Amazon Sponsored Products vs. Sponsored Display Ads: Which One Should You Choose?

Amazon offers multiple advertising options to help sellers and brands increase their visibility and sales. Two of the most widely used options are Sponsored Products and Sponsored Display Ads. But how do they differ, and which one is the right choice for your business? Let’s dive in.
What Are Amazon Sponsored Products?

Amazon Sponsored Products are cost-per-click (CPC) ads that promote individual product listings. These ads appear within search results and product pages, blending seamlessly with organic listings. Since they look similar to regular product listings, shoppers often click on them, assuming they are naturally ranking high due to popularity.

Benefits of Sponsored Products:

  • Appear in prominent positions on search results and product pages
  • Higher chances of conversion due to seamless integration with organic listings
  • Budget-friendly, with campaigns starting as low as $1 per day

How to Create Amazon Sponsored Product Ads:

  1. Log in to Amazon Seller Central.
  2. Navigate to Campaign Manager and select Create Campaign.
  3. Choose Sponsored Products as your ad type.
  4. Name your campaign, set a budget, and select a start and end date.
  5. Choose your targeting strategy:
  • Automatic Targeting: Amazon selects relevant keywords based on customer searches.
  • Manual Targeting: You choose the keywords yourself for better control.
  1. Group similar products together in Ad Groups for better campaign structure.
  2. Select the products you want to advertise and launch your campaign.

What Are Amazon Sponsored Display Ads?

Amazon Sponsored Display Ads are designed to target shoppers based on their behavior and interests, both on and off Amazon. These ads allow advertisers to re-engage potential customers and expand their reach beyond Amazon’s marketplace.

Benefits of Sponsored Display Ads:

  • Reach customers beyond Amazon (on third-party websites and apps)
  • Retarget shoppers who previously viewed or purchased similar products
  • Target customers based on browsing history, purchase behavior, and product categories

How to Create Amazon Sponsored Display Ads:

  1. Log in to Amazon Seller Central and go to the Advertising section.
  2. Click Campaign Manager, then select Create Campaign.
  3. Choose Sponsored Display as your ad type.
  4. Name your campaign, set a budget, and select start and end dates.
  5. Select your targeting method:
    Audience Targeting: Targets users based on their shopping behavior.
    Product Targeting: Targets specific products or categories.
  6. Choose the products you want to promote and finalize your campaign setup

Which One Should You Use?

The choice between Sponsored Products and Sponsored Display Ads depends on your goals:

For increasing product visibility and sales: Sponsored Products are ideal.

For retargeting and brand awareness: Sponsored Display Ads are the better choice.

For a well-rounded PPC strategy: Combining both ad types can maximize your reach and conversions.

Final Thoughts

Amazon’s advertising platform continues to evolve, making competition fiercer than ever. Optimizing your ad strategy with the right mix of Sponsored Products and Sponsored Display Ads can help you stay ahead and boost your sales. Regular performance analysis and adjustments are key to maximizing ROI and making the most of your Amazon advertising budget.

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