Amazon Sponsored Display ads represent one of the most powerful tools in an advertiser’s arsenal, but they also come with unique nuances that separate high-performing campaigns from mediocre ones. Unlike Sponsored Products or Sponsored Brands, Sponsored Display ads allow you to target audiences both on and off Amazon, using a mix of product targeting, audience targeting, and contextual targeting. Based on extensive experience in the digital advertising space, here are the best practices you need to know to make these ads work for your brand.
1. Master Audience Targeting
The real power of Sponsored Display lies in its ability to reach audiences who have already shown intent. You have three primary targeting options, and each requires a distinct approach.
- Views Remarketing: Target shoppers who viewed your product detail page but didn’t purchase. This is your lowest-hanging fruit. Best practice: Set a view window of 7 to 14 days. Any longer, and the intent often cools off. Use this to push top-of-funnel awareness into conversions.
- Purchase Remarketing: Target customers who already bought from you. This is excellent for cross-selling and building brand loyalty. Best practice: Exclude recent purchasers of the same product (usually 30-60 days) to avoid wasting spend. Use this for complementary products or new launches within your brand.
- Audience Targeting (Lifecycle and Interests): Amazon’s built-in audiences, such as “Amazon Lifestyle” interest segments. Best practice: Use these for acquiring new customers at the top of the funnel. Combine with contextual targeting for the best results, but keep bids conservative until you see clear performance data.
2. Leverage Product Targeting Strategically
Sponsored Display also lets you target individual ASINs or categories. This is where you can either steal market share or protect your turf.
- Conquest Your Competitors: Target the ASINs of your most direct competitors. Best practice: Focus on their best-sellers, not their long-tail products. Use views remarketing on these competitor ASINs to show your ad to shoppers who were actively looking at a rival product. This requires a compelling value proposition in your creative-highlight a better price, a unique feature, or a bundle.
- Defend Your Own Brand: Target your own ASINs to prevent competitors from poaching your shoppers. Best practice: Use a low bid here. You already own that traffic, but a small spend can ensure your ad appears alongside competitors’ bids. This is particularly effective for high-margin or flagship products.
3. Optimize Creatives for the “Audience-First” Format
Sponsored Display ads can use either a product image or a custom creative (image or video). The choice is critical.
- For Views Remarketing: Use a custom creative. Your audience already saw your product; now you need to reinforce why they should buy. Include a clear call-to-action like “Add to Cart” or a limited-time offer, like “20% off with coupon.”
- For Purchase Remarketing: Use product image for simplicity, or a lifestyle custom creative showing the product in use. Focus on customer loyalty and upsells.
- For Competitor Targeting: Always use a custom creative. Highlight a difference-yours is cheaper, faster, or better rated. The ad copy must make a value argument in seconds.
4. Structure Your Campaigns for Control
Many advertisers dump all targeting into one campaign, losing visibility into what works. Instead, adopt a lean, structured approach.
- Separate by Targeting Type: Create one campaign for Views Remarketing, one for Purchase Remarketing, and one for Product Targeting (e.g., conquesting). This allows you to adjust bids and budgets based on performance without affecting other strategies.
- Use Portfolio Organization: Group Sponsored Display campaigns under a dedicated portfolio. You can set portfolio-level budget caps and see how display ads impact overall account performance.
- Bid by Placement: Amazon allows you to adjust bids for placements like product pages (more detail-driven) versus search results pages (intent-driven). Best practice: Bid higher on product pages for conquesting campaigns, and higher on search results for remarketing.
5. Implement Data-Driven Bidding and Optimization
Sponsored Display is not a “set it and forget it” tool. Success comes from continuous refinement.
- Start with Down-Only Bidding: For new campaigns, use Amazon’s “Down Only” bid adjustment to control spend. As you gather at least 100 clicks and 10 conversions, you can test dynamic bids (up and down) if your ACOS allows.
- Focus on New-to-Brand Metrics: Amazon provides metrics on how many new customers you’re acquiring. Best practice: Optimize for new-to-brand sales if your goal is market share growth. For retargeting, optimize for ROAS (Return on Ad Spend).
- Use Negative Targeting: Exclude irrelevant categories or ASINs. For example, if you sell a premium product, exclude “budget” or “under $10” categories. This prevents wasted spend on audiences with low intent.
6. Align with the Full-Funnel Strategy
Sponsored Display works best when it’s part of a connected ecosystem. Don’t run it in a silo.
- Coordinate with Sponsored Brands: Use Sponsored Display retargeting to capture shoppers who saw your Sponsored Brands ad but didn’t click. This delivers a 1-2 punch.
- Leverage Off-Placement Exposure: Sponsored Display also runs on Amazon-owned sites like IMDb, and on third-party sites (via the Amazon Ad Network). Best practice: Set a small portion of your budget (10-15%) to these off-Amazon placements for top-of-funnel awareness, but monitor cost-per-click closely-it can vary significantly.
7. Test Video Creatives Early
Amazon is increasingly favoring video in Sponsored Display. Video ads can drive up to 2x the conversion rate compared to static images in many product categories.
- Keep it short: Aim for 15-30 seconds. The first 3 seconds must convey the product benefit.
- Add closed captions: Many users watch without sound. Text overlays ensure your message lands.
- Test on Views Remarketing first: This audience already knows your product, so video can re-engage them more effectively than static copy.
The bottom line: Sponsored Display ads are not a replacement for your core Sponsored Products strategy-they are a power multiplier when executed with precision. Focus on audience segmentation, competitive conquesting, and creative optimization. And always, always tie your performance back to your business goals, whether that’s customer acquisition or defending market share. Like any digital channel, the advertisers who win are the ones who test, measure, and refine relentlessly.
