As a brand-registered seller on Amazon, getting your products noticed can be tough in such a crowded marketplace. Amazon Sponsored Brand Ads offer a solution that helps you capture shopper attention by placing your brand front and center in key spots on Amazon. These ads allow you to showcase your brand in a way that stands out.
Sponsored Brand Ads are powerful because they drive traffic directly to your Amazon Storefront or a custom landing page, keeping the focus on your products and eliminating competition. With no distractions from other sellers, you can fully engage potential buyers.
If you want to boost brand awareness and increase sales, mastering Amazon Sponsored Brand Ads is essential. In just a few steps, you can create ads that give your brand the visibility it deserves. Ready to dive in? Let’s explore how to set up and optimize these ads for maximum impact!
What Are Amazon Sponsored Brand Ads?
Amazon Sponsored Brand Ads are banner-style advertisements that promote your brand’s logo, a custom headline, and multiple products. These ads typically appear in prominent positions, such as at the top of Amazon search results, making them highly visible to shoppers.
In addition to the standard banner ads, brands can create video ads that appear within search results, a feature Amazon introduced in 2020. These ads have become increasingly popular, with approximately 38% of third-party sellers utilizing them, including 66% of those who have reached over $1 million in lifetime sales.
Since 2018, Sponsored Brand Ads have significantly boosted Amazon’s ad revenue, doubling their contribution. Clicking on a Sponsored Brand Ad will take customers to your Amazon Storefront or a dedicated landing page where they can view only your products. Alternatively, you can direct the traffic to a specific product listing.
For example, if you use a video ad, customers will be directed to the relevant product listing instead of your Storefront or landing page.
Why Should You Use Amazon Sponsored Brand Ads?
- Increase Brand Awareness: These ads put your brand front and center, helping shoppers recognize your logo and products.
- Drive Traffic: With high visibility, Sponsored Brand Ads drive more traffic to your product listings or Storefront.
- Boost Sales: By appearing at the top of search results, you get a prime spot to convert more customers.
How do Amazon Sponsored Brands ads work?
Amazon Sponsored Brand Ads is a pay-per-click (PPC) advertising tool that enables you to bid on keywords to place your brand’s ads prominently in search results. Like other Amazon ads, you’ll compete with other sellers for visibility, with control over your keyword bids and daily campaign budgets.
There are three primary ad formats available for Sponsored Brand Ads:
1. Product Collection:
This format allows you to highlight up to three of your brand’s products. You can direct traffic to a custom-branded Amazon Storefront or a specific landing page featuring only the products in your ad. This option is ideal if you want to boost visibility for products with lower organic reach or to showcase a mix of popular and new items.
2. Store Spotlight:
This format is perfect for brand-registered sellers who have set up an Amazon Storefront. It directs traffic to your Storefront, functioning like your own e-commerce site on Amazon. Here, customers see only your brand and its categories without competing ads. Store Spotlight is great for brands with a diverse product range, allowing you to promote multiple categories or collections with a single ad.
3. Video Ads:
Sponsored Brand Video Ads offer a dynamic way to capture attention with engaging video content. These ads appear in search results and are designed to stand out among static listings. Videos should be concise—between 15 and 30 seconds—highlighting key product features immediately, as they autoplay without sound. Ensure your video includes informative text or captions and is visually compelling to draw viewers in.
By leveraging these ad formats, Amazon Sponsored Brand Ads help you increase brand visibility, attract targeted traffic, and drive more sales. Whether you showcase a selection of products, direct customers to your Storefront, or use engaging video content, these ads are a powerful tool in your Amazon marketing strategy.
Best Practices for Creating Effective Product Videos
- Demonstrate Key Features: Use your video to demonstrate how your product works and its key features. Focus on educating your customers through practical, hands-on demonstrations.
- Stay Product-Centric: Ensure the video is entirely focused on your Product. Avoid including unnecessary elements or distractions that might detract from the core message.
- Be Brief and Impactful: Keep your video short and impactful, ideally between 15 to 30 seconds. This concise format helps retain viewer attention and delivers your message efficiently.
- Utilize Text and Captions: Since videos autoplay without sound on Amazon, incorporate informative text or captions to convey essential information and engage viewers even if they don’t enable audio.
- Ensure Smooth Looping: If your video loops, ensure smooth transitions to maintain viewer interest. A well-executed loop can keep your audience engaged for longer.
- Showcase the Product Immediately: Start the video by displaying the Product right away. Avoid lengthy introductions or fade-ins, and showcase what your product can do.
Pro Tip: Improve your ad performance by learning how Amazon’s ranking algorithm works. For insights, check out our “Understanding Amazon’s Ranking Algorithm“ guide.
Use AI to improve your Amazon ads.
Amazon is revolutionizing ad creation with AI-powered image generation, making it simpler for brands to develop compelling lifestyle imagery that boosts ad performance. Instead of spending time or money on custom lifestyle photos or plain white background images, you can now leverage AI to create engaging backgrounds for your product images.
With Amazon’s new AI tool, you can input a prompt describing the desired setting for your Product, and the tool will generate a visually appealing lifestyle image tailored to your needs.
For instance, if you have an image of a toaster against a white background, the AI can place it on a kitchen counter next to a croissant. According to Amazon, this approach can result in a 40% increase in click-through rates compared to ads featuring standard product images.
By incorporating generative AI into your Amazon ad strategy, you can enhance the visual appeal of your ads and potentially improve your click-through rates. This feature is gradually being rolled out, so check if you can take advantage of this innovative tool.
How to set up a Sponsored Brands ad
Setting up a Sponsored brand ad on Amazon is straightforward and doesn’t require a hefty budget. As long as you’re a brand-registered seller, you can create and launch your ad in just a few easy steps.
Start by logging into Seller Central. Navigate to the “Advertising” tab and select “Campaign Manager.” Click on “Create campaign” to begin setting up your ad.
Choose “Sponsored Brands” from the list of campaign types. In the “Settings” section, enter your campaign name, select the date range for your ad, set a daily budget, and specify the brand you’re promoting.
Next, select your preferred ad format. You can choose from “Product Collection,” “Store Spotlight,” or “Video Ad.” For this example, let’s choose “Product Collection.”
To create a Product Collection ad, select at least three products from your brand to feature. After selecting your products, you’ll customize your ad by adding a headline, arranging the product order, and including your brand logo and a custom image.
The final step is to set your targeting parameters. Input your desired keywords and set your bids for each one. Once configuring your targeting and bidding, click “Submit for review.”
Amazon will review your ad within 72 hours. Once approved, your Sponsored Brands ad will be live and visible to potential customers.
Optimizing Your Ads for Better Results
1. A/B Testing Different Ad Variations
Experiment with different ad creatives, headlines, and images to determine what works best. A/B testing helps identify high-performing ad elements and refine your strategy.
2. Adjusting Keywords and Bids Based on Performance
Analyze keyword performance and adjust bids accordingly. Increase bids for high-performing keywords and decrease for those that are underperforming.
3. Enhancing Ad Creative and Formats
Continuously improve your ad creatives and explore different formats to keep your ads fresh and engaging. Monitor industry trends and adapt your strategy to stay competitive.
Troubleshooting Common Issues
1. Resolving Ad Approval Delays
If your ad approval is delayed, Review Amazon’s guidelines to ensure compliance. Make any necessary adjustments and resubmit your ad for review.
2. Addressing Performance Issues
If your ad performance exceeds expectations, analyze the data to identify potential issues. Adjust your targeting, bidding, or creative elements as needed.
3. Fixing Budget and Bid Problems
Ensure your budget and bids are set correctly and adjust as necessary based on performance and spending patterns.
Conclusion
Amazon Sponsored Brand Ads are a powerful way to boost your brand’s visibility, drive traffic, and increase sales on Amazon. You can make the most of this advertising tool by choosing the right ad format, targeting the most relevant keywords, setting a proper budget, and continuously optimizing your campaigns.
Remember, success with Amazon Sponsored Brand Ads comes from a blend of data-driven strategy and consistent monitoring. Keep refining your approach, and your brand will grow and thrive on Amazon.
How To Use Amazon Sponsored Brand Ads: FAQs
Amazon Sponsored Brand Ads are banner ads that showcase your brand logo, a custom headline, and multiple products at the top of search results, driving traffic to your Amazon Storefront or product listings.
We suggest beginning with a daily budget of $50 to $100 for your Amazon Sponsored Ads. If needed, you can start with a lower budget of $5 to $10 per day and adjust as you gather performance data.
Amazon typically charges around $0.81 per click for Sponsored Ads, but this cost can vary. Your actual expense depends on factors like competition for keywords and your budget. More competitive keywords generally lead to higher costs.
Sellers use Sponsored Ads to increase visibility, drive targeted traffic, boost sales, and enhance brand awareness on Amazon.
Sponsored Products ads appear in search results and product detail pages across both desktop and mobile. You’re charged only when a user clicks on your ad, and you determine the bid amount you’re willing to pay per click.
