Ever wanted to get Amazon shoppers off a competitors listing and onto yours? With Amazon Sponsored Display Ads, you can do exactly that.
Like all advertising options on Amazon, you need to be Brand Registered to access Sponsored Display.
Sponsored Display is a powerful tool that allows you to reach customers on Amazon only (with Product Targeting) or on and off Amazon (with Audiences targeting). We will explore these more, but for now, know that Product targeting is the box below the bullets on a display page, like in the image above, and Audiences targeting shows your product based on lifestyle choices and shopping habits.
What is a Sponsored Display Ad?
The most popular advertising option on Amazon is Sponsored Products. Sponsored Products are the starting point for most new brands, and unfortunately, even popular and successful brands only ever use Sponsored Products. You can stand out from the crowd with Sponsored Display, which was launched in 2019, and as of 2022, only 25% of sellers are using it, and only 2% of all ad spend on Amazon goes to Display. Sponsored Brands is another option.
As we mentioned, these ads are not targeting keywords. Instead, they target certain Product Display Pages or certain shoppers based on their behaviors. It may be a simple retarget of shoppers who looked at your page but did not make a purchase, or as complex as Amazon noticing customer interest patterns who are most likely to buy your product.
As shoppers, you have no doubt seen these ads yourself. They pop up on other sites you visit as you read the news or look for a new game to play, near the edge of the page. Click that ad and you find yourself back on Amazon and being tempted to buy!
In a nutshell, here are the capabilities of Sponsored Display:
Retarget shoppers who have viewed your product in the last 30 days.
Show on similar or competing products or categories.
Target customers based on their interests and how they shopped in the past
While Amazon is the largest e-commerce store in the world, shoppers still consider other sources when looking for the right product. Smart sellers recognize this, and the importance of using off-Amazon advertising to get potential customers back to their products.
How do Sponsored Display Ads Work?
Like most Amazon advertising, Sponsored Display uses PPC (pay per click). Just like you, other sellers bid for placement (showing to customers), and like Sponsored Products, you set your bid and daily ad budget with no minimums.
There are two types of targeting options with Sponsored Display: Product Targeting and Audiences.
Product Targeting
Choose product targeting to reach customers already on Amazon and shopping for your category, or looking at competitors and complementary sellers.
Many Amazon customers are price sensitive, so if you are priced lower than a competitor, flip the switch on a Product Targeting ad to steal customers. This has a two fold effect by increasing your sales velocity and reducing your competitors, which means you close the gap and will eventually achieve a higher organic rank.
You can also target products that work well with your listing. Are you selling customized dog bowls? Consider targeting dog food listings. Be sure to consider your market on a more narrow basis. Using the dog bowl example, consider if you should target all dog foods. Is someone buying the cheapest dog food likely interested in a customized dog bowl? Probably not. That means you should focus on higher priced dog food, those who care the most about their furry friends are more likely to buy more expensive accessories too.
There are two ways to choose ads here. You can target categories or specific listings. Categories examples are dog bowls or dog food. Specific listings would be one ASIN for a particular dog bowl or dog food.
Audiences
One of the most interesting ad options Amazon offers, targeting shoppers based on a variety of factors.
Lets start with Amazon Audiences. Four options are available here: Lifestyle, Interests, Life Events, and In-Market.
Lifestyle shoppers, according to Amazon, have shown a tendency to shop or stream with a certain affinity. There are options based on income (Affluent vs. Bargain shoppers), Family (New Parents), and New to Category, which is first time buyers for a particular product category. If someone just got a new pet, and for the first time are shopping for pet bowls, you can be the first thing they see!
Interests are for people who consistently shop for and buy products in a particular category. People who play video games and buy the newest game or the latest accessory can be specifically targeted here.
Life Events are probably self-explanatory, but this is for people who are experiencing once in a lifetime events or other occurrences that occurs very infrequently, such as marriage or children or buying a vehicle.
In-market, which is shopping behavior that indicates someone is looking to buy particular products in a certain marketplace.
Views remarketing is a little more simple. It is simply shoppers who have viewed your product or products in your category in the past 30 days. While it may not get an immediate conversion, combined with Sponsored Brands, brand recognition increases and may lead to a sale the next time the shopper needs your product.
Purchases Remarketing targets those who bought from you, in your category, or a particular brand in the last 30 days. We really like targeting brands we know have many customer complaints. When they return to Amazon to find a better alternative, we are there to help them in their search!
Where do Sponsored Display Ads Appear?
The short answer is it depends on what options you choose. Product Targeting ads are simple, they appear on the display page of products in the category you chose or on the specific listings selected during the campaign's setup.
Audiences retargeting will also appear on display pages, trying to get customers to come back to your listing after viewing it but not completing a purchase.
Other audiences selections can see your listing on display pages, in search results and on other websites besides Amazon. It is a wide array depending on your choices, and all of them are worth exploring (or partnering with someone who can help develop an ad strategy with you).
Are Sponsored Display Ads Worth It?
That is something only you can answer. Amazon offers a wide variety of advertising options, and what is best is up to you after considering your goals and ad budget.
We consistently get Sponsored Products ROAS over 6.00, Sponsored Brands ROAS over 5.50. Display results are usually lower, between 2 and 4 ROAS, though we have seen higher. Our best results have come from product targeting higher priced competitors and complementary products.
What we recommend more than anything, is testing. Set up a few highly specific campaigns and allow them to run for a few days. Check in daily to see your progress and any changes you might need to make. While ROAS may be lower, the idea that we can take sales from competitors means our TACOS may improve, always a good move.
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