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Complete Amazon Sponsored Display Ads Guide

In order to assist advertisers of all sizes expand their companies and engage customers throughout the buying experience, both on and off Amazon, Sponsored Display audiences employ Amazon purchasing signals as a display targeting approach. Self-service display advertisements with flexible options allow marketers to present items, engage potential consumers, and remarket to a large audience, supporting ongoing Amazon Ads initiatives.

Up to 82 percent of transactions made by Amazon marketers that employ Sponsored Display audiences are generated by clients who are unfamiliar with the brand. The time and effort Amazon invest in upgrades and improvements to the advertisement type is another indication of Sponsored Display’s effectiveness. In fact, the improvements and capabilities that are now available in 2022 for Amazon Sponsored Display Ads are the only focus of this guide.

What are Amazon Sponsored Display Ads?

Amazon provides a range of advertising solutions so you can decide who or what your campaign targets as well as where it will appear.

Sponsored Display Ads, formerly known as Product Display Ads, are an innovative remarketing advertising product from Amazon that lets you display your ad to customers who have previously viewed your product or comparable products, used search terms related to your product, or made a purchase from you.

Amazon created Sponsored Display in 2019 to enable merchants and agencies of all sizes that sell on Amazon to increase their reach and outcomes with simple to design and manage display advertising.

There are several ways to target people and keywords with various ad kinds. Sponsored Display Ads employ Amazon’s audience demographics data to target audiences based on their buying activity, whereas Sponsored Product Ads and Sponsored Brand Ads use keywords to target audiences. Due to their viewing of your product, comparable items, or pertinent categories, these audiences may be considering purchasing your product.

This vector shows ad placement of sponsored display.

Benefits of Sponsored Display Ads:

To retarget and reintroduce your brands and products to customers and boost sales, they are a powerful advertising tactic. The following are further advantages of sponsored display ads:

  • Your business can develop and grow more quickly because you can reach a larger and more relevant audience in less time.
  • By establishing bids and a daily budget, merchants can manage how much money they spend because they only get paid when buyers click on their adverts.
  • It enables vendors to precisely target customers and deliver advertisements depending on their interests.
  • By raising brand recognition in your category and elevating your product by positioning your finest items below those of your competitors, you may increase the reach for new product listings.
  • It drives visitors to a product’s description page and aids in monitoring the effectiveness of advertising efforts.

Steps to Keep in Mind While Setting Up Amazon Display Ads:

To use Sponsored Display advertisements, you must register your brand with Amazon Brand Registry. Following these easy steps will allow you to produce and run this form of advertisement once that is set up:

  • Go to the Advertising page of your Seller Central account and choose “Campaign Manager.”
  • Click on “Create Campaign”.
  • Select “Sponsored Display” from the list of available campaign types.
  • Set up your campaign’s settings. Name of your ad group, date range, daily budget, and campaign are required fields.
  • Select a targeted strategy. Between “Audiences” and “Product Targeting,” you have a choice. There are three audiences you may choose from: “Views,” “Searches,” and “Purchases.”
  • Set your per-click bid after choosing the items you wish to promote (using the product name or ASIN). Based on the targeting type, Amazon creates the ad creatives for your campaigns automatically. The next step is choosing where on Amazon you want your advertising to appear. Before it goes live, Amazon will show you what your advertisement will look like.
  • Once you’ve reviewed your Sponsored Display Ad, submit the campaign.

How Does Amazon Sponsored Display Ads Work?

Because Amazon Display Ads are retail-aware, they only appear when your items are in stock and there is a “Featured Offer.” The advertisements will end automatically as soon as the featured offer or the items go out of stock. These advertisements target customers in the market based on their purchasing habits using information from Amazon’s audience demographics. Based on Amazon purchase information, the audiences are generated automatically. With sponsored display advertisements, you may reach customers who have previously looked at your product or ones that are comparable to it, used search phrases associated with your product categories, or made a purchase from you.

Cost per click is the method of payment for sponsored display adverts (CPC). You only pay for an advertisement when a potential consumer clicks on your display ad, in other words. By setting up your daily ad budget and bid per click, you can manage your spending. Although it might not be their bid amount, the highest bidder wins and receives the highest CPC. Their bid is only $0.01 more than the second-highest bidder.

Targeting Audience with Amazon Display Ads:

With Sponsored Brands and Sponsored Products, you target keywords; with Sponsored Display, you target audiences.

Views, searches, and purchases are the three main categories of remarketing audiences for Sponsored Display adverts.

  • The newest of the three, views remarketing, enables you to target customers who have browsed your items over the last 30 days without making a purchase. Additionally, you may focus on visitors to your product detail pages that meet certain requirements, such as star rating, brand, etc.
  • You may target folks who have searched for terms associated with your product but haven’t actually seen it by using search remarketing. The bidding is based on CPM, or cost per 1,000 impressions, as opposed to the standard CPC. Due to the fact that search targeting takes view-through orders into account, you have the opportunity to drastically reduce your ACOS. In other words, if someone watches your advertisement and then buys the goods, it counts toward your sales figures.
  • Remarketing for purchases focuses on customers who have already made purchases from you. Here, the CPM method of bidding is also used. Although it has by far the smallest audience, this is best suited for consumable items and is a terrific tool for boosting your client lifetime value.
This vector shows that retargeting is important.

What are some of the ideal ways to make your Sponsored Display Ads as effective as possible?

In order to improve your sponsored display advertising and beat out the competition, keep the following in mind:

  • Because Amazon Sponsored Display Ad bidding is frequently dynamic, you should consider campaign metrics while choosing your bids and setting your Sponsored Display campaigns’ bids. In order to keep your expenditures in check, monitor and tweak your bids to make sure you are meeting your goal Advertising Cost of Sales (ACOS).
  • You may include all of your items in the campaign, then constantly plan and monitor it to maintain a balance of possible impressions.
  • If you have chosen the product targeting option, always strive to compare your best-selling or greatest profit margin items to your competitors’ products while promoting your own product’s qualities.
  • Making a campaign that only targets the ASIN of your rival is an excellent method to improve your ACOS. You may experiment with different options and learn while doing so at a low cost. You may add additional ASINs and campaigns after you find a formula that works.
  • Lower-funnel buyers respond most to sponsored display advertisements. These customers are more likely to make a purchase, so choose your keywords and goods wisely.

How Does Bidding Optimization Work?

Similar to how you would set bids for search advertisements, bids are put for each target separately. Similar to the other sponsored ad styles, if you’re unclear what to employ, Amazon will suggest beginning bids. You need to start tweaking those bids once the Sponsored Display ad has been running for two weeks. Similar to keyword bids, you should alter them in accordance with current performance data and trends. To expand its potential even further, this ad style has an additional degree of automation.

You have a choice of three automatic bid optimization techniques that, for both audience and product targeting, mirror the buying funnel: Optimize for Reach (Awareness), Optimize for Page Visits (Consideration), and Optimize for Conversions (Conversion). According to your strategic settings, Amazon’s algorithm will, when necessary, increase bidding by up to 300 percent to highlight your advertisements where they are most likely to convert while maintaining within your daily budget. In situations when your ad has a decreased chance of converting, the algorithm will also lower bids.

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