Amazon Releases Ad Retargeting for Sponsored Products

The future is here. Amazon released a retargeting option for Sponsored Products in Seller Central. 

What is Ad Retargeting?

Ad retargeting is another word for remarketing. Retargeting increases conversion rates and impressions because it allows Amazon sellers to advertise to third-party websites and apps. 

Remarketing is the MOST powerful form of PPC advertising on the internet. On Facebook Ads and Google Ads, it’s not uncommon to have conversion rates 3x higher or more on retargeting.

Are you listening now?

remarketing conversion rate facts

Wordstream tells us we see an increase in conversion rates with an increase in ad impressions (when a customer sees an ad). Ad retargeting gets you more impressions resulting in more conversions. 

Amazon’s ad retargeting is available in auto campaigns for Sponsored Products and the ads will link to your product detail page. How your Sponsored Product Ads appear won’t change and the CPC bids will remain the same. 

Why Amazon Ad Retargeting Is Important?

With ad retargeting, you can now reach customers off of Amazon and build their brand awareness more effectively. If you choose to experiment with ad retargeting on Amazon, you can increase your CTR and Impressions thereby helping your Amazon SEO ranking. 

I’ve said it before and I’ll say it again, Sponsored Products are the most popular ad on Amazon, with close to a 10% conversion rate

"Sponsored Products accounts for the majority of ad revenue, 88 percent, that Amazon makes from search-based advertising, according to a report last week from marketing technology and data firm Merkle. Another format, units called Headline Search that appear atop search results, comprises the rest."

Ad Age

Offering ad retargeting for Sponsored Products only makes the ad type more powerful and essential for Amazon sellers to optimize them. 

Facebook and Google Display Network (GDN) have been offering ad retargeting for years and offer the greatest reach for online marketers. Currently, Google and Facebook dominate the remarketing scene. GDN reaches 90% of the Internet worldwide and reach 65% of those users every single day. On a monthly basis, more than a trillion impressions are served to over 2 billion users. On top of that, Facebook has over 1 billion users to advertise to.

With Amazon’s retargeting option entering the mix, sellers can now harness Amazon’s huge user and data base. WIRED UK predicts Amazon’s ad business will threaten the Google/Facebook ad duopoly because Amazon has a treasure chest full of data on what customers actually buy. Additionally, Amazon acquired Whole Foods and is now able to collect brick-and-mortar data. This is an advantage Amazon has on Google and Facebook and will translate to helping Amazon sellers advertise effectively.  

While retargeting has been available and associated with Amazon PPC, it hasn’t been widely available. Retargeting was limited to those on their platforms like AAP or AMG (Amazon Advertising Platform or Amazon Media Group) – but hasn’t been available to those businesses using Amazon Seller Central. 

Amazon’s variety of advertising products still creates a lot of confusion because of the different capabilities for each platform. Now that ad retargeting is available to Seller Central, Amazon has taken a great first step to normalize ad retargeting for all Amazon sellers and brands. 

What the future holds for amazon retargeting

Amazon’s retargeting feature is nowhere as sophisticated as Facebook and Google’s.

On Google & Facebook, you can do loads of optimizing and revenue boosting activities like:

  • Remarketing only campaigns
  • Cold-traffic only campaigns
  • Audience management
  • Tiered remarketing (i.e. view your product 1x or 5x ->these people should have different bids)
  • Segmented Remarketing (i.e. viewed product 24 hours ago vs 24 days ago)
  • Control of remarketing placements: turn off remarketing on certain apps or websites proven to be ineffective

However, Amazon’s retargeting feature is still in beta and doesn’t offer Google and Facebook’s customization. 

Amazon’s advertising has traditionally taken features from Google. Check out our post comparing Amazon PPC and Google Ads to see what Amazon took from Google’s ad platform. I predict this will be the case for Amazon’s retargeting feature and it will become more like Google’s as time goes on. 

Amazon’s advertising is continuing to take steps in being competitive with Google and Facebook’s ad platform, threatening the duopoly. Amazon will continue this momentum and advertising on the eCommerce site will only get better. 

Amazon be looking at Google's ad features like this. Image courtesy of GIPHY.