Understanding Amazon Ad Types: Sponsored Products, Sponsored Brands, and Sponsored Display Ads

Amazon has become a critical platform for e-commerce businesses and Amazon Ads should be considered as part of any holistic e-commerce marketing strategy. Amazon Ads is relevant throughout the marketing funnel, from brand awareness to driving action. There are three main ad types on the platform, and this blog post will explore the benefits and best practices of each of these.

Sponsored Product Ads

Sponsored Product Ads are the most common ad type and use either keyword or product targeting to promote individual product listings. Ads can appear in Amazon’s search results and on product detail pages, seamlessly blending in with organic listings. Sponsored Product Ads are designed to increase visibility and drive sales of specific items. These ad types are especially useful for new sellers, if your listing has low visibility, or if your products are in a highly competitive industry. 

Sponsored Product Ad Example

Source: Amazon Advertising

The benefits

• Increased Visibility: Ads appear at the top of the search results, a prime placement that increases the likelihood of clicks and purchases.
• Targeted Advertising: Target keywords or specific products to ensure the ad will only be shown to shoppers who are actively in-market for your product.
• Seamless Integration: Ads blend with organic search results, making them less intrusive.
• Best for generating sales: This ad type reaches customers when their purchase intent is at its highest.

Best Practices

To maximise the effectiveness of these ads, make sure your product listings are fully optimised with high-quality images and detailed, accurate descriptions. A well-optimised listing increases the likelihood of a sale once shoppers click on your ad. This should also complement organic performance as Amazon may rank your product listing higher, and therefore place your product higher up the search engine results page.

Regularly reviewing your campaign’s performance and making optimisations is vital. Adjusting bids, updating keywords, and refining targeting can improve results and ensure you get a strong return on investment. Remember to regularly check search terms and exclude any irrelevant terms through negative keywords. This will save budget for more relevant clicks and increase the overall efficiency of your campaigns.

Sponsored Brands Ads

Sponsored Brand Ads are banners that take centre stage at the top of Amazon’s SERP, or alongside other shopping results. They are best used for increasing brand visibility and driving awareness, allowing sellers to create a cohesive brand message that attracts shoppers. There are three ad format options for Sponsored Brand Ads: Product Collection, Store Spotlight and Video. 

Sponsored Brand Ad Example 

(Product Collection)

Source: Amazon Advertising

The benefits

• Enhanced Brand Visibility: Sponsored Brand Ads occupy a prominent position at the top of search results, ensuring that your brand gets maximum exposure.
• Product Discovery: Featuring multiple products in one ad helps with cross-selling and introducing customers to a wider range of your offerings.
• Best for generating awareness: This is the most effective ad type to use to increase reach and visibility. 

Best practices

Targeting works the same for both Sponsored Product and Sponsored Brand Ads – test both keyword and product targeting and measure what works best for your brand and products. 

Unlike Sponsored Product Ads, Sponsored Brand ads are customisable. Testing different creative elements such as logos or headlines is worthwhile to help find what resonates best with shoppers. 

If you have a limited product range, the video ad format would be the best option. Ensure the video highlights the selected product and its unique selling points within the first few seconds. The video will restart once it’s over, so make sure it flows seamlessly. The Product Collection ad format is a great option if you want to boost products in your brand that have low organic or sponsored ad visibility, but also add a product that performs well within the mix to help increase the chances of someone clicking your ad. The Store Spotlight ad format is ideal for brands that sell multiple products across a variety of categories or subcategories.

Sponsored Display Ads

Sponsored Display Ads are versatile and powerful, designed to help sellers reach potential customers both on and off Amazon. These ads appear on product detail pages, customer review pages, and across Amazon’s network including third-party websites and apps. Sponsored Display Ads leverage Amazon’s shopper insights and you can even retarget users who have shown interest in your products or similar products, aiming to re-engage them and drive conversions.

Sponsored Display Example

Source: Amazon Advertising

The benefits

• Wider Reach: Sponsored Display Ads not only appear on the Amazon platform, but also across third-party websites and apps.
• Audience Targeting – Additional targeting options are available, including interest-based audiences and custom audiences, where you can tailor ads to target specific customer groups such as those who have previously purchased a product. 
• Retargeting Capabilities: Retarget shoppers who have previously viewed your products or similar items. This increases the likelihood of converting interested prospects into buyers by keeping your products top-of-mind.
• Ease of Use: Set up is extremely straightforward and no additional assets are required.

Best practices

Experiment with the various targeting options available for Sponsored Display Ads to identify which audiences work best for your products, to ensure budget is used efficiently and ads reach the most relevant audiences.

Although additional assets aren’t required for set up, imagery can be uploaded to help the ad stand out. Test different versions to find what works best for your products. 

Conclusion

Understanding the different types of Amazon ads is crucial for creating a comprehensive and effective advertising strategy. Each ad type offers unique benefits and opportunities, allowing you to tailor your approach to your specific business goals. By leveraging these ad formats, you can enhance your brand visibility, drive targeted traffic, and ultimately boost sales on Amazon.

Want to know how Distinctly can help with Amazon Ads? Get in touch today.