Generally the spacer, called a fairing block, is used to adjust for the angle of the hull so the transducer points straight down. Without the fairing block the transducer will point toward the bottom on an angle giving false depth readings.
I would recommend Plasteak or Starboard for a fairing block. I used Plasteak a few years ago and its held up just fine. I did make mine thick to adjust for the hull angle but you could make a think piece as an isolator.
Do NOT use wood fairing block. Wood will expand and may crack the nylon transducer.
Be sure to use 3M 4200 or the more permanent 5200 boat caulk. 5200 will hold the transducer together better if it is damaged underway but it can make replacement a royal pain.
-Karl
1986, 32' Sedan, twin 360ci, 275hp Chrysler's w/ K&N flame arrestors