Your One Stop Guide To Amazon Sponsored Display Ads 2021 Sunken Stone

Your One-Stop Guide To Amazon Sponsored Display Ads [2021]

  • Robert Runyon
  • May 6, 2021

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 fairly simple. But, as you get down the rabbit hole, it gets more and more complex to compete for value.

An average ad will sell for about $0.19 CPM (cost per 1000 impressions). While a video will sell for as much as $25 CPM. This depends on a variety of factors which we’ll explore below.

What Are Amazon Sponsored Display Ads?

amazon sponsored display ads home page

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.

create first amazon product display ads campaign

Amazon has a unique way of helping your business grow through their advertising platform. So, you need to know all the bits on how to get started prior to planning out your campaign:

Get Ready To Advertise

sponsored display ads settings for advertising

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 from the get-go 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 1 brand ad.

Create Your First Sponsored Ad Campaign

sponsored display ads products upload

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; this is 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; here, 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.

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Running a Profitable Display Ad Campaign

shopping cart amazon sponsored display ads profit

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 are going to make an ad. The process takes deliberate planning and careful analysis to work out in your favor.

The goal at the end of the day 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

amazon add a product in catalog for display ads

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 fairly simple with their automated tools, and you’ll get an idea of how much it costs you to get a single customer.

You must have an idea of what the product’s gross profit is 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, reduces the level and risk of potential loss.

Target Categories with Your Display Ads

sponsored display ads automatic targeting

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 strong purchase intent.

Called the Product Attribute Targeting (PAT), the feature makes it “easy” to advertise your products in a specific sub-set.

Negative Keywords Are Your Friends (+ ACoS)

sponsored display ads negative keyword targeting

Amazon negative keywords are excluded from a more extensive keyword (also known as “long-tail” keywords). In many cases, you won’t want to rank for some search terms.

Look at the search terms available either via Amazon’s tools or through third parties. And see where the opportunity lies for targeting people who are 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.

Similar to how Google works, Amazon has people showing direct interest in something through their search engine. It means that you’ll want to be very specific with the keywords targeted.

Once you’ve applied negative keywords, you’ll want to keep an eye out on 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 revenue that’s satisfactory and guarantees profits through 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 3 questions to ensure that you get the most out of your efforts:

What Is My Business Goal?

hitting the right business goal with amazon sponsored display ads

Every business has a goal, and every advertisement should have a purpose. Your business goals, in this case, will help shape your strategy; whereas your ad goals will guide it.

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 a variety of 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 the goal you set. 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 very important 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 certain ad set, test it and see the results, then optimize as you see fit.

Are My Products Ready for the “Detailed Page Test”?

sponsored display ads negative product targeting

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.

Lost in a Sea of Advertising Opportunities?

amazon ads services from sunken stone for display or product ads

Conquering the world of Amazon Ads certainly isn’t easy. With so many opportunities available through Amazon’s set of ad tools, you may need to find the right partner.

Sunken Stone helps you as an Amazon Seller both set up your Sponsored Display Ads as well as make them work for your brand. This means optimizing them until you make a profit.

You can get started on your own, 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!

Originally published 04 May 2021

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Frequently Asked Questions

What are Amazon product display ads?

Amazon product display ads differ from normal sponsored products in that 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 a variety of 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?

Some 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 their advertising platform to fit the needs of sellers really well, and you can get a lot of value from just one campaign when shown to the right target audience.

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