Rocketise - Amazon PPC Agency
All videos

Amazon Advertising Test: How Sponsored Display Ads Boost Overall Conversion Rate

Published on October 7, 2025

About this video

For personalized assistance with your Amazon Advertising strategy, visit https://amazoniappc.com

In this video, I share my findings on how increasing sponsored display ads spend can significantly improve your overall conversion rate and Amazon advertising performance. This test challenges the common 5% sponsored display budget allocation rule that many Amazon sellers follow.

I conducted a comprehensive test in the UK marketplace where we dramatically increased sponsored display ad spend from September 1st through 15th, then reduced it back to normal levels from September 16th to 30th. The results were remarkable and show why amazon ads strategy should focus on the holistic approach rather than individual campaign metrics.

The data clearly shows that amazon ppc optimization isn't just about managing individual campaign performance. When you increase sponsored display exposure, customers move from seeing only one or two ad types to experiencing three, four, or even five different touchpoints including amazon sponsored products and sponsored brands.

This amazon advertising approach proves that ACOS as a single metric shouldn't be your only measure of profitability. You can run sponsored brands with higher ACOS and sponsored display at 100% ACOS, but the combined effect drives better overall amazon ppc performance. Amazon marketing strategy should consider the full customer journey across all amazon ads types.

The key insight is that amazon advertising campaign success depends on frequency and variety of ad exposure. When customers see multiple amazon sponsored ads, their purchase rate increases significantly. This amazon ppc marketing approach has been consistent across all accounts we manage, making it a crucial strategy for amazon advertising optimization.

Contents: 0:00 Why Sponsored Display Budget Rules Need Rethinking 0:38 UK Marketplace Test Setup and Methodology 1:30 Dramatic Results from Increased Sponsored Display Spend 2:40 Sales Performance Comparison Between Test Periods 3:47 Moving Beyond Single Campaign Metrics for Better ROI 4:29 Holistic Amazon Advertising Approach for Maximum Impact

------------------------------------------------------ Some product links are affiliate links which means if you buy something we'll receive a small commission.

💡 If you need a *Helium 10* tool, which we strongly recommend as the industry standard, you can use this link to signup and get 20% OFF for 6 months: https://i.helium10.com/K05Qo9

💡 Market Share and Marketplace Intelligence At Your Fingertips - nothing better than SmartScout - *25% OFF* discount coupon *for 3 months* ! Link: https://smartscout.com?fpr=amazonia

💡Sell more with real shopper insights from *ProductPinion* with a *10% OFF for a lifetime* use the following link: https://www.productpinion.com?_from=igor46

💡 If you're still not using *PickFu* you should definitely start! For a 50% OFF on your first PICKFU poll use the coupon AMAZONIA or visit this link: https://www.pickfu.com/#_r_amazonia

💡 Get *2 months* of Free Trial for *SellerBoard* using this link: https://sellerboard.com/?p=01820

Free offer

Get a Free Account Audit

Let our Amazon PPC experts review your account and show you exactly where you're leaving money on the table — no strings attached.

No spam. No commitment. Just actionable insights.

Transcript

Hi guys, I'm starting to love sponsored display ads more and more. In this video, I will show you how by increasing spend on your sponsor display can lead to to better conversion rate overall. Stay tuned. Now, I know that there was this study and poll around sponsored display that we should reuse around 5% of ad spend on SP sponsored display. But this video will make you question that just a little bit at least. What I did here was a test in UK marketplace and we wanted to test what if we increase sponsor display ad spend significantly will it affect the end conversion rate on the overall account level? Because what we've seen and we see this across the board on all of the accounts whenever people see more of the ad types different ad products like sponsor brands, sponsor display and sponsor products the purchase rate goes up significantly compared when they see some of these ad types in isolation. Now just for those who who don't understand purchase rate, purchase rate is not conversion rate. in purchase rate in Amazon marketing cloud is calculated when you divide how many people's actually purchased by the unique reach and you get the purchase rate. So what we did here was since September 1st through September 15, we drastically increased the spend on sponsor display and we added all kinds of audiences that that are relevant to the target um audience and relevant to the products. And then through 16 to 30, we lowered that spend to where it was before the test. And you can see the difference. Take a look at the number of reached uh users that purchased when we first ran the result the test with the increased spend it was 62 and then with a lower spend it was only 10. And for for people who saw sponsor brands, sponsor display and sponsor products, we managed to have 185 which went down to 43 only when we lowered the spend back to where it was. That again led us to totally different products total product sales uh between the two periods. So the first period September 1st through 15th on sponsor display and sponsored product we saw 600 in sales. Then after an increase, sorry, after the decrease, we we saw only $100 in sales. Then for the third bucket, we had on the with the higher spend, we had 185 people who purchased leading to 1,700 in sales and then down to only 470 in sales. You can also see the difference in sponsor products, sponsor brands because we increased the overall spend drastically. So it's not like apples to apples comparison, but we will do that after Prime Day. But it's definitely something that we've seen happening across the other accounts that we manage. So as soon as we increase sponsor display, the overall product sales increase as a result of that. So we are moving people from the other buckets where they only see one type of products or even two types of products down to three or four or five depending if you have also sponsored TV or sponsor uh sorry uh the DSP inside. So sponsored display can really help you in your overall sales. It's not like you can only you shouldn't be watching your a cost anymore as a single metric of profitability. Yes, it helps you as I covered in my previous videos, but you can have sponsor brands with a high higher a cost. You can have sponsor display at you know 100% of a cost. But still the holistic approach is what matters. So let me know if you have any doubts about it or questions and I'll be glad to answer. Bye-bye.

Frequently asked questions

What did the Sponsored Display budget increase test in the UK marketplace actually show?

The test ran two consecutive 15-day periods in September. During the first period, Sponsored Display spend was dramatically increased alongside all relevant audience types. During the second period, it was reduced back to the previous baseline. The results were striking. For the Sponsored Products plus Sponsored Display exposure group, 62 shoppers purchased during the high-spend period generating around 600 euros in sales, compared to only 10 shoppers and 100 euros during the low-spend period. For the Sponsored Products plus Sponsored Brands plus Sponsored Display group, 185 shoppers purchased generating 1,700 euros in sales during the high-spend period, compared to only 43 shoppers and 470 euros during the low-spend period. The consistent pattern across all exposure groups was that more Sponsored Display spend moved more shoppers from single or dual ad type exposure into triple or quadruple ad type exposure, which is consistently where the highest purchase rates occur.

Why does the conventional 5% Sponsored Display budget rule deserve to be questioned?

The 5% allocation rule treats Sponsored Display as a minor supplementary channel and measures its contribution primarily through its own ACoS, which tends to look high or even very high because Sponsored Display is operating at the awareness and consideration stages rather than driving immediate purchase-intent clicks. When Sponsored Display is evaluated this way in isolation, it is easy to conclude that the budget is wasted. The test data shows a different picture: increasing Sponsored Display spend significantly shifts shoppers into higher-exposure groups where purchase rates are dramatically higher, producing a large multiple on total product sales. The value is not in the direct ACoS of the Sponsored Display campaigns but in the downstream conversion lift across the entire advertising mix.

How should sellers measure the true impact of Sponsored Display rather than relying on its individual ACoS?

The right measurement tool is the AMC Overlap Report, which shows purchase rates for each combination of ad types a shopper was exposed to. Running this report before and after a Sponsored Display budget change reveals whether the increase in Sponsored Display is successfully moving shoppers into higher-exposure groups and whether those groups are showing the expected purchase rate lift. A Sponsored Display campaign running at 100% ACoS on its own may still be justified if the AMC data shows that shoppers exposed to Sponsored Display alongside Sponsored Products and Sponsored Brands are converting at a rate five or ten times higher than those who only saw Sponsored Products. The 100% ACoS line item cost is the price paid to produce that lift, and in most cases the additional revenue from improved purchase rates far exceeds it.