tailored ad appearance.

9. Bid Optimization Strategies In Sponsored Display Ads

Sponsored Display Ads (SD Ads) on Amazon offer a powerful tool to reach your target audience. But just like any advertising platform, optimizing your bids is crucial for maximizing your return on investment (ROI). 

Understanding Bidding Options in SD Ads:

Unlike traditional PPC models where you bid for clicks, SD Ads offer a few bidding options:

• Optimize for Viewable Impressions (VCPM): This option focuses on getting your ad seen by users who are likely to see it (viewable impressions). You’ll be charged based on estimated viewable impressions.
• Optimize for Clicks (CPC): This is a more traditional approach where you bid for clicks on your ad. You’ll pay each time someone clicks on your ad.
• Optimize for Conversions: This strategy prioritizes getting conversions (purchases) on your product listings. You set a maximum amount you’re willing to pay for each conversion.

Choosing the Right Bidding Strategy:

The optimal bidding strategy depends on your advertising goals:

• Brand Awareness and Discovery: If your primary goal is to increase brand awareness and product visibility, “Optimize for Viewable Impressions” might be a good starting point.
• Driving Traffic and Clicks: To generate traffic to your product listings and increase click-through rates, “Optimize for Clicks” can be a suitable option.
• Boosting Sales and Conversions: For campaigns focused on maximizing sales and conversions, “Optimize for Conversions” allows you to target users most likely to purchase.

10. Limitations Of Sponsored Display Ads

While Sponsored Display Ads on Amazon offer various benefits, they also come with certain limitations and challenges:

• Limited Placement Options: Sponsored Display Ads have fewer placement options compared to other ad types on Amazon. They primarily appear on product detail pages, customer reviews, and shopping results pages.

• Limited Reporting and Analytics: The reporting and analytics capabilities for Sponsored Display Ads are not as robust as those for other ad formats. Advertisers may have limited visibility into key performance metrics and may find it challenging to assess the effectiveness of their campaigns accurately.

• Product Eligibility Restrictions: Certain products may not be eligible for Sponsored Display Ads due to Amazon’s advertising policies or restrictions. Advertisers may encounter limitations on which products they can promote through this ad format.

Insights:

By following these steps and incorporating these pro tips, you can transform Sponsored Display Ads into a powerful tool to elevate your brand visibility, reach new customers, and ultimately dominate the Amazon marketplace in 2024 and beyond.

Here, at Ecomclips, we have been helping many Amazon sellers boost their sales and capture the market share with both PPC and organic SEO. If you need any help boosting your Amazon sales or making growth on your brand, please don’t hesitate to mail us at our email address info@ecomclips.com. Also, if you need an Amazon store or account audit for both PPC Ads and listings SEO, you can let us know via our email address, and we will provide you with a free account audit.

As an Amazon advertising agency, we have a dedicated Amazon Ads Certified expert team who can build an Amazon advertising strategy for your account whether it’s a newly launched or a running Amazon brand to build traffic and conversion.

Additionally, if you need any assistance, please reach out to us in the comment box. We are here to assist you in managing PPC advertisements to improve your profit, so we offer a personalized approach to our service.