Have you ever browsed for a product on Amazon, only to see ads for that same item pop up on other websites later? That’s not a coincidence – it’s Amazon retargeting in action!
As a seller, this powerful marketing tool helps you reconnect with potential customers who have shown interest in your products. Naturally, these ads have higher conversion rates and more return on ad spend.
In this guide, we’ll explore everything you need to know about setting up and optimizing Amazon retargeting campaigns.
Before we start, get a free Amazon PPC audit from IG PPC and discover how to make your ad spend work harder for you with our superior Amazon PPC management service.
What is Amazon Retargeting?
Amazon retargeting involves strategically displaying ads to shoppers who have already engaged with your brand or products.
It utilizes “cookies” – small pieces of code placed on a user’s browser when they visit your product pages.
This allows Amazon to track users across the web and serve them ads for your products, even when they’re not actively browsing your listings.
It’s like giving a gentle nudge to remind shoppers about items they’ve viewed or added to their cart.
For example, suppose a potential customer views your product page but leaves without purchasing. Retargeting ads can remind them about your offering as they continue browsing other sites, giving you a new chance to capture their purchase.
According to SharpSpring Ads, retargeted shoppers are 70% more likely to convert than those who see your ads for the first time (only a 2% conversion rate).
With cart abandonment rates averaging 70%, retargeting helps reconnect with this highly valuable audience.
What is Amazon DSP Retargeting?
Amazon DSP (Demand-Side Platform) allows you to buy display, video, and audio ads programmatically both on and off Amazon to reach previous site visitors or customers.
It uses advanced retargeting capabilities powered by Amazon’s rich shopper data. You can create customized remarketing audience segments based on historical behaviors such as:
- Past purchases
- Abandoned carts
- Product views
- Category browsing
Amazon DSP then displays your ads across various ad formats and platforms to reconnect with these audiences. This includes reaching viewers on Amazon properties like IMDb and Twitch, as well as external websites.
Retargeting vs. Remarketing on Amazon
You might hear the terms “retargeting” and “remarketing” used interchangeably, but there’s a subtle difference:
| Retargeting | Remarketing |
|---|---|
| Uses cookies to track user behavior | Typically uses email lists |
| Shows ads on various websites | Often involves email campaigns |
| Focuses on visual ads | It can include multiple types of communication |
However, Amazon predominantly uses “remarketing” to describe retargeting functions across its advertising platforms.
You can treat the terms as essentially referring to the same technique – advertising to past visitors or customers to drive repeat business.
Benefits of Running an Amazon Retargeting Campaign
Why should you consider running an Amazon retargeting campaign?
Let’s look at some compelling reasons:
- Higher Conversion Rates: Retargeted ads have a 10x higher click-through rate (CTR) than display ads. In perspective, while normal display ads get clicked only seven times out of 10,000 views, retargeted ads could grap 70 clicks for the same number of impressions.
- Personalized Approach: Show ads based on specific products viewed, creating a more personalized experience.
- Cost-Effective: You only pay when users click/view your ads, making it easier to control how much to spend on Amazon PPC. Thus, you avoid wasting money on cold audiences that are unlikely to convert. This efficiency leads to excellent ROI.
- Brand Awareness: Expanding your ads beyond Amazon exposes new audiences to your brand as they browse the web. This is great for upper-funnel goals.
- Recover Abandoned Carts: Remind shoppers about products they left in their cart, potentially recovering lost sale
- Improved Brand Loyalty: Repeated brand exposure through retargeting keeps your products at the top of your customers’ minds. This can increase customer retention and repeat purchase rates.
Did you know: Retargeting ads increase conversion rates by up to 26% for shoppers who previously abandoned their carts?
Types of Audiences You Can Retarget on Amazon
We’ve established that retargeting is one of the most powerful ways to attract potential customers, but who do you actually target here?
Let’s break it down:
Viewed But Not Purchased
These shoppers visited your product detail page but didn’t make a purchase. They might have gotten distracted or weren’t sure.
Either way, they showed interest, and that’s all you need. You can show them what they’re missing with a little reminder through tailored ads.
Cart Abandoners
They added products to their cart and disappeared, meaning they’re one step away from purchasing.
Don’t let that be the end of the story; retarget these users with a friendly nudge or a limited-time offer.
Past Purchasers
Someone who bought from you before is much more likely to buy again, especially if you sell consumables, accessories, or complementary products.
Create “next logical purchase” campaigns, such as batteries or device protection for a device they’ve already bought.
Brand Store Visitors
These people have visited your store and are familiar with your brand, which is already a warm lead.
You can retarget them with bestsellers or new arrivals to keep your brand at the forefront of their minds.
Competitor Product Viewers
Amazon DSP lets you target users who viewed similar or competing products. That’s your chance to step in and offer something better.
Category Browsers
These shoppers browsed your niche but didn’t land directly on your listing.
They’re in the market. You just need to lock them in through retargeting.
Search-Based Retargeting
Amazon knows what shoppers are searching for. If they type in keywords related to your product, you can retarget them later, even if they never saw your listing.
Pair keyword targeting with retargeting for a powerful combo that builds awareness and recall.
Off-Amazon Retargeting
Through Amazon DSP, you can follow your audience beyond Amazon to third-party sites, mobile apps, and even connected TV.
How to Set Up Amazon Retargeting Ads
Here is a step-by-step guide to setting up basic retargeting campaigns within Amazon Sponsored Products:
- Step 1: In your Amazon Seller Central dashboard, click “Campaign Manager” and select “Create Campaign.”
- Step 2: Choose the campaign name, budget, and dates and click “Continue.”
- Step 3: Select “Sponsored Products” from the campaign types and click “Continue.”
- Step 4: Under the “Automatic Targeting” section, check the box next to “remarketing” to enable retargeting.
- Step 5: Under the “ad group” section, select the products you wish to retarget. You can also select “All products.”
- Step 6: Based on your goals, set your cost-per-click bid for the ad group and click “launch campaign.”
Once active, Amazon will automatically display your ads to previous visitors across its properties.
Use their reporting dashboard to monitor Amazon Ads’ performance and make optimization decisions.
Managing Your Amazon Retargeting Ads
While easy to set up, Amazon’s self-serve retargeting lacks granular control over campaigns. You can only adjust the bid amount.
Here’s what you need to know:
- Start with Lower Bids: High bids often don’t perform well in retargeting campaigns. Begin with lower bids and gradually increase them.
- Watch Your ACoS: Monitor your Advertising Cost of Sale (ACoS) and understand what is a good Amazon TACoS. Adjust your bids to find a sweet spot where you get clicks without overspending.
- Know When to Fold: If your bids get too low to generate clicks or profits, it might be time to pause or end the campaign.
Amazon retargeting is pretty straightforward – it either works for your products or doesn’t. Regularly evaluate your campaigns to decide if Amazon PPC is worth it for your business, and don’t hesitate to turn off any consistently unprofitable retargeting campaigns.
Expert Help for Your Amazon PPC Campaigns
Managing Amazon ads can be tricky, especially when you’re juggling multiple campaigns and trying to maximize your ad spend. That’s where our experts at IG PPC come in.
We help businesses of all sizes manage their Amazon ads effectively. Our approach combines smart automation with human expertise to:
- Target the right customers
- Adjust bids in real-time
- Optimize campaigns for better performance
- Identify and implement best practices for your specific business
Want to see how you can improve your Amazon PPC performance? Why not get a free Amazon PPC audit from us?
We’ll show you how to optimize your ad spend, lower your ACoS, and more. Let’s make your Amazon ads work harder for you!
How to Use Amazon DSP for Retargeting Ads
If you’re ready to improve your retargeting game, Amazon DSP is your solution.
Here’s how to get started:
Step 1: Access Your Amazon DSP Account
Start by logging into your Amazon DSP account and clicking “Create campaign.”
If you don’t have access yet, you must contact Amazon Advertising to set up an account. DSP is typically available to advertisers spending over $35,000 per month.
However, Amazon recently opened up DSP as a self-service service. Our Amazon PPC management agency can now set up and manage campaigns for clients at much lower budgets.
Step 2: Define Your Campaign Objective and Audience
Choose your campaign objective (e.g., brand awareness, product sales). Then, set up your audience targeting settings, including:
- Remarketing pixels to target visitors from your website
- Lookalike modeling to find audiences similar to your existing customers
- Categories, interests, and behaviors to further define your target market
Step 3: Set Your Campaign Parameters
Establish your campaign’s financial and temporal boundaries:
- Set a daily budget that aligns with your overall marketing spend
- Choose start and end dates for your campaign
- Determine your maximum bid per impression
- Select a bidding strategy (e.g., fixed CPM, dynamic CPM)
Step 4: Design Your Display Ads
Design high-quality display ads with relevant images, compelling copy, and clear calls to action.
- Craft messaging focused on your product’s key benefits and differentiators
- Ensure ads are consistent with your brand style and messaging
- Make any promotional offers very clear and actionable
Step 5: Submit for Review and Launch
Once your campaign is set up and your ads are ready:
- Review all settings to ensure accuracy
- Submit your campaign for Amazon’s review
- Wait for approval (typically within 1-2 business days)
- Once approved, your campaign will launch automatically on the start date
Step 6: Monitor Performance
Use Amazon DSP’s analytics and reporting tools to track key metrics:
- Click-through rate (CTR)
- Conversion rate
- Amazon advertising RoAs (Return on ad spend)
- Viewability rate
- New-to-brand customers
Step 7: Optimize and Expand
Based on the performance data:
- Refine your audience targeting to focus on the most responsive segments
- Adjust bids and budget allocation to maximize ROI
- A/B test different ad creatives to improve engagement
- Consider expanding into new ad formats like video or audio ads
Pro tip: Amazon DSP offers advanced features like dayparting (scheduling ads for specific times) and frequency capping (limiting how often a user sees your ad). Experiment with these to maximize your campaign’s effectiveness!
Cost of Amazon Retargeting Ads
Amazon retargeting ads can vary widely in cost depending on the platform you use, your targeting, competition, and bidding strategy.
Below is a detailed look at the two main types of Amazon retargeting options and what you can expect in terms of pricing:
Sponsored Display Retargeting Costs
Sponsored display retargeting is available right inside Amazon Seller Central. You’re only charged when someone clicks on your ad, which is called cost-per-click.
Each click costs between $0.60 and about $1.50, depending on your product category and competition.
You can start with a low budget of $5 to $10 per day. The ads are usually more efficient as you target people who have already shown interest in your product.
Amazon DSP Retargeting Costs
Here, instead of paying per click, you’re charged based on how many people see your ad. This is called cost per mille (CPM). Mille = thousand impressions or views. On average, it costs about $2.50 to $4 to show your ad a thousand times.
If you directly go through Amazon to run DSP ads, they usually require a minimum budget of around $35,000 per month, which puts it out of reach for most small businesses.
But there’s a workaround. You can go through a certified Amazon DSP agency that offers self-service DSP with lower monthly spending requirements, which often start from $5,000.
Key Metrics to Track in Amazon Retargeting Campaigns
Tracking the right metrics is key to understanding if your ads are actually working or just draining your budget.
Here’s a clear breakdown of the most important metrics you should keep an eye on:
- Cost Per Click (CPC): This tells you how much you pay each time someone clicks your ad. If your CPC gets too high without driving conversions, your campaign may need refining.
- Click-Through Rate: This shows how many people actually click on your ad after seeing it. A higher CTR usually means your creativity and targeting resonate well with your audience.
- Conversion Rate: With this, you’ll know how many people who clicked on your ad actually made a purchase. Since retargeting ads target an already interested audience, a higher conversion rate can be seen.
- ACoS (Advertising Cost of Sales): This tells you how much you’re spending on ads to earn a single dollar in sales. A lower ACoS means you’re getting better returns.
- ROAS (Return on Ad Spend): This is the flip side of ACoS. ROAS measures how much revenue you’re making for every dollar spent on ads. So, the higher the numbers, the more profitable your campaign will be.
Common Mistakes to Avoid in Amazon Retargeting
Many sellers jump into retargeting, expecting instant results without realizing that subtle mistakes can tank performance.
Here are the most common mistakes you need to avoid, and if they happen, how you can fix them:
Targeting Too Broad an Audience
If you target all visitors regardless of how long they stayed or how engaged they were, you risk spending your ad dollars on cold or uninterested traffic.
Instead, you can prioritize shoppers who took high-intent actions like viewing product details, adding items to the cart, or initiating checkout.
Ignoring Campaign Segmentation
Not all potential buyers are the same, so your ads shouldn’t treat them that way. A common mistake is lumping all retargeting traffic into a single ad group.
Create different segments of your audience based on behaviors like cart abandoners, repeat reviewers, or previous buyers. This way, you can tailor your ad messaging to match their needs.
Setting and Forgetting Your Campaigns
One of the worst mistakes is launching a retargeting campaign and never checking back in. Just because it’s automated doesn’t mean it’s optimized.
Retargeting requires weekly performance reviews through ACoS, CPC, conversion rate, and ROAS.
Bidding Too Aggressively Upfront
While it’s tempting to set high bids in hopes of reaching more users quickly, this can burn through your budget without guaranteeing returns.
With retargeting, especially via Sponsored Display, it’s smarter to start with lower bids and scale up once you’ve identified winning segments.
Ignoring Product Page Optimization
Even the best retargeting ad won’t convert if your product listing is weak. Poor reviews, unclear images, confusing copy, or a lack of social proof can all kill conversions, regardless of the quality of your ad.
So, before investing in retargeting, ensure your listing is optimized and credible.
Not Using Frequency Capping (For DSP)
If you’re running DSP ads, frequency capping limits how often the same user sees your ad. Without it, you risk annoying potential buyers with overexposure.
Showing the same ad too often can hurt your brand and reduce CTR. Use frequency capping to maintain balance and avoid ad fatigue.
Amazon Retargeting Tips for More Conversions
Here are some proven Amazon retargeting strategies to increase conversions from your campaigns, building on our expert Amazon advertising tips:
- Segment Your Audience: Treat all viewers differently. Create different ads for:
- Cart abandoners
- Product viewers
- Previous customers
- Use Compelling Visuals: Your ad needs to stand out. Use high-quality images or videos that showcase your product’s best features.
- Create a Sense of Urgency: Use phrases like “Limited time offer” or “Only a few left in stock” to encourage quick action.
- Offer Incentives: Consider including a special discount code in your retargeting ads to sweeten the deal.
- Keep it Fresh: Rotate your ad creatives regularly to prevent ad fatigue.
- Create Targeted Landing Pages: Send retargeted ads to a dedicated landing page rather than just your product listing. Include reviews, buyer guides, etc., to address potential sticking points and nudge visitors to purchase.
- Optimize for Mobile: More than half of global web traffic comes from mobile devices, so make sure your ads look great on smaller screens.
- Use Social Proof: Include star ratings or customer reviews in your ads to build trust.
- Test and Refine: Always test different ad elements to see what performs best.
Tip: We can audit your Amazon PPC campaigns for free at IG PPC. Let’s find out how to boost your ROI by optimizing ad spending!
Frequently Asked Questions (FAQs)
Let’s address some common questions about Amazon retargeting:
What is Purchase Remarketing on Amazon?
Purchase remarketing on Amazon is a strategy that targets customers who have previously bought from your brand. It’s a great way to:
- Encourage repeat purchases
- Introduce customers to complementary products
- Build brand loyalty
For example, if someone buys a coffee maker from your brand, you could show them ads for coffee beans or filters. It’s all about maximizing each customer’s lifetime value.
What is Views Remarketing on Amazon?
Views remarketing involves showing ads to audiences who previously viewed a product but have yet to purchase it.
It aims to reconnect with “lost” leads and nudge them towards conversion.
What is the Difference Between DSP and Sponsored Display Ads?
DSP allows advertisers to programmatically buy display, video, and audio ads on and off Amazon. In contrast, Sponsored Display Ads only appear across Amazon’s sites.
Additionally, DSP often has a higher Amazon PPC cost due to its advanced features. It also offers more advanced targeting and creative controls than Amazon self-serve display ads.
Conclusion
Amazon retargeting is a powerful tool that boosts your sales and keeps your brand top-of-mind. But mastering it takes time and expertise.
That’s where IG PPC comes in.
We’re Amazon PPC pros with extensive experience in this field. Our human experts (no robots here!) will dive deep into your campaigns, fine-tune your strategies, and help you crush the competition.
We’ll closely monitor your metrics, making continuous adjustments and optimizations to help you become a top performer in your category.
Ready to turn those clicks into conversions? Get in touch with us today for a free Amazon PPC audit.
