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

With the online marketplace competition, Amazon ads are required for brands to be seen and produce sales. There are many means of advertising on Amazon, but two are in high demand: Amazon display ads and sponsored products. Both serve different functions and are suitable for different marketing purposes. Knowing that they differ makes it easier to select the most appropriate for your brand.

Article Overview

Learn About Amazon Display Ads

Amazon display ads are image ads that run on multiple Amazon-owned sites and third-party sites. Amazon display ads use audience targeting to show products to customers who are most likely to buy them based on their past behavior, interests, and demographics.

Attributes of Amazon Display Ads

Audience targeting: Unlike the Sponsored Products, which target specific keywords, the display ads target people who have shown interest in comparable products.
Multi-platform visibility: They can be positioned on Amazon’s home page, product pages, and other web pages, with greater visibility.
Personalizable creatives: Sellers can brand their ads using images, logos, and custom text to suit branding efforts.
Retargeting does pay: Amazon display ads allow companies to be able to contact the consumers who have visited their products without necessarily having to make a purchase.

Characteristics of Sponsored Products

Keyword targeting: The advertisements appear when customers search for precise keywords related to the advertised product.
Cost-per-click model: The clients pay only if the customer clicks on the advertisement, thereby making it an economic option.
More visibility for products: Sponsored Products improve the ranking of search results, increasing the chances of conversion.
Manual and automatic targeting: Amazon allows advertisers to choose automatic targeting (algorithm-based by Amazon) or manual targeting (wherein advertisers manually choose keywords).

Key Differences Between Amazon Display Ads and Sponsored Products

Although both ad types seek to enhance visibility and sales, their methods are quite different.

Targeting Method: Sponsored products target keyword and product-based, while display ads target audience demographics and interests.
Placement: Sponsored products are shown in search results and product pages, while display ads are shown on and off Amazon’s platform.
Creativity: Sponsored products utilize default product listings, while display ads have more flexibility with custom graphics and branding features.
Purpose: Sponsored products are best used for direct conversions, whereas display ads are optimal for brand consciousness and retargeting campaigns.

When to Utilize Amazon Display Ads

Amazon display ads perform extremely well when brands need:
Establishing their brand awareness and interaction.
Retargeting customers who have interacted with their products.
Advertising holiday promotions, offers, or new product releases.
Reaching users beyond Amazon and becoming visible on third-party websites.

When to Use Sponsored Products

Sponsored Products perform optimally when brands want to:

Increase sales by appealing to high-intent consumers looking for relevant terms.
Optimize organic rankings and exposure in Amazon search results.
Compete with comparable products within a crowded marketplace.
Generate conversions through an affordable PPC campaign.

Having Both Together for Maximum Effect

To achieve their best results, most brands both use Amazon display ads and sponsored products as extensions of their whole e-commerce marketing plan. Where Sponsored Products identify high-intent customers who actively search for offerings, display ads support brand remembering and retarget probable customers. By having the proper balance, making use of both ad vehicles can result in more conversions, along with eventual long-term patronage.

The Role of Data Analytics in Amazon Advertising

In-form insights are most important in amplifying the power of Amazon adverts. Breaking down such essential metrics as click-through rates (CTR), conversion rates, and return on ad spend (ROAS) allows brands to keep things simple and invest appropriately.

Glamorous e-commerce advertising agency leverage data analytics solutions to refine campaigns, improve targeting of audiences, and improve the performance of advertisements. These insights facilitate brands in decision-making, gaining a greater return on investment.

Paxcom: Transforming Amazon Advertising with Data Analytics

In today’s business world, data is the foundation of all. Analytics tools are a game-changer. Paxcom, as an e-commerce analytics pioneer, offers innovative solutions to optimize Amazon ad campaigns.

With Paxcom’s analytics platform, brands can:

Gain actionable insights for Amazon marketing campaigns.
Monitor competitor performance within the platform.
Gain visibility and sales through optimized product pages.
Streamline multi-channel operations with centralized dashboards.

Paxcom’s Kinator gives companies real-time insights and business analytics for enhanced optimization of Amazon ads. With easy-to-use reporting and a powerful dashboard, organizations can assess campaign metrics at a moment’s notice and make data-informed decisions towards continuous growth.

Conclusion

The decision between sponsored products and Amazon display ads rests on your business objectives. If high-intent shoppers and speedy sales are your aim, then sponsored products are your choice. But if brand awareness and retargeting matter most, then display ads offer more exposure.

For those advertisers that must take their ad campaigns to the limit, using both types of advertisements and obtaining a grasp on data analytics software such as Paxcom’s Kinator can bring performance to max. Max exposure, greater engagement, and greater conversion rates through a properly conceived strategy, Amazon ads can be a useful tool in generating e-commerce victory.