Amazon Retargeting: Benefits, Types, and Tips Explained

You have probably noticed those ads following you around the internet for products you were just looking at. That's retargeting at work.

Amazon offers sophisticated retargeting capabilities to help you reconnect with potential buyers across the web.

Keep reading to learn everything about retargeting on Amazon, from what it is to how to create effective campaigns.

Meanwhile, at Archer Affiliates, we can connect you with over 2,500 vetted affiliates to drive external traffic to your listings, complementing your retargeting efforts. Join Archer Affiliates and start growing your sales today.

What is Amazon Retargeting?

Amazon retargeting is a marketing technique that allows you to show ads to potential customers who have previously interacted with your products or brands on Amazon.

These interactions include product searches, brand views, or even abandoned carts. Unlike traditional Amazon ad campaigns that target a broad audience, retargeting focuses on reaching out to people who have already shown interest in your products.

Here's how it works in simple terms:

1. A shopper visits your product listing on Amazon but doesn't make a purchase.
2. Amazon places a small piece of code (called a "cookie") on the shopper's browser.
3. As the shopper browses other websites, they see ads for your product, reminding them of their initial interest.

This strategy is incredibly effective because it targets warm leads—people familiar with your product and more likely to convert.

In fact, according to Invesp CRO, visitors who come to your listing through retargeted ads are 70% more likely to convert than regular display ads.

Benefits of Amazon Retargeting

There are several compelling reasons to incorporate Amazon retargeting into your advertising approach to maximize Amazon results:

• Higher Conversion Rates: Shoppers retargeted with relevant product ads are more likely to complete their purchase since they already know about your offerings. Retargeting can significantly boost your conversion rate.
• Improved Brand Awareness: Retargeting reinforces your brand image and increases the chances of future purchases. Research by PR Newswire shows that retargeting can increase brand awareness by up to 1,046%.
• Recapture Lost Sales: Many shoppers abandon carts or leave product pages without purchasing. Retargeting helps you bring these potential customers back, reducing cart abandonment rates. An Invesp CRO report (we mentioned earlier) says that retargeting can recover up to 26% of abandoned carts.
• Increased Purchase Frequency: Repeated exposure through retargeting keeps your products top of mind for potential buyers. This can increase repeat purchases for consumable items shoppers replenish frequently.
• Cost-Effective Advertising: Retargeting often lowers advertising costs by targeting a more qualified audience. According to WordStream, retargeting can lead to a 50% reduction in cost-per-click (CPC) compared to regular search ads.
• Cross-Sell Opportunities: You can remind customers of complementary items they may be interested in based on their browsing history. Cross-sells are a major revenue channel for you.
• Increased Return on Ad Spend (ROAS): With higher conversion rates and lower costs, retargeting typically leads to a better Amazon ROAS. A study revealed that retargeting can boost ad response rates by up to 400%.

Difference Between Remarketing and Retargeting on Amazon

Though remarketing and retargeting sound similar, there are some key differences:

• Retargeting displays ads based on cookie data, tracking user behavior anonymously as they browse websites. It reminds users of products viewed across sites.
• Remarketing builds targeted email lists and customer profiles based on information provided, such as emails and names. This data is used to tailor messaging.

Amazon offers sophisticated retargeting through Sponsored Ads, tracking across websites based on browsing behavior and purchases.

The Amazon Advertising Platform (AAP) also allows PPC ads on third-party sites to increase visibility on Amazon.

Amazon uses the term “Remarketing” for its retargeting capabilities. So, on Amazon, remarketing is retargeting for all intents and purposes.

What Are the Types of Amazon Retargeting?

There are two primary options to create Amazon retargeting campaigns—Sponsored Display Ads and Demand Side Platform (DSP):

1. Sponsored Display Ads

This self-service option offered in Amazon Seller Central advertising is ideal for retargeting buyers based on Amazon activity. It enables reaching shoppers both on and off Amazon across websites in their ad network.

With Sponsored Display Ads, you simply select target products and audiences. Amazon auto-generates relevant ads. There are three targeting methods offered:

• Product Targeting: Shows your ads to shoppers browsing related or competing items. Helps discover new audiences.
• Views Remarketing: This strategy targets users who viewed your product listings but didn't purchase and reminds them to complete the purchase.
• Interest Targeting: This method reaches audiences interested in your products based on browsing history to raise awareness. It is limited to vendors.

2. Amazon DSP Ads

Amazon Demand Side Platform allows you to programmatically buy display, video, and audio ads across Amazon properties and external sites. You can fully customize creatives in DSP.

Amazon DSP uses more precise targeting, such as demographic, behavioral, and remarketing, to reach the most relevant segments across devices and platforms. Integration with Amazon’s data ecosystem offers further personalization.

How to Set Up an Effective Amazon Retargeting Campaign

Well-planned setup and ongoing optimization are crucial for successful Amazon retargeting.

Follow these best practices:

1. Access Amazon Advertising: Go to your Amazon Seller Central, then access the Advertising section.

2. Choose Campaign Type: Select "Sponsored Display" as your campaign type. This is where you'll find retargeting options.

3. Set Your Budget: Decide on a daily budget for your campaign. Start small and adjust based on performance.

4. Select Your Audience: Choose the type of retargeting you want to use (e.g., product views, similar product views).

5. Pick Your Products: Select which of your products you want to advertise in this campaign.

6. Set Your Bids: Determine how much you're willing to pay per click. Amazon provides a suggested bid range.

7. Create Your Ad: Design your ad creative, including images and copy. Keep it simple and focused on your product's benefits.

8. Launch and Monitor: Once your campaign is live, regularly check its performance and adjust as needed.

Challenges You Might Face With Retargeting on Amazon

As with most advertising mediums, Amazon retargeting comes with its own set of challenges:

• Ad Fatigue: Showing the same ad too frequently can lead to audience burnout. Vary your ad creatives and limit frequency to avoid this.
• Privacy Concerns: With increasing focus on data privacy, some users may opt out of tracking, reducing your retargeting audience.
• Data Limitations: Amazon doesn't share much about how its ad system works or how it groups audiences, making it hard to figure out why some ads aren't performing well.
• Competition: Many sellers use retargeting, so standing out can be challenging. Focus on creating compelling ad copy and visuals.
• Creative Restrictions: Sponsored Display Ads don't let you change much in your ads. On the other hand, setting up DSP ads can be tricky for beginners. Finding a middle ground is tough.
• Cost Management: If not monitored closely, retargeting costs can escalate quickly. Set clear budget limits and regularly review your spending.
• Seasonal Fluctuations: Retargeting strategies may need to be adjusted to boost seasonal sales on Amazon, adding another layer of complexity to campaign management.
• Bid Optimization Struggles: Finding the right bid amounts for different products, audiences, and ad placements requires extensive testing. It's tricky to balance generating sales with not spending too much on ads.
• Attribution Issues: It can be difficult to accurately attribute sales to retargeting efforts, especially if users convert through other channels.
• Limited Control: Amazon's retargeting options are more limited than those of platforms like Google or Facebook, giving you less flexibility in targeting and creative options.

Best Practices for Creating Successful Amazon Retargeting Ads

Follow these expert Amazon advertising tips to maximize the impact of your retargeting campaigns:

• Segment Your Audience: Don't treat all potential customers the same. Create campaigns for different audience segments based on their behavior.
• Use Compelling Visuals: Your ads should be visually appealing and clearly showcase your product. MIT research shows that the human brain can quickly interpret images in just 13 milliseconds, making visual impact crucial. Explore Amazon Posts to create engaging visual content.
• Write Clear, Benefit-Focused Copy: Your ad text should quickly communicate the value of your product. Show how your product can help buyers or save them money. Use short, punchy ad copy to quickly get your message and unique selling points (USP) across.
• Implement Frequency Caps: Limit how often individual users see your ads to prevent ad fatigue. A study by Retargeter suggests capping frequency at 17-20 impressions per month for optimal results.
• Offer Incentives: To encourage conversions, consider including special offers or discounts in your retargeting ads. According to Invesp CRO (the report we mentioned earlier), 54% of consumers would purchase products left in shopping carts if those items were discounted. Limited-time promotions and bundled offerings can create a sense of urgency but ensure you're still making a profit.
• Test and Optimize: Continuously test different ad variations and analyze performance data (like clicks, conversions, page visits, how often your ad is shown, and sales for each campaign). Small changes in imagery or copy can significantly improve click-through and conversion rates.
• Use Dynamic Product Ads: These ads automatically show users the exact products they viewed, which can be more effective than generic ads.
• Optimize for Mobile: Make sure your ads look good and work well on smartphones. This includes checking ad sizes, layouts, loading speeds, and the ease of clicking buttons. It's important because over 53% of Amazon traffic comes from mobile devices.

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Frequently Asked Questions (FAQs)

Let's address some common questions about Amazon retargeting:

Can I Use Amazon Retargeting for Multiple Products at Once?

Absolutely. You can create a single campaign with multiple ad groups, each showcasing different products targeted to relevant audience segments. Maintain alignment between products and intended viewers for optimal relevance.

What Metrics Should I Track to Measure Retargeting Success?

Focus on clicks, conversions, impressions, detail page visits, return on ad spend (RoAs), and sales metrics. Evaluate trends over time across products, segments, campaigns, and platforms to measure impact and find optimization opportunities.

What Tools Are Best for Analyzing Amazon Retargeting Data?

Amazon Attribution neatly aggregates conversion data across ads, search, social, email, referrals, and more. For deeper analysis, use tools like Sellics or Jungle Scout. They provide additional details into factors influencing campaign performance.

Can I Use Amazon Retargeting for International Markets?

Yes, Amazon retargeting can be used in international markets where Amazon Advertising is available. However, when creating ads for different regions, you must consider cultural differences and language barriers.

According to Common Sense Advisory, 76% of consumers prefer to buy products in their native language, highlighting the importance of localization in your retargeting efforts.

Conclusion

While retargeting is a powerful tool, it's just one piece of the Amazon marketing puzzle. To truly boost your Amazon sales, consider combining retargeting with affiliate marketing.

That's where Archer Affiliates comes in. We connect Amazon sellers like you with over 2,500 vetted affiliates, influencers, and publishers. Our platform helps you drive external traffic to your listings, increasing visibility and sales.

The best part? You only pay when you make a sale – no upfront or monthly fees.

Ready to take your Amazon business to the next level? Join Archer Affiliates today and start connecting with Amazon influencers who can help grow your brand!