What Are Amazon Display Ads, and Should Sellers Invest in Them?
In 2024, Amazon dominated nearly 65% of all e-commerce sales in the U.S., solidifying its position as a key player in online retail. Given this vast marketplace, sellers are always searching for ways to differentiate themselves, and Amazon Display Ads have emerged as a popular strategy. These ads enable sellers to reach potential buyers both on Amazon and beyond, extending their visibility across the internet.
But do these ads truly deliver results? This guide will break down how sponsored display ads function, who can benefit from them, and whether they can enhance your Amazon sales strategy. Read on to find out more!
1. Understanding Amazon Display Ads
Amazon Display Ads are a type of self-service advertising that allows sellers to promote their products both within Amazon and on external websites. These ads use various targeting methods, including product-based targeting, audience-based targeting, and remarketing. This enables sellers to engage with shoppers who have previously expressed interest in similar products or visited their listings.
Key benefits of Amazon Display Ads include:
- Expanded Reach: Ads appear on Amazon and third-party sites, increasing exposure.
- Targeted Advertising: Utilize behavioral, interest, and product-based targeting to reach high-intent shoppers.
- Greater Visibility: Enhance product exposure, especially in competitive categories.
- Remarketing Potential: Reconnect with shoppers who viewed your product but didn’t make a purchase.
- Sales Growth: Increase conversions by targeting customers at different stages of their buying journey.
2. How Do Amazon Display Ads Work?
Amazon Sponsored Display Ads leverage advanced targeting techniques to connect with potential customers. Sellers can choose from three primary targeting methods: product targeting, views remarketing, and audience interest targeting.
| Targeting Type | Description | Eligibility | Ad Placement |
| Product Targeting | Targets customers browsing related or competitor products. | Vendors & Brand Registered Sellers | Appears on competitor listings, similar product pages, and complementary items (e.g., Xbox accessories on Xbox console pages). |
| Views Remarketing | Retargets users who viewed your product or similar ones within the last 30 days. | Vendors & Brand Registered Sellers | Displays ads to shoppers who visited your product detail page but didn’t buy. |
| Audience Interests | Targets shoppers based on browsing history and product category interest. | Vendors Only | Reaches customers browsing related categories across Amazon. |
These ads are not restricted to Amazon alone—they also appear on third-party sites and apps, helping brands expand their market reach. By tapping into Amazon’s vast consumer data, sellers can strategically position their products in front of the right audience, increasing the chances of conversions while maximizing their advertising budget.
3. Where Do Amazon Sponsored Display Ads Appear?
Sponsored Display Ads can be seen across multiple placements, including Amazon product detail pages, search results, and external websites through Amazon’s ad network. These ads help sellers stay visible not just to active Amazon shoppers but also to those who have left the platform, keeping their brand top-of-mind.
How Do Sponsored Display Ads Compare to Other Amazon Ad Types?
Amazon offers three main advertising solutions, each with distinct functions:
- Sponsored Display Ads: Focuses on remarketing and audience-based targeting across Amazon and external platforms.
- Example: An ad for gaming accessories appearing on an Xbox console listing.
- Sponsored Brands Ads: Promotes a brand’s product line through banner ads featuring multiple products and the brand’s logo.
- Example: A Nike ad showcasing various running shoes in search results.
- Sponsored Products Ads: Highlights individual products in Amazon search results and product detail pages, using keyword-based targeting.
- Example: A kitchen blender ad appearing when a shopper searches for “best blender.”
Each ad type serves a unique purpose, with Sponsored Display Ads focusing on audience engagement beyond Amazon, Sponsored Brands boosting brand recognition, and Sponsored Products increasing direct product visibility.
4. How to Set Up Sponsored Display Ads?
Setting up Amazon Sponsored Display Ads is a simple process. Follow these steps:
- Log into Seller Central: Navigate to the ‘Campaign Manager’ under the Advertising tab.
- Create a New Campaign: Select ‘Sponsored Display’ as your campaign type.
- Configure Campaign Settings: Set a daily budget, define start and end dates, and give your campaign a name.
- Choose Your Targeting Method: Pick between product targeting, views remarketing, or audience interests based on your goals.
- Set Your Bid: Enter the maximum amount you’re willing to pay per click.
- Select Your Products: Choose the products you want to advertise.
- Launch the Campaign: Review all details and activate your ads.
By carefully setting up and optimizing your campaign, you can ensure that your ad spend is being utilized effectively.
5. Are Sponsored Display Ads Worth the Investment?
The value of Sponsored Display Ads depends on your business goals. For many sellers, these ads provide a strategic advantage by increasing reach, building brand awareness, and retargeting potential customers who have already interacted with their products.
Pros of Sponsored Display Ads:
✔ Broader Exposure: Reach customers both on and off Amazon.
✔ Retargeting Capabilities: Engage shoppers who previously viewed your product but didn’t make a purchase.
✔ Highly Targeted Advertising: Use Amazon’s consumer insights to target relevant audiences based on their interests.
Cons of Sponsored Display Ads:
✖ Cost Considerations: If not managed properly, cost-per-click (CPC) expenses can add up quickly.
✖ Effectiveness May Vary: Some sellers might achieve better results using Sponsored Products or Sponsored Brands, depending on their category and audience.
6. Final Thoughts
Amazon Sponsored Display Ads present a powerful opportunity for sellers to boost product visibility and strategically retarget potential buyers. With targeting options like product-based ads, views remarketing, and audience interest targeting, brands can reach the right shoppers at the right time.
If your goal is to expand your brand presence beyond Amazon and reconnect with high-intent customers, Sponsored Display Ads can be an invaluable tool. However, careful budget allocation and campaign optimization are crucial to achieving the best results. By leveraging these ads effectively, sellers can drive more sales and enhance their overall Amazon marketing strategy.
