Amazon Display Advertising: How to Reach and Convert Your Customers

By Cepy 8/22/2023 Post a Comment

Hi Online Friends,

If you're looking for a way to grow your online business and brand, you might want to consider Amazon display advertising. Amazon display advertising is a form of online advertising that allows you to reach potential customers across different channels and devices with engaging and relevant ads. Whether you want to increase brand awareness, drive traffic, generate leads, or boost sales, Amazon display advertising can help you achieve your marketing goals.

In this article, we'll explain what Amazon display advertising is, how it works, what types of ads you can create, and what are the best practices and tips to optimize your campaigns. We'll also provide some examples of successful Amazon display ads and answer some frequently asked questions. By the end of this article, you'll have a better understanding of how to use Amazon display advertising to reach and convert your customers.

What is Amazon Display Advertising?

Amazon display advertising is a form of online advertising that uses images, text, video, and e-commerce elements to promote a product, service, or brand. Display ads can appear on various websites, apps, and devices, such as desktops, mobile phones, tablets, Fire TV, Fire tablet, Echo Show, Prime Video, Amazon store, Twitch, IMDb, and Kindle.

Display ads are designed to capture the attention of your target audience and encourage them to take action, such as clicking on your ad, visiting your website, or purchasing your product. Display ads can help you achieve different marketing objectives, such as increasing brand awareness, driving traffic, generating leads, or boosting sales.

How Does Display Advertising Work?

Display advertising can seem complex, but it can be simplified into six steps:

Define your audience: The first step is to identify who you want to reach with your display ads. You can use various criteria to segment your audience, such as demographics, interests, behaviors, shopping signals, or previous interactions with your brand. You can also use remarketing to target customers who have already viewed your products or visited your website.
Select your campaign goals and settings: The next step is to decide what you want to achieve with your display ads and how much you want to spend. You can choose a key performance indicator (KPI) that reflects your desired outcome, such as reach or return on ad spend (ROAS). You can also configure other settings, such as pacing, supply sources, device types, pre-bid traffic filtering, and more.
Create attention-grabbing copy and design for your display ad: The third step is to craft a compelling message and visual for your display ad that resonates with your audience and motivates them to act. You can use different formats and sizes for your display ad, such as medium rectangle (300 x 250 px), leaderboard (728 x 90 px), wide skyscraper (160 x 600 px), large rectangle (300 x 600 px), or mobile leaderboard (320 x 50 – 640 x 100 pixels @2X). You can also use dynamic creative optimization (DCO) to automatically generate personalized ads based on customer data.
Choose where to show your display ad: The fourth step is to select where you want your display ad to appear. You can use different platforms and tools to buy and manage your display ad inventory, such as Amazon Advertising Console (formerly Amazon Marketing Services), Amazon Demand Side Platform (DSP), or Amazon Native Ads. You can also choose between different types of placements, such as on-site (on Amazon's properties), off-site (on third-party websites and apps), or cross-device (on multiple devices).
Launch and monitor your display ad campaign: The fifth step is to launch your display ad campaign and track its performance. You can use various metrics and reports to measure the effectiveness of your display ads, such as impressions (how many times your ad was shown), clicks (how many times your ad was clicked), conversions (how many times your ad led to a desired action), cost per click (CPC) or cost per thousand viewable impressions (vCPM) (how much you paid for each click or impression), or ROAS (how much revenue you generated for each dollar spent).
Optimize and improve your display ad campaign: The final step is to analyze the results of your display ad campaign and make adjustments to improve its performance. You can use different strategies and tactics to optimize your display ads, such as testing different creatives, audiences, placements, or bidding strategies; refining your targeting and segmentation; or expanding your reach and scale.

What Types of Display Ads Can You Create?

Amazon offers several types of display ads that you can create depending on your goals and budget. Here are some of the most common ones:

Sponsored Display: Sponsored Display is a self-service display advertising solution that helps you grow your business and brand by engaging shoppers across the purchase journey, on and off Amazon. Sponsored Display ads are automatically generated from your product information and can include a custom headline and logo. You can target shoppers based on their product or category interests, or based on their previous interactions with your products. Sponsored Display ads can appear on Amazon's store, Twitch, IMDb, Kindle, Fire TV, and third-party websites and apps.
Display Ads: Display Ads are display advertising solutions that allow you to create custom ads with your own creative assets and target audiences across Amazon's network of sites and devices. You can use Display Ads to reach shoppers who are browsing, researching, or purchasing products similar to yours, or who have shown interest in your brand or category. Display Ads can appear on Amazon's store, Twitch, IMDb, Kindle, Fire TV, Prime Video, and third-party websites and apps.
Video Ads: Video Ads are display advertising solutions that allow you to showcase your brand story or product features with engaging video content. You can use Video Ads to reach relevant audiences throughout their shopping and entertainment journeys, on and off Amazon. Video Ads can appear on Amazon's store, Twitch, IMDb, Fire TV, Prime Video, and third-party websites and apps.
Audio Ads: Audio Ads are display advertising solutions that allow you to connect with listeners of Amazon Music's free ad-supported tier. You can use Audio Ads to reach audiences who are listening to music, podcasts, or other audio content on Amazon Music. Audio Ads can include a companion banner that appears on the Amazon Music app or web player.
Custom Ads: Custom Ads are display advertising solutions that allow you to create unique and immersive experiences for your customers. You can use Custom Ads to showcase your brand or products in innovative ways that stand out from the crowd. Custom Ads can include interactive features, rich media, 3D models, augmented reality, or live streaming.

Amazon Display Advertising Breakdown

To give you a better idea of how Amazon display advertising works and what results you can expect, we've created a table that summarizes the main features and benefits of each type of display ad. You can use this table as a reference when choosing the best display ad solution for your business.

Type	Description	Format	Placement	Targeting	Bidding	Benefits
Sponsored Display	A self-service display advertising solution that helps you grow your business and brand by engaging shoppers across the purchase journey, on and off Amazon.	Image + text + CTA (custom headline and logo optional)	Amazon store (home page, search results page, product detail page, offer listing page, thank you page), Twitch, IMDb, Kindle, Fire TV, third-party websites and apps	Product or category interests (contextual targeting), previous interactions with your products (audiences targeting)	CPC (cost per click)	Easy to create and manage; retail-aware (only serve when products are in stock or the Featured Offer); dynamic optimization (automatically serve the best performing creative); cross-device reach; performance measurement
Display Ads	A display advertising solution that allows you to create custom ads with your own creative assets and target audiences across Amazon's network of sites and devices.	Image + text + CTA (custom creative optional)	Amazon store (home page, search results page, product detail page), Twitch, IMDb, Kindle, Fire TV, Prime Video, third-party websites and apps	Lifestyle segments (based on shopping behavior), in-market segments (based on purchase intent), remarketing segments (based on previous interactions with your products or website)	CPC (cost per click) or vCPM (cost per thousand viewable impressions)	Creative flexibility; broad reach; relevant targeting; performance measurement; campaign optimization
Video Ads	A display advertising solution that allows you to showcase your brand story or product features with engaging video content.	Video + CTA (companion banner optional)	Amazon store (home page, search results page), Twitch, IMDb, Fire TV, Prime Video, third-party websites and apps	Lifestyle segments (based on shopping behavior), in-market segments (based on purchase intent), remarketing segments (based on previous interactions with your products or website)	CPCV (cost per completed view) or vCPM (cost per thousand viewable impressions)	High impact; brand awareness; emotional connection; performance measurement; campaign optimization
Audio Ads	A display advertising solution that allows you to connect with listeners of Amazon Music's free ad-supported tier.	Audio + CTA (companion banner optional)	Amazon Music app or web player	Genre segments (based on music preferences), demographic segments (based on age and gender), geographic segments (based on location)	CPM (cost per thousand impressions)	Brand recall; audio engagement; companion banner click-through; performance measurement
Custom Ads	A display advertising solution that allows you to create unique and immersive experiences for your customers.	Custom creative (interactive features, rich media, 3D models, augmented reality, live streaming, etc.)	Amazon store (home page, search results page, product detail page), Twitch, IMDb, Fire TV, Prime Video, third-party websites and apps	Lifestyle segments (based on shopping behavior), in-market segments (based on purchase intent), remarketing segments (based on previous interactions with your products or website)	CPC (cost per click) or vCPM (cost per thousand viewable impressions)	Differentiation; innovation; customer delight; performance measurement; campaign optimization

FAQs About Amazon Display Advertising

What are the benefits of Amazon display advertising?

Amazon display advertising can help you grow your online business and brand by reaching and converting your customers across different channels and devices. Some of the benefits of Amazon display advertising are:

You can access Amazon's large and loyal customer base, who are more likely to buy online than average internet users.
You can leverage Amazon's rich customer data and insights to target your ads to relevant and interested audiences.
You can create engaging and personalized ads that match your brand identity and product offerings.
You can measure and optimize your campaign performance using various metrics and reports.
You can choose from a variety of display ad solutions that suit your goals and budget.

How much does Amazon display advertising cost?

The cost of Amazon display advertising depends on several factors, such as the type of display ad, the bidding strategy, the targeting criteria, the competition, and the seasonality. You can control your spending by setting a daily or lifetime budget for your campaigns. You can also adjust your bids based on your performance and goals. You only pay when someone clicks on your Sponsored Display or Display Ads, views your Video Ads for at least 2 seconds at 50% visibility, or views your Audio Ads for at least 15 seconds. You pay a fixed amount per thousand impressions for Custom Ads.

How do I create Amazon display ads?

You can create Amazon display ads using different platforms and tools, depending on the type of display ad you want to create. Here are some of the options:

Sponsored Display: You can create Sponsored Display ads using the Amazon Advertising Console or the Amazon Advertising API. You need to have an active seller account in Amazon Seller Central or a vendor account in Amazon Vendor Central to use Sponsored Display.
Display Ads: You can create Display Ads using the Amazon Demand Side Platform (DSP) or the Amazon Advertising API. You need to have a minimum budget of $35,000 to use the Amazon DSP.
Video Ads: You can create Video Ads using the Amazon DSP or the Amazon Advertising API. You need to have a minimum budget of $35,000 to use the Amazon DSP.
Audio Ads: You can create Audio Ads using the Amazon DSP or the Amazon Advertising API. You need to have a minimum budget of $15,000 to use the Amazon DSP.
Custom Ads: You can create Custom Ads by contacting an Amazon advertising consultant. You need to have a minimum budget of $50,000 to use Custom Ads.

How do I optimize my Amazon display ads?

You can optimize your Amazon display ads by following some best practices and tips, such as:

Define your audience clearly and segment them based on their interests, behaviors, and purchase intent.
Select your campaign goals and KPIs that align with your marketing objectives and measure your success.
Create attention-grabbing copy and design for your display ads that convey your value proposition and call to action.
Choose where to show your display ads based on where your audience is most likely to see them and respond to them.
Launch and monitor your display ad campaigns regularly and use the metrics and reports to evaluate your performance.
Test different creatives, audiences, placements, or bidding strategies and compare the results to find the best combination.
Refine your targeting and segmentation to reach the most relevant and interested customers.
Expand your reach and scale by exploring new opportunities and channels.

What are some examples of successful Amazon display ads?

Here are some examples of successful Amazon display ads that have achieved impressive results:

A leading beauty brand used Sponsored Display to increase its sales by 51% and its ROAS by 76% during Prime Day. The brand targeted shoppers who viewed its products or similar products in the past 30 days, and used a custom headline and logo to highlight its brand identity and value proposition.
A global consumer electronics company used Display Ads to drive awareness and consideration for its new product launch. The company used lifestyle segments to target shoppers who were interested in its product category, and used rich media ads to showcase its product features and benefits. The campaign resulted in a 10% lift in brand awareness and a 7% lift in purchase intent.
A popular online education platform used Video Ads to increase its enrollments and revenue. The platform used in-market segments to target shoppers who were looking for online courses, and used video ads to tell its brand story and customer testimonials. The campaign generated a 25% increase in enrollments and a 35% increase in revenue.
A well-known music streaming service used Audio Ads to grow its user base and subscriptions. The service used genre segments to target listeners who were interested in its music offerings, and used audio ads to highlight its features and promotions. The campaign delivered a 15% increase in user sign-ups and a 10% increase in subscriptions.
A luxury fashion brand used Custom Ads to create an immersive and interactive experience for its customers. The brand used remarketing segments to target shoppers who had visited its website or viewed its products, and used a 3D model ad to allow customers to view its products from different angles and zoom levels. The campaign achieved a 20% increase in engagement and a 12% increase in conversions.

Conclusion

Amazon display advertising is a powerful and versatile way to reach potential customers across different channels and devices with engaging and relevant ads. Whether you want to increase brand awareness, drive traffic, generate leads, or boost sales, Amazon display advertising can help you achieve your marketing goals. You can choose from a variety of display ad solutions that suit your needs and budget, and optimize your campaigns using various metrics and reports. You can also create custom ads that showcase your brand or products in innovative ways that stand out from the crowd.

We hope this article has given you a comprehensive overview of Amazon display advertising and how to use it effectively. If you want to learn more about Amazon display advertising or other online marketing topics, please check out our other articles on our website. Thank you for reading!

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