In 2023, Amazon accounted for nearly 40% of all U.S. e-commerce sales, making it a dominant force in online retail. With such a massive audience, sellers are constantly seeking ways to stand out, and Amazon Display Ads have become a popular tool to do just that. These ads allow sellers to target potential customers both on and off Amazon, expanding their reach beyond the platform.
But are these ads truly effective? In this guide, we'll explore how Sponsored Display Ads work, who should use them, and whether they can boost your Amazon sales strategy. So, continue reading to learn more!
1. What Are Amazon Display Ads?
Amazon Display Ads are a form of self-service advertising that allows sellers to promote their products both on Amazon and across the web. These ads use a mix of targeting methods, including product targeting, audience targeting, and remarketing. This means your ads can reach shoppers who have shown interest in similar products or who have previously visited your listings.
Let's take a closer look at a few of its benefits:
- Expanded Reach: Ads can appear on and off Amazon, reaching potential customers across the web.
- Targeted Advertising: Use behavioral, interest, and product targeting to connect with high-intent shoppers.
- Increased Visibility: Improve product exposure in highly competitive categories.
- Remarketing Power: Re-engage shoppers who've viewed your product but didn't purchase.
- Boost Sales: Increase chances of conversion by reaching relevant audiences at various stages of the buying journey.
2. How Do Amazon Display Ads Work?
Amazon Sponsored Display Ads use advanced targeting methods to reach potential customers. Sellers can target shoppers based on specific products and audience interests or by retargeting those who have previously viewed their listings.
Targeting Type | Description | Eligibility | Ad Placement |
|---|---|---|---|
Product Targeting | Targets customers browsing similar or complementary products, including competitor listings. | Vendors and Brand Registered third-party sellers. | Shown on competitor listings, similar product pages, and complementary products (e.g., Xbox accessories on Xbox consoles). |
Views Remarketing | Retargets customers who previously viewed your product or similar products within the last 30 days. | Vendors and Brand Registered third-party sellers. | Shown to users who viewed your product's detail page or similar products but didn’t purchase. |
Audience Interests | Targets new audiences based on their browsing interests related to your product category. | Vendors only. | Shown to shoppers who browsed related interest categories across Amazon. |
This table breaks down the key aspects of each targeting option to help sellers understand how they can effectively use Amazon Display Ads.
Amazon Display Ads operate through three key targeting options:
- Product Targeting: Ads appear alongside similar or related product listings to attract shoppers browsing for specific items.
- Views Remarketing: Targets users who have viewed your product or similar products but didn't purchase, encouraging them to revisit and convert.
- Audience Interests: Leverages Amazon's data to target shoppers based on their browsing behavior and interests.
The ads appear not only on Amazon but also on third-party websites and apps, helping sellers expand their reach. By leveraging Amazon's data on customer behavior and interests, these ads allow sellers to strategically show their products to shoppers who are most likely to convert, maximizing their ad spend.
3. Where Do Amazon Sponsored Display Ads Appear?
Amazon Sponsored Display Ads offer sellers diverse placements, appearing on Amazon product detail pages, search results, and external sites through third-party networks. Besides using These ads can reach shoppers actively browsing Amazon as well as those who have left the platform, helping sellers stay top-of-mind with potential buyers.
Difference Between Sponsored Display, Sponsored Brands, and Sponsored Products Ads:
- Sponsored Display Ads: Focus on remarketing and audience targeting across Amazon and external sites.
- Example: An ad for gaming accessories shown on Xbox console listings.
- Sponsored Brands Ads: Promote a brand's portfolio with banners that feature multiple products and brand logos, enhancing brand visibility.
- Example: A banner ad showcasing Nike's footwear line on the search results page for "running shoes."
- Sponsored Products Ads: Appear within Amazon's search results or product detail pages, promoting individual products based on specific keywords.
- Example: A single blender ad that appears when a shopper searches for "kitchen blender."
Each ad type serves different goals, with Sponsored Display Ads targeting specific audiences and providing broader off-Amazon exposure, while Sponsored Brands drive brand awareness, and Sponsored Products boost direct product visibility.
4. Setting Up Sponsored Display Ads
Setting up Amazon Sponsored Display Ads is a straightforward process. Here's a step-by-step guide:
- Log into Seller Central: Navigate to the 'Campaign Manager' under the Advertising tab.
- Create a Campaign: Select 'Sponsored Display' as the campaign type.
- Define Your Campaign Settings: Set your daily budget, start/end dates, and give your campaign a unique name.
- Choose Your Targeting: Select between product targeting, views remarketing, or audience interests based on your goals.
- Set Your Bid: Enter the amount you're willing to pay for each click.
- Select Products: Choose which product(s) you want to promote.
- Launch Your Campaign: Review the details and launch your Sponsored Display Ads.
5. Are Sponsored Display Ads Worth It?
Whether or not Sponsored Display Ads are worth the investment depends on your specific business goals. For many sellers, these ads provide a valuable opportunity to expand reach, increase brand awareness, and retarget potential customers who have already shown interest in their products.
Benefits:
- Increased Reach: Sponsored Display Ads allow sellers to reach customers both on and off Amazon, providing broader visibility.
- Retargeting Power: With views remarketing, you can re-engage shoppers who previously viewed your product but didn't buy, increasing the likelihood of conversion.
- Targeted Audiences: Audience interest targeting helps you connect with relevant shoppers based on their browsing and purchasing behaviors, offering highly focused advertising.
Drawbacks:
- Cost Considerations: Like any form of advertising, the effectiveness of Sponsored Display Ads depends on your budget. If not carefully managed, CPC (cost-per-click) can become expensive.
- Effectiveness Varies: Some sellers may find more success with Sponsored Products or Sponsored Brand ads, depending on their product and audience.
5. The Final Verdict
In conclusion, Amazon Sponsored Display Ads offer sellers an exciting opportunity to not only increase product visibility but also strategically retarget potential customers. With advanced targeting options like product targeting, views remarketing, and audience interests, these ads help brands connect with the right shoppers at the right time.
Whether you're looking to expand your reach beyond Amazon or re-engage high-intent customers, Sponsored Display Ads can be a powerful tool to drive growth. With careful budget management and optimization, these ads can significantly boost your brand's performance on and off Amazon.
