On Amazon, capturing customers' attention is just the first step. Maintaining that attention and converting it into sales requires smart and effective marketing strategies. One of the most powerful tools in an Amazon seller's arsenal is retargeting, and Amazon Sponsored Display is the best solution for achieving it.
Amazon Sponsored Display is a pay-per-click (PPC) advertising platform designed to help sellers reach potential customers at different stages of the buying funnel. Through retargeting campaigns, you can reconnect with shoppers who have shown interest in your products or similar products, increasing the likelihood of conversion.
This tool not only allows you to address users within Amazon, but also outside the platform, extending your reach and maximizing your sales opportunities.
Index
What is Amazon Sponsored Display?
Amazon Sponsored Display is an advertising tool that is part of Amazon's trio of sponsored ad options, along with Sponsored Products and Sponsored Brands.
Previously known as Product Display ADS (Product display ads), these ads allow sellers to achieve various objectives, such as increasing brand recognition, increasing traffic in product detail pages and promoting new products.
A key feature of Sponsored Display ads is that they can be shown both on and off Amazon, allowing for greater reach and customer retargeting.
Location of Amazon Sponsored Display ads
Sponsored Display ads can appear in various places within Amazon, including product detail pages and other sections of the site, on both desktop and mobile devices.
In addition, these ads can be displayed on external websites that are part of the Amazon advertising network, although this option is not yet available to all sellers and suppliers in Germany.
Cost model of an Amazon Sponsored Display advertisement
As with other Amazon sponsored ads, Sponsored Display ads are billed on a pay-per-click (PPC) basis. You only pay when a shopper clicks on your ad, and impressions are free. There's no minimum investment required for this type of ad, making it accessible to a wide range of sellers.
Creation of an Amazon Sponsored Display campaign
To create a Sponsored Display campaign, certain requirements must first be met. Then, in the “Advertising” , select “Manage Campaigns” and click “Create Campaign.” Next, choose Sponsored Display as the campaign type.
In the following steps, the name of the campaign, its duration and the budget is defined. The product to be announced and the orientation of the campaign is chosen, which can be per target group or by product is selected.
ORIENTATION SELECTION
Sponsored Display offers three guidance options:
- Targeting by target group (interests): A bid per click is established and areas of interest relevant to the advertised product are selected.
- Product targeting: Specific products are chosen to display the advertisement, with the option to target your own products or those of the competition.
- Category targeting: Product categories are selected to show the ad to shoppers looking for similar or complementary products.
Amazon Sponsored Display vs. Amazon DSP
Sponsored Display
- Availability: Currently, only for suppliers in Germany.
- Targeting: Target groups or retargeting (not yet available to all sellers).
- Cost model: CPC (Cost per click).
- Ads: Automatically generated (only the title is customizable).
- Requirements: Registration in the trademarks.
- Objectives: Increase brand awareness, increase traffic to product detail pages, and promote new product launches.
Amazon DSP
- Availability: Available for any advertiser.
- Targeting: Targeting and retargeting with greater control over the audience.
- Cost model: CPM (cost per thousand impressions) with a minimum budget of approximately 10,000 EUR.
- Ads: totally customizable.
- Requirements:
- Objectives: To increase the impact of ads through retargeting, increase traffic to products/landing pages, and improve brand awareness.
Conclusion
Sponsored Display ads offer a profitable way to place ads on Amazon and, potentially, out of the platform. As Amazon expands all more sellers and suppliers orientation options, this tool will become even more valuable.
Retargeting, in particular, is a targeting option that can be expensive on Amazon DSP, but offers great benefits in terms of reach and conversion.
