What are sponsored display ads on Amazon? A guide for beginners

Amazon Ad | February 2, 2024

Amazon Advertising is an umbrella term used for different advertising solutions on Amazon. It is a marketing strategy for Amazon, similar to PPC on Google. As an Amazon vendor or a registered seller on the most prominent e-commerce platform, you can use advertising tools to boost your business. One such tool is Amazon Sponsored Display ads.

What are sponsored display ads on Amazon

A beginner to the Amazon platform may have many questions, such as where sponsored display ads appear on Amazon. Or How do they work? Well, here is your detailed guide.

Sponsored Display ads appear on Amazon to help you rapidly reach your desired audience on and off Amazon. Your business ads are displayed on the Amazon ecosystem and third-party websites to retarget your target audience.

Now, let's know and understand sponsored display ads in detail. Keep reading...

How do Sponsored Display ads work to reach your audience?

With the sponsored display ads on Amazon, you can bid against other vendors on Amazon for placing your ad—visibility to your potential customers. In this Amazon PPC program, no minimum budget is needed. You will set your daily budget.

Sponsored Display ads have three targeting options: product targeting, views remarketing, and audience interests. Refer to the image below:


Image source: junglescout.com

Product Targeting ads

Product targeting helps you reach all the customers or shoppers searching for your product or similar items and categories. With these ads, you can easily target potential customers faster than your top competitors who fall under your niche.

Audiences: Views remarketing

With this type of marketing, vendors can target their ideal customers who have viewed their product pages. This marketing strategy helps to retarget your customers who have been or have viewed your products. These ads will help potential customers make a purchase.

Interests of Audience

This strategy is a unique targeting option that helps boost awareness of your brand name by displaying your products to new audiences who have shown interest in them.

What are the different benefits that Amazon Sponsored Display Ads offer?

The prominent benefits are as follows:

  • Enhanced brand presence in your niche.
  • Boost the volume of people who have checked your product page.
  • Elevate the prominence of new product listings.
  • We put our goods below the listings of your competitors.

The Amazon display ads strategies are suitable if you think creating an impression is essential. The impressions of your new product items will increase, and all three ads, i.e., sponsored brands, sponsored displays, and sponsored products, will be used in combination. With this, you can reach more people in a shorter time.

You can quickly draw more and more customers and let them down the sales funnel if you correctly use Sponsored Display ads.

However, product display ads never appear on Amazon SERPs, and they show lower conversion rates as they are less competitive compared to Sponsored Brand and Sponsored Product ads.

How Can You Create Amazon-Sponsored Display Ads?

The steps are straightforward to create Amazon-sponsored display ads are as follows:

Step 1: First, select a targeting mode.

Step 2: Select your daily bid and budget after the first step.

Step 3: Choose the items you want to build your ad campaign. Based on the targeting you choose, Amazon itself creates ad creatives automatically.

Step 4: Always check your ad campaigns before you submit.

Amazon is programmed to automatically pull information from product pages, such as star ratings, prices, and product images. Your ads' "Shop Now" button directs customers to your product detail page. This helps them to buy your product.

How do you set up Sponsored Display ad campaigns?

To generate Sponsored Display ads, here is the essential step-by-step guide.

Step 1: Settings

First, go to the Campaign Manager inside Seller Central and select the "Create Campaign" button.

Within the several options, choose Sponsored Display ads.

Now complete the critical settings of your ad campaign, such as the name of the campaign, ad group name, start and end date, and your daily budget.

Step 2: Bidding

Next, you have to choose your bidding strategy. There, you will find three options: Optimize for reach, optimize for page visits, and optimize for conversion.

For new beginners, the best option here is to optimize for conversions.

This will help you drive immediate, sustainable results from your ad campaigns.

Step 3: Ad Format

This step is where you choose your ad format; there are two simple choices here.

You can either choose images or videos to be displayed as your ad.

Step 4: Products

This is also a straightforward step: choose the products you want to advertise.

The general beginner rule is one product per campaign. It will help you manage your advertising budget in a better manner.

Step 5: Creative

It is time to add creative elements to your Sponsored Display ad campaign.

All these elements will show with your product title, image, review count, and price.

You can add a personalised brand logo, a headline, a custom image or a video.

For your headline, they have a 50-character limit.

Adding Sponsored Display Ads in Your Amazon PPC Campaign: How do you do it?

First, see what magic you can do with PPC by creating sponsored display advertisements and distributing roughly 5–15% of your ad budget.

Avoid these ads if you are new to Amazon, as following the hierarchy of advertising is always better. Starting with Sponsored Products, Sponsored Brands, and Sponsored Displays, this standard format benefits you.

You need to stick to whatever sequence you introduce in your campaign. The sponsored display value has thoroughly increased throughout its existence, overtaking sponsored brands in this category.

So, Are Sponsored Display Ads Worth the Try?

Sponsored Display ads are an outstanding category in Amazon's PPC program.

These ads offer extended and elevated reach compared to sponsored products or brands, which can help boost your business and increase brand awareness to lure new customers.

However, with added benefits come added difficulties

Only focusing on sponsored display ads can lead to higher money spent with slow returns. Therefore, you must strike the right balance: seek Amazon PPC advertising services to use your budget correctly.

In the final verdict, sponsored display ads are worth trying only if you apply them at the right moment in your business journey.

Bottom line

Indeed, it was a lot of information, but now you know everything about sponsored display ads. They are a great tool to boost your top funnel.

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Hardik Mody

Hardik Mody is a Senior Manager in Digital Marketing. He plans and coordinates the marketing activities of ValueHits, a full-service Digital Marketing Agency in Mumbai, India. With his experience and Expert knowledge in the field, he identifies potential customers and develops marketing campaigns. Also, he is efficient enough to meet the client’s requirements and well-organized in handling multiple tasks.