Different Types of Amazon Sponsored Display Ads & How to Use Them

Introduction

If you are selling your products on Amazon, you must understand Amazon Sponsored Display Ads. These ads help showcase your products or brand to potential customers across Amazon and third-party websites. Knowing how these ads work and implementing the right strategies can boost your sales and visibility.

In this guide, we’ll dive into everything you need to know about Amazon Sponsored Display Ads, their types, and best practices to maximize results.

What Are Amazon Sponsored Display Ads?

Amazon Sponsored Display Ads target customers based on their interests, browsing behavior, and past purchases. Unlike traditional PPC ads that rely only on keywords, these ads provide multiple targeting options:

• Contextual Targeting

• Audience Targeting

• Views Remarketing

Amazon Audience Segments

Amazon categorizes customers into different audience types based on their shopping habits, browsing behavior, and lifestyle activities:

• Lifestyle Audiences – Based on daily habits and interests

• Interest-Based Audiences – Based on preferred topics

• In-Market Audiences – Customers actively looking to buy certain products

• Life Events Audiences – Users going through major life changes (e.g., having a baby, moving to a new home)

Ad Placements: Where Do Sponsored Display Ads Appear?

Amazon Sponsored Display Ads can appear in multiple locations, including:

• Amazon Product Detail Pages – Show up on competitor product pages (e.g., Pepsi ad on a Coca-Cola listing)

• Amazon Home Page & Search Results – Gain visibility among users browsing similar products

• Third-Party Websites & Apps – Expand your reach beyond Amazon, similar to Google Ads

Types of Sponsored Display Ads & When to Use Them

Contextual Targeting

• What It Is: Places your ad next to similar products and categories, making sure your ad appears where shoppers are already looking.

• When to Use: Competing in high-traffic categories or against specific products.

• Why It Works: Shoppers compare brands before making a purchase.

Audience Targeting

• What It Is: Targets customers based on shopping behavior, interests, and lifestyle.

• When to Use: Launching a new product or expanding beyond keyword-based targeting.

• Why It Works: 82% of sales come from new-to-brand customers who see Sponsored Display audience-targeted ads.

Views Remarketing

• What It Is: Retargets users who viewed your product but did not purchase within the last 30 days.

• When to Use: If you get many clicks but low conversions.

• Why It Works: Remarketing can increase conversions by up to 40%.
  

Eligibility Criteria for Sponsored Display Ads

Before running a Sponsored Display campaign, ensure you meet the eligibility requirements:

• Professional Amazon Seller enrolled in Brand Registry

• Active FBA or FBM listings with the Featured Offer

• Selling products in eligible categories

Cost Structure & Bidding Options

Amazon Sponsored Display Ads operate on two pricing models:

• CPC (Cost-Per-Click) – Pay for clicks only

• vCPM (Cost-Per-Thousand Impressions) – Pay based on ad views

The average CPC for Sponsored Display Ads is $0.75, but bid adjustments depend on competition and optimization strategy.

Sponsored Display vs. Other Amazon Ads

Sponsored Products ads target keywords and appear in Amazon search results. Sponsored Brands ads promote multiple products with customized branding and appear in search results and brand stores. Sponsored Display ads use interest and behavioral targeting and appear on Amazon and external sites. Amazon DSP is an advanced audience-targeting system for larger budgets and broad reach.

Sponsored Display is an easier alternative to Amazon DSP but offers less control over placements.

Creative Control & Ad Formats

Amazon auto-generates creatives but allows customization:

• Logos

• Headlines

• Call-to-Action (CTA) Messages

Customizing these elements helps your ad stand out and improves click-through rates.

How to Set Up Sponsored Display Ads

1. Go to Amazon Advertising Console

2. Select Sponsored Display and choose a targeting option

3. Choose the products you want to advertise

4. Set bidding strategy and campaign budget

5. Launch & optimize regularly

Best Practices for Running Sponsored Display Ads

• Use Multiple Ad Types: Brands combining Sponsored Products, Sponsored Brands, and Sponsored Display Ads see up to 15% YoY sales growth.

• Optimize Budget Allocation: Start small and scale based on performance.

• Monitor Performance Metrics: Track CTR (Click-Through Rate) and CVR (Conversion Rate).

• Average CTR: 0.19%

• Average CVR: 10.4%

• Leverage Amazon’s Data: Use Amazon insights to refine targeting and improve ROI.

Case Studies & Success Stories

• A brand saw a 25% increase in sales using Views Remarketing to retarget past visitors.

• Another brand achieved a 30% higher CTR by using Audience Targeting instead of standard Sponsored Product ads.

• Sponsored Display Ads outperformed other Amazon PPC types by over 150% in 2023.

Conclusion

Amazon Sponsored Display Ads are a powerful way to increase product visibility and sales. Whether using Contextual Targeting to appear next to similar products, Audience Targeting to reach new shoppers, or Views Remarketing to bring back hesitant buyers, a well-planned Sponsored Display strategy can maximize your conversions and ROI.

Ready to take your Amazon ads to the next level? Start implementing these strategies today! 🚀