What Is Sponsored Display on Amazon (And When Should You Use It)?

Sponsored Products and Sponsored Brands get most of the attention — but if you're not using Sponsored Display, you're missing out on some of Amazon’s most powerful (and underused) ad capabilities.

In this post, we’ll break down what Sponsored Display is, how it works, and when it makes sense to add it to your ad strategy.

What are Sponsored Display ads?

Sponsored Display is Amazon’s self-service display ad product. Unlike Sponsored Products or Sponsored Brands, which show only on Amazon, Sponsored Display can also appear off Amazon — on third-party websites, apps, and even Twitch.

These ads can:

• Retarget shoppers who viewed your listing but didn’t buy

• Show up on competitor product pages

• Promote your product outside of Amazon’s ecosystem

Think of them as Amazon’s version of Facebook Ads or Google Display — but powered by Amazon’s own shopper data.

👉 Quick note: Don’t confuse Sponsored Display with Amazon DSP.
DSP is a more advanced platform that requires bigger budgets and more control over audience segments. Sponsored Display is easier to launch, works inside Seller Central, and has no minimum spend.

How Sponsored Display targeting works

There are two main types of targeting:

🔁 Audience targeting

This is where Sponsored Display really shines. You can target:

• Views remarketing: People who saw your listing but didn’t purchase

• Purchase remarketing: People who bought from you (or competitors)

• Category-based audiences: Shoppers browsing a specific niche

You can also layer in custom creatives — logos, headlines, and even lifestyle images — to build a more branded feel.

🏷️ Product targeting

Very similar to Sponsored Products:

• Target competitor ASINs

• Protect your own listings from competitor ads

• Target entire categories

Sponsored Display ads will show up on product detail pages, sidebar banners, and other placements across Amazon.

When should you use Sponsored Display?

Sponsored Display isn't for everyone, and timing matters.

✅ Use it when:

• You’ve already got a profitable Sponsored Products foundation

• You want to retarget shoppers who didn’t convert

• You have high-traffic listings worth protecting or upselling

• You want to cross-sell related products (e.g. “frequently bought together”)

• You want to reach shoppers off Amazon, including via mobile apps and websites

🚫 Avoid using it:

• In your product launch phase — it’s not great for early conversions

• If your listing isn’t retail-ready (poor images, low reviews)

• When you don’t have enough traffic for remarketing to be effective

Pros and cons of Sponsored Display

Pros:

• Access to audience-based targeting with no DSP budget required

• Retargeting = higher ROI over time

• Works well for brand protection and upsells

• Easy to set up within Seller Central

Cons:

• Less control over where your ads appear

• Attribution can be delayed (up to 14 days)

• Higher CPCs in some niches

• Not as performance-driven as Sponsored Products

Best practices for Sponsored Display in 2025

Want to test Sponsored Display without wasting budget? Here’s what we recommend:

1. Start with product targeting first

   • Target your own ASINs and top competitors

   • Keep bids moderate to start — monitor placements

2. Use audience targeting after you have data

   • Once your product has 30+ daily visits or orders, retargeting becomes effective

   • Use views remarketing to recover missed conversions

3. Don’t judge it like Sponsored Products

   • Expect higher ACoS but stronger long-term brand lift

   • TACoS or blended metrics give you a better picture

4. Test custom creatives

   • Add your logo, custom headline, and lifestyle image

   • These often outperform default ads in audience targeting campaigns

Need help building a full-funnel Amazon Ads strategy?

Sponsored Display is powerful — but it works best when it’s part of a complete funnel.

At Atlisco, we manage Amazon PPC for growth-focused sellers who want to scale profitably, not waste budget. Our strategies combine Sponsored Products, Brands, and Display into one system that drives visibility, sales, and repeat buyers.

👉 Book a strategy call and let’s build your funnel together.