Having evolved from being simply an online bookstore, Amazon has become a global marketplace where there are more than 300 million active customers and millions of sellers. Smart advertising is key to success in this highly competitive landscape. To help businesses get heard, Amazon Ads provide strong solutions to gain attention, drive sales, and build brand awareness. Three leading advertisement forms—Sponsored Product Ads, Sponsored Brand Ads, and Sponsored Display Ads—are the solution to this setting. Mastering how to get them in balance and strategically implement them is imperative for achieving peak returns and keeping competitive.
Each format of advertisement is covered by this guide, examined in relation to their benefits and drawbacks, and offered concrete examples and applicable advice to benefit both beginner and experienced Amazon vendors in formulating a successful advertisement strategy.
Sponsored Product Ads: The Amazon Advertising Workhorse
Sponsored Product Ads are the most common and likely most successful form of Amazon advertising. They advertise single product listings and display in high-visibility locations like search results and product detail pages. Because of where and how they are shown, they fit right in with organic listings and are very effective at grabbing shopper attention.
One of the advantages of Sponsored Product Ads is that they are affordable, particularly for newbies. Running on a cost-per-click (CPC) basis, you only pay when someone clicks your ad, making it easier to control costs during testing and optimization periods. Sellers using Sponsored Product Ads have experienced an average sales increase of up to 30%, Amazon says.
For example, if you are marketing a BPA-free water bottle or a reusable gym bottle, you can target words like “BPA-free water bottle” or “reusable gym bottle” and drive high-intent shoppers directly to your product. Keyword targeting and A/B testing drive most sellers to see considerable ROAS improvements in weeks.
Best Use Cases:
Driving sales for specific ASINs
Launching new products
Clearing excess inventory
Gaining visibility for mid-to-low competition keywords
Sponsored Product Ads also offer both manual and automatic targeting. While automatic targeting is ideal for beginners who want to quickly set up a campaign, manual targeting gives experienced sellers more control by allowing them to choose specific keywords or ASINs to target.
To get the most out of Sponsored Product Ads:
Start with automatic targeting to gather keyword data
Gradually shift to manual targeting to optimize performance
Monitor search term reports to eliminate poorly performing keywords
Adjust bids and budgets based on product margins and conversion data
Sponsored Brand Ads: Fueling Awareness & Recognition
Sponsored Brand Ads are designed to build brand trust and recognition by showcasing a number of products, your brand logo, and a custom headline. They show up prominently atop search results — one of Amazon’s most highly sought-after ad positions. They’re perfect for sellers who aim to build a strong brand presence and send traffic to a hand-selected storefront or landing page.
Compared to Sponsored Product Ads that are categorized by a single-unit sale, Sponsored Brand Ads tell a bigger story. They are best suited for upselling or cross-selling products. For instance, a skin care company can show a moisturizer, cleanser, and serum in one ad — prompting customers to check out the complete skin care regimen instead of an individual product.
Though this powerful format has a price tag. Sponsored Brand Ads are usually more expensive per click than Sponsored Product Ads and less ideal for sellers with smaller budgets. That being said, they pay off in the long run by building customer familiarity and lifetime value.
Successful Sponsored Brand tactics involve:
Highlighting best-sellers or complementary offerings
Employing high-impact headlines and lifestyle shots
Selling to a custom Storefront to drive average order value
Posting these ads during product launches or seasonal sales for optimal visibility
Amazon data indicates that brands leveraging Sponsored Brand Ads in combination with Sponsored Product Ads see as much as a 50% lift in branded searches and a significant boost in conversion rates. This positions Sponsored Brand Ads as a critical component of an end-to-end marketing strategy.
Sponsored Display Ads: Retargeting and Beyond
Sponsored Display Ads introduce an entire new level to Amazon advertising. Contrary to the search-based targeting of Sponsored Product and Brand Ads, Sponsored Display Ads enable you to target customers on and off Amazon — websites and mobile apps outside Amazon. These ads play a key role in retargeting customers who have looked at your items but didn’t buy or targeting audience looking at comparable items.
This ad format is eligible for audience targeting, product targeting, and views remarketing. Through audience targeting, you can display your ads to consumers who have shown interest in product categories that are relevant to your product. Product targeting enables you to advertise on competitor product listings, while views remarketing re-target individuals who have viewed your product page but did not convert.
For instance, suppose you sell luxury Bluetooth headphones. A customer looks at your listing but doesn’t make the purchase. With Sponsored Display, you can then re-engage them with your ad later while they’re shopping on Amazon or even on third-party sites — reminding them of your product and re-directing them to finish the purchase.
Why Sponsored Display Ads are so powerful is because they can:
Increase conversions by retargeting
Cross-sell to related buyers
Support new product discovery beyond native search
Amazon indicates that retargeting campaigns with Sponsored Display experience a 20–30% increase in conversion rates when paired with coupon offers or limited-time offers. Yet, since these ads typically reach outside Amazon, performance tracking and optimization are critical to prevent overspending.
To make your Sponsored Display campaigns successful:
Set definite retargeting windows (e.g., 7–30 days)
Utilize effective creatives and customer-focused messaging
Spot placement reports and bids optimize for highest-performing placements
Pair with promotions or Prime-only discounts to create sense of urgency
Blending Ad Types for Optimal Impact
There is one Amazon ad type that can do everything. A few top performers use all three, utilizing each ad type throughout various stages in the buyer’s journey.
Following is what an average funnel will look like:
Top of funnel (Awareness): Sponsored Brand Ads drive recognition and build visibility to your store or product lineup.
Middle of funnel (Consideration): Sponsored Product Ads allow consumers to discover and compare your product while they are shopping.
Bottom of funnel (Conversion): Sponsored Display Ads retarget non-converting users or gain visibility on competing listings.
By matching ad types to the customer journey, you can design a holistic full-funnel ad strategy to power conversions and lasting growth. For example, best-in-class brands will leverage Sponsored Brand Ads to drive cold traffic, Sponsored Product Ads to reach at the consideration stage, and Sponsored Display Ads to close the sale — in effect, generating multiple touch points with prospects.
Final Thoughts
Amazon ad spend is no longer an option — it’s part of the fundamental package of selling successfully on the platform. With countless products vying for the same consumer eyeballs, riding the right combination of Sponsored Product, Brand, and Display Ads can provide your listings with the competitive edge necessary to succeed.
Whether you’re starting your initial campaign or fine-tuning a veteran strategy, learning these types of ads thoroughly is the starting point to a successful, lasting Amazon business. Prioritize performance, optimize endlessly, and recall: the sellers who succeed are those who experiment, learn, and evolve.
