How To Grow Your Business Using Amazon Sponsored Display

Last updated on August 28th, 2023

Written by Mohamed Aden

Amazon Sponsored Display makes a powerful tool for advertisers like yourself looking to grow their business. With the ever-increasing eCommerce competition, utilizing this strategy is essential to win the hearts of your potential customers. 

For an already established business, this growth strategy provides an opportunity to reach a broader audience and improve sales performance. By uncovering the key steps and strategies, you will be equipped with the knowledge to maximize the potential of Amazon SD and drive greater growth for your business.

So keep reading as we delve into Amazon SD, encompassing its benefits, the step-by-step setup process, and optimization techniques. 

What is a Sponsored Display on Amazon?

A Sponsored Display on Amazon is a form of advertising that allows you to promote products to relevant audiences on and off the platform.

Here’s an example of a Sponsored Display ad within Amazon:

a sponsored display ad on top of a Kitchables product page

Meanwhile, here’s one from outside Amazon, which is on Twitch:

an amazon sponsored display ad on twitch

The Benefits of Amazon Sponsored Display Ads

Utilizing Sponsored Display comes with numerous benefits. If you haven’t prioritized this ad type and are getting busy with other campaigns, these benefits will encourage you to spotlight Sponsored Display now. 

Brand and Product Awareness

Sponsored Display ads can significantly increase your brand and product awareness. By targeting relevant product categories on Amazon and refining targeting attributes such as category, brand, price, and Prime eligibility, you can maximize your reach to new audiences and improve product discovery.

Customer Acquisition

Utilizing Amazon's first-party shopping signals will allow you to reach potential customers who have viewed your detail page and new audiences who have viewed similar products or categories on Amazon. This can help drive consideration and awareness for your brand, making it more likely for these individuals to become loyal customers.

Ad Flexibility and Control

Before you can fully utilize the benefits of Sponsored Display ads, it's essential to register your brand with Amazon Brand Registry. This program helps protect your brand by providing greater control over your product listings and ensuring accurate representation. It verifies your brand ownership and provides access to additional Amazon features like customizable detail pages and enhanced advertising options.

Brand registered sellers can set their daily budget, choose their products, select targeting tactics such as contextual targeting or audiences, and specify their bids. Such an approach enables tailoring your advertising efforts, guaranteeing optimal advertising performance.

Boost Your Sales and Conversion Rates

By positioning your ads on and off Amazon, you can reach relevant audiences at every stage of their shopping journey. Whether they are browsing similar products or viewing your product detail page, Sponsored Display ads allow you to influence potential customers and boost conversions.

How Does Amazon SD Differ from DSP, Sponsored Brands, and Sponsored Products?

Amazon Sponsored Display, Sponsored Products, Sponsored Brands, and DSP are all advertising formats offered by Amazon, but they have differences. 

Sponsored Display
Sponsored Display enables advertisers to target audiences within and beyond Amazon, such as on Amazon-owned sites, third-party websites, apps, and devices. 
Sponsored Products
These are the ads customers see on Amazon product detail pages and search results. They are typically displayed with a "Sponsored" tag and help promote individual product listings. 
Sponsored Brands
Meanwhile, the ads that show up on top of the search results page are Sponsored Brands. These ads feature a customized headline, logo, and a selection of products. They help drive brand awareness and promote a range of products under a brand's umbrella.
DSP (Demand Side Platform)
DSP offers off-Amazon programmatic advertising, including advanced targeting options, audience-based buying, diverse ad formats, and the ability to reach customers on various websites, apps, and streaming services.

How to Create Well-Optimized Amazon Sponsored Display Campaigns

If you are convinced Sponsored Display can help you boost your sales and grow your business even more, take note of these steps when creating Sponsored Display campaigns.

the nine steps to do when creating a sponsored display ad - for editor

Step #1: Devise your advertising strategy.

Before launching your Sponsored Display campaign, see how it will fit the bigger picture of your business goals. What do you want to accomplish specifically, and how will your ads be created to achieve them? This approach ensures effective utilization and optimal outcomes.

For example, you may want to create Sponsored Display ads hand in hand with other advertising options available on Amazon, like Sponsored Products and Sponsored Brands, for maximum reach.

Step #2: Determine your campaign budget.

Efficiently managing your ad spend is vital for maximizing the ROI. The budget should be based on your overall advertising strategy and the number of products you wish to promote. This ensures that your Sponsored Display ads will not exceed your budget while reaching audiences effectively. 

Step #3: Navigate the Sponsored Display audiences targeting options.

After setting your daily budget, you can choose between contextual targeting of audiences. Use Amazon's shopping signals and prebuilt audience segmentation. This step ensures you tailor your ad strategy based on customers' browsing behavior and past purchase history. Eventually, you increase the likelihood of reaching people interested in your products. 

three ways to select the right products for sponsored ad display

Step #4: Select products to advertise.

Choosing the right products to advertise is essential in setting up your Sponsored Display campaign. Identify which has the highest potential of attracting your target audience, and make it the face of your brand and store. These products can be your best-selling items, new releases, or products that differentiate your brand.

As your bestsellers gain more popularity, you can also give the spotlight on your other products using a Sponsored Display ad. Since you already have insights into your previous campaigns, you can replicate the best practices and minimize any challenges moving forward.

Step #5: Get creative with your Sponsored Display ad creatives.

Utilizing creative elements in your Amazon SD ads is key to capturing and holding the attention of your target consumers. Sponsored Display offers several options for ad content, including product images, custom brand logos, and video ads creative.

Ads with engaging visuals can promote your products more effectively. Invest in genuine, high-quality images, educational and informative product descriptions, and concise headlines highlighting your offerings' benefits. Take advantage of Amazon's auto-generated ad creatives if you want a quick solution to kickstart your campaign.

Add clear and compelling call-to-action (CTA) buttons that guide potential customers toward the desired action. This could be a purchase, a click-through to your product page, or another desired outcome. 

💡 Remember to add a human touch, as this connection will make your potential customers consider, engage, and remember your brand.

Step #6: Select your ad’s placement.

Amazon SD provides various options for ad placements. By strategically selecting where your ad appears, you can increase the chances of reaching high-intent shoppers and driving sales. Depending on your goal, here are some placement strategies to choose from:

Contextual Targeting
Contextual targeting (formerly product targeting) shows your ads on various points in their online journey, from product detail pages and search results pages to outside the Amazon store. With this feature, Amazon SD does the work of finding opportunities to expand your reach.

This includes positioning your ad alongside complementary products or in contexts showcasing features. It also displays your ads when users engage with related content, from the web or a mobile device.
Retargeting with Sponsored Displays
Shoppers who previously viewed or interacted with your products, visited your product pages, or used a search term you rank for may need a little more push to buy. A retargeting ad can help a lot in converting this potential customer. It reminds shoppers of your products, encouraging them to return and purchase.

Customize your ad creatives when retargeting using Sponsored Display campaigns by adding your brand logo and product images. Sponsored Display video creative and audio ads can also help you engage shoppers more effectively. And by tracking your campaign metrics, you can optimize your targeting strategy and reach new audiences interested in your products.

Step #7: Split-test your strategies.

There is not one fixed solution for all businesses; you have to develop a unique strategy that will work for your unique needs. Experiment with different ad placements, product images, targeting strategies, and campaign structures to achieve that. This allows you to optimize your results further and guarantee business growth. 

Selecting the appropriate targeting strategy for your Sponsored Display ads is the key to reaching relevant audiences and improving your overall ad performance.

Step #8: Monitor your campaign performance.

Monitoring and analyzing your ad performance is essential to get the most out of your Amazon SD campaigns. Use the Amazon Advertising Console to track ad spend, view campaign metrics, and make data-driven adjustments to your advertising strategy.

Regularly analyze and enhance your bids to ensure they remain competitive. Analyzing your campaign metrics lets you see which aspects of your advertising strategy work effectively and which areas need improvement. Doing so will continually improve your campaigns and ensure a higher ROI

Step #9: Generate routine reports on campaign performance.

Access in-depth reports that provide valuable insights into your SD ad campaigns' performance. Monitoring these reports will help you understand how well they engage shoppers and contribute to your overall marketing strategy. Key metrics to focus on include clicks, impressions, ad spend, sales, click-through rate (CTR), etc.

Compare the performance of your Sponsored Display campaigns against other Amazon ad formats, such as Sponsored Products and Sponsored Brands. Once you know which ad type performs best, you can invest in them more to maximize your return on ad spend. As for the less effective campaigns, you should analyze what was lacking and improve.

By closely monitoring your Amazon SD reports, using the insights to inform your targeting strategy, and regularly refining your ad creatives, you'll be well on your way to harnessing the full potential of Sponsored Display and growing your business on Amazon.

Partner With Seller Interactive for Creating Optimized Sponsored Display Ads

Mastering the art of Amazon Sponsored Display can significantly boost your business growth. It effectively places your products at the forefront, targets the right people at the right time, and both in and out of Amazon. 

By staying informed and adapting your strategies, you can ensure the ongoing success of your campaigns and enjoy the benefits of increased visibility and sales on Amazon.

To achieve the success we are discussing, it would be best to partner with a team well-versed in creating and managing Sponsored Display ads. Seller Interactive is your go-to Amazon team! Our Sponsored Ads Management and DSP Advertising services cover everything you need to succeed.

Book a call with us now if you want to discover more about what we can do!

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