Advertising on Amazon is a must for any business to have a competitive advantage, but a big part of getting ahead also requires you to understand the landscape. Amazon Sponsored Product ads are what most sellers have come to recognize as a default, paid product promotions appearing on search pages, but Amazon Sponsored Display ads offer compelling opportunities as well. These ads rely on behavior, not keywords, and can appear both on and off Amazon, introducing new ways to broaden reach and drive sales.
To maximize impact, determining a strategy to leverage both Amazon sponsored ad opportunities is key.
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Key Insights
- Sponsored Products and Sponsored Display serve different roles. Sponsored Products capture high-intent shoppers, while Sponsored Display helps you re-engage and expand reach.
- The best results come from using both together. A balanced approach supports awareness, consideration, and conversion across the funnel.
- Strategy matters more than format. Choosing the right ad type depends on your goals, product maturity, and growth stage.
Amazon Sponsored Products
Amazon Sponsored Products is a form of pay-per-click advertising on Amazon. Using this model, sellers can bid on specific keywords in order to maximize exposure across the platform. Products that win bids will show up in search results, and sellers will pay a small fee every time their listings are clicked on.
This is one of the oldest PPC models within the Amazon ecosystem and appears in various forms across other marketplaces, making it a simple, straightforward opportunity for sellers of all kinds of backgrounds.
Unlike other forms of advertising across Amazon, companies don't need to be part of Brand Registry to utilize this avenue for placing ads.
Where do Amazon Sponsored Products appear?
Amazon Sponsored Products appear directly in search results. This means that if a shopper on Amazon searches a keyword that a particular seller bids on and wins, their products will show up in a variety of placements in the search results. While there are labels that indicate products are advertisements, this isn't prominent and often doesn't interfere with shopper actions. These ads can also appear on product pages.
Benefits of Amazon Sponsored Products
The key benefit of Amazon Sponsored Products is how listings appear in searches. No matter where a product might have ranked organically, winning a bid for an Amazon Sponsored Products keyword means instant placement at or near the top of the results. This guarantees getting eyes on what you have for sale by the nature of placement alone, even if there are theoretically better fits from other sellers.
As noted, Amazon Sponsored Products do carry a label indicating that they're sponsored, but this isn't necessarily something shoppers care about. The term "sponsored" can actually be a benefit; to some shoppers, particularly those not well-versed in advertising, this can imply items being boosted for quality or reputation. Increased visibility in this way can mean higher click-through rates and conversions, which will more than offset the cost of clicks.
In addition, this form of advertising is relatively affordable and easily budgeted. Sponsored Products are a great starting point for brands getting up and running on Amazon. By setting minimum bids and daily limits, you can control how much you're investing in ads from the start.
They work especially well for:
- Established products with consistent demand
- Product launches that need visibility in search
- Branded search defense
- Core catalog ASINs
Limitations of Amazon Sponsored Products
Sponsored Products rely heavily on listing quality. Weak titles, images, or reviews can limit performance, even with strong bids. In competitive categories, costs can rise quickly as more sellers bid on the same keywords.
These ads also have limited reach outside Amazon search and product pages. They are not designed to re-engage shoppers once they leave the platform or browse other products.
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Amazon Sponsored Display Ads
Amazon Sponsored Display ads are another form of paid advertising, but instead of being keyword-based, these ads utilize shopper interests, behaviors, and activity on the platform. This effectively means that Amazon takes note of what pages shoppers are visiting and the kinds of things they're searching for and uses this information to place ads throughout the Amazon marketplace as well as on third-party sites.
Most consumers who shop online will recognize these kinds of ads because Amazon is far from the only platform that uses this approach. If you've browsed a site, clicked some products, and decided not to make a purchase but then seen those same products in other ad spaces across the internet, like on blogs or social media, that's a display ad. Effectively, it's a way to nudge shoppers, reminding them of products they may still be considering or connecting them with brands that may meet their needs.
Unlike Amazon Sponsored Products, Amazon Sponsored Display is only available to brand-registered sellers.
Where do Amazon Sponsored Display ads appear?
Amazon Sponsored Display ads can appear in all kinds of places, which is part of the appeal. Rather than being limited to search results or product pages, display ads may show up in other places across Amazon's website or on any number of other sites visited by a customer. This takes Amazon ads off of Amazon, so to speak, to keep products front and center, even when shoppers have moved on to different online activities.
However, because these kinds of ads are predicated on customer behavior, display opportunities are tied to products or product categories with which prospective customers have interacted.
Benefits of Amazon Sponsored Display Ads
The key benefit of Sponsored Display advertising is the opportunity for retargeting. With some other forms of advertising, when a buyer clicks away from Amazon, there's no way to reforge a connection, but that's not the case with display ads; they can appear on Amazon and beyond. This is a good way to remind customers to come back and consider shopping.
Since many display ads include products shoppers have already seen or interacted with, you're automatically appealing to an interested user base. These targeted consumers have already thought about buying your products or those like yours, so a reminder may be enough to send them back to Amazon to make a purchase.
Sponsored Display works well for:
- Retargeting product viewers
- Driving repeat purchases
- Supporting brand awareness
- Cross-selling related products
Limitations of Amazon Sponsored Display Ads
Sponsored Display usually reaches shoppers earlier in the buying journey. That means conversion rates can be lower than Sponsored Products, especially when targeting cold audiences.
There is also less direct control compared to keyword-based campaigns. Performance depends on audience size, product price, and how well the offer matches shopper intent.
When should you use Amazon Sponsored Display vs. Amazon Sponsored Products?
Both Sponsored Display and Amazon Sponsored Products have plenty of benefits, but there's a time and place for each approach. These are some of the points to keep in mind when considering one option over the other.
Amazon Sponsored Product Ads
Sponsored Product campaigns are best used to promote individual products in the context of how they appear in search results. This can include:
- Driving sales: The keyword-centered nature of this Amazon ad strategy puts eyes on your products when customers are searching for close matches.
- Product visibility: An effective keyword strategy can put your products front and center, ensuring the right shoppers will see what you have to offer.
- KPI tracking: The positioning of products in search results can make it easy to track metrics, including what keywords are generating the most clicks, how much you're spending versus what you're making through sales, and how often clicks turn into purchases.
Note that advertising approaches on Amazon aren't mutually exclusive; sellers can mix and match as needed to create a dynamic and far-reaching overall strategy.
Amazon Sponsored Display Ads
Sponsored Display campaigns can be valuable in honing branding and expanding reach beyond the Amazon marketplace, particularly when the sometimes-limiting nature of keyword targeting can't meet all needs.
- Building brand awareness: Display ads can go beyond specific products, meaning this kind of advertising can promote your brand across the web, creating interest in shoppers who may not know you or what you have to offer.
- Audience targeting: Display ad campaigns can be targeted at specific audiences and demographics, which can avoid wasting time and money putting ads in front of shoppers who are unlikely to be interested.
- Retargeting: In a way, Sponsored Display can follow shoppers to other sites, and you can ensure your products stay front of mind.
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Campaign Starter Tips for Sponsored Products and Sponsored Display
Starting with the right setup helps avoid wasted spend and shortens the learning curve.
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How to Start with Sponsored Products
Begin with products that are already conversion-ready. Strong listings matter here. Focus on ASINs with clear titles, strong images, and competitive pricing.
Start with automatic targeting to collect search term data. Use that data to identify converting queries before launching manual keyword campaigns.
Keep budgets controlled at launch. Expect some learning time while Amazon gathers performance data. Prioritize relevance and efficiency before scaling spend.
Sponsored Products starter goals:
- Capture high-intent traffic
- Identify profitable search terms
- Drive efficient sales
How to Start with Sponsored Display
Start Sponsored Display with remarketing audiences. Product view targeting is often the best entry point. It focuses on shoppers who already showed interest but did not convert.
Choose products with healthy margins or repeat purchase potential. Sponsored Display can support lifetime value, not just first purchases.
Use smaller budgets at first and monitor performance over time. Sponsored Display results may take longer to stabilize compared to search-driven ads.
Sponsored Display starter goals:
- Re-engage interested shoppers
- Increase brand exposure
- Support Sponsored Products performance
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Targeting with Sponsored Display and Amazon Sponsored Products
The point of all advertising is, of course, to target shoppers and “browsers”. Both Amazon Sponsored Display and Amazon Sponsored Products achieve this goal but approach the process in different ways. These are some targeting methods to keep in mind when evaluating campaigns and ad spend.
Automatic Targeting
Automatic targeting, as the name implies, is an automatic process managed by Amazon. This can be an easy way to get started since the process is entirely algorithm-driven, but it does take the control out of a seller's hands. Once an automatic campaign is in place, however, it's possible to rework parameters by adjusting things like similar, close match, and loose match keywords to prevent potentially inaccurate ad placements.
Product Targeting
Product targeting is a way to use product attributes to enhance PPC campaigns. This can include category, brands, and specific ASINs to guide PPC campaign performance. Product targeting is available for Sponsored Display and Amazon Sponsored Products.
Keyword Targeting
Keyword targeting is the classic way to approach Amazon advertising and is a hallmark of traditional PPC campaigns. Sellers can select a large array of keywords that might be used by shoppers to target appearances in search results and on product detail pages.
Use Cases
While both Sponsored Display and Amazon Sponsored Products hold lots of potential for driving sales, these tools do have notable differences in efficiency and functionality.
Amazon Sponsored Products Use Cases
There are numerous ways Amazon Sponsored Product ads can be used to move products on Amazon's marketplace.
Product Launches
The right approach to PPC campaigns can make launching a new product easy and effective. By doing intensive keyword research and bidding on the right terms and phrases, sellers can be confident a new product will be positioned in the right places on search engine results pages. Conversely, running an auto-targeting campaign can help new advertisers better understand what keywords and products connect with their ASIN. Early visibility makes sure the right shoppers see new listings in a way that can generate initial reviews and solidify a place in the market.
Peak Season Visibility
Some times of the year are busier than others. During peak seasons, brands can leverage keyword strategies to ensure products are being seen for optimal sales. Keywords might be altered to appeal to when and why customers are searching for particular items; for example, a company selling towels may focus more on keywords like "pool towels" or "towels for the beach" during the summer months.
Amazon Sponsored Display use cases
The unique on- and off-platform nature of Amazon Sponsored Display advertising makes the avenue ideal for many different applications.
Driving Repeat Sales
Retargeting is a crucial benefit of Amazon Sponsored Display ads, but this functionality can be used to drive repeat sales in addition to luring customers back to product pages. Display ads that emphasize products with a finite life span, like laundry detergent or dish soap, can keep a brand front and center, reminding customers to place another order when the need arises.
Specific Audience Targeting
Visibility is only beneficial when the right segment of consumers sees advertisements. Display ads can branch out from keywords alone and instead target product categories and lifestyle attributes. This can ensure ad placement is best positioned for driving sales now and can adapt to new strategies as shopper behaviors evolve over time.
Cross-Selling Opportunities
Display ads are often associated with product categories; therefore, Amazon Sponsored Display can be leveraged to show customers a wider array of purchase options. For example, a company selling kitchen gadgets can advertise cutting boards to customers who have been shopping for knives. This allows for the opportunity to target buyers in areas in which they've already shown interest, as well as crossover areas that may appeal to them in the future.
Optimizing and Testing Keywords
Due to the keyword-centric nature of Amazon Sponsored Products, this is an ideal way to determine whether there's more brands can do for their approach to both PPC and organic keyword usage. Measuring KPIs via keyword use can be incredibly effective, meaning brands can evaluate how specific terms are performing. The outcome of this analysis can result in insights surrounding bidding as well as building out or improving product detail pages.
Ad Placements
Ads can be seen in numerous places across Amazon, and, in the case of Amazon Sponsored Display ads, beyond. These are some of the areas in which ads may be located once campaigns are underway.
- Amazon product detail pages
- Amazon search results pages
- Amazon customer review pages
- The Amazon homepage
- Third-party websites
- Social media pages
- Mobile apps
- Amazon Fire tablets and video products
- Any website that exists as a part of Amazon's advertising networks
Note that most of these opportunities are unique to display ads; Sponsored Product ads will always remain within the Amazon ecosystem.
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Common Mistakes Sellers Make with Sponsored Products and Sponsored Display
Even experienced sellers make mistakes that limit performance. Avoiding these issues can protect profitability and improve results.
Common Sponsored Products mistakes:
- Running ads on listings that are not optimized
- Scaling budgets before identifying converting keywords
- Focusing only on ACoS without considering growth goals
- Ignoring search term reports
- Using too many keywords too early
Common Sponsored Display mistakes:
- Expecting immediate conversions from cold audiences
- Using overly broad targeting at launch
- Applying Sponsored Products KPIs to Sponsored Display
- Overlooking off-Amazon placements
- Letting audiences run too long without refreshing
Mistakes that affect both ad types:
- Choosing ad types without clear goals
- Managing Sponsored Products and Sponsored Display in isolation
- Ignoring margins and profitability
- Making frequent changes without enough data
- Relying on manual optimization alone
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How Trellis Can Help With Amazon Sponsored Products and Sponsored Display
The competition on Amazon is stiff, no matter what you're selling and the customer base you're trying to target.
For sellers who want to make ad management as effective and efficient as possible, implementing the right tools can be key to staying ahead. With the AI-leveraged eCommerce platform from Trellis, all aspects of the research and implementation process can be streamlined and perfected for optimal outcomes.
Trellis gives you one place to manage Sponsored Products and Sponsored Display ads with clear performance insights. Our platform helps you understand what’s driving results, reduce wasted spend, and scale what works. With AI-powered automation and full-funnel visibility, you can make smarter decisions faster.
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In Summary
Sponsored Products and Sponsored Display ads serve different roles in your Amazon advertising strategy.
- Sponsored Products help you capture high-intent shoppers through keyword and product targeting in search results and on product detail pages.
- Sponsored Display helps you re-engage shoppers and expand reach using behavior-based targeting on and off Amazon.
The strongest Amazon ads strategies use both formats together. Sponsored Products drive direct conversions, while Sponsored Display supports awareness, retargeting, and repeat purchases. Choosing the right mix depends on your goals, margins, and growth stage.
If you want clearer insight into what is driving performance across your Amazon ads, Trellis helps you connect advertising, pricing, and analytics in one place so you can grow profitably with confidence.