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Amazon Sponsored Display Ads 101

Skai™

August  29, 2022
sponsored display ads

When it comes to planning Amazon PPC Ads strategy, it is critical to have a strong working knowledge of the basics, such as targeting and bidding, along with the best uses for each of Amazon’s myriad ad types.

And one of the best tools for finding new audiences who are browsing, researching, and making purchases on Amazon is Amazon Sponsored Display Ads.

Formerly known as Product Display Ads, Sponsored Display Ads are videos and banners dynamically served to shoppers who have viewed your product previously, searched for terms relevant to your product, or bought from you in the past. They can be found on product display pages, customer review pages, and at the top of offer listing pages on desktop and mobile. They can even be found off Amazon, across various Amazon-owned properties. 

Here’s everything you need to know to get started with Sponsored Display Ads. 

\What are sponsored Display Ads?

Sponsored Display Ads use automatically generated ad creatives to target audiences based on relevant Amazon shopping interests. These ads reach audiences as they browse, research, or buy products on the Amazon home page, product detail pages, shopping results pages, and Twitch, as well as third-party websites and apps.

They also dynamically promote the most relevant product with the highest chance of engaging shoppers from the list of products you add to your campaign.

What is the cost model for Sponsored Display Ads?

These ads are pay-per-click (PPC) and based on the advertiser’s bid. 

How do I create a Sponsored Display Ad?

They are really easy to build. Brands simply choose which of their Amazon products to advertise, and then the ads are automatically generated. The ads include a product image, pricing, deals, savings badging, star rating, and a “Shop Now” button that links to your product detail page. Additionally, you can choose to add a custom headline. 

However, if you’d like more control over your ad design, you can also choose to build manually, a process Amazon calls ‘customization’. To customize your Sponsored Display Ad, select a logo, headline, and either uses the product image or upload a custom one. 

How are audiences targeted?

Sponsored Display Ads reach audiences based on individual Amazon Standard Identification Numbers (ASINs), product categories, or audiences. The ads use browsing and buying signals to automatically reach audiences who may be interested in your promoted product. These audiences may be in the market to buy your product because they viewed your product, similar products, or relevant categories.

You may also add and mix multiple audience types in a single campaign. Combining multiple audiences in a campaign will result in a broader audience for your ads in a manner that creates overlap in all selected audiences. Audiences include: 

  • Views remarketing. Amazon shoppers who have viewed specific product detail pages during a historical lookback window that you can specify. 
  • Purchases remarketing. Reaches audiences based on their historical purchase behaviors during a lookback window that you can specify. 
  • Amazon audiences. Thousands of pre-built audience segments to help advertisers reach new prospective audiences through awareness and consideration campaigns. 

Do Sponsored Display Ads work?

Studies show that Sponsored Display Ads are great for generating new audiences. On average, advertisers who use them see up to 82% of their sales driven by new-to-brand customers

Sponsored Display Ads are an important part of a robust Amazon strategy because they’re highly complementary to other Amazon ad products, such as Sponsored Products or Sponsored Brands ads campaigns. That’s because they can be used to retarget/re-engage users who have viewed or purchased your items or have previously searched on your key terms. 

To find out more about how you can get the most out of your Amazon ads strategy, download “The Skai Marketing Guide to Mastering Amazon Ad Types” here. 

Request a Demo of Skai

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