Guide to Amazon Sponsored Display

Sponsored Display is among Amazon’s newest releases and is available to brand registered sellers and vendors in the US market. Outside of DSP, Sponsored Display is the only way to remarket products off Amazon. Though mostly known for the offsite placements, it also has killer onsite placements through Display product targeting.

Offsite Remarketing

Display is the only Sponsored ad type that offers placements off Amazon. Only 4% of shoppers convert to purchase immediately, so offsite remarketing helps re-engage shoppers and convert interest into orders. Offsite placements are also great for increasing awareness and brand building.

Offsite remarketing is a top of funnel advertising strategy that engages an audience with lower purchase intent, so conversion rates are often lower than other Sponsored ad types. However, the placements typically come at a lower cost, and sellers that use offsite remarketing average higher growth rates than other sellers.

To leverage offsite remarketing, use the Audience – Views tactic when creating Sponsored Display campaigns. The Views tactic remarkets to audiences that viewed your products or similar products in the past 30 days and did not make a purchase.

If just getting started with Sponsored Display Views, sellers have the option to start small. An effective approach is to launch a single campaign that includes one of your highest volume products. Pick products with 5k+ page views per month and stronger sales and conversion rates. You can complement this campaign with a ‘Catch All’ display campaign that includes all products and low bid (e.g. $0.15).

 

Sponsored Display vs DSP

Before Sponsored Display’s September 2019 launch, Amazon’s Demand Side Program (DSP) was the primary means for Sellers to leverage offsite remarketing. DSP was initially offered to sellers in the US market with a minimum budget of $35k and no budget-pacing. Though the DSP beta produced mixed initial results for sellers, it was an important part of refining Amazon’s offsite strategy.

Amazon continues to add new DSP targeting features and controls, which has led to substantially improved returns. Today, there are no budget constraints for sellers utilizing DSP when managed through an approved agency, and RoAS between 3-10x is typical for well-managed retargeting campaigns.

The main difference between Sponsored Display and DSP are the targeting options and controls. Display has fewer retargeting options and controls than DSP. Display also has onsite product targeting placements that aren’t a part of DSP. The Display product targeting placements produce excellent returns and are a near-universal fit for all sellers.

Sponsored Display Product Targeting

In March 2020, Amazon quietly released one of the most effective advertising tactics to all brand registered sellers in the US: Sponsored Display Product Targeting.

With Display product targeting, sellers can now compete for the placement beneath the buy box on product detail pages.

Whereas Sponsored Products product page impressions appear in a carousel among several other ads, Display ads are not crowded by competing ads – they are on an island. As a result, Display product targeting ads are more prominent and often outperform their Sponsored Products counterparts.

Just a month after the release of Sponsored Display product targeting, Ad Advance’s campaigns averaged a 7x return on ad spend across dozens of clients. Those results were made possible through the integration of Sponsored Products & Display.

 

Sponsored Products & Display Integration

The key to getting the most out of your Display campaigns is to mirror Sponsored Products (SP) campaigns, funnel new targets from search term reports, and review performance as a series.

The real game changer is moving every converting product target from SP auto campaigns into both SP manual and SD product targeting campaigns. This funnel provides a continuous pipeline of new ASINs to target in all possible placements.

Integrating SP with Display also allows for analysis of target and placement performance as a series. Reviewing as a series means more data, better bid optimization, and better visibility of top performers & exceptions. Also, a better understanding of SP vs SD performance, which helps with setting the right bids from the onset.

 

TLDR:

Sponsored Display provides both onsite and offsite placements. Offsite placements offer lower returns but unique exposure. Onsite placements (product targeting) typically produce strong returns and are a great fit for most sellers.

  • Offsite (Remarketing):
    • Targeting based on product views, purchases, or related searches
    • Early returns were low, but performance materially improved as updates were rolled out
    • Based on CPM not typical CPC model
    • Expect it to align more closely with DSP in future
  • Onsite (Product Targeting):
    • Among the most effective ads on Amazon
    • Use for defense/cross-promotion and conquesting
    • Mirror your Sponsored Products product targeting campaigns & integrate data to get the best results