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Amazon Sponsored Products vs. Sponsored Brands - What’s the Best Option?

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.

TL;DR - Amazon Sponsored Products vs. Amazon Sponsored Brands

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 ProductsAmazon 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.
ProsPros
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
ConsCons
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 brandsCan be more time-consuming to set up and see practical results Not ideal for businesses on a tight budget
Best ForBest 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-termBest 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!

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What Are Amazon Sponsored Products?

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.

Amazon Sponsored Products Strategy

Here are some steps to building a starter Sponsored Product ads strategy for Amazon:

  1. Set Realistic Goals: Start as easy as increasing sales with low ad spend.
  2. Refine Your Product Listing SEO: You can get better keyword reach, click-through rates, and conversion rates for your ads.
  3. Use 1 Automatic Campaign: An automatic campaign with one ad group is ideal for continuous target research, so you can keep moving high-performing keywords and ASINs to your manual campaign for better precision optimization.
  4. Create 1 Manual Campaign: Use one manual ad campaign with one ad group targeting 20-30 broad keywords and another group targeting about 20 ASINs.
  5. Use Negative Keyword and ASIN Targeting: You'll want to generate impressions only in the specific ad groups you set.
  6. Optimize Regularly: Use data from your campaigns to optimize your Amazon results. For example, keep filtering out negative keywords that generate clicks without any conversions. Also, monitor the best-performing ads and improve them where possible.
Amazon logo seen on a phone screen.

Amazon Sponsored Products Tips

As you execute your Sponsored Product ads strategy, you'll want to consider the tips below:

  • Start by optimizing your product listings to have an appealing storefront to boost the chances of your ads working.
  • Try low PPC bids at first and adjust accordingly to reach optimal levels.
  • Start with automatic targeting, so Amazon makes your ads more relevant to user searches to help you see the relevant keywords for your listings.
  • Avoid bidding on irrelevant or expensive keywords because they may take up most of your budget with poor results.
  • Complement your Sponsored Product ads with Amazon Sponsored Brands to stay more competitive.
  • Complement your ads strategy with Amazon affiliates to optimize your traffic and sales. Discover how Archer Affiliates can help you find vetted affiliates to boost your sales.
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What is an Amazon Sponsored Brand?

An Amazon Sponsored Brand is a PPC-based ad solution for creating reach and awareness for your Amazon brand.

How Does Amazon Sponsored Brand Work?

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.

Amazon Sponsored Brands Best Practices

Here are some best practices to consider with Sponsored Brands ads for Amazon:

  • Create a landing page for ad viewers, which can be your Amazon Store, product listing page, or a custom URL.
  • If you use the store, you can select a subpage to promote.
  • Add at least three products on your landing page, but not more than 100. You can also create a product list page.
  • Focus on more keywords to reach a wider audience.
  • Add visuals like videos to make the ad more attractive and your brand more memorable.
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Use Archer for More Sales Through Affiliates

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.

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Relevant Characteristics Between Amazon Sponsored Products and Amazon Sponsored Brands

Let's see how Sponsored Brands and Sponsored Products compare:

AspectAmazon Sponsored ProductsAmazon Sponsored Brands
Ad PlacementOn 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 OptionsAutomatic targeting, manual keyword targeting, and manual product targeting.Only manual keyword targeting.
Visibility and ReachSeen 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 ModelCost-per-click (pay only when users click your ad)Cost-per-click
Creative FormatYour 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 OpportunityBranding 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 MetricsNumber 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 RequirementsProfessional 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 StrategyIncrease 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 ContentStraightforward ads with limited content customization options since the details come from your product detail page.Customizable ads with content options like images and headlines.

Similarities and Differences

Based on the aspects in the table above, we can deduce various similarities and differences between the two ad types.

Amazon Sponsored Products and Amazon Sponsored Brands Differences

Let's start with the differences:

  • Sponsored Brands can have higher cost-per-click because they are more prominent than Sponsored Products ads.
  • Sponsored Products have simpler ad formats with elements such as product image, title, and price that pull from the product page.
  • Sponsored Brands have more complex formats with customizable elements like brand logos, single or multiple products, and headlines.

Amazon Sponsored Products and Amazon Sponsored Brands Similarities

Here are some similarities:

  • Both ad types ultimately target more sales.
  • Both ad types use the cost-per-click pricing model, where you only pay when a viewer clicks your ad.
Man in a warehouse setting, handling boxes and making notes.

What is an Amazon Sponsored Display?

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.

Bottom Line

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.

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Frequently Asked Questions (FAQs)

Let's end the discussion with a few common questions:

Which Type of Amazon Ad is More Effective for Driving Sales: Sponsored Products or Sponsored Brands?

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.

What Are the Typical Use Cases for Choosing Sponsored Products Over Sponsored Brands?

You can choose Sponsored Products over Sponsored Brands in the following use cases:

  • When you have short-term sales targets because Sponsored Product ads are a quick way to advertise your merchandise.
  • When you want to target specific user search intents rather than broader ones.
  • When you want to have more control over where your ads appear since Sponsored Product ads have product targeting, which offers more ad placement flexibility.
  • When you are just starting on Amazon selling or Amazon advertising.
  • When you are on a limited advertising budget that’s likely to last only for a short time.

What Are the Benefits of Using Sponsored Products And Sponsored Brands Simultaneously?

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.

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