So you reach the right customers with Amazon Display Ads – including step by step instructions
Advertising campaigns are nothing new in the Amazon universe; Sponsored Display Ads are just one of the newer developments. Why you should use Amazon Advertising, we probably don’t need to explain at this point. But what is it about Display Ads? We want to clarify that in this blog article.
Let’s start with the basics.
What are Amazon Sponsored Display Ads and what do they look like?
The Display Ads are a form of advertising solutions offered by Amazon. They belong to the self-service options and are billed per click, that is, as PPC. With the help of targeting, sellers can specifically address their target audiences. Sponsored Display Ads appear on Amazon itself, as well as on third-party sites.
As part of Amazon Advertising, Display Ads are usually 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 (that is, the product detail page). They also display familiar elements of the online giant:
- Star rating
- Product images
- Labels/tags, such as discounts and of course Prime shipping
So far so good, but what do these ads look like? After all, advertising is appealing when it looks attractive. 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 the competition is being advertised directly on the product page – definitely a good spot! Why? Because the search intent was obviously directed towards (children’s) toys. More specifically: building blocks were searched for. So why not try something new? Maybe the product from Simba is better than that from 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 under the bullet points or under the Buy Box; both variants stand out.
Amazon Sponsored Display Ads in the search results
The search results on Amazon are now filled with various labels and ad types. Your Sponsored Display campaigns on Amazon should not be missing, of course.
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, we would like to briefly address the other types of advertising 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 display of the ads. 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 major difference is that Sponsored Products and Brands can only be viewed on the marketplace itself, whether in the search results or on the product pages. Amazon Display Ads, on the other hand, are also displayed on third-party sites, which significantly increases the 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 nicely described Sponsored Display Ads as “DSP-light.” That hits the nail on the head. Because in the end, Display Ads offer similar features to DSP, but in a streamlined form.
Especially regarding costs, these two advertising formats differ significantly. While you can start Amazon Display Ads with a small budget, you should 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 possibility of 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, merchants and agencies whose clients sell products on Amazon can use Amazon Sponsored Display. They are available on the following marketplaces (as of December 2021):
- North America: Canada, Mexico, and the USA
- South America: Brazil
- Europe: Germany, Spain, France, Italy, Netherlands, United Kingdom
- Middle East: United Arab Emirates
- Asia-Pacific: Australia, India, Japan
The beta version also allows professional brands to showcase their apps, series, or movies on Fire TV.
How do you 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 that prospects convert to buyers, especially compared to purely keyword-based ads.
Advertisers can target the audience or the product with Display Ads on Amazon. Let’s take a closer look at that 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 sites. They are then shown to specific target groups. You can select these target groups, or audiences, yourself. Demographic data and purchase signals, among other things, help you with this.
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, 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 the so-called product targeting, your ads are aimed 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 eye of prospects.
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 principle of a second-price auction. This means that all sellers submit the bid they are willing to pay at most. In the example graphic below, these are the bids of €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 have to 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 run and monitor it. So let’s take a look at the advantages and disadvantages:
This speaks in favor of it
- Customers can be addressed both on the marketplace and on third-party sites. This offers a huge advantage over ads that are only displayed on the marketplace.
- Through effective retargeting, you address potential customers multiple times, thereby increasing the likelihood that they will convert.
- The online giant provides you with various marketing statistics to measure the success of your Amazon Sponsored Display Campaign. For example, you can measure how successful your CTAs (Call-To-Actions) are based on impressions and conversion rates.
- With CPC, you only pay for customers who actually click on your ad.
- Amazon Display Ads are flexible. You can test different texts and visual elements and also make adjustments during an ongoing campaign.
- You can promote your products even if you do not have the Buy Box.
Amazon and Pinterest
Since spring 2023, Amazon and the social media platform Pinterest have been cooperating with each other. 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 cosmos in which ads are displayed. In addition, this is likely to open up new customer groups that may have previously purchased more on other platforms like Etsy. New target groups will consequently lead to more growth, both for Amazon itself and for third-party sellers on the marketplace. However, the extent of the cooperation is still not entirely clear. It is most likely that Amazon Sponsored Display Ads will be expanded to include the option to display them on Pinterest. The partnership is expected to be rolled out throughout 2023. (As of May 2023)
This speaks against it
- It is not always clear when and where your ads will be displayed. This is decided – as so often – by the algorithm.
- Like any marketing tool, it may take a little while with Amazon Sponsored Display Ads until you get the hang of it and fully understand what works best for your target audience and your products and what does not.
How to set up Amazon Display Ads – Step by Step Guide for Your Campaign
Activate Amazon Display through the Advertising Platform or through Seller Central. To do this, proceed as follows:
- If you start in Seller Central, click on Advertising > Campaign Manager.
If you start at advertising.amazon.com, click on Products. - Select Sponsored Ad or Sponsored Display as the campaign type.
- Set the settings for your ad. To do this, assign a campaign name, set a date range, and define a daily budget. It is advisable to start with a lower daily budget and increase it later if necessary. You can also now define the targeting options.
- Define which of your products should be promoted. Even though only one product is shown per ad, you can choose different ones at this point. Then leave it to the algorithm to decide which product will be displayed when and to whom. When choosing, it is advisable to first select products that have already performed well with other ad types or those that sell particularly well.
- Place a bid for your ads. Amazon automatically suggests a bid, but you can adjust it as needed. To do this, select the price you are willing to pay at most, as described in the section on costs.
- Design your ads. Amazon initially creates the ads automatically with the details from your product page. Therefore, it should be of high quality for this reason, among others. However, you can also individually specify various graphic elements, as well as texts and different CTAs.
A few more tips for your campaign at the end
#1 Use Amazon Display Ads to capture customers of your competitors
That the competition on Amazon is fierce is probably no longer a secret. It takes tough measures to succeed. In addition to the perfect price and top metrics, Amazon Display Ads are also suitable.
How? By targeting your ads directly at the products of your competitors. Your ads will then be displayed directly on the product detail pages of the competition, thanks to product targeting.
#2 Use Amazon Display Ads to fend off the competition
The same applies in reverse, of course. Your competitors are also targeting your customers. To prevent competing offers from being displayed on your own pages, you can preempt this by running ads for other products from your range on those product pages.
This way, you not only block advertising space for your competitors but can also engage in up-selling or cross-selling.
#3 Use Amazon Display Ads for upselling
Do you sell coffee machines in different versions? Then simply promote the better model on the page of the cheaper variant. Perhaps the potential customer is not even aware that the self-cleaning function 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 great potential. After all, it gives shoppers the impression that they need this product as well, and you can assume that your potential customers will also simply add the complementary product in their buying frenzy. Especially if it’s a bargain that is hard to resist.
Conclusion
Amazon Sponsored Display Ads are a great way to promote your own products and gain significant competitive advantages.
However, this is only the case if your product pages are also optimized, but this applies to every type of advertising on Amazon!
It is important in any case that you approach the matter with a plan and do not promote or submit bids for products aimlessly. Instead, develop a strategy in which you evaluate what you want to achieve with your Amazon Display Ads (capturing competitors’ customers, protecting your own product pages, cross-/upselling, etc.) and what budget you want 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 Brand and Products, they operate based on targeting rather than keywords. This allows them to address a more precisely defined target audience based on demographic data and customer behavior.
Targeting, these ads are displayed in the search results or directly on the product detail pages.
Amazon Display Ads are shown to customers for whom the algorithm assumes, based on demographic data and purchasing behavior, that the product matches their interests. Additionally, advertisers can use display ads for retargeting and reach their customers outside of the marketplace.
Image credits in the order of the images: © bakhtiarzein – stock.adobe.com /
