Amazon Sponsored Products vs Sponsored Brands

Posted By: administrator
Posted On: 20 Mar, 2022
Last Updated On: 05 Apr, 2022

Sponsored Products, Sponsored Brands, and the new Sponsored Display Ads furnish a world of opportunities to sellers to put their products in the limelight and in front of the right customer group. But all these ad formats are not equally created. Sponsored Brands will always be on the top spot on the search results page.

It gives the opportunity to send shoppers directly to your custom build brand store as more brand exposure is at stake. Because of the wide exposure, there will be so much potential, that this format continues to be under-utilized. As a result, sellers and buyers could be able to churn out only 11% of ad revenue from Sponsored Brands.

Sponsored Brands can help customers highlight their brands and products with creative ads that appear in relevant Amazon shopping results.

Sponsored Brands ads reach and engage new audiences with custom headlines, videos, and images, which will consist of three different formats, namely Store Spotlight, Video, and Product Collection. In this article, we are focusing on the differences between Amazon Sponsored Products vs Sponsored Brands.

Sponsored Products have 0.42% and Sponsored Brands have a 0.38% median click-through rate for this, and it means that when looking at mediocre-performing ads from a click-through-rate point of view, Sponsored Brands fare minimal, as they register an 11% lower click-through-rate.

This gap is inflated among the worst performers. The worst performing Sponsored Brands ads have a click-through rate which is 33% lower than Sponsored Products. By looking at the top 20% of performers, the click-through rate is 11% higher in favor of Sponsored Brands.

This can be better explained by the fact that most shoppers usually don’t like to click on “ads”. And Sponsored Brands are less surreptitious than Sponsored Products. They look almost like any conventional ads, if only due to the familiar-looking shape of the banner. To earn the click, brands must make an especially lucrative offer.

It’s good to know that the format provides the resources to do so. Like highlighting a captivating brand store with a Store Spotlight Ad, or displaying a related best-selling product in a Product Collection ad. This clearly explains the reason, when done right, Sponsored Brands display and show the potential to outperform Sponsored Products with regard to clicks-wise. In other words, the margin for error is greater with Sponsored Brands – as far as click-through rates are concerned.

Here, we present a complete guide on  Amazon SP vs SB  that discusses what Sponsored Products and Sponsored Brands are and how do they work? It compares these different ad campaigns and focuses on understanding how to effectively use them to meet the business needs.

Table of Content

  1. What is an Amazon Sponsored Product?
  2. What is an Amazon Sponsored Brand?
  3. How can we create Amazon Sponsored Products?
  4. How can Amazon Sponsor Brands be created?
  5. What is an Amazon-sponsored Display?
  6. What are the targeting options in Amazon SP and Amazon SB?
  7. Differentiate between Amazon Sponsored Products and Sponsored brands.
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What is an Amazon Sponsored Product?

Amazon Sponsored Products are the listed individual products that are promoted on Amazon. Such targeted ads help sellers increase the visibility of their products when the keyword they bid for appears in the search result of the customer. It also gets appeared on the product detail page of the website. In a nutshell, Amazon Sponsored Products are the PPC (Pay Per Click) ads that will enable you to drive traffic to your product listings on Amazon.

When the customers see that the product is being displayed at the top of the search result, they feel that it is popular and should also buy it. Henceforth, it boosts the sales of the product.

The primary goal behind using this ad campaign is to boost the product’s sales, thereby increasing its visibility and ranking among competitors’ products.

What is an Amazon Sponsored Brand?

Amazon sponsored brand ads are used to enhance the awareness of the brand among the customers. Amazon Sponsored Brand Ads operate in a procedure wherein you pay only when someone clicks on your ad. A point of mention here is that these ads carry a higher Cost Per Click/CPC than Sponsored Product Ads as they have an edge over the others. It is at the sole discretion of Amazon as to where these ads will appear, and it depends on the amount of the bid.

When an online customer clicks on this ad, he will be navigated to a particular category of the product, its listing, or your Amazon storefront. The amazon sponsored brand ads are cost-effective. The objective of these ads is to drive more and more customers to the website, thereby enhancing brand awareness.

How can Amazon Sponsored Products be created?

Amazon Sponsored Products is an advertising solution used by thousands of sellers on Amazon. It could transform the way you sell. It facilitates the sellers with an opportunity to get their products featured on the first few search result pages which are directed at targeted buyers on both desktop and mobile. In a similar way, it helps relevant buyers/shoppers discover a product amidst thousands of product listings.

There are four simple steps from registration to launching your sponsored products campaign which is as under:

Register to kick-start the campaign

  • First Log onto the Seller Central Account with Username and Password.
  • Register for Sponsored Products.
  • Next, accept the terms and conditions, and click on “Join Now”.
  • You will be directed to the campaign creation page under the Campaign Manager.

By Creating Advertising Campaigns

  • Name of the Ad Campaign: Enter a campaign name that you have planned and choose the option of “Sponsored Products.”

Daily Budget: This is the average amount that you have planned and are willing to spend per day.

Keep Start and End Date: The ideal way is to provide the “Start Date” and leave the “End Date” blank to allow the campaign to always stay “live”. By doing this, you don’t have to create a new campaign again and can update the budget as and when required.

Targeting Type: You can select your targeting type by either manual targeting or automatic targeting. You can benefit by selecting automatic targeting as through automatic targeting, Amazon makes your ads available to all relevant customer searches based on your product information and you are not required to enter specific keywords. In the case of manual targeting, you will have to manually add keywords yourself.

By Creating an Advertising Group

The next step will be to create an ad group which will be a collection of all your products/ASINs that you want to advertise under one group.

You must Enter the Group Name.

Next, you must enter the Bid, which is your Cost Per Click (CPC) Bid, which is the maximum bid amount that you are ready to pay when a customer clicks on your ad. It can be as low as Re.1, but we suggest you begin with Rs.5 as a Cost Per Click/CPC bid for optimum ad performance.

Select the Products which you are planning to advertise

Now select the products you want to advertise from your listings under this ad group. The next step is to Click to save the relevant changes, and the process is finished.

Amazon will review the campaign and will set it to run if approved. Campaign review can take up to 3 working days. An email will be sent to let you know whether your campaign was accepted or rejected.

Amazon will review the campaign and will set it to run if approved. Campaign review can take up to 3 working days. An email will be sent to let you know whether your campaign was accepted or rejected. Upon successful approval of your campaign, the ad will start running immediately. Amazon will collect data for you to apply to future campaigns in case you run an automatic campaign. Amazon tracks click and spend, it will approximately take a period of 2 to 4 working days in a week to process. It may take up to 2 to 4 weeks to gather enough data to see which campaigns are doing well.

Well, every advertising campaign has its benefits. To get maximum advantage and stay ahead in the competition, the marketer needs to combine all of them and optimize them. The issue that one faces with sponsored campaigns is that they demand extra effort and time. To earn maximum ROI, the marketer must run them efficiently.

How can Amazon Sponsor Brands be created?

A new Headline Search Ad Campaign can be set up and can be completed by following these steps within Seller Central or AMS. To create Amazon Sponsored Brands, the following steps are needed:

  1. Click on Campaign Manager
  2. Select Sponsored Brands
  3. Click Create Campaign
  4. Select ad landing page
  5. Set a campaign budget
  6. Add keywords and bids
  7. Add an image and headline

Click on Campaign Manager

First, one must log in to their Seller Central account at seller central. Amazon.com.

Select Sponsored Brands

The next step will be to navigate to the “Advertisement” Tab. Then navigate to the “Campaign Manager”, click on the option “Create Campaign” and select the option “Sponsored Brands”.

Click Create Campaign

Then she must create the campaign in which he is required to enter the campaign name and select the start, and end date.

Select ad landing page

She must choose a landing page for ad traffic. Instead of a specific product detail page, the Sponsored Brand Ad will be advertised on a landing page.

Set a campaign budget

The budgetary allocation is to be set for advertising campaigns for daily or lifetime budgets.

Add keywords and bids

In addition, she is required to add relevant keywords and set for bids. She should pick which keywords to target and how much she wants to bid for clicks.

Add an image and headline

The marketer must come up with creatives with personalized text and images. For creatives, the marketer must enter a brand name with a maximum of 30 characters, a logo image, and an amazon sponsored brand’s headline with a limit of 50 characters. Lastly, she must click on the “launch campaign” option.

After all the above steps, the sponsored brand ad must go through Amazon’s review process. This process usually takes 24 hours to finish. However, it could go longer, up to three business days.

What is an Amazon Sponsored Display?

If your idea is to retarget Amazon visitors to your listing, then Amazon Sponsored Display Ads provide the much-needed solution.

If you’re an Amazon vendor or a Brand-Registered Seller, you can access several powerful advertising tools, to help scale your business on Amazon. One of those tools is Sponsored Display Ads.

Sponsored Display Ads allow you to reach relevant audiences on and off Amazon. So your ads will not only be displayed across various Amazon pages but also will be visible to customers on third-party websites and apps.

Sponsored display ads are a self-service advertising solution launched by Amazon for its advertisers. Product targeting works in the same manner for Sponsored Products as well as Sponsored Display Ads. However, in the case of Sponsored Display, you can permit Amazon to automatically extend product targeting for an item. The marketers can expand their horizons to reach beyond Amazon as they can exponentially grow their businesses by boosting their discoverability.

The seller can target a huge proportion of the customer base on Amazon with the help of Amazon Sponsored Display.

How Amazon sponsored display ads are different from other offerings?

The major point of difference between the Amazon Sponsored Display Ads and other offerings is that the Display Ads will not appear based on keyword searches from the customers. Unlike the Sponsored Products and Sponsored Brand ads, the Sponsored Display ads work in a slightly different manner. The Sponsored Display ads tend to serve the customers if:

  • They looked at the products’ lists which look like the seller’s product listings.
  • They have previously viewed or bought the seller’s product.
  • They have purchased a product in the same category as those of sellers.

As you are aware Sponsored Product Ads are very useful for launching products and having the product reach the first page of search results which can be positively lucrative. But Sponsored Display Ads off-Amazon advertising tends to work in a different manner.

Launched in 2019, Sponsored Display is an additional form of Amazon PPC advertising, and is still growing in popularity among sellers. In 2021, 25% of the third-party sellers use Sponsored Display ads, and spending on this type of ad accounts for 2% of Amazon’s advertising revenue.

What are the targeting options in Amazon SP and Amazon SB?

Keyword targeting is available for both Sponsored Products and Sponsored Brands. ASIN and category targeting is available for Sponsored Products.

Keyword Targeting and Match Type

Match types will allow you to have control over what customer search queries will match the keywords in your efforts of manually targeting Amazon advertising campaigns. It’s nearly impossible to account for all the various phrases a customer could use when searching for a product on Amazon, and keyword match types exist to help you combat that challenge.

Using match types to your advantage will help you find new customers, discover the best keywords to target to meet your goals, and eliminate wasted spending.

When it comes to Amazon Advertising, keyword match types allow you to have an idea about and accordingly fine-tune which customer search queries your ads are eligible to show against. In a nutshell, Match type is a refinement of keywords targeting to be wider or narrower depending on your advertising goals.

The broader the match type, the wider the reach of search terms. The narrower, or more restrictive, the match type, the more specific your ad will match the search term. Most keyword match types are only available for manual targeting for both Sponsored Brand and Sponsored Product campaigns. Negative matching is available to sellers using Sponsored Products campaigns.

Keyword Rules

Close Variations

Plural or singular. For example “Cycles” is a close variation of “Cycle”.

Misspellings

Common misspellings of brands/products should also be added as keywords as Misspellings are not considered. For example, If a customer enters “Creket ” in the search bar, an ad that is only associated with “Cricket” will not serve.

Ignored Words

 These words are in the Ignored Words category, namely, “the,” “of,” “when,” “and,” “if.”

Match Type Options

As with Google Ads and Microsoft Ads, Amazon Ads has a keyword match type to refine targeting.

Broad Match

A search term must contain all the keyword terms or close variations like Google Ads modified broad match. The words can be in any order, as well as contain additional words. Broad matches will reach a larger audience since it is not restrictive. Most suited for new campaigns and/or when you don’t know specific searches your target market would use.

Broad Match

Close Variations or the exact phrase must be included, and the search term must be in a similar order as the keyword term, The search query may contain words before or after the keyword term.

In addition, to that containing the exact phrase, with a near close variation in the case of a Phrase Match. Phrase Match reaches a smaller audience than Broad Match while targeting more specific searches. This will be most useful when you are more confident that you know what your customer is exactly looking for.

Exact Match

The search term needs to be in the same order and cannot contain additional words. The Exact Match will show ads for specific searches only. Most suited when you are certain what customers are searching for.

These are your best keywords.

Negative Keyword Match Type for Sponsored Products only.

Negative Keywords reduce costs by making sure you only advertise for the most relevant searches and you’re not wasting money on irrelevant click traffic. Negative Match types are available for Sponsored Products. Negative Match types are searches for the exact match type or phrase match. A negative phrase match is less restrictive by allowing additional words before and/or after. A negative exact match is more targeted – by blocking the exact search entered Amazon. Sponsored Brands does not have Negative phrases or negative exact match types.

How to select Keywords on the Amazon Marketplace?

You can insert your own keywords such as those from Google Ads, or you can use Amazon’s suggested keywords. The suggested keywords are generated from customer search queries that result in driving traffic to the ASINs in your campaign on Amazon. Suggested keywords are automatically set to broad match and cannot be changed. The advertising console, bulk operations upload, and API can be used to input keywords.

Product Targeting

Product Targeting is just available to Sponsored Products only. This targeting option provides more control when your ads appear on product detail pages and search results. Product targeting for manual campaigns targets individual products or product categories. This helps shoppers find your product when searching for products on Amazon or browsing detail pages and categories.

Targeting by ASIN (Individual products)

ASINs are Amazon’s unique identifier for individual products, like a SKU or inventory code. ASIN targeting suggests individual products that are similar to the product your are advertising. Another way to find relevant products is by searching for specific products in the search field, or by uploading a list of ASINs. Targeting by ASIN shows your adverts to people browsing certain ASINs on Amazon.

Targeting by category

Categories are groups ASINs organized by similarities. Each category will have an estimate of the total products contained within it. You can limit the ASINs contained in your category with the “refine” button. This allows you to only target ASINs associated with specific brands, prices, and star reviews.

Targeting by category shows your adverts to people browsing within product categories, with options to refine for the price, brand, and star ratings. These refinements allow you to use specific criteria for when your adverts are shown. We recommend using the most specific category available. Category targeting allows you to refine for price, brand, and star ratings. These refinements allow you to set specific criteria for when your ad will be shown.

Negative Product Targeting

Prevent your ads from appearing on specific search results or detail pages that don’t meet your performance goals by using negative product targeting. Like negative keywords, negative product targeting blocks irrelevant traffic. Negative product targeting can filter out certain products or brands to prevent your ads from showing for these. It is also possible to search for products and then exclude these too. Prevent your ads from appearing on specific search results or detail pages.

Automatic targeting, product targeting, and negative targeting options are not available for Sponsored Brands, just Sponsored Products.

Differentiate between Amazon Sponsored Products and Sponsored Brand

The following are the point of differences between the Sponsored Products and Sponsored Brands:

Basis Amazon Sponsored Products Amazon Sponsored Brands
Automatic targeting Available Not available
Keyword targeting Available Available
Product targeting Available for specific products only Not available
Benefits Cost-effective as compared to other options Helps increase brand awareness by attracting potential customers
Placement of the ad The ad gets displayed on the top, middle, and bottom of the search page along with the product details page. The ad gets displayed on the top of the search, along with the search results and below the search results area.
Eligibility For this, the seller must ensure that his product is eligible for the sponsored ads. Also, he must ensure whether he has a buy box or not. For this, the seller must have an active professional seller account and enroll in the amazon brand registry. He is also required to book agencies, vendors.

Conclusion

Amazon is working on its different advertising options to attract more marketers and brands. More and more sellers are now using these strategies to have a competitive edge and gain success in the market. These sponsored ads will boost up the competition to the next level. Hence, there is a huge need to adopt certain PPC strategies.

You must keep in mind that having an effective advertising strategy in your kitty is a great way to stay on top of the game, especially if you plan to retarget potential customers.

If you want to know more about  Amazon SP vs SB , guide, you can also contact us.

Read More

Amazon Vendor Central Guide 2022 Amazon Advertising Cost Of Sale: ACoS Guide 2022 Amazon Reports 2022
Amazon Buy Box Guide 2022 Amazon PPC Advertising Guide 2022 Amazon Seller Central Guide 2022
Amazon Seller Central Vs. Vendor Central Amazon Brand Registry Guide 2022 Amazon Brand Analytics Guide 2022
Amazon Attribution Guide 2022 Amazon Aggregators 2022 Amazon Business Reports 2022
Amazon APIs Guide 2022 Amazon KPI Guide 2022 Amazon FBA Guide 2022
Amazon ASIN Guide 2022    

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