Amazon Sponsored Products vs. Sponsored Brands: Which Advertising Option is Right for Your Business?

Amazon is one of the most attractive platforms to reach relevant audiences. As Amazon’s Sponsored Ads platform grows in effectiveness and capability, it is vital for businesses to employ the right advertising campaigns to remain competitive. Two of the main types of campaigns offered through Amazon’s Sponsored Ads are Sponsored Products and Sponsored Brands.

Each advertising method has its own benefits and ideal scenarios. The best option for your business will depend on your unique advertising requirements and budget.

Keep reading to uncover the differences between these two options and learn how each can improve ROI and facilitate campaign success.

What Are Amazon Sponsored Products?

Amazon Sponsored Products is an advertising solution that allows you to serve ads to relevant audiences and drive traffic to your individual Amazon product listings. These ads are offered on a pay-per-click (PPC) basis, and performance is measured via cost-per-click (CPC).

Sponsored Product ads are displayed at the top of search results, below results, to the sides of search results, and on product detail pages. They can also be shown on third-party websites and apps. This versatility allows businesses to target relevant audiences with effective ad placements.

To be eligible for Amazon Sponsored Products, you must have a professional seller account and be eligible for the Buy Box. Your product must fall under at least one eligible category and be classified as new.

Amazon Sponsored Products offers a simple solution for driving sales by displaying product listings aimed at target audiences.

Amazon Sponsored Products Benefits and Best-Use Scenarios

Amazon Sponsored Products offer several benefits and are optimal in specific scenarios compared to Sponsored Brands. Understanding these benefits and scenarios can help you get the most out of your budget and marketing goals.

Benefits

• Increased Visibility: Sponsored Products ads gain attention through their prominent placements.
• Improved Organic Rankings: Effective ad placements can also boost your organic rankings.
• Self-Managed Campaigns: Allows you to save on your marketing budget but requires campaign adjustments and optimizations.
• Comprehensive Tools and Metrics: Offers features like audience segmentation to build and run successful campaigns.
• Versatility: Supports a diverse range of advertising goals on the platform.

Best-Use Scenarios

• Increasing Visibility: If your goal is to increase visibility for your product listings, Sponsored Products is the best solution.
• Capitalizing on Keywords: Ads can be placed at the top of search results, allowing you to capitalize on relevant keywords.
• Maximizing Conversions: Bid for specific long-tail keywords that your products already see success with.
• Budget Management: Operating under a PPC model ensures you only pay when an ad is clicked. This system makes budget management simple and allows easy measurement of bid performance.

What Are Amazon Sponsored Brands?

Amazon Sponsored Brands is another solution designed to create reach and awareness for your brand as a whole. These ads showcase multiple elements such as logo, tagline, and products, offering a more comprehensive outlook on your brand. Sponsored Brands ads are also served on a PPC basis but carry a higher cost due to their enhanced nature.

Sponsored Brands ads appear at the top, bottom, and sides of the search results page, with placements above the search results being the most coveted.

To be eligible for Sponsored Brands, you must be a brand-registered seller on Amazon, able to ship to all US addresses. Your advertisement must fall under at least one eligible category, and the product must be sold in new condition.

Sponsored Brands provides a comprehensive approach to generating brand awareness and reach by incorporating multiple brand signals into the advertisement.

Amazon Sponsored Brands Benefits and Best-Use Scenarios 

Benefits and Best-Use Scenarios for Amazon Sponsored Brands

Sponsored Brands offer several advantages and are optimal in specific scenarios compared to Sponsored Products. Aligning your marketing budget and goals with this solution can lead to significant ROI increases.

Benefits

• Enhanced Engagement: Includes brand name, logo, tagline, products, videos, and visuals for a more engaging campaign.
• Showcase Multiple Products: Allows grouping of multiple products in one ad, unlike Sponsored Products which only display individual listings.
• Comprehensive Campaign Management: Offers the same management tools and advertising features as Sponsored Products, making crafting, employing, and monitoring campaigns straightforward.

Best-Use Scenarios

• Raising Brand Awareness: Ideal for businesses seeking to increase brand awareness in an enhanced way.
• Seasonal Sales: More favorable during high-traffic periods like Black Friday and New Year’s due to higher conversion rates and value.
• Higher Budgets: Suited for businesses with larger budgets to invest in higher-performing ads.

Final Verdict

Both Amazon Sponsored Products and Sponsored Brands provide effective advertising solutions to meet your business goals. The key to maximizing these campaigns lies in understanding your specific marketing objectives and current brand standing.

Determining the right advertising goals and campaign scope can be challenging. A digital marketing agency can help your business understand its advertising needs. As a digital agency specializing in review management, we provide the guidance and planning necessary for successful growth marketing.

Get in touch with us today to begin growing your brand’s online presence.