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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, thereby boosting the visibility of the 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 show up in primetime - on the top-of-search, as well (and below) search results as well as on Product Detail Pages.
Why not just use Sponsored Products?
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 started
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 lest you want some frustrated 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 personalised 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 double the click-through as static Sponsored Brands, along with an return on ad spend between 28-43% higher.
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 keeping shoppers engaged.
Schedule a free 30-minute audit call with a specialist today.
Our Solution Architects are trained to understand your business and present your best options to grow on Amazon. All advice is customized to your needs.
About us
Threecolts acquires, launches, and grows eCommerce software & services, and owns other stellar businesses including Old Street Media, HotShp, SellerBench, Tactical Arbitrage, Bindwise, RefundSniper, ChannelReply, and FeedbackWhiz.
Old Street Media supports businesses with their advertising, inventory management, and other eCommerce services. We collaborate with over 4000 brands and have generated $600M in sales in the past year.
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