What is Amazon Retargeting?
Amazon retargeting (or remarketing) is an online advertising technique designed to target and reach people who have already interacted with your brand / product in the past. Retargeting allows sellers to advertise off-Amazon – on 3rd party sites and in apps. Simply said, you can bring your potential customers back and finally convert them.
Amazon is currently testing off-Amazon ad retargeting as part of their Sponsored Products product expansion. An invitation to the Extended Ad Network Beta was sent out on 18th May 2018, and is currently limited to Amazon US sellers.
Currently limited to automatic campaigns in Sponsored Products, this new beta feature will enable sellers to expand the reach of their SP ads to off-Amazon websites and apps for retargeting purposes.
Amazon Retargeting for Sponsored Products
- Your automatic Sponsored Products campaigns will automatically be activated for Amazon retargeting, and your ads will be displayed on both Amazon and 3rd party external sites.
- The ad format will remain unchanged and your ads will continue to link to the product listing page.
- Pay-per-click, the auction system, sales attribution and billing will remain the same.
- On and off- Amazon retargeting will also use the same CPC bid.
- Campaign control and reporting functionalities are still limited in the beta and it is not yet available for the manual campaigns.
- You will not be able to limit or select the external sites you wish for your sponsored ads to be displayed on.
- Based on Amazon automatic retargeting, your ads will be displayed to “users who have expressed interest in your product or similar products to yours…on Amazon owned and operated sites as well as non-Amazon websites and apps”.
Comparing Amazon Retargeting and Advertising Platform (AAP)
Advertisers can also place ads on third-party sites through the Amazon Advertising Platform (AAP).
- AAP provides more extensive control capabilities, such as audience segmentation, device and browser targeting, etc.
- AAP can be used to design your own ads or banners, and the payment model is impression-based (CPM) rather than click-based (CPC).
- AAP also requires significantly higher minimum budgets, and therefore may not be a viable alternative for all advertisers exploring retargeting opportunities for their product range.
The ability for sellers to extend the reach of their sponsored products ads to off-Amazon sites is a very interesting addition to Amazon PPC in general. How the new retargeting capabilities will affect PPC sales overall however, is difficult to assess at the moment.
Currently, the reliance on Amazon retargeting means you do not have direct control over where your SP ads will or will not appear. The lack of ad display control can be risky for advertisers, and will require testing over time to compare the performance of on-Amazon and off-Amazon advertising sales.
The effectiveness of Amazon retargeting as a platform new feature will also depend on whether Amazon will introduce further campaign retargeting capabilities (i.e. individualized CPC bids for off-Amazon ads), and if they will extend the new feature to PPC manual campaigns.