How to Reach the Right Customers with Amazon Display Ads – Including Step-by-Step Guide
Advertising campaigns are nothing new in the Amazon universe; Sponsored Display Ads are just one of the newer developments. We probably don’t need to explain why you should use Amazon Advertising at this point. But what exactly are Display Ads? We aim to clarify this in this blog article.
Let’s start with the basics.
What are Amazon Sponsored Display Ads and what do they look like?
Display Ads are a form of advertising solutions offered by Amazon. They fall under the self-service options and are billed per click, meaning they operate on a pay-per-click (PPC) basis. With the help of targeting, sellers can precisely reach their target audiences. Sponsored Display Ads appear on Amazon itself as well as on third-party websites.
As part of Amazon Advertising, Display Ads are typically prominently displayed at the top or side of a page. They consist of text, graphic elements, and a call-to-action (CTA) that links to the target page (i.e., the product detail page). Additionally, they showcase familiar elements of the online giant:
So far so good, but what do these ads look like? After all, advertising is appealing when it looks attractive. So let’s take a look at some Display Ads on Amazon:
Amazon Display Ads on a Product Detail Page
Highlighted in red, we see the Sponsored Display Ad on an Amazon product detail page. The search was for Lego Duplo, and a similar building block system from a competitor is being advertised directly on the product page – definitely a good spot! Why? Because the search intent was clearly directed towards (children’s) toys. More specifically, building blocks were being searched for. So why not try something new? Perhaps the product from Simba is better than that of Duplo.
By the way, these ads can also appear directly below the Buy Box. In the end, it doesn’t matter where the ad appears. Whether it’s below the bullet points or under the Buy Box, both variations are noticeable.
Amazon Sponsored Display Ads in the Search Results
Amazon’s search results are now filled with various labels and ad types. Naturally, your Sponsored Display campaigns should not be missing from this mix.
The following ad for ice skates was displayed directly next to the search results (on the right) and definitely catches the eye. The search for Christmas decorations suggests an interest in the cold season.
Differences from Other Advertising Forms on Amazon
Before we delve deeper into the topic of Amazon Display Ads, let’s briefly look at the other types of advertising available on the Amazon marketplaces:
Amazon Display Ads vs. Sponsored Products and Sponsored Brands
The biggest difference between Display Ads and Sponsored Products and Brands is the way the ads are displayed. While the latter are keyword-based, Amazon Display Ads are shown based on customer data and interests. More on the topic of (Re)Targeting later.
Another significant difference is that Sponsored Products and Brands can only be viewed on the marketplace itself, whether in search results or on product pages. In contrast, Amazon Display Ads are also displayed on third-party websites, which significantly increases their reach.
Amazon Sponsored Display Ads vs DSP
The distinction from Sponsored Products and Brands is clear. But do Amazon DSP campaigns not also offer targeting and display on external sites?
In our expert interview on Amazon trends for the coming years, Ronny Marx aptly described Sponsored Display Ads as “DSP-light.” This hits the nail on the head. In the end, Display Ads offer similar features to DSP, but in a streamlined form.
Especially in terms of costs, these two advertising formats differ significantly. While you can start Amazon Display Ads with a small budget, you should be prepared to allocate at least €20,000 for DSP.
Other differences include the billing of costs, which are calculated per click for Display Ads and per impression for DSP, as well as the option for a managed service by Amazon employees, which is only available for DSP.
Who can use Amazon Sponsored Display Ads?
Professional sellers whose brand is registered in the Amazon Brand Registry can use this type of advertising. Additionally, sellers and agencies whose clients sell products on Amazon can utilize Amazon Sponsored Display. They are available on the following marketplaces (as of December 2021):
The beta version also allows professional brands to showcase their apps, series, or movies on Fire TV.
How to Reach the Right Customers – Targeting
The greatest strengths of Amazon Sponsored Display are retargeting and general targeting. The ads are displayed to the target audience based on customer interests and behaviors. This significantly increases the chances of converting interested parties into buyers, especially compared to purely keyword-based ads.
Advertisers can target their Display Ads on Amazon either to the audience or to the product. Let’s take a closer look at this as well:
Targeting with Amazon Sponsored Display: Amazon Audiences
One option for targeting is the so-called Amazon Audiences. Your ads are displayed both on the marketplace itself and on third-party websites. They are then shown to specific target groups. You can select these target groups, or audiences, yourself. Demographic data and purchase signals can assist you in this process.
Amazon Sponsored Display Ads: Views Remarketing
In this case, your ads are shown to customers who have viewed your product in the last 30 days but have not yet purchased it. Since these ads are displayed both on Amazon and outside of it, you can reach shoppers who have initially shown interest in your products at later stages of the customer journey.
Targeting on Amazon with Product Display Ads
With product targeting, your ads are directed at specific products or categories. They are then displayed to customers on the corresponding product pages. Due to the prominent placement directly under the bullet points or just below the Buy Box, your ads are likely to catch the attention of interested shoppers.
What do Amazon Display Ads cost?
As with almost all advertising formats on the online marketplace, the costs for Amazon Sponsored Display Ads are calculated per click. This principle is also known as PPC, or Pay Per Click. You only pay when potential customers click on your ad.
The final costs are calculated based on the second-price auction principle. This means that all sellers submit the bid they are willing to pay at most. In the example graphic below, these bids are €1.50, €2.00, and €3.00. The highest bid, in this case, Bid 3, wins. However, only the value of the second-highest bid plus €0.01 needs to be paid. In our example, that would be €2.01.
How much you actually pay per click depends on the bids of your competitors. You can control your expenses by setting a daily budget.
Are Amazon Sponsored Display Ads Worth It?
Now that we know what the ads look like and what they cost, the question arises whether it is worth it. After all, such an ad requires not only the necessary budget but also the time to set it up and monitor it. So let’s take a look at the pros and cons:
Reasons in Favor
Amazon and Pinterest
Since spring 2023, Amazon and the social media platform Pinterest have been collaborating. Users of the service see Amazon Ads on Pinterest that link directly to Amazon. This is good news for marketplace sellers, as it significantly expands the ecosystem in which ads are displayed. Additionally, it is likely to attract new customer groups who may have previously purchased on other platforms like Etsy. New target audiences will consequently lead to more growth, both for Amazon itself and for third-party sellers on the marketplace. However, the extent of the partnership is still unclear. It is most likely that Amazon Sponsored Display Ads will be enhanced with the option to display them on Pinterest. The partnership is expected to roll out throughout 2023. (As of May 2023)
Reasons Against It
How to Set Up Amazon Display Ads – Step-by-Step Guide for Your Campaign
Activate Amazon Display through the Advertising Platform or via Seller Central. Here’s how to proceed:
A few final tips for your campaign:
#1 Use Amazon Display Ads to Capture Customers from Your Competitors
The competition on Amazon is no longer a secret. It takes strong strategies to stand out. In addition to the perfect price and top metrics, Amazon Display Ads are also a great option.
How? By targeting your ads directly at your competitors’ products. Your ads will then be displayed directly on the product detail pages of your competitors, thanks to product targeting.
#2 Use Amazon Display Ads to Defend Against Competition
The same applies in reverse. Of course, your competitors are also targeting your customers. To prevent competing offers from appearing on your own pages, you can preempt this by running ads for other products from your own range on those product pages.
By doing this, you not only block advertising space for your competitors but also engage in up-selling or cross-selling.
#3 Use Amazon Display Ads for Upselling
Do you sell coffee machines in different models? Then why not promote the better model on the page of the cheaper variant? Perhaps the potential customer is simply unaware that the self-cleaning feature is an add-on they absolutely need.
#4 Use Amazon Display Ads for Cross-Selling
Placing complementary products, such as phone cases or shoe care products, in close proximity to the main product (phone, shoes) offers significant potential. After all, it creates the impression for shoppers that they also need this product, and you can expect that your potential customers, in the heat of shopping, will likely add the complementary product as well. Especially if it’s a great deal that is hard to resist.
Conclusion
Amazon Sponsored Display Ads are a great way to promote your products and gain significant competitive advantages.
However, this is only the case if your product pages are also optimized, which applies to every type of advertising on Amazon!
It is important to approach this with a plan and not to promote random products or submit bids aimlessly. Instead, develop a strategy that evaluates what you want to achieve with your Amazon Display Ads (such as attracting customers from competitors, protecting your own product pages, cross-selling, or upselling) and what budget you are willing to allocate for it. Then, nothing will stand in the way of your success with Sponsored Display Ads on Amazon. Good luck!
FAQs
Amazon Display Ads are a form of Amazon Advertising. Unlike Sponsored Brands and Products, they operate based on targeting rather than keywords. This allows them to reach a more precisely defined audience based on demographic data and customer behavior.
These ads are displayed in the search results or directly on the product detail pages based on targeting.
Amazon Display Ads are shown to customers whom the algorithm determines, based on demographic data and purchasing behavior, are likely to be interested in the product. Additionally, advertisers can use display ads for retargeting, reaching their customers even outside the marketplace.
Image credits in order of appearance: © bakhtiarzein – stock.adobe.com /
