While potential buyers shop on Amazon, hundreds of sellers compete for their attention, so the buyer might click away from a product listing without buying. Running Amazon retargeting ads can be an effective way for you as a seller to boost your conversion rate and return on investment.
At Click Fluency, we are experts when it comes to Amazon listing best practices and ad campaigns. In this guide, our team discusses Amazon retargeting ads, how they work, and the various strategies you can implement to boost your sales.
What Is a Retargeting Strategy on Amazon?
If you ever browsed products on Amazon then saw ads for these same products a day or two later, you were on the receiving end of an Amazon retargeting ad. This type of ad focuses on someone who interacted with a product listing in the past but didn’t complete the buying process. These shoppers are the most likely to buy from you, and focusing on them should be integral to your overall marketing strategy.
What Is a Sponsored Display Ad?
Sponsored Display Ads is the name of Amazon’s latest PPC advertising platform. Unlike the Sponsored Products and Sponsored Brands platforms, Sponsored Display doesn’t target relevant keywords. Instead, it displays ads to buyers according to their shopping interests and behaviors, which include past product listing views.
With this service, Amazon’s algorithm records each product type and listing that a buyer views, then displays these ads again when they browse Amazon products. Buyers will encounter these ads across various platforms, including third-party applications, websites, and search engines.
A display ad click directs a prospective buyer to the product listing, where they can view the entire listing with the product descriptions and the product title. In other words, these ads provide a way to re-engage potential buyers in the buying process they started earlier.
In addition to targeting potential buyers who viewed your products, you can use the Sponsored Display Ads platform to target shoppers who viewed products or categories similar to yours. If you are a vendor, your Sponsored Display Ad can focus on prospective customers according to their past shopping behaviors.
How to Configure Amazon Retargeting Ads
The most effective way to configure an Amazon retargeting ad is with the Amazon Sponsored Display Ad platform. This tool is only available to professional sellers enrolled in Amazon Brand Registry, agencies, and vendors who sell on Amazon.
Create a Sponsored Display Ad Campaign
To create a retargeting ad campaign, open your Seller Central. Click on the hamburger icon in the top left corner of your screen, then select Campaign Manager under the Advertising drop-down menu. Click the Create Campaign button.
If you are brand registered, you can choose from Sponsored Products, Sponsored Brands, and Sponsored Display ads. Click Continue on the Sponsored Display banner.
The Settings panel will open. Here you can enter your campaign name and the start and end dates for your campaign.
You also need to enter your daily budget. If you are new to Sponsored Display Ads, we recommend starting with a small amount. Once you are confident that your retargeting campaigns are effective, you can start ramping up your budget.
As part of the campaign creation process, you must create an ad group and select a bid optimization strategy. This step doesn’t require you to add keywords. You can create more ad groups after you launch the campaign.
Choose a Targeting Option
With Sponsored Display ads, you can choose from three targeting option types:
- Product Targeting
- Audiences: View remarketing
- Audiences: Interests
Product Targeting
With the Product Targeting option, you can focus on prospective buyers browsing products and product categories that are similar to your listings. By choosing Product Targeting, you can display an ad on your top competitors’ listings and reach their target audience. If you offer a lower price or coupon, you might gain a competitive edge and increase your sales significantly.
The Product Targeting option also lets you generate traffic from complementary product listings. For example, if you sell camping tents, you can display your ads on the listings for outdoor cooking gear.
Audiences: Views Remarketing
The Views Remarking is the optimal option for creating Amazon retargeting ads. This targeting method will show your ad to potential buyers who have viewed your listing during the past 30 days without buying.
If a shopper is on the fence about buying a product, your display ad can incentivize them to click on your link and make a purchase. The conversion rate of these clicks is significantly higher than cold traffic because your listing visitors are already familiar with your product and its features.
The View Remarketing targeting option is available to vendors and third-party sellers who are enrolled in the Amazon Brand Registry.
Audiences: Interests
With this targeting option, you display ads to people who have never seen your product listings but whose shopping behaviors indicate that they might be interested in your product. For example, if someone browses products within your product’s interest segment, they will see your display ad.
This option is ideal for increasing brand recognition and introducing your products to new market segments. The Audience: Interests targeting option is only available to Vendors.
Where Do Your Sponsored Display Ads Appear?
Depending on your targeting option, your Sponsored Display Ads will appear on Amazon shopping results and product detail pages. These ads also appear on third-party platforms in the United States.
Multiple Sponsored Display Ads can appear on a product listing. In many cases, these Amazon retargeting ads are the reason why your prospective customers never complete their purchases.
Implement an Effective Retargeting Strategy on Amazon Today
Incorporating Amazon retargeting ads is crucial for generating sales from people interested in buying your products. Combining these ads with Sponsored Products and Sponsored Brand Campaigns will increase your reach significantly and contribute to your business’s growth.
Do you want an increasing conversion rate on Amazon? Schedule a call with one of our team members at Click Fluency, and learn how we can help you reach your sales targets.