Introduction to Sponsored Display Ads

Retail Media

6 min read

It is high time to engage shoppers, via Sponsored Display Ads, across their purchase journey on and off now.

Several ad types have emerged that give advertisers a great deal of control over who and what they target. In addition to the targeting options given within the ad campaigns, advertisers now have the right to choose where their ads can appear. As is the case, different ad strategies are used for keyword and audience targeting, as mentioned in our previous blog posts, these targeting ways are used in order to reach the audiences with Sponsored Products and Sponsored Brand ads. But, what about Sponsored Display Ads?

Sponsored Display ads are built to encourage sellers and brands of all levels who want to expand their reach and get profitable results using display advertising. These ads use audience data to target them based on their shopping behavior. These audiences can be customers who view your products or who are interested in similar product categories. The past purchases, browse histories, and their add-to-cart or add-to-list actions are important considerations in determining customers’ shopping behavior.

Sponsored Display Ads increase the exposure of your product’s details page and even target products from competitor companies.

It is probable that one is already familiar with Sponsored Display ads as they serve in different ad displays and magically pop up in the margins of the sites and apps one visits.

These ads are displayed in various locations and differ from Sponsored Brands and Sponsored Products in that they reach customers during their on and off-site shopping journey. That means, by re-engaging and retargeting customers throughout their buying journey, both on and off, sponsored display advertising plays a crucial part in expanding your brand.

The Key to Retargeting Customers

You can remind potential clients about your product even after they leave the retailer’s website through Sponsored Display ads.

Retarget shoppers
Target relevant products or categories
Detect customers based on their preferences and shopping behaviors

Now let’s dive in to see how display advertising has a variety of benefits!

It is clear that advertisers who use Sponsored Display advertising have a better chance of targeting their audiences. Because the primary objective here is to reach the interests of various customers, supplementary products, and competitors in the same market.

“If you need an engagement boost, Sponsored Display ads are a must-have.”

When used with other types of advertising, these ads can reach more people in a shorter amount of time thanks to their effects on the impressions of new products. Sponsored Display ads are an amazing option for branding because of their high impression rates and wide client reach.

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Product targeting

By offering Sponsored Display, you’re shifting the customers along the purchase process. Advertisers use these ads to increase the upper-funnel appeal and retarget high-intent shoppers. Standing out over competitors who don’t use this type of ad is not an issue, because from now on, you can put your greatest products up against those of your rivals by placing your distinguished ad underneath their listings.

Using the right advertising strategy and targeting cleverly, Sponsored Display ads will also actively engage for greater Return on Investment(ROI). A study by Amazon found that advertisers who use Sponsored Brands, Sponsored Products, and Sponsored Display ads together receive a 3.8 x boost in their total return on ad spend(ROAS).

Sponsored Display ads can be designed with a variety of targeting approaches to gather views and retarget clicks during the entire buying experience of shoppers.

Shift from a beginner to a proven player in the industry

As the ad campaign lasts longer, more opportunities come to reach the number of customers. In a study conducted over China-based sellers performing on e-commerce retailer websites, it has been found that top-performing advertisers run Sponsored Display campaigns 3.5 x longer than lower performers. Sponsored Display ads were run for an average of 329 days by top-performing advertisers, compared to 92 days by lower-performing advertisers.

In this case, it is highly advised for businesses to use Sponsored Display for a year round for the best campaign results. As this makes it possible for the brand to be visible at all times and gives more time for the campaign optimization.

Product Deals with Sponsored Display Ads

Compared to lower-performing ads, which contained discounts or promotions in only 42% of cases, top-performing Sponsored Display campaigns of China-based sellers included products with deals or promotions at a 65% rate.

Examination of Performance on Sales

According to Perpetua, some popular brands adopted the Sponsored Display ad type to target competitors, and they were able to raise total sales by 40% while driving a 4x increase in sales from Sponsored Display.

And, what are the main findings on Advertising Reports of Amazon?

Advertising Reports of Amazon notes that the return on advertising spend (RoAS) for Sponsored Display ads increased by 68% in a single year. And, examining the consumer preferences, 46% of consumers stated that they find Sponsored Display ads more appealing than other ad types.

Remarketing Approach

A research by Amazon found that only 4% of customers convert to purchases right away. And the typical shopper will browse for a week before making a purchase. Sponsored Display ads re-engage with customers who have seen the product detail pages of a certain seller or a similar product detail page. Using the Sponsored Display remarketing approach sellers can keep their products in customers’ minds on a regular basis.

Why should brands use Sponsored Display in their next advertising campaigns?

In an analysis carried out of over 40,000 advertisers, experts compared the performances of three brand groups based on the ad types they used. There are the ones who use Sponsored Products only, Sponsored Products and Sponsored Brands, Sponsored Products + Sponsored Brands and Sponsored Display all together. As a result of the analysis, it is found that the overall sales, ad-attributed sales, and return on ad spend are improved when Sponsored Display is added to a brand’s advertisement campaign. And, the brands that utilized a combination of all three ad products performed best.

The most successful ad combination in terms of total/ ad-attributed sales and ROAS is achieved when using all three ad types altogether. In addition to Sponsored Products and Sponsored Brands, brands that added Sponsored Display witnessed a 14% boost in total sales, looking at the 20 weeks of data.

Sponsored Display ads activation resulted in quick increases in just a month. On average, brands who used Sponsored Display product category targeting for the first time had 33.9% more impressions, 3.6% more detail page views, and 2.6% more new customers than those that didn’t.

Additionally, the analysis of three different ad types (Sponsored Product, Sponsored Brand, and Sponsored Display) shows an increase in total sales of +16 percent year over year, ad-attributed sales of +25%, and +2.6 higher ROAS.

It can be concluded that in comparison to brands that do not use it, those that adopted Sponsored Display ads saw great gains in overall sales, impressions, detail page views, new-to-brand consumers, ad-attributed sales, and return on ad spend. Taking advantage of this ad type in demand, remarketing to specific audiences is a powerful strategy to increase your upper funnel and recover your revenue. In general, these ads are a must for those wanting to build brand recognition and compete with the competitors’ product listings in the never-ending marketplace.

References:

“All about Amazon Sponsored Display Ads.” Sellics, sellics.com/guides/sponsored-display/. Accessed 27 July 2022.

“Amazon Sponsored Display Ads: The Definitive Guide (2022 Update).” Ad Badger, 28 Apr. 2022, www.adbadger.com/blog/amazon-sponsored-display-ads/. Accessed 27 July 2022.

Griffith, David T. “2022 Guide to Amazon Sponsored Display Ads.” Www.ecomengine.com, www.ecomengine.com/blog/amazon-sponsored-display. Accessed 27 July 2022.

“How Sellers Increased Clicks with Sponsored Display.” Amazon Ads, advertising.amazon.com/en-us/library/research/advertising-strategies-with-sponsored-display/?ref_=a20m_us_libr. Accessed 27 July 2022.

Labs, Perpetua. “Report: Amazon Sponsored Display on the Rise.” GlobeNewswire News Room, 9 June 2021, www.globenewswire.com/news-release/2021/06/09/2244516/0/en/Report-Amazon-Sponsored-Display-On-The-Rise-How-Brands-Are-Using-New-Ad-Unit-To-Defend-Product-Detail-Pages.html. Accessed 27 July 2022.

N, Arishekar. “Amazon Sponsored Display Ads Guide for Sellers in 2022.” SellerApp, 1 Aug. 2018, www.sellerapp.com/blog/amazon-product-display-ads/. Accessed 27 July 2022.

“Sponsored Display Ads.” Amazon Advertising, advertising.amazon.com/solutions/products/sponsored-display.