What Are Sponsored Display Ads?
Sponsored Display Ads are banner advertisements that Amazon shows both on its own platform and on external websites. Unlike Sponsored Products (which appear in search results) and Sponsored Brands (which appear at the top of search results), Sponsored Display Ads are not tied to a search query.
This means your ad is shown to customers who exhibit certain behaviors or match certain profiles, regardless of whether they are actively searching for your product right now.
The Three Key Differences from Other Ad Formats
1. No keyword targeting. Sponsored Display does not use keywords. Instead, you use product targeting, audience targeting, or remarketing.
2. Off-Amazon placements. Sponsored Display is the only Amazon ad format that places ads on external websites and apps, wherever Amazon integrates its advertising technology.
3. Retargeting capability. You can reach customers who have already viewed your product or similar products. This is not possible with Sponsored Products or Sponsored Brands.
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Requirements: Who Can Use Sponsored Display?
The access requirements for Sponsored Display have loosened in recent years:
- Professional Seller Account: You need the Professional selling plan (39.99 USD/month). The Individual plan is not sufficient.
- Brand Registry OR expanded access: Most targeting options require an Amazon-registered brand. However, Amazon has opened access for certain targeting types (especially Product Targeting) to sellers without Brand Registry. Check your Seller Central to see which options are available to you.
- Active listings: Your product must be actively listed and holding the Buy Box for the ad to serve. Without the Buy Box, your Sponsored Display Ad is paused.
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The 3 Targeting Options in Detail
1. Product Targeting
You select specific ASINs or product categories where your ad should appear. Your ad is then displayed on the product pages of those ASINs.
Use cases:
- Competitor targeting: Show your ad on the product pages of your direct competitors. When a customer views a competitor's product, they also see your offer.
- Cross-selling: Advertise complementary accessories on the product pages of the main product. Selling phone cases? Run ads on the product pages of matching smartphones.
- Category targeting: Instead of individual ASINs, select an entire category. This increases reach but reduces precision.
2. Audience Targeting
Amazon has accumulated massive datasets about customer purchasing behavior over the years. Audience Targeting lets you leverage this data to reach specific customer segments.
Available audience types:
- In-Market Audiences: Customers actively shopping in a specific category. Example: "In-Market for Headphones" reaches customers who have viewed headphone pages or searched headphone keywords in the last 30 days.
- Lifestyle Audiences: Customers whose purchasing behavior reflects specific interests and lifestyles. Example: "Fitness Enthusiasts" or "Tech Early Adopters."
- Lookalike Audiences: Customers who resemble your existing buyers. Amazon analyzes your buyer profile and finds users with similar behavior patterns.
3. Remarketing (Retargeting)
The most powerful Sponsored Display feature. Remarketing targets customers who have already interacted with your product or category.
Two remarketing strategies:
- Views Remarketing: Reaches customers who viewed your product in the last 30 days but did not purchase. This is classic retargeting: you remind potential buyers about your product.
- Purchases Remarketing: Reaches customers who already bought your product (or similar products). Ideal for replenishment products (replacement parts, consumables, accessories).
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Where Do Sponsored Display Ads Appear?
This is one of the biggest advantages of the format: the breadth of placement.
On Amazon
- Product pages: Below the Buy Box area, in the "Sponsored products related to this item" section, or in the right sidebar.
- Search results pages: As a banner ad between organic search results.
- Amazon homepage: Personalized recommendations on the home page.
- Cart page: Ads on the shopping cart page (high purchase intent).
Off Amazon
- External websites and apps: Anywhere Amazon's Demand-Side Platform (DSP) has ad placements. This includes news sites, blogs, apps, and other publishers in the Amazon network.
- Twitch: Amazon's streaming platform displays Sponsored Display Ads during livestreams and on channel pages.
- IMDb: Film pages and streaming recommendations on the Amazon subsidiary.
The off-Amazon placements make Sponsored Display unique. No other Amazon ad format can reach customers outside the Amazon platform, at least not without the significantly more expensive and complex Amazon DSP.
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Costs: What Sponsored Display Ads Cost
Sponsored Display offers two billing models:
CPC (Cost per Click)
You only pay when someone clicks your ad. Typical CPCs for Sponsored Display range from 0.30 to 1.00 USD, depending on category and competition. This is generally cheaper than Sponsored Products, where CPCs in competitive categories quickly exceed 1.50 USD.
vCPM (Viewable Cost per Mille)
You pay per 1,000 viewable impressions, regardless of whether anyone clicks. This model is primarily suited for brand awareness campaigns. Typical vCPM values range from 3 to 8 USD per 1,000 impressions.
Which Model to Choose?
- CPC for performance campaigns where you want to generate sales.
- vCPM for awareness campaigns where visibility is the goal (e.g., product launches, seasonal campaigns).
Budget Recommendation for Getting Started
Start with a daily budget of 10 to 20 USD and test different targeting options. After 2 weeks, you will have enough data to scale the profitable campaigns and pause the unprofitable ones.
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When to Use Sponsored Display: The 4 Best Scenarios
1. Retargeting: Win Back Lost Buyers
A customer viewed your product but did not buy. Maybe they were distracted, comparing options, or planning to return later. Views Remarketing shows them your product again, on Amazon and on external websites. Conversion rates for retargeting campaigns typically run 2 to 3 times higher than for cold traffic.
2. Cross-Selling: Sell Complementary Products
You sell a water filter and a filter pitcher. Run a Sponsored Display Ad for the filter on the product page of the pitcher. Customers who buy the pitcher regularly need new filters. Product Targeting makes this possible.
3. Competitor Targeting: Win Customers from Competitors
Your product is better or cheaper than a competitor's? Show your ad directly on their product page. The customer sees your offer as an alternative and clicks through to your listing. This strategy is aggressive but effective, especially when you have a price advantage.
4. Market Expansion: Reach New Customer Segments
In-Market and Lifestyle Audiences let you target customer groups you would never reach with Sponsored Products alone. Example: you sell premium kitchen appliances. With Lifestyle Audience "Home Cooking Enthusiasts," you reach customers who regularly purchase cooking equipment, even if they are not actively searching for your product right now.
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Sponsored Display and Repricing: Why Both Go Together
This is where it gets particularly relevant for Amazon sellers: Sponsored Display Ads drive traffic to your listing. But if you do not hold the Buy Box, that traffic goes to waste.
The Problem
You invest 500 dollars in a Sponsored Display campaign. The ad is shown 50,000 times, and 300 customers click. But at the moment they land on your product page, another seller holds the Buy Box. The customer buys from the competitor, funded by your advertising dollars.
The Solution
A repricer ensures your price is competitive at all times so you hold the Buy Box. When you spend money on advertising, a repricer is not optional. It is a prerequisite for making sure your ad spend actually converts into sales.
arbytrage.io monitors your prices around the clock and adjusts them automatically so you hold the Buy Box. For 40 EUR per month, you get the assurance that your advertising budget actually translates into sales. Read more in our Buy Box guide.
The Optimal Combination
- Set up a repricer: Make sure you hold the Buy Box.
- Launch Sponsored Display: Drive additional traffic to your listing.
- Monitor ACoS: Regularly check whether your ad costs are proportional to the additional sales. Tips in our ACoS guide.
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Frequently Asked Questions (FAQ)
What is the difference between Sponsored Display and Amazon DSP?
Amazon DSP (Demand-Side Platform) is Amazon's enterprise advertising product. It offers similar capabilities to Sponsored Display (retargeting, audiences, off-Amazon placements) but with significantly more control, more targeting options, and higher minimum budgets (typically starting at 10,000 USD per month). Sponsored Display is the more accessible, simpler version for sellers who do not want to hire an agency or invest a five-figure monthly budget.
Does Sponsored Display work without Brand Registry?
Partially. Amazon has enabled Product Targeting for some sellers without Brand Registry. Audience Targeting and Remarketing typically require Brand Registry. Check your Seller Central under "Create advertising campaign" to see which options are available to you.
How do I measure the success of Sponsored Display?
Amazon provides metrics including impressions, clicks, CTR (click-through rate), conversions, ACoS, and ROAS (return on ad spend). For awareness campaigns (vCPM), impressions and CTR are the key metrics. For performance campaigns (CPC), ACoS and ROAS are what matter.
Can I run Sponsored Display and Sponsored Products at the same time?
Yes, and this is actually recommended. Sponsored Products captures active search demand (customers searching for your product). Sponsored Display complements this with retargeting, cross-selling, and awareness. The two formats do not compete with each other. They complement each other.
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Conclusion
Sponsored Display Ads are the most underestimated ad format on Amazon. While most sellers focus on Sponsored Products, Sponsored Display offers something no other format can: retargeting, audience targeting, and advertising outside Amazon. Retargeting in particular, reaching customers who have already viewed your product, is one of the most effective strategies for increasing conversion rates.
But advertising without the Buy Box is wasted money. Make sure your pricing is competitive before investing in Sponsored Display. Start with arbytrage.io and secure your Buy Box before you turn on the ad spend. 14-day free trial, no credit card required.