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The potential of the new advertising move lies in the fact that retailers are in a position not just to advertise directly on Amazon. According to the CEO of the Amazon marketing agency Movesell, Moritz Meyer, the promotion of potential buyers across the borders of Amazon creates completely new opportunities for increasing reach and revenue.

Amazon seller logo
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This is how Sponsored Display Beta works

In an Interview with OnlinehändlerNews, Meyer explained how the new advertising format from Amazon exactly works, where the corresponding display ads are placed and what it costs. 

Moritz Meyer: “Unlike sponsored product ads or sponsored brands, ads are not placed on the basis of selected keywords – sellers select products to advertise, daily budget and bid limits and Amazon then targets potential buyers based on data collected on search and purchase behavior.” 

“Until now the exclusive target group data could only be used by DSP, Amazon’s platform for programmatic display advertising. Since DSP can only be booked from a minimum budget of €10,000 per month, or through special DSP-Partners, one can say there will be a big profit for sellers and suppliers. The handling and possibilities of Sponsored Display ads are, compared to Amazon DSP, greatly simplified.”

Appearance, location and price of display ads

Who are Sponsored Display Ads shown to?

“Amazon Display ads reach potential buyers of your products who haven’t yet completed a purchase. The following scenarios are possible: an Amazon shopper has visited product detail pages of your brand or fitting categories. With this retargeting of audiences, you can bring visitors back who have jumped from the bandwagon, and persuade them to buy or actively woo away potential buyers from other brands.”

Where is Amazon Display advertising displayed?

“Sponsored display advertising is played on websites and Apps from Amazon as well as publisher and third-provider sites like bild.de or chefkoch.de. Thereby, in contrast to the known campaign types for active searches, the possible reach is unlimited.”

What do the advertisements look like?

“Amazon generates the advertisements dynamically from the product data of the advertised ASINs. The main image, title, average, prime badge and price are combined with a call to action button to create a trustworthy ad in the typical Amazon look. If necessary, the ad can be expanded with a brand logo or an individual slogan. This ad format is already known from Amazon DSP and called Dynamic E-Commerce-Ads (DEA).”

What does sponsored display advertising cost?

“Normally display costs arise because of impressions which are measured via the so-called CPM. That’s how we know it from the Amazon DSP. As with sponsored products and brands, Amazon bills Sponsored Display via click-based model, i.e. the CPC (cost per click). This can be advantageous, because Brands do not pay directly for impressions, but only when a potential buyer has clicked. The necessary testing of advertisement ad target groups becomes cheaper than via Amazon DSP.”

Retailers should not trust Amazon’s advertising algorithm blindly

How do I switch optimal display campaigns?

“Amazon currently advises sellers to directly integrate the entire product portfolio into the new campaign type. We would strongly advise against this in most cases, because a prior analysis of the advertising and sales data would allow a much more efficient setup and avoid expensive wastage. Even if Amazon looks at a unique data treasure, the format, placement and target group must first be tested, which can result in considerable costs at ASIN level – so test selected products with a reasonable budget rather than all products piecemeal and without getting any viable results. 

Similar to Sponsored Ads, the Sponsored Display should also work with bid management software in order to receive valuable clicks as cheaply as possible. An API interface is already available. So do not rely on Amazon’s advertising algorithm per se, but check your results several times a week and adjust your product selection, budgets, bids, slogans and target groups if necessary.”

Where can I find the new campaign type?

“So far, sponsored display ads are only available for sellers and vendors from the USA. We assume that they will also be activated for all European marketplaces before the end of this year. As usual, sellers will find the campaign type in the Seller Centrale in the area of advertising campaigns. Vendors and agencies log into the Advertising Console (formerly AMS) as usual.”