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Amazon Sponsored Display: Retargeting with PPC campaigns

11/02/2020 • Reading time: ca. 9 min • by Trutz Fries

Introduction to Amazon Sponsored Display

To the trio of the Amazon Sponsored Ads belongs beside the Sponsored Products (opens new window) and the Sponsored Brands (opens new window) are the Amazon Sponsored Display ads. These were formerly known as Product Display Ads (PDA).

With Sponsored Display Ads, you can achieve the following goals:

  • Increase brand awareness in your niche
  • Increase the traffic of a product detail page
  • Increase awareness for new product launches
  • Placement of the advertisements also outside of Amazon

Sponsored display ads are only of limited use in Germany as of mid-2020. So far, only vendors have access to this format. However, in the USA, sponsored display ads are already available to sellers registered in the Amazon trademark register (opens new window). A sponsored display ad advertises a single product just like an Amazon Sponsored Products (opens new window) ad. The ads are also created automatically, and only the title is customizable. Other elements of a Sponsored Display ad are the price of the selected product, the rating, an image, and a "Buy Now" button. The button redirects the customer directly to the product detail page. Unlike Amazon's other two advertising options, you can place Amazon Sponsored Display ads outside Amazon. This is because, like Amazon DSP (opens new window), Sponsored Display Ads have the option of retargeting. However, this function has not yet been rolled out to all sellers in Germany.

In the following, we will present the targeting options available for all targeting options in Germany (as of mid-2020):

  • Target group targeting - Interests: If your targets aim to increase brand awareness and recognition, you can introduce your products to new target groups whose purchasing behavior signals that they are interested in your products.
  • Product -Targeting - Product: Product targeting helps you promote your product to target groups that actively surf pages with your product or similar products and categories.
  • Product -Targeting - Category: If you want your product to be displayed in specific product categories similar to or complement your promoted product, select the category-Product-Targeting.

Placement of Amazon Sponsored Display ads

Sponsored Display ads will be displayed in mid-2020 in the following locations:

  1. Depending on your targeting options, your ads may run on Amazon's desktop and mobile devices, both on detail pages and other Amazon sites. Amazon will often show you below the buy box:
Amazon Sponsored Display ad on the product detail page below the buy box
Figure 1: Example for Amazon Sponsored Display Display on the product detail page below the Buy Box
Example for mobile version of an Amazon Sponsored Display ad
Figure 2: Example for mobile version of an Amazon Sponsored Display
  1. In addition, you can play these ads not only within Amazon but also on other websites that are connected to the Amazon advertising network. This is not yet possible for all sellers and vendors in Germany.

Cost model of an Amazon Sponsored Display ad

As with all sponsored ads, sponsored display ads are billed according to the Pay per Click principle for the currently available targeting options. You only pay when a buyer clicks on the ad. Impressions are therefore free of charge according to this principle. Furthermore, no minimum investment is required for this type of ad. You can read more about this in our Amazon Sponsored Products (opens new window) article.

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Create an Amazon Sponsored Display campaign

Provided that you meet the requirements for a Sponsored Display Campaign mentioned above, you will start creating your campaign. To do this, click on "Manage campaigns" under the menu item "Advertising" in the Vendor/Seller Central and then on "Create campaign".

Then select Sponsored Display as the campaign type. In the next step, you define a campaign name, duration, and budget for your campaign. Make sure that the campaign name has a meaningful name structure (for more information, please refer to our Sponsored Products Article (opens new window).

Create a Sponsored Display Campaign
Figure 3: Create a Sponsored Display Campaign

Then select your product for your ad.

Select a product for the Sponsored Display Campaign
Figure 4: Select a product for the sponsored display campaign

Select alignment

Sponsored Display Ads offers three targeting options you can choose from.

  1. Target group targeting - interests:

With this targeting method, you set a bid per click and select areas of interest relevant to your advertised product. Target group targeting allows you to address customers based on their purchase intention. In this way, you can manage customers who have not yet been in contact with your brand. Amazon automatically lowers bids in real-time for clicks that are less likely to be converted into a sale (bidding strategy: Dynamic bids - down only).

Sponsored Display - Select target group alignment
Figure 5: Select target group alignment
Amazon SP - Determine interests for target group targeting
Figure 6: Determine interests for target group targeting
  1. Product Targeting - Product:

If you choose the Product-Targeting method, select a bid and select the products on which you want to place your advertisement.

You can use two different strategies:

  • Alignment on your products - You get the opportunity to show customers other suitable products for an item, which they might need in addition.
  • Aiming at your competitors' products - You can start by poaching customers from your competitors.
  1. Product Targeting - Category:

The category product targeting method allows the selection of categories instead of single products. This will enable you to reach buyers who actively search similar or complementary categories on Amazon that you have selected.

Determine a design

Your leeway in designing sponsored display ads is limited. You only can change your logo and adjust the headline.

Design of a sponsored display campaign
Figure 7: Design of a Sponsored Display Campaign

After filling out everything, you can submit your campaign for review. It may take a few days before your campaign is online.

Amazon Sponsored Display vs. Amazon DSP

Sponsored Display

  • Availability for sellers and vendors: in Germany currently only available for vendors
  • Targeting: Target groups or retargeting (via products)
  • Cost model: CPC model
  • Ads: are automatically generated (only the headline is customizable)
  • Requirements: registration in the trade mark register
  • Goals: Increase brand awareness in your niche, increase traffic to a product detail page, increase awareness for new product launches, placement of ads outside of Amazon (not yet possible for everyone)

DSP

  • Availability for sellers and vendors: Yes
  • Targeting: Targeting or retargeting - DSP gives advertisers more control over their audience, e.g. targeting specific actions, such as buyers who have looked at but not bought a brand's products, or buyers who have recently looked at competing products.
  • Cost model: CPM model + minimum budget of approx. 10,000 EUR
  • Ads:ads are fully customizable
  • Requirements: none
  • Goals: Increasing the impact of advertisements through retargeting, placing the ads outside of Amazon, increasing traffic to products/landing pages, increasing brand awareness

Conclusion

Sponsored display ads offer you a cost-effective way to place your ads on Amazon. Soon, all Amazon sellers and Amazon vendors in Germany will place sponsored display ads outside of Amazon. This will allow you to reach more potential buyers and increase your sales on Amazon in the future. As soon as Amazon has rolled out all targeting options for sellers and vendors, it will be worthwhile to place Sponsored Display ads. Retargeting is a precious targeting option that costs much money on Amazon DSP (opens new window).

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