Amazon Sponsored Display Ads: The Complete Guide to Retargeting & Scaling Sales

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Amazon Sponsored Display Ads, Infobeam Solution

Introduction

Advertising on Amazon offers multiple avenues to reach shoppers, but Sponsored Display Ads stand out as a powerful tool for retargeting, brand awareness, and scaling your sales beyond just keyword targeting. If you want to re-engage customers who viewed your products, reach similar audiences, or simply push for higher visibility, Sponsored Display Ads can be one of your most effective levers.

In this guide, we’ll walk you through:

  • What Sponsored Display Ads are and how they differ from other Amazon ad types
  • Key use-cases (retargeting, scaling, awareness)
  • How to set them up effectively
  • Best practices and strategies for optimizing performance
  • Metrics to track
  • Common pitfalls & how to avoid them

What Are Amazon Sponsored Display Ads?

Sponsored Display Ads are part of Amazon’s advertising platform. They allow you to show your ads:

  • On Amazon product detail pages
  • On Amazon’s shopping results pages
  • Off Amazon, on third-party websites and apps (audience-based)

Sponsored Display enables you to reach audiences who have viewed your products, similar product categories, or similar customer profiles. It extends beyond active searchers to help you capture demand that might otherwise slip away.


How Sponsored Display Ads Compare to Other Amazon Ad Types

Ad TypePrimary Use CaseWhere Ads AppearStrengths
Sponsored ProductsKeyword-targeted product visibilitySearch results & product listingsEffective for capturing high-intent shoppers
Sponsored BrandsBrand promotion + collecting ASINsBanner ads in search & category pages, brand store linkGreat for new product launch, branding
Sponsored DisplayRetargeting & reaching viewers off AmazonProduct detail pages, third-party sites/appsCaptures audiences that viewed but didn’t purchase; expands reach beyond keywords

Key Use-Cases for Sponsored Display Ads

  1. Retargeting Viewers Who Didn’t Buy
    • Reach customers who visited your product page but didn’t make a purchase
    • Show them ads on Amazon or off-Amazon to bring them back
  2. Upselling and Cross-Selling
    • Once someone bought one product, show them related accessories or complementary items
    • Helps increase average order value
  3. Boosting Visibility for New or Under-performing ASINs
    • Use displays to generate impressions & awareness, push traffic to new ASINs
  4. Launching Promotions or Seasonal Pushes
    • Advertise sales, deals, seasonal launches to broad or targeted audiences
  5. Audience Expansion
    • Use interest-based targeting-show ads to people interested in similar categories or product types

Setting Up Sponsored Display Ads Step-by-Step

Here’s how to get started properly:

  1. Access Advertising Console
    • Log in to Amazon Seller or Vendor Central → Advertising → Sponsored Display
  2. Select Campaign Goal
    • Retargeting (views of your product)
    • Product targeting (similar ASINs)
    • Audiences (interest- or demographic-based)
  3. Choose Targeting Type
    • “Views remarketing”: people who viewed your specific product page
    • “Similar products” targeting
    • “Audiences” targeting, if available in your region
  4. Select Your Products / Creatives
    • Choose ASINs to promote
    • Ensure product images & content are high quality
    • Use custom creatives where possible (some placements allow customization)
  5. Set Budget & Bids
    • Start with modest budget to test
    • Set bids high enough to win impressions without overspending
  6. Define Duration & Schedule
    • Consider day-parting if data supports it
    • Run long enough to collect meaningful data
  7. Launch & Monitor
    • Once live, monitor impressions, clicks, spend
    • Track detail page views, sales, return on advertising spend (ROAS)

Best Practices to Maximize Performance

  • Segment Your Audiences
    Use different campaigns for people who viewed vs people who added to cart vs people who bought. Tailor creatives and bids accordingly.
  • Use Eye-Catching Creatives & Messaging
    High-quality images, strong value proposition, clear call-to-action (e.g. “Buy Now”, “Don’t Miss Out”)
  • Exclude Poor-Performing Products / Audiences
    Remove ASINs with low conversion or audiences that waste budget
  • Use Frequency Caps
    Don’t bombard the same user too many times; can lead to ad fatigue
  • Optimize Based on Time of Day / Week
    Use performance data to adjust scheduling if certain times or days perform better
  • Align Offers / Discounts with Ads
    If using promotions or coupons, make sure the ad shows that offer to attract clicks
  • A/B Test Creatives and Targeting
    Try different images or headlines; test different audience segments
  • Track Attribution Windows Carefully
    Sponsored Display has specific attribution windows which matter when measuring performance

Important Metrics to Track

MetricWhat It Tells YouBenchmark / Goal
ImpressionsHow many people saw your adGood reach is first step
Click-Through Rate (CTR)How compelling your ad isHigher is better; depends on category
Cost-Per-Click (CPC)Efficiency of your spendKeep CPC manageable relative to profit margin
Detail Page ViewsWhether people are interestedLook for conversion after going to detail page
Conversion RateHow many clicks convert to salesMeasure by ASIN, by targeting type
Return on Ad Spend (ROAS)Revenue per ad spendShould be positive after factoring in costs
Spend by Audience SegmentWhich audience gives best returnShift budget to best segments
Frequency / Repetition RateAre the same people seeing your ad too oftenControl ad fatigue

Scaling with Sponsored Display

Once you’ve run tests and found winning combinations, you can scale:

  • Increase budget on high-performing campaigns
  • Expand to more ASINs or product lines
  • Use broader targeting (e.g. interest or category based) to reach new customers
  • Use geographical targeting if applicable (regions that perform better)
  • Leverage seasonal demand peaks (festivals, holidays)

Common Pitfalls & How to Avoid Them

PitfallWhy It HappensHow to Fix
Overspending on audiences that don’t convertPoor targeting or insufficient filteringPause or lower bids on poor audiences; refine targeting
Low-quality creatives / imagesVisuals don’t attract, misrepresent productUse crisp, accurate images; align expectations
Not measuring properlyIgnoring attribution windows or downstream metricsSet up proper tracking, track ROAS, sales from ad clicks
Ad fatigueSame audience sees ad too oftenUse frequency caps, rotate creatives
Product page disconnectAd promises something listing doesn’t deliverEnsure listing (images, copy, reviews) matches what ad shows

Conclusion

Sponsored Display Ads are a valuable tool in your Amazon advertising mix-especially for retargeting, protecting your brand, and scaling your reach beyond just search. When set up and optimized well, they help you reclaim lost interest, boost conversion, and drive more consistent sales.

Begin with testing, measure the results, refine your targeting, and scale what works. Over time, with strong creatives, smart audience segmentation, and good listings, Sponsored Display can become one of your most profitable advertising channels.


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