People love to talk about the differences between brick and mortar and online shopping. There are some key differences, but there are more similarities than most people realize. Both industries face many of the same challenges, whether it’s inventory control, staving off competitors, or dealing with negative reviews. One challenge that you may not have considered though is how to get customers back to your store once they leave, or ‘retarget’ them. Even though Amazon sells to millions of people every day, there are millions more who ‘window shop’. They show up, check something out, and then leave the site. The Amazon product display ads program helps you get those customers back! Read on to learn what Amazon product display ads are and how they help you maximize your marketing ROI. 

What is The Amazon Product Display Ads Program? 

In 2019, Amazon product display ads received a facelift when it changed to Sponsored Display Ads. While this change might throw you off at first, it’s actually a good thing. This change gives you new opportunities to target customers and grow sales

These ads let sellers and brands target or re-target potential customers on and off of Amazon. These product-focused ads are both auto-generated and retail-aware. 

Retail awareness means that these ads only show up under certain conditions. First, the product has to be in stock. Amazon ads will not display something that you can’t sell. Second, you must have the product listed as a feature offer. This lets the system know what product you’re interested in selling and which customers to focus on retargeting

Do You Qualify For The Sponsored Display Ads Program? 

There are a few ways to be involved in this program. First, if you were a part of the product display ads program, you don’t have to do anything. Your account rolled over when Amazon switched to the new program, so you’re good!

You have to fall into one of three categories to take advantage of Amazon display advertising.  First, you can be a professional vendor or seller that’s registered their brand through Amazon Brand Registry. This registry helps sellers protect their intellectual property. Amazon keeps an eye out for people attempting to steal your branding or infringe on your copyright. 

To qualify, you must have a registered and active text or image-based trademark from an approved country. 

Vendors and agencies with clients on Amazon can also enroll in the Sponsored Display Ad program. Your products must also be in an accepted category for Amazon to advertise them. 

Where Do Your Ads Show Up 

The best part about this program is that you can target a rather large audience without putting in too much work. Amazon’s entire business model is to sell more in volume than any other site and to do so, they have a history of working with sellers to make their lives easier. 

To meet their goal of helping sellers, Amazon makes sure that their ads show up pretty much everywhere. 

The ads normally show up on the Amazon home page, search results pages like Google, Bing, and Yahoo, product detail pages, and third-party websites. In short, they follow users around. 

They show up both on regular web pages and mobile sites, giving you extraordinary reach. Another positive about the placement is that Amazon will only put them on trusted sites and next to relevant content. 

Why does this matter? Think back to early 2020 and YouTube. The video-sharing site had a problem with inappropriate ads showing up on children’s channels, meaning that they had to make radical changes. This was obviously a problem for the viewers of channels like Cocomelon, but it also was a problem for companies trying to advertise their adult products. 

Those companies didn’t want to advertise on those channels. It would make no sense for them to advertise to an audience that isn’t going to buy from them. Their image became stained though, as many people held them accountable instead of YouTube’s faulty algorithm. 

Amazon wants to avoid that problem, so they have strict standards on what ads can contain, the type of products that they advertise, and where they place ads. It stops Amazon from having to deal with the fallout, and it protects your company’s brand. 

What Can Appear In These Ads? 

There’s a certain format that Amazon wants for these ads. Consistency is key here. Amazon doesn’t want this program to turn into a free-for-all, so they hold every seller to the same standards. 

All ads have to be suitable for a general audience, which means nothing in the grey area. This is so Amazon can continue to post these ads on more sites. Grey areas, like gambling, can alienate some advertising opportunities. 

The ads also must accurately represent the content that the landing page will take consumers to. Anything that Amazon considers misrepresentation will get your ad pulled, and you could possibly get kicked out of their program. In extreme cases, they also reserve the right to pull your right to use their platform. 

The ad itself must also be honest. You can’t make any false or misleading claims about any benefits or prices. The ad should (of course) be in the primary language of the site Amazon places the ad on. 

Obviously, you can also only promote products that you either own or that you have the authority to resell or distribute. 

Images and Videos 

There are certain rules for any videos or pictures you put in your Sponsored Brand Advertisements as well. These rules are more cosmetic in nature and help to ensure both consistency and compliance. Most websites have rules that a company must follow before putting up an ad, and this applies to Amazon as well. 

Sponsored brand videos have to meet a certain size standard first. They must be 728×90, 800×90, 300×200, 160×600, 245×135, or 900×45. These are pretty standard sizes for advertising online, but it’s important to make sure that you pick the right size because of the following rules. 

You can only use high-resolution and quality videos and images. The reason we say that it’s important to pick the right size is that sometimes, videos and images look better on smaller ads. 

Your creatives may also look better, which is important because they can’t interfere with ad templates and their legibility. 

You also can’t use animation in anything other than videos. These rules apply to every part of your ad, from the ASIN images to the headline text. 

These rules might seem arbitrary, but they’re important to keep ads as straightforward as possible. Since a major reason for Amazon product display ads is to retarget customers, they’ve already seen what you’re selling. These ads serve more of a reminder than a sales pitch. 

Why You Should Use Amazon Product Display Ads

The key to growing your business when you’re involved in e-commerce is to maximize your ROI. You have to advertise your products if you want to stand out from every other company online. When you advertise, you need to get the most bang for your buck. 

To do this, you need to have a decent idea of what your average cost of customer acquisition is. If this number gets too high, then you know that your strategy isn’t working. 

There are plenty of ways that you can lower this cost. Setting up a customer referral program is one of the most cost-effective ways of getting customers, as it costs you very little and utilizes the clients you already have. Instead of having to pay a new customer discount (where new customers get x amount off of your product), and paying to educate the customer through advertisements, your current clients become your ambassadors. 

You can also grow your presence on social media. By putting up content and informative information about your product (along with some memes), you can attract a lot of people quickly, especially if you have a viral post. 

The negative to social media is that it can cost you money to build a following. You can expect to spend a lot of time trying to figure out what people want to see unless you hire a social media company to do your advertising for you. 

This is of course expensive, so you’ll have to calculate if you’ll gain enough customers to offset the cost of acquisition. 

Another popular way to lower your costs of getting customers, and the one that Amazon excels at, is targeting ideal customers in your niche. This is the first reason to use Amazon product display ads. 

Amazon Advertisements Targets The Right Customers 

Ideal customers are ones actively looking to buy and that are interested in what you have to offer. Because of the cookies that Amazon puts on their sites, they’re able to track where customers go before and after they leave your page. 

This lets them determine the best websites to put display ads on. 

If someone goes to your sales page, they’re obviously interested in something similar to what you’re selling. Even if they were only price shopping, Amazon will remind them that you still offer what they’re looking for. 

These ads also show up on people’s browsers quickly, so there’s still a good chance that they’re looking at prices still. This is the equivalent of calling fresh leads for brick n’ mortar advertisers. 

High Impressions 

An impression is any time product advertising shows up on someone’s screen, whether they take an action or not. It’s the number of times an ad is potentially seen, which doesn’t seem like a great measurement, but it’s more important than you may think. 

The brain has an amazing ability to recognize patterns and act on them. Advertisers use this to their advantage all the time by using repetition and branding. Basically, if your brain sees a logo everywhere, it will start to get used to it, and you’ll start to trust that company because it’s familiar. 

The same thing happens with impressions. Someone may see your ad on one site and not give it much thought, but after they see it again, it will start to stick in their head. By the time they see it five times, you have their full attention. 

This helps to build your brand and positions you as a company they can trust. If they see you on several websites they visit, they’ll eventually come back to you because they associate you with good things. 

In online sales, powerful branding is one of the most important things a company can have, but it’s also one of the hardest things to get. With Amazon’s display advertising, you can increase your brand’s strength without having to put forth the same amount of effort and money as other companies. 

Easy to Track Metrics

Anytime you advertise online, you need to keep track of metrics to make sure you’re reaching the right audience and that you’re getting your money’s worth. Again, getting a profitable return on investment is everything when you advertise on the internet. 

The great thing about Amazon’s program is that they make it easy to find the information you need. There are countless metrics that you could watch, but there are a few that will give you an idea of how your marketing campaign is going. 

First, keep an eye on impressions, which we talked about earlier. This tells you how many people actually see your ads. Ad clicks will tell you how many times those ads were actually clicked on, which lets you know viewers see your ads as attractive or not. 

If you take the number of impressions and divide them by the number of clicks, it will give you the percentage of times your ads were successful (click-thru rate). 

When we say successful, that doesn’t mean that the customer bought something from you. The ad’s goal is to get someone to click on it. From there, the landing page’s goal is to get the customer to buy. 

You should also keep an eye on your cost per click, which is something that we’ll discuss in a moment. This will allow you to control the cost of your product advertising campaign. 

Conversion Rate vs. Cost per Conversion

Your conversion rate tells you how many times someone saw your ad, clicked on it, and purchased the product you advertised. This number helps you determine how well your campaign does, but it doesn’t tell the entire story. Sometimes a conversion rate of 10% doesn’t make as much money as a conversion rate of 2%. 

Your cost per conversion (Average Cost of Sale or ACOS) lets you know how much each conversion costs you. It takes into account how much money you needed to make a sale. The goal is to always spend the least amount of money possible to make sales. The lower this number, the better. 

You Can Control Your Advertising Cost

One of the best features of Amazon’s program is that you can control the cost of each campaign because it’s a pay-per-click structure. That means that you don’t pay for an ad unless someone actually clicks it. 

This gives you a few different benefits. First, you can experiment without blowing through your advertising budget. You can decide to try out a few different strategies on various projects, set up a small budget, and see what happens before committing a large amount of money. 

You can also set a ‘roof’, or a maximum amount of money that you want to spend, meaning you don’t have to worry about mystery charges or blowing through more of your budget than intended. On the other hand, if your campaign goes well, you can add funds to extend it for longer. 

This type of flexibility makes the Amazon program a great option, particularly for small to medium-sized businesses. The reach makes it a great way to reach a broad audience. 

Easy to Set Up

You can set up a campaign with Amazon in minutes. Like everything else, the company bets on the consumer’s (your) desire to both save time and get what they want quickly. 

All you have to do is go to your seller account, go to the advertising tab and select the campaign manager, and click on ‘create campaign’. You’ll then click on ‘sponsored display’ and it will ask you to select your campaign type. You’ll choose ‘sponsored display’, and then you’ll get to choose your budget, date range, give your campaign a name, and targeting option. 

The targeting option lets Amazon know who you want to see the ads. You can choose between three options: 

Product Targeting – These ads show up on the Amazon website and mobile app and people looking at similar products or products that complement yours. For example, if you sell Xbox controllers, this ad will show beneath the actual console that someone else sells. 

Audiences: Views Remarketing – These show up on both Amazon and on third-party sites and apps in the U.S. These ads show up for people who viewed one of your products or similar products in a chosen category and then left the page. They will show up for 30 days and will help build your brand and drive sales. 

Audiences: Interests – These ads show up on the Amazon website and apps. This is only for vendors and will focus on people who have viewed or browsed detailed pages of items in a certain interest segment within the last 90 days. 

You can get as hands-on as you’d like when developing the ad. Amazon will automatically pull the product image, star rating, badging, and pricing of the ASIN you provide them. You can add your logo and copy, or Amazon will automatically generate the copy for you. 

Location, Location, Location 

A lot of people believe that the best location for any ad is on top of the page, but in reality, there are a lot of factors that go into placement. Depending on the product, consumer, and pricing, you could be better off setting the ad on the right or left side, or on the bottom of the page, as some customers have a notorious habit of scrolling all the way down the page to look for “similar products”. 

This is a part of the process where you may have to experiment to find out what works best for you. It’s also one of the reasons a professional Amazon agency could be your best option, as they’ll have experience dealing with companies in different niches. 

Experimentation with Amazon product ads, while not as expensive as other types of advertising, can cost you a good amount of money. That’s money that you could use elsewhere to maximize your advertising ROI. 

Are You Looking For An Advertising Partner to Maximize Your ROI? 

Here at UpstartWorks, we’ve helped thousands of sellers and businesses on Amazon maximize their ROI, drive sales, and build their brands. We hate to brag, but we think it’s fair to say that we’re Amazon product display ads, savants. 

We can help your business from product development all the way to marketing. If you need help with development, we can make sure that you have the tools you need to meet all regulations and save costs during development. 

Whether you have a product or are in the development stage, we can help you reduce costs using our network of over 150 global manufacturing partners. We have over 150 partners, so you never have to worry about a slowdown in production. If anything happens with a supplier, we can help you find a replacement quickly, and can often save you money while maintaining or improving quality!

We’re also experts in Amazon advertisements and SEO. Using both paid and organic options, we can help you identify your ideal customers, target them online, and move them through your sales funnel. In online commerce, conversion is everything. We’ll help you exceed your conversion goals quickly and add more money to your bottom line. 

We’re a talented team with an eye for improving your ROI. If you’re ready to exceed your goals on Amazon, get in touch with us today to see how we can help you!

There are 2 thoughts on “Using Amazon Product Display Ads to Maximize Your ROI

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