Robert Runyon is the Chief Growth Officer at Sunken Stone, an Amazon marketing agency for growing 7- & 8-figure eCommerce brands. Robert has a background in B2B marketing & 3rd party logistics, and runs the day-to-day marketing operations at Sunken Stone. He manages the website, YouTube channel, and email marketing campaigns. When he’s not working, you can find him spending time with his family, taking vacations or umpiring college baseball. If you’d like to chat about Amazon, baseball or have a question about marketing, reach out to him on LinkedIn.
Sponsored (or Product) Display Ads on Amazon
Amazon’s Sponsored Display Ads offering, also known as Product Display Ads, is a programmatic, self-service set of advertising tools that allows Sellers to reach a specific audience with targeted product categories and large image banners on or off Amazon.
In November of 2019, Amazon launched its latest version of Sponsored Display ads, giving brands improved access to the Amazon “display inventory.”
Sponsored products display ads are made to help reach a specific target group of consumers. The process of creating an ad through the tool is relatively simple. But, as you get down the rabbit hole, it becomes more complex to compete for value.
An average ad will sell for about $0.19 CPM (cost per 1000 impressions). At the same time, a video will sell for as much as $25 CPM. This depends on a variety of factors which we’ll explore below.
Amazon Sponsored Display ads are a self-service, pay-per-click (PPC) advertising solution. They allow brands to reach their target audience either on Amazon or other platforms.
Also known as Product Display Ads, these allow sellers to promote products (and, more recently, services) to attract interest. It results in either a sale or general brand awareness.
Sponsored Display Ads: How To Get Started
Amazon has a unique way of helping your business grow through its advertising platform. So, you need to know all the bits on how to get started before planning out your campaign:
Get Ready To Advertise
Your goal with a display ad on Amazon is to increase brand awareness and potentially land a sale while providing a great shopping experience for your target customers.
For this to happen, you need to open your ad account. Then, you can use automated targeting or manual keywords to identify a specific target audience.
Use Sponsored Ads Together
Although you’re just getting started, you want to consider pairing a Product Display Ad with a Sponsored Brand Ad since it will help you maximize brand awareness.
This will help build a more robust advertising strategy and engage customers at every step before purchase. Consider starting with 1 product ad and one brand ad.
Create Your First Sponsored Ad Campaign
To create your first ad, visit the advertising tab, then click on create a campaign. Then, pick your product from your pre-existing list in Amazon Seller Central.
Give your campaign a name to help you identify it later. Set the budget you want; there is no minimum daily budget on Amazon, unlike LinkedIn or other platforms.
The next step is to choose your duration.
Give your campaign a name; this is to help you identify it later. Set the budget you want; there is no minimum daily budget on Amazon
You can choose to advertise your products without an end date. Amazon also needs a sponsored display product targeting; you must select the target population.
This will be based on the information and details of the product.
Control Your Ad Spend
Most Amazon Sponsored Ads are on a cost-per-click basis. This means that Amazon will charge you per the number of clicks you receive on your ads. You can choose how much you wish to spend on a click. And can set a limit on what you want to spend in a day.
Although ads are now much easier to deploy than they once were, it’s still not a walk in the park to make one that delivers the value a brand is looking for.
You don’t wake up one morning and decide you will make an ad. The process takes deliberate planning and careful analysis to work out in your favor.
The goal is to promote your brand and make more money. Here are some tips to ensure that your experience with Product Display Ads is valuable.
Make Profitability Your #1 Goal
With profit margins changing from product to product, you’ll want to make profitability your #1 goal. It helps in understanding whether an ad campaign is delivering value.
Thankfully, calculating the Advertising Cost of Sale (ACoS) on Amazon is reasonably simple with their automated tools. You’ll get an idea of how much it costs you to get a single customer.
It would help if you had an idea of the product’s gross profit before introducing it to the paid advertising world. This will show you which product could bring in more cash from paid advertising. And as a result, it reduces the level and risk of the potential loss.
Target Categories with Your Display Ads
Matching your products with a specific category that consumers are interested in is a big plus of Amazon’s set of advertising tools. So, you’ll want to maximize their use.
This increases the odds of converting shoppers as they are already looking for that category of products. They already have a strong purchase intent.
Called Product Attribute Targeting (PAT), the feature makes it “easy” to advertise your products in a specific sub-set.
Negative Keywords Are Your Friends (+ ACoS)
Amazon negative keywords are excluded from a more extensive keyword (“long-tail” keywords). You won’t want to rank for some search terms in many cases.
Look at the search terms available via Amazon’s tools or through third parties. And see where the opportunity lies for targeting people searching directly within Amazon.
Similar to how Google works, Amazon has people showing direct interest in something through their search engine, meaning that you’ll want to be very specific with the keywords targeted.
Like how Google works, Amazon has people showing a direct interest in something through their search engine. You’ll want to be very specific with the keywords targeted.
Once you’ve applied negative keywords, you’ll want to watch the Advertising Cost of Sale. It is like Facebook’s Return on Ad Spend (ROAS) metric but reversed.
Your goal is to hit a ratio of ad spend to satisfactory revenue and guarantee profits through the ad channel. This is on top of whatever profit you had before.
3 Questions To Make Your Display Ads a Success
Before you begin advertising on Amazon, ask yourself these three questions to ensure that you get the most out of your efforts:
You may opt to convert the ad clicks into orders. Or you may want to track advertising costs across multiple ads to choose the one that delivers better results.
Whatever the advertising goal, you have to connect that back to your business goal. You can do this in various ways, but the best one is to create Objectives and Key Results (OKRs).
Which Products Should I Advertise To Reach It?
Choosing the right product to advertise will help you achieve your goal. Be sure to select the bestselling products; you do not want to invest money in promoting a product that will not give you profits in equal measures. The selection process is critical here.
One thing to remember is that Amazon, like Facebook and other tech platforms, has a constant intake of daily traffic. So if you’re unsure about a particular ad set, test it and see the results, then optimize as you see fit.
Are My Products Ready for the “Detailed Page Test”?
Review your product’s detailed page see if it is ready for go-to-market:
Is the information accurate, and is the image visible and of high quality?
Are you providing a relevant description for the product?
Have you prepared at least 4-5 bullet points?
An advert will quickly help a shopper identify a product, but the information you give about the product will convert the clicks to a purchase which is ultimately what you want.
Sunken Stone helps you set up your Sponsored Display Ads and make them work for your brand. This means optimizing them until you make a profit.
You can get started on your test the waters a bit. But when things get competitive, you’ll want the help of an expert who’s worked with 100s of sellers to back you up.
Check out our ad management solution, and let’s get you on the road towards a profitable Amazon Sponsored Display Ads strategy!
Request A Free Proposal
Are you tired of losing sales to your competition on Amazon? It’s frustrating for otherwise successful brands to underperform on the leading eCommerce platform.
Sunken Stone will help you find a solution to increase your profits on Amazon. Click “Request My Proposal” below to receive a customized roadmap to beat your competition and uncover new areas of opportunity for increasing sales.
Frequently Asked Questions
What are Amazon product display ads?
Amazon product display ads differ from everyday sponsored products. They feature large images either on the side of an Amazon web page, at the top or bottom, or an entirely different platform such as a mobile app or third-party website.
Where do Amazon ads appear?
Amazon ads appear in various placements across multiple platforms, not just Amazon. The eCommerce giant has a lot of different partnerships across the web, allowing them to reach an incredibly diverse audience through banners, videos, product placements, and third-party locations such as websites and mobile apps.
What are display ads examples?
Examples of display ads are image banners shown on the left or right sidebar of an Amazon page, a pop-up banner showing at the bottom of a mobile app, or a large “Buy Now” image showing below other products on Amazon itself.
Are display ads worth it?
Yes, if you optimize them correctly. Amazon has tweaked its advertising platform to fit the needs of sellers well, and you can get a lot of value from just one campaign when shown to the right target audience.