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2026-07-02 · 8 min read

Amazon Sponsored Display Ads Guide 2026: Setup, Targeting and ROAS

Complete guide to Amazon Sponsored Display ads in 2026. How to set up campaigns, choose targeting types, optimize bids, and measure ROAS for retargeting and awareness.

SPONSORED DISPLAY IS THE MOST UNDERUSED ad type available to Amazon sellers in 2026. While every seller runs Sponsored Products campaigns and many run Sponsored Brands, Sponsored Display sits largely unused in most ad accounts. That is a significant missed opportunity, particularly for retargeting: reaching shoppers who viewed your product detail page and left without buying is one of the highest-ROAS activities available on the platform.

What Sponsored Display Ads Are

Sponsored Display ads are self-serve display ads that appear in three main locations: Amazon product detail pages (below the buy box and in the carousel), Amazon search results (right column and below search results), and off-Amazon (on partner websites, apps, and Twitch). This off-Amazon reach is unique to Sponsored Display among the three core Amazon ad types.

The key difference from Sponsored Products is targeting. Sponsored Products target keywords. Sponsored Display targets audiences, based on who has been shopping for or viewing similar products, what categories they browse, and their purchase history. This audience-based approach means Sponsored Display excels at retargeting rather than capturing new demand.

Targeting Options Explained

Sponsored Display offers four main targeting approaches:

  • Views remarketing: Shows ads to shoppers who viewed your product detail page but did not buy. This is the highest-intent retargeting available on Amazon and typically the best-performing Sponsored Display campaign type for established listings.
  • Purchases remarketing: Targets past buyers of your product. Useful for consumables and subscription-style products where repeat purchase is common.
  • Product targeting: Shows ads on specific competitor product pages or in specific categories. Similar to product targeting in Sponsored Products but displayed differently.
  • Audience targeting (interests/lifestyles): Reaches shoppers who match interest profiles. Best for awareness campaigns rather than direct response.

How to Set Up a Sponsored Display Campaign

In Seller Central, go to Advertising > Campaign Manager and click "Create campaign." Select Sponsored Display. You will choose between CPC (cost-per-click, better for direct response) and vCPM (cost-per-thousand-viewable-impressions, better for awareness).

For most sellers starting with Sponsored Display, the recommended first campaign is:

  1. Campaign type: Sponsored Display
  2. Targeting: Views remarketing (shoppers who viewed your ASIN)
  3. Lookback window: 14 days (start conservative; expand to 30 if volume is low)
  4. Bidding: CPC, $0.25 to $0.75 starting bid
  5. Budget: $10/day minimum for meaningful data
  6. Creative: Use the auto-generated creative (headline + product image + star rating)

Measuring Sponsored Display Performance

Key metrics for Sponsored Display differ from Sponsored Products because the purchase attribution window is longer and off-Amazon impressions inflate spend without immediately visible returns:

  • ACOS (Advertising Cost of Sale): Target under 30% for retargeting campaigns. Views remarketing typically achieves 15-25% ACOS on mature campaigns.
  • CTR: Sponsored Display has lower CTR than Sponsored Products (typically 0.1-0.5% vs 0.3-1.0%). This is normal; the audience is less actively searching.
  • 14-day attributed sales: Sponsored Display uses a 14-day attribution window. Check attributed sales at the 14-day mark, not immediately.

Sponsored Display vs Sponsored Products: When to Use Each

Run Sponsored Products first. If you do not have profitable Sponsored Products campaigns, Sponsored Display will not save your listing. Once Sponsored Products are running with positive ROAS, add Sponsored Display remarketing to capture the 80%+ of product page visitors who leave without buying. The two types work together: Sponsored Products captures search intent, Sponsored Display recaptures lost consideration.

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