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What Are Sponsored Display Ads? And Why Are They Crucial to Your Business?

Updated: Sep 14, 2021

You must have always wondered how your device figures out what you are looking for while shopping online, and in a minute, similar product ads pop up on your desktop and mobile screen. Well, there is no more mystery in that.

All this works in a loop and is a tried and tested strategy used by most online shopping websites to lead you to the product detail page. It works as a wizard watching you scrolling for the best quality and affordable product, and in a flick of a second, a very similar ad appears before you that redirects you to the product page.

Amazon, which is the leading marketplace for vendors and sellers, provides the superb feature called "Sponsored Display Ads." The best part is, it engages your potential buyers through the purchase journey and works on and off Amazon. Keep reading!

What are Amazon Sponsored Display Ads?

Sponsored display ads have been built to drive awareness and purchase for your products. It is available to transact via the amazon ads console and can be setup fairly quickly.

The biggest benefit of sponsored display is that it works off Amazon, and your ads will display not only on the Amazon pages but also on third-party websites. It is different from sponsored products and sponsored brand ads as it does not focus on keywords; instead, it is targeting a specific audience and product targeting.

Once your ads start popping up on the right or left margins of the page, it immediately catches shopper's attention, especially when they are reading through the product description of the same product.

Sponsored Display Ad is a PPC (pay-per-click) feature that means you don't have to pay until your ad is clicked open. Targeting options available for sponsored ads include:

  1. Product targeting

  2. Audience targeting

Product Targeting

If you have ever shopped on Amazon, you must have seen while searching for a particular product; you keep seeing ads showing similar products. That's how product targeting works. You can promote your products to audiences looking for similar products or roaming through identical categories.

Vendors and sellers are qualified to use this product if they have Amazon brand registry. Your ads targeting products will appear on Amazon pages, including the product description page.

Audience Targeting

Audience targeting particularly captures consumers who are in interested in your previously viewed your products. This type of targeting reaches shoppers both inside and outside of Amazon.

It uses custom-built audiences to reach buyers, for instance, views remarketing or typically engages the shoppers using customizable controls such as star rating to get hold of the fresh buyers.

Vendors and sellers who are registered from the Amazon Brand Registry are eligible to use this feature. Your ads appear on the amazon pages that include the product detail page, home page, and shopping result platform.

Your ads can appear outside on the 3rd party websites and pages or apps installed on mobile or desktop.

How to Create an Amazon Sponsored Display Ad?

Thinking of creating sponsored ads for your products? No worries, it takes a few clicks.

  1. Step 1: Open your Vendor or Seller Central account and navigate to the 'Campaign Manager.'

  2. Step 2: Opt for the option that says 'Create campaign.'

  3. Step 3: Select ‘Sponsored Display’ from the types of campaigns offered.

  4. Step 4: Select the Amazon Standard Identification Number for your product for which you want to generate an ad. Amazon will automatically generate your ad and optimize it.

  5. Step 5: Adjust your Cost-per-click (CPC) bidding options.

  6. Step 6: Give a name to your campaign, adjust the budget according to your available resources, and set a duration for your campaign.

How is Amazon Sponsored Display Ad Crucial to Your Business?

Driving awareness for your customers and developing a strong brand image is a goal of every vendor and seller.

Advertising your products can draw a massive number of consumers, there by producing more sales and revenue. Amazon Sponsored Ads are of pivotal importance in the following regards.

1. Getting Discovered

You can boost product discoverability if you start advertising your products via sponsored display ads. Buyers will start to see your products more often as they browse the site or even after leaving Amazon based on their prior shopping behaviour. This helps feed the amazon flywheel.

2. Increasing Sales

Sponsored display ads are also effective in driving sales as they can use unique targeting features that allow you to get the shopper that is currently in the market for your category of product.

3. Controlling Costs

Amazon Sponsored Ads work best in your interest since you don’t have to pay until your ads receive a click. Ad expenditure and performance are kept in check by the campaigns. So, you are charged accordingly.


Small businesses often struggle in the beginning, but with proper use of advertising strategies their business can ramp up quickly. To accelerate your progress, start advertising with sponsored display ads by casting a net that reaches the most relevant audiences.

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