TL;DR

Sponsored Products are the most popular ad type for quick sales boosts.
Sponsored Brands focus on building brand recognition with logos, custom headlines, and videos.
Sponsored Display allows customers to be retargeted on Amazon and other websites and apps.
Choose Sponsored Products for direct sales, Brands for visibility, and Displays for retargeting.

Amazon brands that don’t invest in PPC can be counted on your fingers.

Because there are so few!

The majority of sellers, big and small, rely on Amazon ads to get their products seen and sold. To do that, Amazon offers three ad types: Sponsored Products, Sponsored Brands, and Sponsored Displays.

These three ad types are different. Their placements are different. They cater to different goals. And they’re profitable in different ways.

But the question is, which ad type is right for you?

That’s what we’re going to find out!

What are Amazon Sponsored Ads

Image ref: Amazon

Amazon Sponsored Ads are a part of the larger Amazon ads ecosystem.

Self-service Amazon PPC (pay-per-click ads), also called Amazon Sponsored ads

These ads are designed for Amazon sellers
Ads appear on Amazon’s website and app
You only pay when someone clicks on your ad

Managed-service Amazon DSP (display side platform)

These ads are for larger budgets and advanced needs
Ads can appear both on Amazon and across the web
Amazon DSP uses cost per thousand impressions (CPM)

Amazon Sponsored Ads are a collection of three pay-per-click ad types that help Amazon sellers promote their products and brands on Amazon.

These ads are designed to help you maximise your reach on Amazon, whether you’re looking to get a new product in front of as many eyes as possible or remind a shopper to complete a purchase.

What are Amazon Sponsored Products

What are Sponsored Products?

Amazon Sponsored Products are pay-per-click ads, and they’re hands-down the most popular ad type on the platform.

Why? Because they’re super easy to set up and Amazon Sponsored Products management is hassle free, even if you’re new to advertising on Amazon.

You don’t need to worry about creating fancy images or videos—just set your budget, choose your keywords, and you’re good to go.

Plus, you have flexibility in how you target your ads.

You can let Amazon automatically pick keywords based on your product, or you can choose specific keywords yourself to reach the right audience. This balance of simplicity and control is what makes Sponsored Products a go-to choice for so many Amazon sellers.

Where do these ads appear?

Top of the Amazon search results page

These ads often appear at the very top, before any organic listings.
Benefit: Maximum visibility. Customers see these ads first, increasing the chance of clicks.
This position is crucial for high-competition keywords, where being at the top can make all the difference.

Throughout the organic search results

Ads can also appear within the organic search results, mixed in with regular listings.
Benefit: They look similar to organic products, so customers see them naturally as they browse.
This placement allows for more opportunities to appear without needing to outbid everyone for the top spot.

On competing product listing pages

Sponsored Products can show up directly on the detail pages of competitor products.
Benefit: Great for capturing attention when customers are considering similar items.
This placement helps you reach shoppers who are comparing options before making a purchase decision.

Beyond Amazon – external websites and apps

As of 2023, Sponsored Products can appear on external platforms like Pinterest, BuzzFeed, and other partner sites.
Benefit: Extends your reach beyond Amazon’s ecosystem to attract new audiences.
Ads on these platforms link back to your Amazon product page, driving off-Amazon traffic directly to your listing.

Ad formats

Unlike Sponsored Brands and Sponsored Display, which offer options for videos and custom images, Sponsored Products keep things simple.

There are no fancy formats here—just straightforward ads that show your product.

What you see is what you get: an ad that looks like a regular product listing, blending right into the search results.

But simplicity doesn’t mean boring. Sponsored Products come with flexibility through various targeting and bidding options:

Automatic vs. manual targeting

Automatic targeting: Let Amazon decide which keywords or products to target based on your listing.
Manual targeting: Take control by selecting specific keywords or products to focus on. Choose what matters most to you.

Keyword targeting

Choose from a broad match, phrase match, or an exact match.

Broad match: Reaches a wide audience with searches containing your keyword in any order.
Phrase match: Targets searches that include your keyword phrase in the correct order, with extra words before or after.
Exact match: Narrow down to those searching for your exact term, with no extra words.

Product targeting

Focus on specific ASINs, categories, or brands. Show up on competing product pages, in the “Related Products” section, or under similar items.

It’s great for positioning your product directly against the competition.

Bidding strategies

Dynamic Bids – Down Only: Amazon lowers your bids when they think a click is less likely to lead to a sale.
Dynamic Bids – Up and Down: Amazon raises or lowers your bids based on the likelihood of conversion.
Fixed Bids: You control the exact amount, with no adjustments from Amazon.

This gives you the choice to manage costs or go aggressive when you want to maximise visibility.

So, while Sponsored Products might not have the extra visuals or videos, they offer control and flexibility.

It’s a simple format, but one that gives you the tools you need to reach the right customers and manage your ad spend effectively.

Who can use Sponsored Products

Sponsored Products ads are available to a range of Amazon sellers, but there are some specific eligibility criteria and requirements. Here’s what you need to know:

Seller Eligibility

You need to be a professional seller on Amazon. This means having a Professional Selling Plan subscription, not an individual seller account.
These ads are available to both first-party (1P) vendors and third-party (3P) sellers, making them a versatile option for many types of businesses.

Product Eligibility

The products you want to advertise must be eligible for the Featured Offer (commonly known as the Buy Box). This is crucial because only products with the Buy Box can be promoted through Sponsored Products ads.
Some product categories may be restricted or require additional approval, and products must comply with Amazon’s advertising policies. For example, items like certain health products, adult products, or those with specific regional restrictions might face limitations.

Marketplace availability

Sponsored Products ads can be used in various Amazon marketplaces globally.
Sellers can also extend their campaigns to other countries using Amazon’s tools, provided they meet the local marketplace requirements and have listings in those regions.

2023 updates to Sponsored Products

In August 2023, Amazon introduced a significant update, allowing Sponsored Products ads to appear on external websites and apps like Pinterest, BuzzFeed, Hearst Newspapers, Lifehacker, and more.

Sellers do not need to manually enable this feature—it is automatically integrated into existing campaigns if Amazon deems the placement relevant. Performance data for these external placements can be tracked through the Sponsored Products placement report.

Fun facts about Sponsored Products

Amazon Sponsored Products launched in 2012, making them one of Amazon’s first forays into pay-per-click (PPC) ads.
Before they became known as “Sponsored Products,” they were just a basic ad type for highlighting listings.
Initially, the ads were simple—no dynamic bidding, limited targeting options, and no external site placements.
Sponsored Products are Amazon’s top ad type—around 75% of sellers use them.
You don’t need to be brand-registered.
Bid wars are real—some popular keywords can become so competitive that sellers end up paying $20+ per click in categories like electronics.

What are Amazon Sponsored Brands

Image ref: Amazon

What are Sponsored Brands?

Sponsored Brands are a step up from basic ads. They let sellers promote products with eye-catching visuals like large banner ads or videos.

These ads put your brand front and centre, giving you a chance to showcase your products in a more engaging way. You can use custom headlines, your logo, and a selection of products to draw attention.

The goal is to tell a story, highlight key features, and make a stronger impression on potential customers.

Where do these ads appear?

Top and bottom of search results (Custom image, Store spotlight)

These ads show up right at the top or bottom of Amazon’s search pages.
Benefit: Maximum visibility, ideal for catching shoppers’ attention before they scroll through other listings.
They can include a custom image or highlight a Store spotlight, making your brand more memorable.

Middle of search results (Video)

Sponsored Brands video ads appear in the middle of search results.
Benefit: They break up the text-heavy listings, making it easier for shoppers to notice your product.
Video ads give you a chance to demonstrate your product in action, which can help explain features or create interest.

Product detail page (Custom image, Video)

These ads also appear on product detail pages of related items.
Benefit: Reach shoppers who are already comparing products and might be interested in a similar option.
Custom images or videos help reinforce your brand while the shopper considers their purchase.

Homepage (Custom image)

Sponsored Brands can show up on Amazon’s homepage with a custom image.
Benefit: It’s a prime spot to grab attention from shoppers as soon as they start browsing.
Great for highlighting seasonal promotions or introducing new products to a wider audience.

Ad formats

Banner style

Add an optional custom image to your Sponsored Brands ad.
Benefit: This visual makes your ad stand out and can give shoppers a quick impression of your brand’s style or product features.
It’s great for creating a strong first impression and enhancing brand visibility directly in the search results.

Video

Feature a single product with an autoplaying video.
Benefit: Video ads can engage shoppers with dynamic content that shows off your product in action.
The video starts playing automatically, helping to catch the eye of customers as they scroll through search results. It’s perfect for explaining product benefits quickly and effectively.

Who can use Sponsored Brands?

Sellers must be enrolled in Amazon Brand Registry. This requires having an active registered trademark for your brand.
Sellers need a Professional Selling Plan. Individual seller accounts are not eligible.

Updates to Sponsored Brands

1) Mandatory custom images for Product Collection Ads (2024)

Sponsored Brands product collection ads must include a custom image to comply with Amazon’s new guidelines. Existing product collection ads without custom images will stop being served after May 31, 2024. Advertisers must add custom images to maintain their campaigns’ eligibility.

2) Boost Amazon Posts into Sponsored Brands (2024)

Amazon introduced a feature that allows sellers to turn their top-performing Amazon Posts into Sponsored Brand Ads. This means you can take high-engagement content and extend its reach through paid ads with just one click. In the Posts Manager, simply select the “Boost” button next to a post, and Amazon will automatically create a Sponsored Brands campaign using the post’s content.

3) Expanded reach of Sponsored Brands (2023)

Amazon expanded the reach of Sponsored Brands video ads beyond the Amazon marketplace itself. Previously, these video ads were limited to appearing on Amazon’s own search results and product detail pages. Now, brands can use their video ads on streaming TV platforms, including Amazon’s Fire TV. This means that Sponsored Brands video ads can play before, during, and after streaming TV content.

4) Image generation for Sponsored Brands (2023)

Amazon has launched an AI-powered image generation feature for Sponsored Brands, available in the US as a beta release. This feature allows brands to create dynamic, on-brand product images quickly and without additional cost. The AI tool generates product creatives based on brand and product information, eliminating the need for specialised design resources.

Fun facts about Sponsored Brands

Sponsored Brands were first launched as “Headline Search Ads” before evolving into the more robust advertising option they are today.
You can spotlight your brand story through a custom image and slogan in your ad, making each click a virtual brand introduction.
Unlike regular product listings, you can creatively showcase multiple products, including how they work together, in a single ad.
Impressions for Sponsored Brands can reach into the millions, offering exposure similar to major online ad platforms.
They allow you to use your brand logo in searches, planting your brand’s visual identity in the minds of potential customers.
With Sponsored Brands, your products could appear right at the top of Amazon’s search results, above the fold and before any standard listings.
Click-through rates for well-optimised Sponsored Brands ads can be significantly higher compared to other ad types due to their prominent placement and branding focus.

What is Amazon Sponsored Display

Image ref: Amazon

What are Sponsored Displays?

Sponsored Display is a newer ad type on Amazon, but it’s gained popularity fast and for good reason. It lets you do something other ads can’t—you can promote your product right on your competitor’s detail pages. So, when a shopper is browsing a similar product, your ad can show up, giving you a shot at winning that sale.

But there’s more. Sponsored Display also lets you retarget customers across third-party apps and websites. This means that after someone checks out your product, you can remind them about it as they browse other sites. No other Amazon PPC ad type offers this level of retargeting outside of Amazon.

Where do these ads appear?

Sponsored Display ads can appear in many spots across Amazon and beyond. They show up in various locations to capture shoppers’ attention wherever they might be browsing. Here’s a breakdown of where you can find these ads:

1) Product detail pages

These ads appear right alongside a competitor’s product listings. They help you reach customers while they’re considering similar items.

2) Amazon homepage

They can show up on the homepage, where shoppers often start their Amazon journey. This gives your brand early visibility.

3) Twitch

Sponsored Display ads also appear on Twitch, a platform owned by Amazon. It’s a great way to reach a younger audience, especially gamers.

4) Third-party sites and apps

This is where retargeting comes in. Sponsored Display ads can follow your audience to other apps and websites they visit, reminding them of your product.

Amazon automatically selects the placements based on your targeting and optimises them to meet your campaign goals. This flexibility means your ads can go where they’re most likely to drive results.

Ad formats

Choosing the right ad format is key to making your Sponsored Display ads work for you. Amazon offers a couple of options. Here’s how to decide which one fits your needs best:

1) Image

This option allows you to add an optional image to your ad. It’s perfect if you want to visually highlight your product or show it in use. It can make your ad more eye-catching, especially when shoppers are scrolling quickly through listings.

2) Video

Use this format to feature a single product with an autoplaying video. Videos are great for demonstrating how a product works or showing its key features. They capture attention quickly, making them ideal for explaining benefits in just a few seconds.

When choosing your format, think about what will resonate most with your audience. If your product benefits from a visual demonstration, go with a video. If you want a simple, clean look, an image might be just right.

Who can use Sponsored Display?

Both third-party sellers using Seller Central and vendors using Vendor Central can create Sponsored Display campaigns. This includes businesses of all sizes that want to promote their products directly on and off Amazon.
The products being advertised must be eligible under Amazon’s guidelines. While most product categories can utilise Sponsored Display, there may be restrictions for certain items or categories based on Amazon’s policies.

Updates to Sponsored Display

1) AI image generation (Beta)

In April 2024, Amazon expanded its AI-powered image generation feature to Sponsored Display campaigns. Previously only available for Sponsored Brands, this feature now allows advertisers to create product-themed images quickly using AI. It’s designed to make ad creation simpler, especially for those without in-house creative resources, and is available in the US, Canada, Mexico, and key European markets.

2) Optimization strategy with cost controls (Beta)

Released in November 2023, this feature introduces a more efficient way to manage Sponsored Display campaigns. Advertisers can set specific performance goals, and Amazon’s machine learning models adjust bids dynamically to stay within those targets. This helps maximise ad performance while controlling costs, making it easier for sellers to reach their desired outcomes without constant manual adjustments.

3) Sponsored Display video updates

Amazon introduced enhanced video capabilities for Sponsored Display ads, including new metrics to track video performance. Advertisers can now see detailed insights like video completion rates and engagement levels, helping them fine-tune their video ads for better results. Additionally, contextual targeting for video ads has been improved, allowing brands to target more relevant audiences.

4) Expansion of ad placements and reach

Amazon has also expanded the reach of Sponsored Display ads to include streaming TV platforms, such as Fire TV and other third-party services. This update allows brands to engage with a wider audience, showing video ads before, during, and after streaming content, thus extending their advertising beyond the Amazon website.

Fun facts about Sponsored Display

Sponsored Display ads are relatively new to Amazon’s advertising suite, launched to provide sellers and brands a direct way to reach customers both on and off Amazon.
Before they were rebranded and expanded as Sponsored Display, these ads were part of what was called Amazon Product Display Ads.
Unlike other advertising options that require more extensive setup and management, Sponsored Display ads are designed to be set up quickly and managed directly by sellers through a self-service platform.
One of the key features of Sponsored Display is the ability to retarget shoppers who have viewed specific products but haven’t made a purchase, helping to capture potential lost sales.
These ads also have the capability to appear on external sites, expanding the reach of Amazon advertising beyond the main site to engage customers throughout the broader internet.
Sponsored Display allows advertisers to target by product or by interest, giving them flexibility in how they approach potential customers.
The ads automatically generate creative content based on the product information, simplifying the ad creation process for sellers.

Comparing the three ad types

Metric	Sponsored Products	Sponsored Brands	Sponsored Display
Launch year	2012	2018	2019 (rebranded from Product Display Ads)
Ad placement	Top of search, middle of search, bottom of search results, product detail pages	Top of search, alongside search results, custom images, and video ads	Product detail pages, search results, Amazon homepage, third-party websites, and apps.
Purpose	Drive direct sales by promoting individual products	Build brand awareness and engagement with customers through visuals and videos	Re-engage customers, retargeting, and brand awareness beyond Amazon.
Eligibility requirements	Professional Seller Account with a Buy Box-eligible product	Active Professional Seller Account, enrolled in Amazon Brand Registry	Active Professional Seller Account, enrolled in Amazon Brand Registry, available to vendors.
Targeting options	Automatic and manual targeting for keywords and products	Manual keyword targeting, no automatic targeting options	Product and audience targeting, interest-based targeting, retargeting viewers.
Automatic targeting	Available	Not available	Not available
Keyword targeting (manual)	Available	Available	Not available
Product targeting (manual)	Target specific products	Not available	Target related products and categories
Audience targeting	Not available	Not available	Target shoppers based on their shopping interests and browsing behaviour.
Creative requirements	No creative assets are required beyond product listings	Requires custom headlines, and logos, and can include custom images or videos	Auto-generated creatives, optional use of custom images and videos.
Video ad capability	Not available	Available (with Sponsored Brands Video)	Available (autoplaying video for targeting specific audiences).
Benefits	Cost-effective, easy to set up, focuses on direct product sales	Increases brand awareness, offers higher engagement through visuals, and helps establish brand identity	Re-engage and retarget customers, create product awareness, and reach shoppers off Amazon.
Profitability	Effective for direct sales, good for sellers with a clear understanding of keyword targeting	Good for long-term brand building and increasing customer loyalty	Useful for retargeting and building awareness, can drive conversions with targeted audiences.
Geographic reach	Available in all Amazon marketplaces	Available in all Amazon marketplaces where Brand Registry is supported	Available in many marketplaces globally, including North America, Europe, and Asia-Pacific.
Reporting capabilities	Standard performance metrics including clicks, impressions, and sales	Provides additional brand metrics like new-to-brand sales	Detailed view metrics for video ads, and audience reach analysis.
Bid types	CPC (Cost-Per-Click)	CPC	CPC and vCPM (Cost per thousand viewable impressions).
Creative flexibility	Limited—focuses on product image, title, and details	High—allows custom images, video, and rich creatives	Moderate—auto-generated with options for custom images and videos.
Cost control features	Set max CPC bid per keyword or product target	Set CPC for keywords and manage budget across different campaigns	Advanced cost control with automated bid adjustments and performance-based bidding.

Which Sponsored Ad is right for you?

Choosing the right Amazon ad type depends on what you’re trying to achieve. Being a professional Amazon PPC advertising agency, we’ll help you break it down to help you decide.

Sponsored Products

Go for Sponsored Products if you want to keep it simple and focus on direct sales.

These ads are straightforward—no fancy images or videos are required. Just set up your keywords, pick your products, and you’re off.
It’s perfect for getting new listings in front of buyers, especially if you’re on a tighter budget. Use it to drive those immediate sales and boost visibility fast.
It’s also a great place to start if you’re new to Amazon advertising and want to get a feel for how PPC works.

Sponsored Brands

Sponsored Brands are your choice if you want to build brand awareness.
They let you showcase a custom headline, your logo, and a set of products right at the top of search results. It’s more about telling your brand story and making sure customers remember your name.
Use it when you’re launching a new product line or trying to stand out in a crowded category.
It’s ideal for sellers who have a bit more experience and want to move beyond just selling individual items to building a brand presence on Amazon.

Sponsored Display

Choose Sponsored Display if you want to retarget shoppers who didn’t buy the first time.
It’s perfect for keeping your product in front of customers as they browse other sites and apps after leaving Amazon. This helps you remind them about what they looked at earlier.
Use this if you’re aiming to build awareness outside of Amazon and bring people back when they’re ready to buy.
It’s a great tool for brands that want to expand their reach and get more strategic with their ad placements.

So, what’s your goal?

If you want to move products quickly, start with Sponsored Products.

If you want to boost your brand’s visibility, go with Sponsored Brands.

And if you want to keep your product on shoppers’ minds wherever they go, try Sponsored Display.

Each ad type has its strengths, and the right one depends on what you’re aiming for. And if you’re looking for expert guidance to maximise the impact of your Amazon ads, Amazon product ads management from eStore Factory can help.

Amazon Sponsored Products vs Sponsored Brands vs Sponsored Display