How to Leverage Sponsored Display Ads to Increase Sales

Tana Cofer

November 23, 2020


Juliana Hacken

November 23, 2020

We advertise to increase sales, develop more brand awareness, or beat out our competitors. Sponsored Display Ads target customers in a way that can meet ALL of those goals instead of just one with its unique targeting capabilities.

Of course, Sponsored Product Ads and Sponsored Brand Ads are everyone’s go-to, making them seem more favored, but that just allows you to own the Sponsored Display Ad space that much quicker.

For a quick history lesson, Sponsored Display ads used to be called ‘Product Display Ads,’ or PDAs. They were ads that were only accessible through Vendor central. Amazon has since changed this so now all sellers have the opportunity to utilize these ads.

What are Sponsored Display Ads?

Like sponsored product or sponsored brand ads, sponsored display ads are PPC (pay-per-click) campaigns. They are used to market single products directly at the point of sale—below the Buy Box or bullet points on detail pages. These ads receive a prominent placement and good visibility to buyers.

amazon sponsored display ad

One thing you cannot do with the other ad products is retarget based on consumer shopping behavior. Sponsored display ads allow you to do this three different ways:

  1. Purchases: You can serve ads to people who have previously purchased your products.
  2. Views: You can serve ads to people who viewed the detail pages of your products.
  3. Searches: You can serve ads to people who searched for similar product.

How to Best Use Sponsored Display Ads on Amazon | Pattern

Sponsored Display also allows you to target specific products similar to Product targeting within Sponsored Products. But that has been around for a few years now and was once called “Product Display Ads.” I want to focus more on the new audience targeting features listed above.

Let’s take a look at these different methods and some of the ways they can be utilized to grow your brands.

1. Searches—Shoppers who searched for keywords relevant to your advertised products

Although display ads are usually to target bottom-of-funnel customers, they can also be useful for buyers who are earlier into their buying journey. If you’re targeting your customers correctly, you’re getting visibility and top-funnel exposure to the exact audience you want. They may not click through and purchase your item immediately, but they’re now in your marketing funnel and aware of the brand.

Using sponsored display to target people who are searching for products similar to yours is a way to make sure that your awareness spending is spent on people who are like your current customers, and who are closer to being ready to try your brand.

Remember, these ads can appear on the detail page of a product, and can even appear off of Amazon. So a consumer can search for a baby monitor on amazon, decide to wait, and then be served an ad for Owlet’s Baby Monitor when they are scrolling on a different amazon affiliate site.

Can’t I use Sponsored Products and bid on the keywords similar to my product?

Yes you can, and you should. However, these ad placements are completely different. Instead of allowing the potential customer to only see your ad on the search results page and on the “Sponsored Products related to this item” carousel, you are opening up the opportunity for them to be exposed to your brand in more places.

Can’t I use Amazon DSP for off platform targeting?

Yes, absolutely! However the cost structure is different. DSP is a CPM model, meaning that you are paying for the impressions. Whereas Sponsored Display is a CPC model, so you are only paying when they click.

Since click-through is low on DSP, those impressions won’t cost an arm and a leg through Sponsored Display. In addition, they’ll be much more targeted due to the behavior targeting we are utilizing.

2. Views—Shoppers who viewed the detail pages of your advertised products or similar products

When you are advertising to grow your brand, one of the most important things to do is focus a lot of your advertising spend on brand awareness. Once you believe you have captured everyone who is in the final stages of the advertising funnel, you need to work your way to broader audiences.

advertising on amazon

Many think the next step is bidding on the broadest words and accepting a $10 cost per click. There is, in fact, a middle ground to where your spend still reaches a new audience, without paying $10 a click. We, at Pattern, call it the ‘consideration phase.’

The ‘consideration phase’ is when a consumer thinks about buying your product (or a similar product) but hasn’t clicked the ‘add to cart’ button yet. This is the perfect audience to target your ads to when you are ready to increase new customers.

These customers are cheaper for 2 reasons:

  1. They have already looked at your detail page (or a competitors) so they are likely familiar with the product type. This allows you to skip the ‘teaching the product’ phase.
  2. Since they have viewed the detail page, they are a more relevant audience, thus your competition for them is cheaper, thus a lower CPC, than serving on the very broad keyword, “wine,” for example.

Overall, if you are wanting to increase new customers, I recommend you target consumers who are in the consideration part of the purchase funnel before going all the way to straight brand awareness. I recommend this advertising product and the ‘views’ audience type to do it.

3. Purchasers—Shoppers who previously purchased your advertised product

Before Sponsored Display, there wasn’t an easy way to retarget previous purchasers. You can assume that a lot of the people who search the brand name have bought in the past, but there isn’t a clear number/percentage associated with keyword search volume that can tell you that.

Using Sponsored Display ads to retarget previous purchasers is a no brainer. It doesn’t cost much to convert someone who already bought to do it again. Especially if your product is really sticky to consumers.

We see a great RoAS with these ads, so it is easy to find success with these. Our recommendation would be to do this for your top products to ensure that you are doing everything you can to increase the lifetime value of every customer.

During the holidays, this advertising tactic can be very powerful. It is common for people to want to buy the perfect gift for those they love, but it is hard to find that gift. People are more likely to buy an item for a friend that they have tried/used/purchased themselves. Serving previous customers ads that remind them of the products they enjoyed can increase their potential to buy it for others.

If you would like to advertise on specific ASINS, you can definitely use Sponsored Display ads to accomplish this goal. Instead of using the ‘Audience’ targeting. You would simply select the ‘Product Targeting’ box.

If you choose to do this method, here are 4 recommendations from the experts at Pattern.

1. Cross-promote your own catalog

Cross-promote within your own catalog. Sponsored Display ads can confuse customers at the moment of purchase, so why not make sure you’re the one owning that opportunity? Spending a small portion of your budget on defending your brand’s space can not only prevent leaking customers to competitors, but can also build loyalty to multiple items within your own catalog of items.

2. Defend your top products

If you have hundreds of ASINS, you could spend a lot of money just on defense, which may not be the best way to grow your brand. We recommend making sure that your top products are well defended from competitors by having a sponsored display ad on the detail page.

3. Products purchased together

Look beyond the exact product type and into products that are most often purchased together. Think about the types of customers buying your products and ask yourself what else they might be purchasing. For example, if you are selling a book about child care, why not also target customers who are purchasing diapers, baby toys, and nursery items? These listings are not direct competition, so you may have more success in landing in the shopping cart.

4. Compete, compete, compete

Go toe-to-toe with your competitors. If you don’t mind lower click-through and conversion rates, look at the companies ranked higher than yours within the same category, and target those items specifically. This type of campaign will require some patience and a broader perspective on what “success” means since you aren’t as likely to convert right away. Despite that, this type of advertising should definitely be considered for part of your PPC strategy on Amazon.

We can go on and on about all of the different ways you can leverage Sponsored Display ads to grow your brand. We believe your return on these ads can be greater than Sponsored Products due to the lack of competition on these ad products. Be sure to leverage these all-year round to maximize your potential for success.

Download our Experts’ Guide to Amazon Advertising Strategy below to learn more about the different campaign types available to you and how to utilize them to increase your payoffs with advertising.

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Global Ecommerce Weekly News: 27th September 2022

Global Ecommerce Weekly News: 27th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon drives renewable energy push with 71 new projects Amazon is planning to add 2.7 gigawatts of clean energy capacity through a couple of new projects as the company attempts to use 100% renewable energy by 2025. The ecommerce business will soon have a total of 329 renewable energy projects, generating 50,000 gigawatt hours of clean energy, which is equivalent to powering 4.6 million US homes every year. [Read more on Reuters]( Amazon launches Prime Early Access Sale Amazon is launching a new 2-day shopping event for its Prime members only, beginning on the 11th of October. Across 15 countries, Prime customers will have access to the shopping event, with thousands of deals on offer globall, ranging from fashion to electronics to essentials. The event has the purpose of giving Prime users the chance to spread the cost of items over the winter months, 6 weeks ahead of Black Friday. [Read more on Charged Retail]( --- Other Marketplace News --- Shopify unveils new localisation tool Shopify is launching a new localisation tool, called Translate & Adapt, which works with Shopify Markets to offer localisation for sellers who are looking to expand into new markets. The tool translates a user’s online store into different languages, including product pages and information pages. Merchants are also able to create different shipping terms for each market using the new tool, which allows international expansion and offers a more localised consumer experience, unveiling new potential. [Read more on Ecommerce News]( Etsy is set to invest hundreds of millions into its marketing platform Etsy CEO claims that the company is on route to spend more than $570 million USD on marketing this year. Even during a time of macroeconomic pressure, inflation and rising interest rates, the company is preparing itself and its sellers for the upcoming holiday season and is focused on retaining interest from buyers. [Read more on Yahoo News]( --- Other Ecommerce News --- Meta looks to cut costs by 10% in the coming months Meta employees are facing job redundancies as the company plans to cut its costs by 10% over the next few months. Meta reported a 22% YoY increase in costs and expenses, totalling over $20 billion USD. The cuts are expected to come in the form of job redundancies as a result of department reorganisations rather than formal layoffs. [Read more on Charged Retail]( DHL teams up with Quadient to offer smart locker deliveries in the UK DHL and tech company, Quadient, have partnered to offer smart lockers parcel pick-up throughout the UK. The new contactless, secure locker stations will give recipients more choice and flexibility to receive their parcels at a time and location best suited to them. The partnership plans to install 500 locker stations across the country by the end of 2022. [Read more on Charged Retail]( The online fashion market is set to be worth nearly $170 billion USD in 2025 The European online fashion retail market is set to grow 50% by 2025, with an online turnover of $170 billion USD, which is 33% of the retail branch’s total. Cross-border marketplaces prove to be the largest drivers of this growth, with online websites and apps like Vinted largely pushing the market’s online growth. Zalando recently became the largest cross-border fashion retailer/marketplace, responsible for 11.7% of the online market’s share. [Read more on Ecommerce News](

How an Amazon SEO Agency Should Be Serving Your Brand

How an Amazon SEO Agency Should Be Serving Your Brand

If you’re in the global ecommerce space, you are most likely aware of Amazon, and probably selling your products on the marketplace. With over $470 billion in sales in 2021 alone, Amazon stands as the third largest company in the world based on revenue. The ecommerce giant is a household name in the U.S. and working hard to grow its market share across five continents worldwide.

Having your products available on Amazon and being competitive there, though, are definitely two different things. If you want to really succeed on Amazon, you’ll need specialized insight into how Amazon works and how to make it work for you. So, for many brands, it’s a great idea to work with an Amazon Search Engine Optimization (SEO) agency.

At Pattern, Amazon SEO optimization service is one of our key competencies. We understand that technology, data-driven insights and expertise  are the most important tools brands can leverage to win top listing spots on digital marketplaces. With expert teams and years of experience, we help brands conquer the Profitability Death Spiral as they compete with other products and sellers online. We offer Amazon SEO agency services as a core solution to brands that need more resources to get ahead. 

What is an Amazon SEO Agency?

An Amazon SEO agency serves brands by improving their products’ rank and listing performance on Amazon. They make strategic decisions about ad spending and placement that lead to higher traffic, conversions, and revenue for ecommerce brands.

A great Amazon SEO Agency partner will:

Prioritize Your Success

Unfortunately, many Amazon SEO agencies profit in unfair ways from your brands’ perceived success based on the ROAS numbers they provide. This is done through including branded search terms in ROAS reports, which naturally skew listing performance

Let’s say, for instance, your brand is called “Annie’s” and you sell lollipops. Your brand has a very high likelihood of winning the top listing spots on Amazon for lollipop search terms that are paired with “Annie’s,” your brand name. So, SEO agencies will spend your ad money on those terms and report a very high ROAS. 

To avoid scenarios like these, it’s best to look for an agency that either calculates their profits on metrics other than your ROAS scores or weighs branded search terms differently in the performance metrics reports. Regardless of your Amazon SEO agency’s cost structure, you should align onbranded search terms before committing to a scope of work.

Provide Detailed Competitive Insight

A great indicator of a high-quality Amazon SEO agency is the level of insight they can provide into your competitors’ listing positioning and how it compares to yours. Data fanaticism is so important at Pattern that we’ve developed proprietary technology to display this exact information with precise detail for every brand we work with. In fact, you can find our free version here to see how you compare to some of your top competitors based on ASIN.

It’s certainly possible to improve your Amazon search performance with blind spending strategies. But a truly great solution will help you to know where your dollars are at their most powerful and competitive.

Reduce Your Ad Spend Over Time

Amazon’s A10 algorithm prioritizes customer satisfaction—it wants to show consumers the best products that align with their search intent to improve conversions and sales. So, the best way to gain momentum on Amazon is to work on incremental wins. 

Improving your performance on more obscure search terms that align with your customers’ search intent is a great way to increase ROAS for the long term. A10 will reward your success with better rankings on higher-volume search terms and the virtuous cycle can help you conquer your most-coveted listing spots. And the best part? This process of gaining momentum, if done right, will naturally decrease your ad spend over time as Amazon recognizes your value and works with you to keep your products at the top of consumers’ search results.

Amazon SEO Optimization and More

As an Amazon SEO specialist, Pattern knows how to help your brand win better success for long-term profitability on Amazon. With our data-driven tools and brilliant teams of ecommerce experts, we help brands with listing management, content optimization, Amazon ad strategies, and more.

Contact us to learn more about our SEO optimization services.

Global Ecommerce: Weekly News (20th September 2022)

Global Ecommerce Weekly News: 20th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon to raise pay and add extra work benefits for delivery drivers Following the rise in fuel prices and protests by Amazon workers, the ecommerce giant is raising its delivery drivers’ pay and adding more work benefits. Amazon has mentioned that it will be investing $450 million into rate increases along with an education program and a Delivery Service Partners program. [Read more on Charged Retail]( Amazon announces it will give away shipping software to merchants at no cost Amazon has recently announced that it will be giving ecommerce merchants free software to manage shopper orders on and off its platform as it extends its reach. The ecommerce giant will be ending monthly costs for sellers using Veeqo, a shipping software it recently acquired and instead offer to them a new, free shipping software. [Read more on Charged Retail]( --- Other Marketplace News --- Walmart unveils new virtual fitting rooms In an effort to drive clothing sales, Walmart has launched virtual fitting rooms while competitors reduce spending amid the cost of living crisis. The virtual try-on tool can be used by Walmart customers to virtually measure the clothing items and see how the products would look on them. Shoppers will now be able to see how over 270,000 clothing items on Walmart’s ecommerce site would look on their bodies. [Read more on Charged Retail]( THG slashes sales and profit expectations The Hut Group has slashed its forecasts for 2022 as rising interest rates, inflation and energy costs take a toll on consumers. Previously, THG estimated its sales growth to be between 22-25% but after a recent evaluation, has lowered this prediction to between 10-15%. Initial predictions did not take into account the negative effects of ceasing sales in Russia and Ukraine along with the impact that the cost-of-living has had on consumer spending. [Read more on Charged Retail]( --- Other Ecommerce News --- DHL and Post Office team up to provide click and collect services Through a partnership between delivery company, DHL and Post Office, a new click and collect service is to be tested at Post Offices before rolling out to over 1000 branches across the UK. Online shoppers will now have the option of choosing their local Post Office as a collection point, and DHL will fulfil the delivery aspect, opening up networks for both parties. [Read more on Charged Retail]( US consumer watchdog plans to further regulate the BNPL sector The US Consumer Financial Protection Bureau (CFPB) has raised concerns regarding the collection of consumer data and the fast-growing nature of the BNPL sector, which includes companies such as Affirm and Klarna. The CFPB is worried that these companies could be negatively impacting consumers’ financial health and aims to put better regulations in place to ensure consumers are safe and empowered. [Read more on Charged Retail]( Japanese ecommerce market estimated to grow by 6.9% in 2022 The ecommerce market in Japan, largely dominated by domestic online retailers including Reakuten and Mercari, is set to reach $194.3 billion USD in 2022, after seeing an annual compound growth rate of 5.2% between 2018 and 2021. This makes Japan the fourth leading ecommerce market globally, following China, the US, and the UK. [Read more on Charged Retail]( Ecommerce brands are spending more on TikTok ads TikTok may soon be surpassing Facebook and Google as the most lucrative advertising channel, with ecommerce brands spending 60% more on TikTok ads in Q2. Facebook is still ahead as the top choice for ecommerce advertisers but only grew by 5.6% from Q1, while Google grew 20.5% in Q2, and Snap declined 10.8% in Q2. [Read more on SearchEngineLand](