Amazon Sponsored Display is a self-service advertising solution that lets sellers reach shoppers both on and off Amazon through display ad placements. Unlike Sponsored Products and Sponsored Brands, Sponsored Display uses audience targeting and contextual signals to show ads on product detail pages, customer review pages, and across Amazon’s network of third-party websites and apps.
What Is Amazon Sponsored Display?
Sponsored Display is Amazon’s display advertising format designed for sellers enrolled in Brand Registry. It combines the precision of Amazon’s first-party shopping data with display ad placements that extend beyond search results. While Sponsored Products targets shoppers actively searching for keywords, Sponsored Display targets shoppers based on their browsing behavior, purchase history, and product interests.
The format supports both on-Amazon placements (product detail pages, search results sidebar, and customer review pages) and off-Amazon placements through Amazon’s advertising network, which includes thousands of third-party websites and mobile apps.
Sponsored Display Targeting Options
Sponsored Display offers two primary targeting approaches, each serving different campaign objectives:
Contextual Targeting (Product Targeting): Show your ads on specific product detail pages or within product categories. This is ideal for conquesting competitor listings or cross-selling complementary products. You can target individual ASINs, product categories, or refine by price range, star rating, and brand.
Audience Targeting: Reach shoppers based on their Amazon shopping behavior. Audience segments include:
- Views Remarketing: Target shoppers who viewed your product detail pages but did not purchase within a lookback window of 7, 14, or 30 days
- Purchases Remarketing: Re-engage past buyers for repeat purchases or cross-sell opportunities
- Amazon Audiences: Reach new shoppers through pre-built segments based on lifestyle, interests, life events, and in-market signals
- Similar Product Audiences: Target shoppers who viewed products similar to yours but have not yet discovered your listing
Sponsored Display vs. Sponsored Products vs. Sponsored Brands
Understanding where Sponsored Display fits in your advertising mix is essential for budget allocation:
Sponsored Products targets shoppers actively searching for keywords and appears in search results and product pages. These campaigns typically deliver the highest direct ROAS and should form the foundation of your ad strategy.
Sponsored Brands builds brand awareness through headline ads, video placements, and Store page traffic. These campaigns work well for brand discovery and portfolio promotion.
Sponsored Display fills the mid-to-upper funnel by targeting shoppers based on browsing behavior rather than active search intent. It excels at retargeting, competitor conquesting, and reaching shoppers off Amazon entirely.
Bidding and Cost Structure
Sponsored Display supports two bidding models:
Cost-Per-Click (CPC): You pay when a shopper clicks your ad. This model is available for all targeting types and works well when your primary goal is driving traffic to your listing.
Cost-Per-Thousand Viewable Impressions (vCPM): You pay per 1,000 viewable impressions. This model is better suited for awareness campaigns where reach matters more than immediate clicks. vCPM bidding is available for audience targeting campaigns.
Amazon offers three optimization strategies for Sponsored Display bids: optimize for reach (maximize impressions), optimize for page visits (maximize clicks), and optimize for conversions (maximize purchases). The conversion optimization strategy uses Amazon’s machine learning to adjust bids toward shoppers most likely to purchase.
How to Set Up a Sponsored Display Campaign
Follow these steps to launch your first Sponsored Display campaign:
Step 1: Navigate to Campaign Manager in Seller Central and select “Create campaign.” Choose “Sponsored Display” as the campaign type.
Step 2: Name your campaign descriptively (e.g., “SD – Retargeting – Water Bottle – Views 30d”) and set your daily budget. Start with $20-50 per day for testing.
Step 3: Select your targeting type. For your first campaign, start with Views Remarketing to recapture high-intent shoppers who already showed interest in your product.
Step 4: Choose the products you want to advertise. Select your best-selling ASINs with strong reviews and competitive pricing.
Step 5: Set your bid and optimization strategy. For retargeting campaigns, start with “Optimize for conversions” and a bid 20-30% higher than your Sponsored Products average CPC.
Step 6: Upload custom creative if desired. Sponsored Display allows custom headlines, logos, and lifestyle images that can improve click-through rates by 50% or more compared to auto-generated creatives.
Optimization Best Practices
Maximize your Sponsored Display performance with these proven strategies:
- Segment campaigns by targeting type. Keep retargeting, contextual, and audience campaigns separate for clearer performance analysis and budget control.
- Use custom creatives. Custom headlines and lifestyle images consistently outperform auto-generated ads. Test different value propositions and imagery.
- Adjust lookback windows. For consumable products, use shorter lookback windows (7-14 days). For considered purchases, extend to 30 days to capture longer decision cycles.
- Layer with Sponsored Products. Use Sponsored Display to retarget shoppers who clicked your Sponsored Products ads but did not convert. This creates a full-funnel advertising approach.
- Monitor placement reports. Check which placements (on-Amazon vs. off-Amazon) drive the best ROAS and adjust bids accordingly.
- Exclude low-performing ASINs. If certain products consistently underperform in Sponsored Display, remove them and reallocate budget to top performers.
Measuring Sponsored Display Success
Sponsored Display metrics require a different evaluation framework than search ads. Key metrics to track include:
New-to-Brand Metrics: Track the percentage of purchases from first-time buyers. Sponsored Display audience campaigns often drive 40-60% new-to-brand purchases, making it valuable for customer acquisition.
Detail Page View Rate (DPVR): For vCPM campaigns, DPVR measures how effectively your ads drive shoppers to your listing. A DPVR above 0.5% is generally strong for display advertising.
ROAS by Targeting Type: Retargeting campaigns typically deliver 3-8x ROAS, while prospecting audience campaigns may show 1-3x ROAS but contribute to long-term brand growth.
Frequently Asked Questions
Do I need Brand Registry for Sponsored Display?
Yes. Amazon requires active Brand Registry enrollment to access Sponsored Display campaigns. Sellers without Brand Registry can use Sponsored Products but cannot run Sponsored Display or Sponsored Brands campaigns.
What is a good ACOS for Sponsored Display?
Sponsored Display ACOS benchmarks vary by targeting type. Retargeting campaigns typically achieve 15-30% ACOS, while prospecting and contextual campaigns may run 30-60% ACOS. Evaluate Sponsored Display against your total advertising cost of sales (TACOS) rather than in isolation.
How long does it take for Sponsored Display campaigns to optimize?
Allow 2-4 weeks for Amazon’s algorithm to gather sufficient data and optimize delivery. Avoid making significant changes during the first 14 days unless there are obvious targeting errors.
Can Sponsored Display ads appear on competitor listings?
Yes. Contextual targeting allows you to place ads directly on competitor product detail pages. This is one of the most powerful use cases for Sponsored Display, letting you intercept shoppers who are actively considering a competitor’s product.
Build a Full-Funnel Amazon Advertising Strategy
Sponsored Display works best as part of a comprehensive advertising strategy that combines search, brand, and display campaigns. Managing multiple ad types across dozens of products requires constant monitoring and optimization. Enso Brands’ PPC management services help sellers build full-funnel advertising strategies that maximize every dollar of ad spend across all Amazon ad formats.
