Everything You Need to Know About Amazon Sponsored Display Advertisements

In the vast realm of advertising, the introduction of Amazon Sponsored Display Ads has provided a fresh, holistic approach for vendors and brand-registered sellers. Unlike the keyword-driven strategies of Sponsored Products, Sponsored Brands, and Sponsored Brand Videos, Sponsored Display Ads center around data-driven customer profiling, targeting shoppers both on Amazon and across other third-party platforms. By focusing on specific customer interests, shopping behaviors, and interactions with your product pages, these ads provide a tailored advertising experience, enhancing both reach and conversion potential.

Understanding the Mechanics of Sponsored Display Ads

At its core, the Amazon Sponsored Display program is underpinned by Amazon's robust data analytics. When a potential buyer expresses interest in a product—perhaps by visiting a product detail page but not completing a purchase—Amazon logs this behavior. Later, as the same user navigates either within Amazon or on other websites and applications, Amazon strategically displays ads for the previously-viewed product. This not only serves as a reminder but also encourages the user to reconsider and potentially finalize the purchase.

NOTE: YOU MUST BE A PART OF THE AMAZON BRAND REGISTRY OR BE AN AMAZON VENDOR TO TAKE ADVANTAGE OF SPONSORED BRANDS

Key Advantages for Brand-Registered Sellers:

Distinguishing Sponsored Display Ads from other advertising modes are the following unique benefits:

1. Retargeting Capabilities: Sellers can specifically target users who have visited their product pages in the past 30 days, offering a second chance at converting a sale.

2. Diverse Product Promotion: Ads can be tailored to align with particular categories or products similar to the seller's offering, broadening the potential audience.

3. Behavior-Based Targeting: Exclusive to vendors, this feature allows ads to target users based on broader shopping patterns and interests, capturing a wider yet still relevant audience.

Step-by-Step Setup of a Sponsored Display Ad Campaign:

1. Access the Platform: Begin by logging into Seller Central and navigating to the “Advertising” tab.

2. Campaign Initialization: Click on “Campaign Manager,” and then “Create campaign.”

3. Specify Ad Type: Opt for “Sponsored Display” under the list of campaign types.

4. Detail Your Campaign: Much like setting up a Sponsored Product campaign, specify your campaign's parameters: name, date range, budget, bid optimization strategy, and more.

5. Product and Targeting Selection: Choose the product you wish to advertise and select the appropriate targeting strategy, whether it's based on specific audience behaviors or product categories.

6. Creative Choices: Decide on the visual and textual elements of your ad. While Amazon provides automatic options, you can customize the ad's appearance, integrate your brand logo, and select a compelling headline.

7. Preview and Confirm: Before finalizing, Amazon allows you to preview your ad, ensuring it aligns with your expectations.

Operational Dynamics of Sponsored Display Ads:

These ads operate on a pay-per-click (PPC) basis, similar to other Amazon advertising options. However, the bid dynamics focus on ad placements, making it competitive. The three pivotal targeting options to consider are:

  • Audiences- Interest-based Targeting: The strategy of targeting based on interests augments brand prominence by presenting your offerings to a fresh cohort of consumers who have indicated possible affinity towards your products. In essence, Amazon disseminates your advertisements to users who have inspected items linked with distinct interest classifications. However, only vendors can leverage this sophisticated targeting mechanism.

  • Product Targeting Advertisements: Harnessing the power of Product Targeting enables engagement with audiences engrossed in your item or those within analogous categories. To maximize the visibility from competitor listings, contemplate deploying special deals or setting your product's price marginally beneath theirs. Subsequently, activating the Product Targeting ads can enhance the attractiveness of your listing in contrast to analogous offerings. Additionally, this module allows you to zero in on potential customers viewing listings of synergistic products. However, this capability is accessible only to Vendors and third-party sellers affiliated with the Amazon Brand Registry.

  • Audiences- Remarketing Based on Views: Utilizing views-based remarketing, merchants have the distinctive edge of re-engaging with audiences previously intrigued by their listings. This method stands out in efficacy, as individuals acquainted with your product or its kind exhibit an amplified likelihood of engagement compared to those reached via traditional Sponsored Products. To specify, this ad variant will reacquaint consumers with your product if they've explored its detail page or those of comparable items, assuming a purchase hasn't occurred in the preceding 30 days. However, this feature is only accessible to Vendors and third-party sellers enrolled in the Amazon Brand Registry.

Ad Placement Dynamics:

While Sponsored Brands and Sponsored Products are prominently displayed atop Amazon's search results, Sponsored Display Ads' placement varies. Depending on your targeting strategy, these ads can grace product detail pages, various shopping results on Amazon's ecosystem, or even third-party platforms.

Evaluating the Return on Sponsored Display Ads:

The efficacy of any advertising tool hinges on its return on investment. It's imperative to remember that success on Amazon often requires iterative testing of different strategies. Sponsored Display Ads, with their retargeting capabilities and expansive reach, could be the differentiator that sets your brand apart. For those fitting the eligibility criteria, it's certainly worth venturing into this advertising avenue, meticulously tracking performance metrics to ensure it aligns with business goals.

In the ever-evolving digital marketplace, Amazon's Sponsored Display Ads emerge as a pivotal tool for vendors and brand-registered sellers, offering a nuanced, data-driven approach to online advertising. By harnessing customer behavior analytics and ensuring products resurface at critical touchpoints, both within and outside the Amazon ecosystem, these ads potentiate higher engagement and conversion rates. As competition intensifies, it's imperative for sellers to leverage such innovative strategies, always staying adaptable and cognizant of evolving consumer behaviors, to ensure sustained success and market prominence. We hope you have a better understanding of Amazon Sponsored Display Ads!

Thank you,

Commerce Canal Team

To learn more about Sponsored Product Advertisements, Amazon’s advertising PPC (pay-per-click) program, click here.

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