Expanding advertising opportunities through Sponsored Display
A China-based clothing brand, specialising in footwear and clothing, has been utilising multiple sponsored ads solutions in North America and Europe since 2016 to help build their brand by driving awareness and consideration.
Why use Sponsored Display?
The brand started using Sponsored Display in 2020 as an additional ad solution to support their Amazon business in the US.
According to Jason, a supervisor of the brand, the main reasons why Sponsored Display is beneficial for the brand are:
- Using audiences views – remarketing can help bring incremental traffic to product detail pages on Amazon, including audiences that have viewed similar products or categories.
- Their ads using audiences – views remarketing see higher conversion rates than their other ads.
- Using product targeting can help customers browsing relevant products and categories to discover their niche outdoor clothing products.
“Sponsored Display ads connect us with new types of placements such as across formats, websites, and devices, where they browse, stream or shop. This helps us expand our reach to promote our products among audiences who are browsing relevant products. We also find that our ads, shown across formats, websites, and devices, where they browse, stream or shop using views remarketing, have higher conversion rates.”
– Jason, Supervisor
Sponsored Display ads increased sales by 140%
The brand’s adoption of Sponsored Display was further encouraged by the results. From March 2020 to July 2020, following their launch on Sponsored Display campaigns using audiences tactics, they’ve seen sales increase by 140%, while keeping their advertising cost of sale (ACOS) under 20%*.
As an experienced advertiser, Jason shares three of the brand’s Sponsored Display strategies and tips to help other advertisers succeed at Sponsored Display.
Strategy 1: Leverage both audiences tactics and product targeting
- Audiences – views remarketing: Use this to widen marketing reach and engage potential audiences wherever they spend their time, with Amazon Ads. Choose popular ASINs with the highest page views as they are more likely to pique interests.
- Product targeting: Use this to build brand and help drive sales by targeting specific products or categories.
“We tested two types of ASINs for our ads using product targeting: One was our top-selling men's shoes with high traffic and orders, and another was new men’s shoes. The test revealed a higher conversion rate for top-selling ASINs, so we now use product targeting for our top sellers.”
– Jason, Supervisor
Strategy 2: Use insights from Sponsored Products and Sponsored Brands campaigns
- First, identify high-performing products from your Sponsored Products campaigns.
- Second, launch Sponsored Brands campaigns for these products, and use keyword targeting to help raise discoverability and build your brand further.
- Finally, add Sponsored Display campaigns for these products to help increase reach.
“We set higher bids for Sponsored Display and use the dynamic bidding model. Sponsored Display ads may appear below the featured offer and product description, which are valuable placements for us. Together with Sponsored Products, the ads are prominent on pages where relevant products appear, so having your presence there can make a strong statement.”
– Jason, Supervisor
Strategy 3: Use Sponsored Display for peak season
- For peak season, it’s important to allocate sufficient budget for your ads. We look at the products’ profit margin and ad spend ratio from previous years, and usually set the ad budget at 15% of the sales target.
- The traffic on Amazon increases during peak season, so you can look to leverage the increased interest by investing more in on-Amazon placements than across formats, websites, and devices, where they browse, stream or shop.
- Dynamic bidding can help manage budgets efficiently.
- Sponsored Display ads may appear below the featured offer on product detail pages. Having this placement on top of discounts, vouchers and other offers on Amazon can help with conversions.
*Data based on their Sponsored Display performance between March and July 2020 in the US.