Amazon Sponsored Display Ads: The Definitive Guide (2020 Update)

Product Display Ads

Amazon offers a variety of advertisement products to give you control over who or what your ad is targeting, as well as where your ad can appear. Sponsored Display Ads (formerly “Product Display Ads”) are a unique remarketing advertisement product from Amazon that allows you to show your ad to consumers who have previously viewed your product or similar products.

Back in 2019, Amazon built Sponsored Display to empower vendors and agencies of all sizes who sell on Amazon to expand their reach and results using display advertising that is easy to create and manage.

Product Display Ads under the buying options
This badger balm is already using Sponsored Display Ads to boost sales

Sponsored Display Ads (SPAs) are CPC display ads that can boost visibility for your product’s details page and can even target your competitor’s products on Amazon. In fact, product targeting is encouraged.

Different ad types offer different ways of targeting keywords and targeting audiences. While Sponsored Product Ads and Sponsored Brand Ads use keywords to target audiences, Sponsored Display Ads use Amazon’s audience demographics data to target audiences based on their shopping behavior. These audiences may be in the market to buy your product because they viewed your product, similar products, or relevant categories. 

So let’s jump right into how display advertising can help your brand! Here’s what you can expect to learn today from the Badger on display advertising:

    1. What are the benefits of Amazon Sponsored Display Ads?
    2. Where do you find Amazon Sponsored Display Ads?
    3. How to create Sponsored Display Ads on Amazon
    4. Our strategy recommendations for Amazon advertising

What are the benefits of Amazon Sponsored Display Ads?

The main benefits of Sponsored Display Ad Campaigns:

  • Increase brand awareness in your niche
  • Bring traffic to a product’s details page
  • Place your best product under your competitors’ listing
  • Boost exposure for new product listings

Because these ads don’t display on Amazon’s Search Engine Results Page (SERP), product display ads tend to have slightly lower conversion rates. For that same reason, these ads tend to be less competitive than Sponsored Brand and Sponsored Product ads, so your CPCs and overall spend will likely be less than your account average.

Lastly, because you can place your ad under your competitor’s listing, you can put your best products against their best products. However, be careful. Make sure to match your ads where you have a real chance of getting clicks and beating out the products on Amazon.

Where do you find Sponsored Display Ads?

Like we said before, they’re usually found right under the right sidebar’s buying options, but actually they’re a little bit of everywhere. Sponsored Display Ads can appear on:

  • Product Detail Pages on Desktop and Mobile
  • Customer Review Pages
  • Top of the Offer Listing Pages
Two different Display Ads appearing on the Product Details page.

Note: In the above image, you will notice two Sponsored Display Ads that look a little bit different from each other. The one on the right is an archaic “Product Display” ad which allowed you to include your logo and a customizable headline in your ad. Product Display was replaced by Sponsored Display which is not customizable and simply displays your product image, title, price, and reviews. 

Although Amazon discontinued Product Display ads in 2018, you may see a couple of these lone survivors popping up every now and again.

How to Create Sponsored Display Ads on Amazon

Step 1: Head over to Campaign Manager.

Step 2: Then click “Create Campaign.”

Step 3: You’ll be prompted to select what type of ad campaign you want to create. Select Sponsored Display.

amazon sponsored display ad
Choose the "Sponsored Display" campaign type.

Step 4: Pick a product to advertise by either typing its name or ASIN.

Step 5: After choosing which of your products you would like to advertise, you will be able to set a CPC bid. If you need help figuring out how to calculate this, we recommend you check out our guide to Calculating a Bid Strategy for Amazon Ads.

Step 6:  Set your campaign name, budget, and duration.

  • The minimum advertising daily budget is $1 and the minimum cost per click is $.02 according to Amazon. They also suggest running your campaigns for a month to get a full grasp of the results. 

Step 7: Preview the ad & submit the campaign. Congratulations, you’ve made your first Sponsored Display Ad!

Success GIF
Now that's a job well done. GIF courtesy of GIPHY

Our Strategy Recommendations

Like all Amazon PPC ads, there are many strategies you can take. Just allow yourself time to test out strategies to see what works.

Talking to Andrew Maffettone of Seller’s Choice, he suggested experimenting with one ASIN and hitting your ACoS before changing anything. (Check out this article if you want to learn how to hit your ACoS.)

When we do Product Display Ads for our Amazon sellers we like to take one ASIN and create a campaign targeting competitors ASINs.

As we optimize and get the ACoS within our target, we add more and more competitors. After a while, we’ll create more campaigns based on complementary products.

So, if we’re selling belts I may create a Product Display Ad campaign directed at jeans

Andrew Maffetone

I recommend choosing Sponsored Display Ads for ASINs you know are going to sell, brand new products you are launching, or ones you really want to get rid of. 

The safest bet is to take your best selling product and put it up against your competitor’s products, equipped with copy and images that highlight different features than their product.

That’s a wrap for Amazon Sponsored Display

Hopefully, we’ve convinced you to start using Sponsored Display in your own PPC campaigns and take advantage of product targeting features that Amazon has built for vendors and agencies like yours.

If boosting brand awareness and competing right under the buy box are your objectives, you can’t go without display ads on Amazon.

To learn about the other Amazon ad types or if you’re interested in practical step-by-step Amazon PPC guides, sign up for our newsletter below to get it sent straight to you.

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