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Amazon Advertising Amazon PPC April 23, 2025

Amazon Sponsored Display: The Ultimate 2025 Guide for Smart Sellers

Writen by Moiz IT

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In the ever-evolving landscape of e-commerce, Amazon Sponsored Display Ads have emerged as a powerful tool for sellers aiming to enhance visibility, retarget potential customers, and drive conversions. As we navigate through 2025, understanding and leveraging Sponsored Display Ads can be a game-changer for your Amazon business.​

What Are Amazon Sponsored Display Ads?
Amazon Sponsored Display Ads are a type of pay-per-click (PPC) advertising that allows sellers to promote their products both on and off Amazon. Unlike Sponsored Products or Sponsored Brands, Sponsored Display Ads focus on audience targeting, enabling you to reach shoppers based on their interests, behaviors, and purchase history.

Why Amazon Sponsored Display Matters in 2025
By 2025, Amazon commands nearly 40% of the U.S. e-commerce market and over 300 million active users globally. As more sellers compete for visibility, traditional keyword-based ads aren’t enough. Sponsored Display gives you an edge through:

Audience-Based Reach: Go beyond keywords—target based on shopper behavior.

Off-Amazon Visibility: Ads appear on sites like Twitch, IMDb, and Pinterest.

Automated Creative: No design skills required—Amazon generates ad content.

Retargeting Capabilities: Bring back cart abandoners and product viewers.

Data from Jungle Scout (2024) shows that brands using Sponsored Display see a 20–30% lift in visibility and 15% higher conversion rates compared to Sponsored Products alone.

Audience Targeting vs. Contextual Targeting
You can run Sponsored Display ads with two main targeting types:

1. Audience Targeting
This allows you to reach shoppers based on past behavior, including:

Views Remarketing: Retarget shoppers who viewed your ASINs or similar products.

Purchases Remarketing: Engage customers who bought from you or competitors.

Amazon Audiences: Tap into lifestyle and interest-based audience segments.

Use case: Perfect for driving repeat purchases and reconnecting with window shoppers.

2. Contextual Targeting
This targets people currently browsing products or categories similar to yours.

ASIN Targeting: Show ads on competitor listings.

Category Targeting: Place ads on related categories like “Kitchen Gadgets” or “Pet Accessories.”

Key Features:
Audience Targeting: Reach shoppers who have viewed your products, similar products, or categories.

Product Targeting: Target specific ASINs or categories to appear on related product detail pages.

Off-Amazon Reach: Extend your advertising beyond Amazon to third-party websites and apps.

Benefits of Using Sponsored Display Ads
1. Enhanced Visibility
Sponsored Display Ads appear in prominent positions on Amazon, such as product detail pages, search results, and even on external websites. This increased visibility can lead to higher click-through rates and conversions.​

2. Retargeting Capabilities
Re-engage shoppers who have previously interacted with your products but didn’t make a purchase. Retargeting helps in nudging these potential customers towards conversion.

3. Audience Expansion
By targeting shoppers based on their interests and behaviors, you can introduce your products to a broader audience who might be interested in what you offer.​

4. Cost-Effective Advertising
With flexible budgeting options and the ability to set bids, Sponsored Display Ads can be tailored to fit various advertising budgets, ensuring cost-effective campaigns.​

Where Do Sponsored Display Ads Appear?
Understanding the placement of your ads is crucial for strategizing your campaigns effectively.​

On Amazon:

  • Product Detail Pages: Ads appear alongside product descriptions, offering an opportunity to capture the shopper’s attention during their decision-making process.
  • Search Results Pages: Your ads can be displayed among search results, increasing the chances of being noticed by potential buyers.
  • Customer Review Pages: Engage shoppers while they read reviews, influencing their purchasing decisions.

Off Amazon:

  • Third-Party Websites and Apps: Extend your reach to platforms like Twitch, IMDb, and other Amazon-owned or affiliated sites, keeping your products in front of potential customers even when they’re not browsing Amazon.​

Setting Up a Sponsored Display Ad Campaign
Creating a Sponsored Display Ad campaign involves several steps:​

Step 1: Access Campaign Manager
Log in to your Amazon Seller Central account and navigate to the Campaign Manager under the Advertising tab.​

Step 2: Create a New Campaign
Click on “Create Campaign” and select “Sponsored Display” as your campaign type.​

Step 3: Set Campaign Parameters
Campaign Name: Choose a descriptive name for easy identification.

Start and End Dates: Define the duration of your campaign.

Daily Budget: Set a budget that aligns with your advertising goals.​

Step 4: Choose Targeting Options
Decide between:​

Product Targeting: Target specific products or categories.

Audience Targeting: Reach shoppers based on their shopping behavior and interests.​

Step 5: Select Products to Advertise
Choose the ASINs you want to promote in this campaign.​

Step 6: Customize Ad Creatives
Amazon automatically generates ad creatives using your product images and information. However, you can customize:​

Headline: Craft a compelling message.

Logo: Add your brand logo for recognition.

Custom Images: Enhance your ad with lifestyle or product images.​

Step 7: Review and Launch
Double-check all settings and launch your campaign.​

Targeting Strategies
Effective targeting is key to a successful Sponsored Display campaign.​

1. Product Targeting
Category Targeting: Reach shoppers browsing specific product categories.

ASIN Targeting: Target individual products, including competitor listings, to showcase your product as an alternative.​

2. Audience Targeting
Views Remarketing: Re-engage shoppers who viewed your product or similar products.

Purchases Remarketing: Target customers who previously purchased your products, encouraging repeat purchases.

Amazon Audiences: Leverage predefined audience segments based on shopping behaviors and interests.​

Measuring Success: Key Metrics to Track

To track ROI, monitor:

 

Metric Why It Matters
Impressions Visibility and reach
CTR (Click-Through Rate) Ad relevance and engagement
CVR (Conversion Rate) Product page effectiveness
ACoS (Advertising Cost of Sales) Profitability (ideal <30%)
NTB Orders Brand growth and new customer acquisition

Sponsored Display vs. Amazon DSP

 

Feature Sponsored Display Amazon DSP
Eligibility Brand Registry Sellers Vendors/Agencies
Setup Self-serve in Seller Central Requires platform/agency
Audience Data First-party behavioral Third-party + deeper segments
Cost CPC-based CPM-based
Best For Retargeting, mid-funnel Brand awareness, top-funnel

Conclusion
Amazon Sponsored Display is not just a retargeting tool—it’s a full-funnel solution for building brand awareness, acquiring customers, and driving conversions both on and off Amazon. By combining Amazon’s powerful behavioral data with automated creative and flexible targeting, it opens up advertising possibilities once limited to enterprise budgets.

Whether you’re just starting or scaling to $1M/year, Sponsored Display can fit into your Amazon advertising playbook. Start simple, test often, and optimize relentlessly. With the right strategy and tools, Sponsored Display can become one of your highest-performing ad types in 2025.

 

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