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Selling on Amazon but your brand’s not gathering enough steam? Or is it gathering steam just fine but you want more?
Similar to its cousin tool Sponsored Products, Sponsored Brands—which used to be called Headline Search Ads—is a pay-per-click (PPC) mechanism that features your brand logo, multiple products, and a custom headline in Amazon search results. This, in turn, boosts the visibility of your brand.
The cost of the clicks will depend on the various keywords, categories, and products you’re looking to boost. Like Sponsored Products, you bid against other sellers for the keywords to get your name out there.
As a primarily upper-funnel marketing tool, Sponsored Brands is most effective at the initial stages of awareness building and generating sales leads, but that doesn’t mean that it is not also useful as the funnel narrows closer to the sale.
Around 34% of third-party sellers on Amazon use Sponsored Brands, according to JungleScout. This includes some 66% of sellers that have already hit $1 million in lifetime sales, highlighting the confidence people have in the platform.
Sponsored Brands appear in prime locations such as the top of search results, within search results, and on Product Detail Pages.
Sponsored Products may be Amazon’s single most lucrative advertising format, but Sponsored Brands in many instances performs better as a result of strong click-through rates. This is backed up by data from Sellics showing that Sponsored Brands actually delivers around 18% more return on ad spend than Sponsored Products.
This effectiveness is likely part of the reason why Sponsored Brands has doubled in terms of share of Amazon’s advertising revenues since 2018, back when it represented 10%.
A main advantage it has over Sponsored Products is that a click will redirect shoppers to a dedicated brand landing page, real estate that is exclusively yours without any competitors to turn their heads.
It also allows you a greater degree of visibility into who is buying your merchandise. Through its unique New-to-Brand metric, you can keep track of how many sales came from new customers versus existing ones, giving you better insight into both reach expansion and growing loyalty.
Getting going is relatively simple from Seller Central:
It is not, however, a one-size-fits-all proposition. There are three main types of formats for Sponsored Brands, namely Product Collection, Store Spotlight, and Video:
This format lets you aim for up to three of your branded products at a landing page you choose, sending shoppers either to your branded Amazon storefront or a dedicated landing page displaying the three products.
This is a good option for items that aren’t getting much visibility through sponsored ads or organically, putting them up with no competitor in sight. You could even throw in a well-performing product to help draw attention to the other two.
According to Amazon data, adding a custom lifestyle creative can increase click-through by 20-30%, so make sure you invest in a good one. Make sure the headline is attractive, but be careful not to use pressurizing language. Also, be wary of your own success. The ads will stay up even if you run out of stock, so make sure you pause the campaign if inventory is running dry so you don’t frustrate would-be customers.
This one is only available if you have your own Amazon storefront as a brand-registered seller, and routes shoppers to your personalized store or sub-store page. It is a good option for brands that have numerous products across a number of categories and lets you boost three whole categories in the space of a single ad.
The fact that it takes you to an entire storefront gives you more opportunity to play around and get creative with how you showcase your wares - showing them being used and demonstrating their variety. Like with Product Collection, make sure your images and headlines turn heads and play around with different combinations of imagery to find the one that draws the most business.
Dynamic always stands out against static, and videos are a good way to grab the eye as people scroll down search results. Videos can yield higher click-through rates as static Sponsored Brands, along with a 2.5X return on ad spend.
To make them effective, keep them snappy (between 15-30 seconds generally) and to the point, focused on the product in a way that will educate the viewer about the item. The videos are silent as they autoplay, so captioning them would be effective. They are also played on a loop, so doing your best to make it seamless would do a better job of keeping shoppers engaged.
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