David Katz10/10/2024
Having trouble deciding between Amazon Sponsored Products and Amazon Sponsored Brands for your Amazon ad campaigns?
You aren't alone, and the many aspects you must consider don't make it easier. We’ve found that one is ideal for Amazon sellers looking to sell products more quickly and the other for those who want long-term results.
Let's examine the two Amazon ad types in more detail to learn their key benefits, differences, use cases, and which option best fulfills your business needs.
Here's a quick look into the advantages, disadvantages, and best use cases for Amazon Sponsored Product ads and Amazon Sponsored Brands ads.
Amazon Sponsored Products | Amazon Sponsored Brands |
---|---|
Amazon Sponsored Products are cost-per-click ads that promote individual product listings on Amazon, helping sellers increase visibility and drive sales. | Amazon Sponsored Brands are cost-per-click ads featuring a brand logo, custom headline, and multiple products to increase brand visibility and drive product discovery on Amazon. |
Pros | Pros |
Great for quick returns if you need urgent sales Easier to set up ads because of easy targeting options and low design requirements More options for ad placements | Promotes both products and brands and potentially boosts customer loyalty Higher likelihood of clicks and conversions because the ads are more visually appealing Can fetch high returns on ad spend for high-ticket products even as PPC rates increase |
Cons | Cons |
Since product promotion is the primary goal, your brand may not stick in the buyers’ minds. Little room for differentiation since ad elements can look pretty similar across similar brands | Can be more time-consuming to set up and see practical results Not ideal for businesses on a tight budget |
Best For | Best For |
Best for businesses on a limited budget since the ad spend is generally lower Best for businesses looking to promote individual products Best for businesses looking for quick results that may be short-term | Best for businesses with higher budgets for high-performing ads Best for businesses looking to improve brand recognition Best for businesses looking for long-term results |
Before we get into the finer details, it's worth noting that you can complement your Amazon advertising with other solutions, such as affiliates, to bring more external traffic to your listings and boost your sales.
At Archer Affiliates, we connect you with vetted affiliates looking to maximize their earnings by driving high-quality external traffic to your Amazon store.
Join Archer Affiliates today to get started!
Amazon Sponsored Products is a pay-per-click advertising solution for serving ads to relevant audiences and driving traffic to your individual Amazon product listings.
Basically, you rely on relevant keywords to drive traffic to your Amazon listings.
Here are some steps to building a starter Sponsored Product ads strategy for Amazon:
As you execute your Sponsored Product ads strategy, you'll want to consider the tips below:
An Amazon Sponsored Brand is a PPC-based ad solution for creating reach and awareness for your Amazon brand.
Sponsored Brands ads use a pay-per-click basis, allowing you to control the budget for most of your ad campaigns.
With Sponsored Brands, you can choose from three ad formats—video, product collection, and store spotlight to display sponsored ads directly on your landing page.
Here are some best practices to consider with Sponsored Brands ads for Amazon:
As mentioned, you can use affiliates such as influencers, publishers, and deal sites to boost external traffic to your Amazon product listings for more sales.
When you work with Archer Affiliates, we have a highly innovative and first-of-its-kind system for connecting Amazon sellers like you with affiliates to drive traffic to Amazon listings.
Our innovative performance-based pricing model ensures you only pay the affiliate’s commission when they bring you a sale. Plus, you get to set the commission rate yourself!
Start your journey with Archer Affiliates today to drive growth and profitability without any upfront fees.
Let's see how Sponsored Brands and Sponsored Products compare:
Aspect | Amazon Sponsored Products | Amazon Sponsored Brands |
---|---|---|
Ad Placement | On product detail pages, at the top of search results, to the sides of search results, and below search results. Also, often on third-party apps and websites. | At the top, sides, and bottom of the search results pages. |
Targeting Options | Automatic targeting, manual keyword targeting, and manual product targeting. | Only manual keyword targeting. |
Visibility and Reach | Seen by customers with a specific search intent, such as products like yours. Limited reach than other ad types. | Ideal for brand visibility more than immediate product visibility. Reach a broader audience. |
Cost Model | Cost-per-click (pay only when users click your ad) | Cost-per-click |
Creative Format | Your product detail page provides information like product reviews, pricing, and star ratings, so there is no need to upload images or write ad copy. | Add your logo, headline, and collection of your products. |
Branding Opportunity | Branding is limited to products, which may not be effective as they may be too similar to others on Amazon. | Ideal for branding using logos, images, videos, and products. |
Performance Metrics | Number of impressions, clicks, cost-per-click (CPC), and conversions. Also the Advertising Cost of Sales (ACOS)and Return on Ad Spend (ROAS). | ACOS, ROAS, impressions, click-through rate, CPC, conversion rate, New-to-Brand metrics, and units per order. |
Eligibility Requirements | Professional seller account, be eligible for the Buy Box, and your product must be new in condition and fall under at least one eligible category. | Be a brand-registered seller and be able to ship goods to all US addresses. Your product must be new in condition, and the ad must fall under at least one eligible category. |
Purpose and Strategy | Increase visibility, leverage keywords, and maximize conversions when you bid for keywords you already rank for. | Build brand awareness, target new buyers, improve product discovery, and leverage high-traffic periods for more seasonal sales. |
Control Over Ad Content | Straightforward ads with limited content customization options since the details come from your product detail page. | Customizable ads with content options like images and headlines. |
Based on the aspects in the table above, we can deduce various similarities and differences between the two ad types.
Let's start with the differences:
Here are some similarities:
An Amazon Sponsored Display is a self-service ad solution for sellers that leverages consumer behavior to reach a wider audience beyond those actively searching for a specific product.
Sponsored Display ads appear on Amazon and other apps or websites. They are ideal for retargeting customers who previously viewed your products and increase your visibility on Amazon.
If you are looking for a short-term Amazon ads solution with quick sales, you'll want to use Amazon Sponsored Products. For a long-term ads solution that boosts both brand recognition and sales, use the Amazon Sponsored Brands option.
Let's end the discussion with a few common questions:
Your choice between Sponsored Products and Sponsored Brands regarding sales will depend on your preference. Sponsored Products are more effective at quick sales, while Sponsored Brands ads are more effective at sustaining sales over a long time.
You can choose Sponsored Products over Sponsored Brands in the following use cases:
When you use Sponsored Brands and Sponsored Products simultaneously, you can enjoy both sales growth and improved brand recognition.
You can also reach more buyers at different stages in the customer journey. Sponsored Brands can help you target and acquire buyers at the top of the funnel, while Sponsored Products can help you target and win buyers at the bottom of the funnel.
Additionally, you can spread your financial risk when you use the two ad types together.
If you would like to leverage innovation by driving external traffic and potential buyers to your Amazon listings, you can use affiliates to complement your Amazon ads efforts.
Sign up for Archer Affiliates for free to boost your sales through affiliates without spending any money upfront.