Amazon Retargeting Ads: How it Works and Tips for Maximum Conversions

Capturing the attention of potential customers is only half the battle in the world of e-commerce. The real challenge lies in converting those interested shoppers into paying buyers. 

Amazon retargeting ads are useful in this situation. These ads serve as a powerful tool to re-engage users who have shown interest in your products but didn’t make a purchase, helping you turn missed opportunities into sales. 

Specifically, Amazon's data suggests that retargeted ads can increase conversion rates by up to 70%, demonstrating their efficacy. This shows the growing investment and importance of this strategy.

In this blog, we will explore the ins and outs of Amazon retargeting, how it differs from retargeting, its benefits, and tips for optimizing your Amazon retargeting campaigns. 

What is Amazon Retargeting?

Amazon retargeting refers to the process of showing ads to potential customers who have previously visited your Amazon product page or interacted with your brand but didn’t make a purchase. 

It utilizes Amazon’s advertising solutions, such as Sponsored Display Ads, to help re-engage these potential customers. It uses tailored ads designed to remind them of the products they viewed.

Unlike traditional display ads that target cold audiences, Amazon retargeting focuses on individuals who have already demonstrated interest in a product. By using data on consumer behavior, these ads are displayed on Amazon and across its network of third-party websites to reach users across multiple touchpoints, nudging them to return and complete their purchase.

After looking at Amazon retargeting, let’s discuss the difference between retargeting and remarketing. 

Difference Between Retargeting and Remarketing

While the terms “retargeting” and “remarketing” are often used interchangeably, there is a subtle difference between the two. Both aim to re-engage potential customers who have already interacted with your brand, but the methods they employ can vary.

The table below further explains it:

Retargeting	Remarketing
It typically involves displaying ads to users who have interacted with your brand on third-party websites or on Amazon itself. These ads are often served through cookies, tracking visitors' browsing behavior, and displaying ads based on their previous interactions with your site.	It is a broader term that includes both email marketing and online ads. Remarketing often targets users who have engaged with your brand via email, social media, or even through in-app notifications. It’s not limited to website interactions but focuses on re-engaging customers through multiple channels.

In the context of Amazon, the terms are often used interchangeably, but it’s essential to note that Amazon retargeting typically refers to ad campaigns aimed at users who have visited your product pages or interacted with your listings on the platform.

Now, we will explore the importance of retargeting.

Why is Retargeting Important?

Retargeting plays a crucial role in increasing conversions and improving your return on ad spend (ROAS). While the traditional customer acquisition process involves attracting new visitors to your store, retargeting focuses on re-engaging those who have already shown an interest but haven’t converted.

Here are a few reasons why retargeting is essential for your business:

1. Higher Conversion Rates: Retargeting focuses on individuals who have already interacted with your brand, making them more likely to convert since they are familiar with your products.

2. Cost-Effective: Since retargeting targets users who have already expressed interest, it typically results in lower cost-per-click (CPC) and a higher return on investment (ROI) compared to traditional prospecting ads.

3. Brand Recall: Retargeting ads serve as gentle reminders of products a customer previously viewed, keeping your brand top of mind. This increases the chances that the customer will return and complete their purchase.

4. Improved Customer Loyalty: Through personalized retargeting efforts, you can create deeper connections with customers, which can lead to repeat purchases and long-term brand loyalty.

Retargeting is vital for Amazon to create buzz about your products. It recovers lost sales by re-engaging interested shoppers, maximizing ad spend, and driving growth in a competitive market. Ignoring it means missing out on significant revenue opportunities. By effectively using retargeting, sellers can turn lost opportunities into profitable sales.

Let’s discuss the benefits of retargeting on Amazon.

Benefits of Retargeting

Retargeting provides Amazon sellers with a unique opportunity to re-engage shoppers who have already expressed interest in their products. The benefits of retargeting are abundant, particularly when executed on a platform like Amazon. Below are some key advantages:

• Increase in Sales and Conversions: Retargeting focuses on users who have already shown interest, making them more likely to convert. This timely reminder boosts sales, with retargeted ads often achieving higher conversion rates than standard display ads.

• Improved Cost Efficiency: By focusing on a qualified audience, retargeting lowers cost-per-acquisition (CPA) and improves return on ad spend (ROAS), eliminating wasted impressions and maximizing your budget.

• Better Customization: Retargeting allows for customized ads based on user behavior, such as cart abandonment or product views, enhancing relevance and increasing the chances of conversion.

• Boosted Brand Awareness: Consistent exposure through retargeting builds brand recognition and trust, keeping your products top-of-mind and increasing the possibility of future conversions.

• Higher ROI: Retargeting boosts ROI by targeting high-intent users, optimizing ad spend, and utilizing Amazon's detailed analytics to ensure maximum campaign performance.

Retargeting on Amazon offers a powerful combination of increased sales, cost efficiency, and brand building. By utilizing the data of interested shoppers, you can significantly enhance your advertising performance and drive tangible results.

Also read Understanding Paid Social and Amazon Advertising: A Simple Guide

Now, we will explore how retargeting works. 

How Does Retargeting Work?

Retargeting works by tracking the behavior of visitors to your product pages on Amazon. It uses cookies to monitor interactions, such as product views or additions to the cart and then displays ads to remind them about the products they have shown interest in. These ads appear across various channels, including on Amazon itself and external websites within Amazon's advertising network.

Here’s a step-by-step description of how Amazon retargeting typically works:

1. Tracking

   
   

Amazon tracks users who visit your product page but don’t complete a purchase by using cookies and tracking mechanisms. The platform records actions such as viewing specific products or adding items to the cart. This data helps build an audience based on their previous interest and engagement with your brand.

2. Ad Display

   
   

Once Amazon collects user data, personalized retargeting ads are displayed across Amazon and third-party websites. These ads feature the exact products the user interacted with, along with tailored messaging. This approach ensures users are constantly reminded of your products as they browse the web, increasing the chance of conversion.

3. Conversion

   
   

The goal of retargeting ads is to bring users back to your product page and encourage them to complete their purchase. By offering incentives like discounts or showcasing product benefits, the ad aims to push the user closer to a final decision. Since they’ve already shown interest, the possibility of conversion is higher.

Amazon retargeting ads utilize tracking, personalized ads, and targeted messaging to bring back potential customers and drive conversions. By focusing on users who have already interacted with your product, these ads effectively remind and incentivize them to complete their purchase, ultimately boosting sales and improving ad performance.

Let’s discuss the reasons why sellers must utilize retargeting on Amazon.

Reasons to Use Amazon Retargeting

Converting browsers to buyers on Amazon requires more than just initial traffic. Amazon Retargeting re-engages interested customers, boosting conversions. Other than this, there are several compelling reasons why sellers should use Amazon retargeting to enhance their marketing strategy. They are:

• Amazon’s Large Audience Base: With millions of active shoppers, Amazon offers a massive audience for your retargeting campaigns. Utilizing its vast customer base increases the reach and potential of your ads.

• Data-Driven Approach: Amazon provides in-depth data analytics to help you fine-tune your retargeting efforts, ensuring that you reach the right customers with the right message at the right time.

• Improved Conversion Funnel: Retargeting is especially effective for re-engaging users at different stages of the purchase journey, guiding them back to your product listings and nudging them to finalize their purchase.

• Cross-Platform Exposure: Amazon’s ad network spans both Amazon.com and third-party websites, giving you cross-platform exposure to drive sales from a wider pool of potential customers.

• Higher Quality Traffic: By targeting individuals who have already shown interest in your product, you are essentially filtering out cold leads, increasing the possibilities of conversions.

Amazon Retargeting drives conversions, increases visibility, and maximizes ad spend. By re-engaging potential customers, it turns browsing into buying, making it a crucial strategy for success on Amazon. 

Now, we will discuss how Amazon Sponsored Display Ads can be used for retargeting.

Using Amazon Sponsored Display Ads For Retargeting

Amazon Sponsored Display Ads are one of the most popular ways to execute retargeting campaigns on the platform. These ads allow sellers to target shoppers who have previously visited their product pages, showing them relevant ads as they browse Amazon or third-party sites within Amazon's advertising network.

How Sponsored Display Ads Work:

1. Audience Targeting: Sponsored Display Ads utilize Amazon's vast customer data to target specific audiences, including those who viewed your product but didn’t purchase.

2. Customizable Creative: You can customize the creative through the Creative Builder feature to display your products in a sponsored display ad along with enticing offers to increase conversions.

3. Dynamic retargeting: The ads automatically adjust based on the behavior of the visitor. These ads ensure that users see the most relevant product options.

Utilizing Amazon Sponsored Display Ads for retargeting allows sellers to capitalize on existing customer interest. This strategic approach strengthens brand recall, guides shoppers back to product pages, and ultimately contributes to increased sales and sustained growth on Amazon.

The Difference Between DSP and Sponsored Display Ads

Both Amazon DSP (Demand-Side Platform) and Sponsored Display Ads offer retargeting capabilities, but they differ in their execution and reach.

Amazon DSP	Sponsored Display Ads
It allows for more advanced, programmatic ad buying. It provides access to a wider network of inventory, including off-Amazon websites, apps, and video content.	On the other hand, these ads are easier to set up. They are available directly within Amazon’s advertising platform, targeting users on Amazon.com and across its advertising network.

While DSP gives advertisers more flexibility and a broader reach, Sponsored Display Ads are ideal for sellers looking for a simple, effective way to implement retargeting campaigns with minimal setup.

Here, we will explore 5 useful tips for running successful retargeting campaigns on Amazon.

5 Tips for Successful Amazon Retargeting Campaigns

Amazon provides a vast amount of data for retargeting, but turning that data into sales requires a strategic approach. Let’s break down five critical tips for building and optimizing your retargeting campaigns, ensuring you're reaching the right customers at the right time and maximizing your ROI.

1. Use Dynamic Creative: Personalize your ads based on the user’s past behavior, showing them the exact products they interacted with. This increases the likelihood of conversions.

2. Segment Your Audience: Create different segments based on how users interacted with your brand. For example, target users who added products to their cart but didn’t complete the purchase, as they are more likely to convert.

3. Set Frequency Caps: Over-exposing users to your ads can lead to ad fatigue. Setting frequency caps ensures your ads are shown enough times to be effective without overwhelming potential customers.

4. Test and Optimize: Constantly monitor your campaign’s performance and test different ad creatives, copy, and targeting options. A/B testing can help you identify the most effective combinations for your audience.

A/B testing helps you test your ads and monitor their performance for your Amazon retargeting. But are you truly maximizing your results? 

SellerMate's Business Reports feature gives you the granular insights to test and optimize your ad campaigns confidently. See exactly how your ad creatives and targeting are performing. Get insights into your campaign performance and use this data to adjust and improve your overall ad campaign effectiveness.

5. Utilize Reviews and Ratings: Displaying positive reviews and ratings in your retargeting ads can build trust and convince hesitant shoppers to complete their purchase.

When done right, Amazon retargeting is more than just a quick sales boost; it's a long-term investment in customer engagement and brand loyalty. By consistently applying these five principles, you'll see immediate results and build a sustainable foundation for continued growth on Amazon.

Let’s discuss how Amazon Advertising Platform can help in retargeting.

Retargeting with Amazon Advertising Platform (AAP)

The Amazon Advertising Platform (AAP) offers a variety of tools to help businesses run successful retargeting campaigns. Through AAP, sellers can access various ad formats, including Sponsored Display Ads and Amazon DSP, and utilize powerful data analytics to optimize their efforts.

AAP provides deep insights into your customer’s behavior, enabling you to refine your retargeting strategies. It allows you to track metrics such as impressions, click-through rates (CTR), and conversions to measure your campaign’s effectiveness and make data-driven adjustments.

Finally, we will discuss the steps for setting up a retargeting campaign on Amazon.

Setting Up Your Amazon Retargeting Campaign

Amazon retargeting is a powerful tool, but getting started can feel overwhelming. Planning for your first Amazon retargeting campaign requires defining your audience and crafting compelling ads. Setting up a successful Amazon retargeting campaign is easy if you follow these simple steps:

1. Choose Your Campaign Type: Decide whether you want to use Sponsored Display Ads or Amazon DSP. Sponsored Display Ads are ideal for beginners, while DSP offers more advanced options.

2. Create Your Ad: Design your ad creative with relevant images, copy, and a clear call to action. Make sure it resonates with your target audience.

3. Define Your Audience: Use Amazon's audience targeting options to select the right users to target based on their previous interactions with your product.

4. Set Your Budget: Decide on your daily budget and bidding strategy. Sponsored Display Ads typically offer automatic bidding, but you can manually adjust bids for DSP campaigns.

5. Launch and Monitor: After launching your campaign, watch its performance closely. Use Amazon’s reporting tools to track conversions, adjust bids, and test new creatives as needed.

Setting up your Amazon retargeting campaign doesn't have to be a daunting task. By following these steps and consistently optimizing your strategy, you can effectively recapture lost sales and boost your overall performance.

Wrapping Up

Amazon retargeting ads offer an incredible opportunity to re-engage potential customers and boost conversions. By utilizing Amazon’s powerful advertising tools, sellers can target users who have already shown interest in their products, bringing them back to finalize their purchase.

Through dynamic creatives, audience segmentation, and continuous optimization, Amazon retargeting campaigns can be highly effective in increasing sales and improving return on investment. 

Whether you’re new to Amazon advertising or looking to refine your current strategy, following the tips and steps outlined in this blog will help you get the most out of your Amazon retargeting efforts. With the right approach, Amazon retargeting ads can help your business achieve significant growth and long-term success.

Are you ready to take your online advertising to the next level? SellerMate delivers measurable results and a higher return on your investment. We create custom strategies for your unique business needs, from keyword research to bid management. Book a demo now and build a successful PPC campaign that brings in more customers and grows your revenue.

FAQs

Q1. How do I measure the success of my Amazon retargeting ads?

Ans- Success can be measured using key performance indicators (KPIs) such as click-through rate (CTR), conversion rate, return on ad spend (ROAS), and cost-per-click (CPC). Amazon’s advertising platform provides detailed analytics that can help you track these metrics and optimize your campaigns accordingly.

Q2. Can I use Amazon retargeting ads for products on Amazon and my website?

Ans- Amazon retargeting ads can target both Amazon product pages and users who have interacted with your website through Amazon's third-party ad network. Amazon’s Sponsored Display Ads allow you to extend your reach beyond Amazon.com and retarget visitors from your website across the web.

Q3. How often should I show retargeting ads to potential customers?

Ans- While there is no one-size-fits-all answer, avoiding overwhelming potential customers with too many ads is important. Amazon’s retargeting tools allow you to set frequency caps to control how often your ads appear to the same user. This ensures that you maintain visibility without causing ad fatigue.

Q4. Can Amazon retargeting ads be used for seasonal products or promotions?

Ans- Amazon retargeting ads are highly effective for seasonal products or time-sensitive promotions. You can customize the ads to feature limited-time offers, discounts, or product availability, which can increase urgency and drive conversions during key periods.