As a third-party seller on Amazon, reaching your target audience is one of the most crucial factors in boosting sales and building brand recognition. With the growing competitiveness in e-commerce, simply listing your products isn’t enough anymore. You need to advertise smarter—and that’s where Amazon’s Sponsored Display Custom Audiences comes into play.
Sponsored Display is one of Amazon’s most powerful ad types, allowing sellers to target potential buyers on and off the Amazon platform. With Custom Audiences, you have the ability to reach shoppers based on their interests, shopping behavior, and purchase history. This kind of personalized targeting can drive better conversion rates and improve the effectiveness of your ad campaigns.
In this blog post, we’ll explore how third-party sellers can leverage Amazon’s Sponsored Display Custom Audiences to reach high-quality prospects, grow sales, and outperform competitors.
What is Amazon Sponsored Display?
Amazon Sponsored Display is a pay-per-click (PPC) ad type that helps brands promote their products on Amazon and across the web. Unlike Sponsored Products and Sponsored Brands ads, which appear primarily on Amazon’s search results and product pages, Sponsored Display allows ads to be shown on third-party websites, mobile apps, and even Amazon-owned properties such as IMDb and Twitch.
The biggest advantage of Sponsored Display ads is their flexibility. Sellers can choose to target ads based on different factors such as audience demographics, interests, and shopping behaviors. This is where Custom Audiences comes into play, enabling sellers to fine-tune their advertising to precisely reach the right buyers.
What Are Amazon Sponsored Display Custom Audiences?
Amazon Sponsored Display Custom Audiences allows sellers to create highly targeted ad campaigns by building audiences based on three key factors:
- Views Remarketing: Target people who have viewed your product or similar products but haven’t made a purchase.
- Purchases Remarketing: Target shoppers who have previously purchased your product or a similar product.
- Interest Targeting: Reach customers based on their shopping behaviors and the categories they frequently browse, giving you the ability to align your ads with customers’ interests.
By using these three targeting options, sellers can customize their advertising campaigns to create highly relevant ad experiences that drive conversions.
Benefits of Using Sponsored Display Custom Audiences
Before diving into the details of how to set up Custom Audiences, let’s examine the benefits of using this feature as a third-party seller.
1. Increased Relevance and Conversion Rates
Custom Audiences lets you focus your advertising efforts on customers who are already familiar with your products or have shown interest in similar products. By targeting these “warmer” audiences, your ads are more likely to resonate with them, leading to higher conversion rates.
For instance, targeting shoppers who have already viewed your product but didn’t purchase allows you to bring them back with personalized messaging or promotions. This kind of remarketing helps you close the loop on missed sales opportunities.
2. Improved ROI
Because Sponsored Display Custom Audiences allow you to target a highly relevant audience, your ads are more effective. This increased relevance means that you’re likely to see a better return on investment (ROI). When you target ads based on shopping behaviors or past purchases, the likelihood of a conversion is much higher than casting a wide net with more generalized ads.
3. Retargeting Off-Amazon Customers
Sponsored Display ads aren’t confined to the Amazon platform. They can appear across the web on partner websites and apps, helping you re-engage potential customers even after they leave Amazon. This gives you an opportunity to reach customers wherever they are, keeping your brand top-of-mind as they browse the web.
4. Cross-Selling and Upselling Opportunities
Another advantage of Custom Audiences is the ability to cross-sell and upsell. For example, if a customer has purchased a product in the past, you can retarget them with complementary products or upgraded versions. This strategy can help increase your average order value and build brand loyalty.
How to Set Up Amazon Sponsored Display Custom Audiences
Now that we understand the value of Sponsored Display Custom Audiences, let’s look at the step-by-step process to set up these campaigns.
Step 1: Access Campaign Manager
Log in to your Amazon Seller Central account and navigate to the Campaign Manager. From here, you can select the Sponsored Display ad type.
Step 2: Choose Your Targeting Method
Once inside the Sponsored Display setup, you’ll see various targeting options. To leverage Custom Audiences, you’ll need to choose one of the following:
- Views Remarketing: Use this option to target shoppers who have viewed your product or similar products but didn’t make a purchase. This is a great way to retarget customers who showed interest but need an extra nudge.
- Purchases Remarketing: Choose this if you want to retarget customers who have already purchased your product or a similar product. You can upsell or cross-sell with complementary items.
- Interest Targeting: This option lets you target potential customers based on their interests and shopping behaviors, focusing on categories related to your product.
Step 3: Define Your Audience
Based on the targeting method you choose, you’ll need to define your audience. For example:
- For Views Remarketing, you can select customers who have viewed your product within the past 30, 60, or 90 days.
- For Purchases Remarketing, select the timeframe and category of past purchases (e.g., customers who bought your brand’s product or a competing product).
Use Amazon’s built-in tools to refine your audience by specific behaviors and timeframes.
Step 4: Set Your Budget and Bidding Strategy
Like all Amazon ads, Sponsored Display Custom Audiences operates on a PPC model. You’ll need to set a daily budget and choose your bidding strategy. Amazon will suggest bids based on your chosen category, but you can adjust this to suit your budget and goals.
Step 5: Create Ad Creatives
Sponsored Display ads can be customized with your brand’s logo, headline, and product images. Make sure your ad creatives are visually appealing and clearly communicate the value of your product. Personalized ads with a compelling message are more likely to resonate with your audience and drive conversions.
Step 6: Launch Your Campaign
After reviewing your campaign settings and making final adjustments, launch your campaign! Amazon will begin showing your ads to your custom audience both on and off the platform.
Best Practices for Sponsored Display Custom Audiences
While setting up a Sponsored Display Custom Audiences campaign is straightforward, there are a few best practices you should follow to maximize your campaign’s success:
1. Segment Your Audience
Instead of targeting all customers with a single ad, consider segmenting your audience based on behavior. For example, create one ad for people who have viewed your product but didn’t purchase, and another for those who have previously purchased from your brand. Tailor your messaging and offers to each segment to increase relevancy.
2. Optimize Ad Creative for Retargeting
When retargeting shoppers, use specific messaging that acknowledges their previous interaction with your product. For example, if someone viewed your product but didn’t buy, your ad could include a discount or mention limited-time availability to create urgency.
3. Monitor and Adjust Campaigns
Like any advertising campaign, it’s important to monitor performance regularly. Use Amazon’s reporting tools to track key metrics like click-through rate (CTR), conversion rate, and ACoS (Advertising Cost of Sale). If a campaign isn’t performing well, adjust your budget, bids, or audience settings.
4. Use Dynamic Targeting for Enhanced Results
Consider testing Dynamic Targeting alongside Custom Audiences to further optimize your campaigns. This option allows Amazon to automatically adjust your targeting based on performance, helping you reach the most relevant customers in real-time.
Conclusion: Unlock the Power of Sponsored Display Custom Audiences
Amazon’s Sponsored Display Custom Audiences is a powerful tool for third-party sellers looking to increase ad relevance, drive conversions, and enhance ROI. By targeting customers based on views, past purchases, and interests, you can ensure your ads reach the right audience at the right time.
For sellers looking to expand their brand’s reach both on and off Amazon, Custom Audiences offers a dynamic solution to maximize your advertising potential. Take advantage of the detailed targeting options available to you, and continuously optimize your campaigns to improve performance.
Looking for expert help managing your Amazon advertising campaigns? Marketplace Valet specializes in helping third-party sellers create, optimize, and scale their advertising strategies. Contact us today to learn how we can help you drive more sales with Amazon’s Sponsored Display Custom Audiences.
