Amazon Sponsored Display Ads Guide for 2025

Navigating the complexities of the Amazon advertising landscape has become increasingly challenging for sellers. In 2024, 38% of Amazon merchants identified rising ad costs as their top concern, closely followed by increasing shipping expenses (37%) and the escalating cost of goods (35%). These financial pressures, coupled with intensifying competition and evolving platform policies, have left many sellers seeking effective strategies to maintain profitability.

Our comprehensive guide addresses these pressing issues by delving into the nuances of Amazon Sponsored Display Ads. We aim to illuminate how leveraging these ads can not only mitigate rising costs but also enhance your brand's visibility and sales performance. By understanding and implementing advanced advertising techniques, sellers can navigate the current challenges and position their businesses for success in 2025 and beyond.

In this guide, we'll explore the setup process, targeting options, and advanced strategies for Amazon Sponsored Display Ads, providing you with the tools needed to optimize your advertising efforts and achieve sustainable growth.

Understanding Amazon Sponsored Display Ads

Amazon Sponsored Display Ads are a type of pay-per-click (PPC) and Amazon Viewable Cost Per Mille (Thousand) Impressions advertising that allows sellers to promote their products both on and off Amazon. Unlike Sponsored Products or Sponsored Brands, Sponsored Display Ads are visual and can appear on product detail pages, customer review pages, and even third-party websites and apps.

The primary purpose of these ads is to help sellers reach a broader audience, retarget shoppers who have viewed their products, and drive conversions through highly visual and engaging content.

If you want a complete understanding of how Amazon advertising works and how it can elevate your eCommerce business, our detailed Amazon ads guide is here to help! 

Comparison with Other Amazon Ad Types

Why Sponsored Display is a Game-Changer for Amazon Advertising

Sponsored Display offers a powerful way for brands to expand their reach beyond Amazon, leveraging Amazon’s extensive audience data to retarget potential customers across the web. Unlike text-based ads, Sponsored Display Ads are highly visual, making them more engaging for shoppers. You can add lifestyle images and videos to increase engagement. Here are some advantages of Amazon Sponsored Display ads:

1. Exclusive Access for Brand-Registered Sellers

Sponsored Display is available only to brand-registered sellers and vendors on Amazon, making it a premium advertising tool that’s not accessible to all. This exclusivity ensures that brands leveraging Sponsored Display gain an edge in brand positioning and customer engagement, especially when competing with non-registered sellers who lack access to this feature.

2. A Less Crowded Advertising Space

Surprisingly, only about 25% of Amazon sellers are currently using Sponsored Display, making it one of the least saturated advertising options on the platform. This means less competition for ad placements, lower costs compared to more widely adopted ad types, and a greater opportunity for early adopters to dominate their niche before the majority catches on.

3. Expanding Brand Presence Beyond Amazon

One of the most valuable features of Sponsored Display is its ability to retarget potential customers even after they leave Amazon. By leveraging Amazon’s vast shopper data, these ads appear on third-party websites, apps, and social platforms, keeping your products in front of high-intent shoppers. This continuous exposure reinforces brand awareness, improves recall, and increases the likelihood of conversions when customers return to purchase.

4. Automated Audience Targeting for Smarter Advertising

One of the standout features of Amazon Sponsored Display Ads is their advanced targeting options. You can target shoppers based on their browsing behavior, interests, and even specific products they've viewed, ensuring that ads are shown to the right people at the right time. This makes it easier to retarget potential customers who have shown interest in your products but haven't made a purchase yet.

Additionally, these ads allow you to reach audiences both on and off Amazon, giving you the opportunity to capture potential customers at various stages of their shopping journey.

5. Cost-Effective Way to Re-engage Customers

Unlike traditional PPC campaigns, which focus on immediate clicks and conversions, Sponsored Display works in the background to nurture long-term engagement. Since it keeps your brand top of mind for potential buyers who have already shown interest, it reduces wasted ad spend while improving customer retention and lifetime value.

For sellers looking to maximize visibility, retarget high-intent shoppers, and tap into relatively untapped advertising space, Sponsored Display is a highly effective tool. With its ability to extend brand presence beyond Amazon, provide automated targeting, and offer cost-effective remarketing, it presents a strong opportunity for those willing to explore its full potential.

Setting Up Your Sponsored Display Ads: A Step-by-Step Guide

1. Log in to Your Amazon Advertising Account: Navigate to the Campaign Manager and select "Create Campaign."

2. Choose Sponsored Display: Select the Sponsored Display option from the list of ad types.

3. Set Your Campaign Goals: Define your campaign objectives, such as driving sales or increasing brand awareness.

4. Define Your Budget: Set a daily budget for your campaign.

5. Select Your Targeting Options: Choose between audience and product targeting based on your campaign goals.

6. Create Your Ad: Upload your creative assets, including images, videos, product details, brand logo, and headline.

7. Launch Your Campaign: Review your settings and launch your campaign.

Best Practices for Ad Creation

• Use High-Quality Images & Videos: Ensure your product images & Videos are clear, high-resolution, and visually appealing.
• Highlight Key Benefits: Use your ad copy headline to emphasize the unique selling points of your product.
• Test Different Creatives: Experiment with different images and ad copy to see what resonates best with your audience.

Advanced Tactics for Sponsored Display Ads 

Optimization Techniques

• Monitor Performance Metrics: Keep an eye on key metrics like click-through rate (CTR), conversion rate, and return on ad spend (ROAS).
• Adjust Bids: Regularly review and adjust your bids to ensure you're getting the most out of your budget.
• Refine Targeting: Continuously refine your targeting options based on performance data.

Budget Management and Bidding Strategies

• Start Small: Begin with a modest budget and gradually increase it as you see positive results.
• Use VCPM & PPC Bidding: Leverage Amazon’s VCPM & PPC bidding options to optimize your reach.
• Allocate Budget Wisely: Distribute your budget across multiple campaigns to test different strategies and find what works best.

Our expert guide covers key factors influencing Amazon ad costs, including rising competition, evolving ad formats, and the role of automation. A must-read for sellers looking to understand Amazon advertising costs in 2025.

How to Organize Your Amazon Sponsored Ads Campaign Effectively

At SalesDuo, we have clients dealing with an extensive portfolio of products. Here are our key recommendations for them while optimizing Amazon Sponsored Ads: 

1. Group Products Wisely: Organize products into logical clusters based on category or performance metrics to avoid budget overspending on underperforming items.
2. Set Daily Budgets: Implement strict daily budgets for each campaign to control spending and ensure even distribution of ad spend across your catalog.
3. Utilize Targeting Options: Leverage product targeting to show ads on competitor listings, enhancing visibility and driving traffic to your products.

These steps can help streamline your advertising efforts and improve overall campaign performance.

Real-World Case Studies: TNG Worldwide 

SalesDuo played a crucial role in significantly boosting TNG Worldwide's Amazon business by addressing critical issues and implementing effective strategies. TNG Worldwide, a manufacturer of personal care and beauty products, partnered with SalesDuo in 2020 to overcome challenges within Amazon Vendor Central, such as order inconsistencies and supply chain disruptions.

Key improvements and strategies included:

• Ensuring Product Availability: SalesDuo resolved Vendor Central exclusions and leveraged TNG's automated inventory system to maintain product availability through Seller Central.
• Strategic Amazon Advertising: SalesDuo utilized Amazon Advertising to boost visibility for essential items like masks and sanitizers during the COVID-19 pandemic, achieving high search result rankings with a low ACOS (Advertising Cost of Sales).
• Issue Resolution and Account Optimization: SalesDuo assisted in reinstating blocked ASINs due to compliance issues and facilitated rebranding efforts, changing the seller account name to "TNG Worldwide".
• Profitability Enhancement: SalesDuo recommended using Seller Central/FBA (Fulfillment by Amazon) for items with lower profitability in Vendor Central due to increased costs.
• FBA Prioritization: SalesDuo emphasized the importance of FBA to drive sales and maintain the Amazon Prime tag.
• New Product Launch Strategy: SalesDuo leveraged the Vine Program and dedicated 15% of the AMS budget to promote new products, tracking performance over 60 days to determine the best channel based on profitability.

These efforts led to substantial revenue increases, with overall growth of 126.75% in 2020, 182% in 2022, and 184.5% in 2023 YTD. SalesDuo's expertise in Amazon advertising, creative content optimization, and timely issue resolution were vital in achieving these results.

Conclusion

Amazon Sponsored Display Ads offer a unique opportunity for eCommerce brands to reach a broader audience, retarget potential customers, and drive sales. By understanding how to set up and optimize these ads, you can maximize your ROI and achieve scalable growth for your Amazon business.

Ready to take your Amazon advertising to the next level? Schedule a call with SalesDuo today to learn more about how Sponsored Display Ads can benefit your business.

About the Author

Saumitra Pandey is an Associate Director at SalesDuo and a powerhouse in Amazon Advertising. With a knack for turning ads into growth engines, this ex-Amazonian helped countless brands make their mark and skyrocket sales. Known for his creative, data-driven approach, Saumitra thrives on pushing boundaries and unlocking new possibilities in e-commerce. Outside of work, he’s always curious about the latest trends in tech and advertising and loves exploring new places, seeking inspiration from the world around him.