Key Takeaways
- What is Sponsored Display? Self-service display advertising on and off Amazon -- the easiest entry point into retargeting for Amazon sellers.
- Retargeting ROAS: Average 5-8x -- significantly higher than prospecting campaigns since you target already-interested shoppers.
- Cost Model: CPC ($0.50-$1.50) or vCPM ($3-$6) -- considerably cheaper than DSP for comparable retargeting effectiveness.
- Lookback Windows: 7, 14, or 30 days for views remarketing -- shorter windows yield higher conversion rates.
- Budget Recommendation: Allocate 10-15% of your total ad spend to Sponsored Display.
Sponsored Display (SD) is Amazon's self-service solution for display advertising and provides the simplest entry point into retargeting on the Amazon marketplace. While Sponsored Products and Sponsored Brands focus on search results, SD places ads on product detail pages, in customer reviews, on Twitch, and even on third-party websites.
In this guide, we show you how to use Sponsored Display as a retargeting machine, what targeting options are available, and how to allocate your budget optimally. For a comprehensive strategy, check our PPC Strategy Guide.
What Is Sponsored Display?
Sponsored Display is a self-service ad format available to sellers and vendors with no minimum budget requirement. Unlike Amazon DSP (which requires enterprise access and high minimum budgets), SD is open to every professional seller. The ads are auto-generated -- Amazon creates the creative based on your product image, title, and price.
The real power of SD lies in its audience-based targeting options that enable retargeting based on actual customer behavior.
Targeting Options in Detail
Product Targeting
With product targeting, you place ads on specific ASINs or within certain categories. Your ad appears on the target product's detail page -- ideal for competitive conquest or cross-selling within your own catalog.
Views Remarketing
This is the most powerful retargeting option: you reach customers who viewed your product (or similar products) but did not purchase. Available lookback windows are 7, 14, and 30 days. In practice, shorter windows (7 days) show higher conversion rates while longer windows (30 days) offer greater reach.
Purchases Remarketing
This targets customers who already purchased your product -- ideal for repurchase reminders for consumable products or upselling accessories. Especially valuable for products with a natural repurchase cycle (e.g., every 30/60/90 days).
Contextual Targeting
Relatively new to SD: contextual targeting is based on page content rather than user behavior. Your ad appears on pages whose content is thematically relevant to your product -- similar to Google Display advertising.
Where Do Sponsored Display Ads Appear?
- Product Detail Pages: Below the title, next to bullet points, or in "customers also bought" sections
- Search Results: Within the search results page (less prominent than Sponsored Products)
- Customer Reviews: On the review page of a product
- Twitch: On the livestreaming platform
- Third-Party Websites: Through Amazon's ad network on external websites and apps
Cost Model and Typical Performance
- CPC (Cost per Click): You pay per click. Typical CPCs range from $0.50-$1.50 -- significantly cheaper than Sponsored Products in competitive categories.
- vCPM (viewable Cost per Mille): You pay per 1,000 viewable impressions. Typical vCPMs range from $3-$6. Ideal for awareness campaigns where visibility matters more than clicks.
Average ROAS for SD retargeting campaigns is 5-8x -- significantly higher than prospecting campaigns (typically 2-3x). The reason: you reach customers who have already shown purchase intent.
SD Video: The Underestimated Format
Sponsored Display Video is one of the most underestimated formats. The specifications (6-45 seconds, similar to Sponsored Brands Video) allow for more detailed product demonstrations. SD Video combines the reach of display advertising with the persuasive power of moving images.
Pro tip: Use SD Video for retargeting campaigns with views remarketing. Customers who have already viewed your product respond particularly well to video content that addresses objections (size, application, quality).
Best Practices for SD Retargeting
- Start with Views Remarketing (7 days): This has the highest conversion probability. Customers who recently viewed your product are closest to purchasing.
- Layer your audiences: Combine different lookback windows with different bids -- 7 days with higher bids, 30 days with lower bids.
- Exclude recent purchasers: Customers who just bought your product do not need retargeting ads (except for consumable products).
- Test CPC vs. vCPM: CPC for performance campaigns, vCPM for awareness. Many sellers find that vCPM is more efficient for retargeting.
- Use custom creatives: Instead of auto-generated ads, self-created creatives with clear USP messaging achieve higher CTRs.
For ACoS optimization tips, see our ACoS Guide, and for budget planning, the Budget Planning Guide.
SD vs. DSP: When to Use Which?
- Budget: SD has no minimum budget; DSP requires $10,000+
- Targeting Depth: DSP offers significantly more granular audience segments and AMC integration
- Off-Amazon Reach: Both place on third-party websites, but DSP has greater reach
- Video: DSP offers OTT/streaming TV; SD offers only in-feed video
- Recommendation: Start with SD, scale to DSP when SD reaches its limits
Budget Recommendation
As a rule of thumb, allocate 10-15% of your total Amazon ad budget to Sponsored Display. Of that, approximately 60-70% should go to retargeting campaigns and 30-40% to product targeting (competitive conquest and cross-selling). Start with a daily budget of at least $15-$20 per campaign to collect sufficient data for optimization.