'Amazon's Sponsored Display Advertising will help reach out to the right audience'

Industry experts share their views on how Amazon’s Sponsored Display Advertising will ease the process of putting up campaigns on the platform, and its impact on the ad sector

e4m by Noel Dsouza
Published: Oct 15, 2019 8:31 AM  | 4 min read

Amazon is set to launch Sponsored Display Advertising. According to Amazon’s announcement made last month, with this launch advertisers will be able to record the data of products the consumer has recently viewed through Amazon's DSP (Demand Side Platform) system. This will help advertisers as it is the first time Amazon is promoting external advertisers to place ads. Previously, the Amazon site and app only advertised products on its platform. Also, this tool was only available to those users who were using Amazon’s DSP.

According to a post on the company’s official blog by Lynly Schambers-Lenox, Senior Product Marketing Manager, Amazon on September 2019 Lynly stated, "Today we launched Sponsored Display, a new self-service advertising solution that helps you grow your business by reaching relevant audiences both on and off Amazon. Sponsored Display is currently available in beta to all professional sellers, vendors, and agencies who sell on Amazon."

According to Amazon’s announcement, this launch will allow advertisers to access Product Display Ads with audience and product targeting features. All Product Display Ad campaigns will now be a part of Sponsored Display without any additional action required.

We spoke to Digital Media Ad Industry experts on how this new segment in Amazon will ease the process of putting up campaigns on the platform and how it will impact the ad sector.

Amazon is one of the most visited websites in India, this combined with the growing app user database clearly establishes where intent-led consumers are spending their time and searching for relevant products.

Talking about the plus points of this feature Vinesh Nandikol, Head – Digital, FCB Ulka, Mumbai remarked, “For vendors, this is an empowering end-to-end solution to increase product awareness with the relevant audience by smart-targeting. On the other hand, for the advertising sector, this will entail a great opportunity to offer tailored display solutions to clients on one of the most highly visited e-commerce platforms in India.”

The new ad type addresses a big gap in Amazon’s pay-per-click advertising suite: the ability to retarget Amazon shoppers. Retargeting is a popular feature for retail brands in particular and has been long available on display ad networks, Facebook, and Google.

Sharing his views on Amazon launching Sponsored Display Advertising Sameer Makani, Co-founder, and Managing Director, Makani Creatives said, ‘’What was introduced as a service that was only available for those who used Amazon’s Demand Side Platform (DSP) is now accessible to all. The Sponsored Display advertising not only enables advertisers to reach consumers beyond those shopping on Amazon, but it has been optimized in a way that any individual would be able to leverage this service rather than just agencies and big brands. The programmatic algorithm uses browsing and buying signals to automatically retarget promoted products to enhance overall promotion. Advertising has been one of the strongest pillars of Amazon with the idea to create connections with shoppers at key moments across their purchase journey. Providing access to this service will help advertisers with a full-fledged programmatic solution for their campaigns; However, lack of customization in audience targeting is visible and a slight update on that would attract more users.’’

The additional plus point to this tool is that ads are purchased on a cost-per-click (CPC) basis, so advertisers only get charged when a customer clicks the ad.

The audience targeting options also have the capacity to improve over time, giving advertisers more control and better results. “Amazon’s Sponsored Display is a springboard to the Amazon DSP solution for its professional sellers. By adding the ability to manage off Amazon ads into a single platform, sellers on Amazon would be able to bring efficiency into their ad buys as they may find they do not need to split their budgets between different channels and buy types. By using the Amazon product landing pages as a destination, advertisers may be able to achieve the 'Holy Grail' of being able to optimize their campaigns on a Cost Per Purchase basis”, stated Sabyasachi Mitter, Founder, and Managing Director, Fulcro.

It is a seamless process, advertisers select their target audience and product, set a bid and a daily budget, and choose the products to promote. The ad will automatically appear on or off Amazon, depending on the targeting strategy.

Sagar Patil, Associate Media Director- Digital, Carat India shared that this feature will empower advertisers of all sizes who sell on Amazon to expand their reach and results using display advertising. “This will help increase product awareness and demand by reaching the right audiences on & off the Amazon ecosystem. Moreover, this feature will make it hassle-free operationally which improves the overall productivity”, shared Patil.

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