How Do Amazon Sponsored Brands Ads Work? What Is It & How Can Use It?

Zeeshan Riaz March 7, 2023

Amazon is a powerful platform for advertisers. It has an extensive product catalog, millions of users, and robust consumer data that can be used to target and optimize ads. But how can you use the power of Amazon Sponsored Brands Ads? We’ll answer all your questions in this blog!

How Do Amazon Sponsored Brands Ads Work? What Is It and How can use it?

What are Amazon-sponsored product ads?

Amazon-sponsored product ads are products that appear on Amazon.com and other sites in the Amazon family. They’re displayed on the search results page or product detail page, typically occurring at the top of a search result list next to organic results from other advertisers or below organic results when they’re not shown at all (this is rare).

Sponsored ads are a great way to increase your sales and presence on Amazon without spending much money—just $1 per click! They are a fantastic method to get your brand in front of more customers actively looking for products that meet their needs. However, it’s important to note that sponsored ads differ from product display ads. The former can be placed on Amazon’s search results page or product detail page, while the latter will only appear on the product detail page.

Who is eligible to run sponsored ads on Amazon?

To run brand ads on Amazon, you must be a Professional Seller and have an active Professional Seller account in good standing.

You can’t run sponsored ads if:

  • You don’t have a Professional Seller account (or are not currently running any sponsored ads).
  • Your Professional Seller account has been inactive for more than 90 days.

Amazon may also require you to give them additional information about your business, including the type of products you sell and the countries where they’re sold.

How does advertising for sponsored brands operate?

The first thing to note is that sponsored brands are displayed on the Amazon product detail page. Therefore, they are above the fold and visible to users who scroll past them (and not just those who click through).

  • The branded ads appear in a carousel format, meaning they spin around as you scroll down your page. You can choose from three carousel formats or have them appear randomly by default.
  • If you want to see all products from a particular brand together instead of having each product listed separately, choose this option when uploading your ad campaign: “Show Top Products From Brand.” It will display all top items from a single brand with pricing information underneath each listing (if applicable).

Types of sponsored brand ads

  • Product Collection Ads

In this type of Amazon ad, you can sell your products on the Amazon platform and profit from it. To use this type of sponsored brand ad, you need to create and promote a product collection using these ads.

  • Store Spotlight Ads

In this sponsored brand ad, you will promote your store or brand by showing off its products on search results pages. It is easy to do as well!

You only need to create a store, add products, and promote them using these ads. It will help you get more sales and increase your brand’s popularity.

Product collection

The product collection is a way to show multiple products in a single ad. It can be used to promote specific products or supplies, such as the new kids’ line at Target, or it can be used to showcase your bestsellers or limited-time offers.

To create a product collection ad, go through the same steps as usual (1-10), but when you get to step 11: choose “produce a Collection Ad” instead of “create an ad for [your brand] alone.”

When you reach step 11, a new screen will appear. Enter your collection name and description (whatever you want), and choose the products that should be included in the ad. The more specific your collection is—for example, “classic watches” instead of just “watches”—the more likely people are to click on it.

Store spotlight

Store Spotlight is a way to promote your store. It’s also a fantastic way to acquire additional views of your products, increase sales and conversion rates, and grow your brand.

The goal of Store Spotlight is simple: it makes it easier for new customers to find you by displaying ads in the right places on Amazon (e.g., Search).

The problem is that Store Spotlight is hard to get. You need to have a large advertising budget to qualify for this program.

Video

  • A video is a powerful tool for building brand awareness.
  • Use video in sponsored ads and details pages, product pages, and search results pages.

You can also use video to create “how-to” videos that explain how people can use your product. This is a great way to increase engagement and show customers what they can expect when they buy from you.

How can I create a campaign for sponsored brands?

You must select the ad type selector to create a campaign for sponsored brands. The sponsored brand ads Amazon is available in text and image formats, so choose whichever best suits your needs.

Next, select your criteria, set your budget, and schedule for future campaigns. So you can start promoting products on Amazon immediately!

When you’re ready to launch your brand campaign, click the blue “Create Campaign” button. You’ll be prompted to select the product(s) you want to promote.

Seven Strategies to Boost the Performance of Sponsored Brands

  • Find the right keywords.
  • Align bids with business objectives and ACoS (Average Cost of Sale).
  • Ad copy optimization with search intent, not just clickthrough rate or impressions. For example: “If you’re looking for a new car, we can help!” instead of “Buy our new cars” or similar variations that don’t get people excited about buying things from Amazon! Test multiple combinations to see which ads perform best in different contexts and devices.”

Separate Branded Searches from Unbranded Searches

You want to optimize your campaigns for branded searches and ensure that the unbranded searches don’t negatively affect your campaign. It is because of the new Amazon Sponsored Brands Ads Policy (SBAP).

To separate these two types of keywords, set up your keyword list to include both branded and unbranded terms. Then create a new campaign with this keyword list and set up your ad group settings accordingly.

Find the Right Keywords

Finding the right keywords is the first step to running your sponsored product ads.

You should always start by researching the topic you want to promote. However, you can also use Amazon Sponsored Products Ads to target more general terms that don’t have a lot of competition.

For example, if you’re selling children’s items, you could find keywords like “baby clothes” or “kids clothes” and refine them further with modifiers like size, gender, or color.

You can also search for multiple keyword variations by adding a period between each word (like “baby boys clothes”).

Align Bids with Business Objectives and ACoS

When creating a campaign, you’ll have to set the following parameters:

  • Campaign budget – The maximum amount of money you want to spend on this campaign.
  • Target audience – This is how many people will see your ad in their feed or when they visit Amazon.com (or whichever platform you promote). If the number of impressions converted into sales isn’t high enough, your ads might not be effective and should be changed accordingly. For example, if one out of 100 people who see an ad goes shopping at Amazon after seeing it, it may be ineffective because they’re too broad-based and don’t target specific audiences well enough.

Ad Copy Optimization With Search Intent

You can use search intent to optimize your ad copy. Search intent is the likelihood of someone clicking on an ad after seeing it in a search engine result. If you want to boost the likelihood of someone clicking on your ad, ensure it contains keywords relevant to what they’re searching for.

For instance, if you run an online store selling clothes and shoes and are trying to get customers coming through their site by showing up in Google searches with “men’s dress shoes” as part of their title tag or description—then it would be a great place for Amazon sponsored brands ads!

Test multiple combinations

You can test many combinations of the following:

  • Ad copy.
  • Keywords.
  • Targeting.
  • Bids and ad placements.
  • Ad size (i.e., image vs text).

Your ad copy aims to get people to click on it. Therefore, you want to use language that will resonate with your target audience, and you should avoid using words or phrases that make people feel uncomfortable about clicking on them.

Leverage Reporting Data

Use reporting data to optimize your campaign.

As you build out your Amazon sponsored brands best practices, you must clearly understand how each element performs. It can be done using the Amazon Sponsored Brands Dashboard and other tools available in the Amazon Advertising Platform or Search Console.

The dashboard allows for detailed reporting on an ad’s performance across all channels and demographics so that you can see which ads are performing best and why they resonate with consumers (i.e., those who purchase more often). It will help guide future decisions about what types of ads should be promoted on different platforms based on their specific audience needs.

Give bids for positions above the fold priority.

When you have a website, visitors first see what’s above the fold when they arrive. It is referred to as “above-the-fold ads” and will determine by the highest position of your ad about where it can still be seen.

If you want more traffic, display ads above the fold (or below) at different positions. The higher you place your ad, the more likely it will appear above or at least next to another so that viewers can see both ads and decide which brand they prefer before clicking through from one site over another.

How to display Sponsored Brands above the fold?

The fold is part of your webpage that can be seen without scrolling. It’s also known as the “above-the-fold” or “first pass.” All Amazon-sponsored ads must be displayed above this line and not obscured by other content on their page.

The fold will change based on screen size and resolution, but there are several things you need to keep in mind:

  • The fold may move with each page load (as opposed to staying fixed). It means that if you have multiple pages on one website, each page will show differently based on the amount of time that has gone on since it was last loaded/refreshed. It makes it difficult for users who click from one site link back onto another link later down their journey through links found within those same websites – which could confuse some people about where they’ve landed after visiting an ad!

Conclusion:

In conclusion, it’s critical to remember that there are numerous ways to improve your performance with Amazon sponsored brands ads. Each one will depend on your business objectives. If you’re unsure how to construct a campaign for sponsored brands, please contact us.

 

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