Amazon Ad Types
August 15, 2022
Amazon Ads play a key role in sustained success on the platform. Whether you’re an established seller or just starting out, ads are important for driving traffic, gaining brand recognition and improving ranking.
There are many forms of advertising that can be utilized both on and off Amazon to drive traffic to detail pages. In this article, we’ll focus on the three most successful Amazon Ad types: Sponsored Products, Sponsored Brands and Sponsored Display.
Sponsored Products
Sponsored Products ads are the most flexible Amazon ad type, allowing you to advertise singular products by bidding on relevant keywords. Sellers bid the maximum amount that they’re willing to pay when a shopper clicks an ad for their product. The more competitive the bid, the more likely the ad is to be displayed when it matches a customer’s shopping query.
If your ads win the bid, it appears right where shoppers will notice them the most – at the top of the first page of their search results. This is a powerful tool for maximizing your product’s visibility.
Amazon claims that advertisers within the first year of launching a campaign saw an average weekly 54% increase in glance views and an average weekly 40% increase in units ordered.
Sponsored Brands
Sponsored Brands are the second most utilized Amazon ad type and are available to Brand Registered sellers. They are the large banner ads that you see at the top of your Amazon search results page.
The ads typically include a brand’s logo, a personalized tagline, and multiple examples of your products that correspond with the selected keyword. There are three types of sponsored brand ads:
- Product Collection – promotes multiple products from a landing page of your choice
- Store Spotlight – drives traffic directly to your Amazon storefront
- Video – features a single product with an autoplaying video
Sponsored Brand ads provide a more visual ad experience to shoppers, and offer an opportunity to build brand awareness, connect shoppers to your storefront and product line directly, and create a branded shopping experience.
Similar to Sponsored Products, you control your ad spend by setting your budget and bids. You only pay a fee when a customer clicks your ad.
Over the years, Sponsored Brands have increased in popularity. Today, 38% of third-party Amazon sellers utilize them, including 66% of sellers who’ve hit lifetime sales of $1 million.
Sponsored Display Ads
Sponsored Display ads provide a solution for reaching audiences both on and off Amazon. Similar to Sponsored Brands, this ad type is only available to Brand Registered sellers or vendors.
Sponsored Display Ads are more exclusive than other Amazon ads types, meaningless competition and more potential opportunity. Additionally, these ad types can provide more exposure than alternatives as well. Ads may be featured on the Amazon home page and shopping results pages, as well as third-party websites and apps.
Compared to Sponsored Products and Sponsored Brands ads, some reports show that Sponsored Display ads yield a lower return on ad spend (RoAS). However, they are a unique opportunity to drive off-Amazon traffic to your product detail pages which can offer residual benefits.
What Are the Benefits of Amazon Sponsored Ads?
There are many benefits to utilizing Amazon sponsored ads, but the biggest advantage is brand and product visibility. Paying to have your brand shown immediately in a consumer’s search results positions your brand or product first and front-of-mind. It allows for market capture based on search terms and provides a competitive advantage that might not be achieved organically.
THE ZQUARED ADVANTAGE
ZQUARED helps brand partners capture relevant consumer audience attention through advanced advertising strategies. Our proprietary advertising platforms allow access to key performance indicators (KPIs) that help drive campaign measurement and optimization with the goal of better understanding target markets to increase brand and product awareness and revenue.
To learn how ZQUARED can help you stay ahead in the Amazon game, request a comprehensive assessment of your Amazon channel from our Amazon Investment Partnership Team. You will receive audit results focused on your listings, category, competitors, reseller landscape and more with an individually-tailored strategic plan designed to capitalize on opportunities.