
What are Sponsored Brands on Amazon?
Sponsored Brands is a PPC (Pay Per Click) ad that increases brand visibility for shoppers looking for products similar to yours. You typically see these ads above the search, with an image and 3 products.
Why Use Sponsored Brands?
Unlike Sponsored Products and Sponsored Display, Sponsored Brands is commonly used as a top of funnel option. And while that is still a good idea, it also offers what we think is one of the least under utilized, and over powered, options on Amazon (it's video, which we will talk about later in this article).
From our research, we found that more than 70% of sellers don't use Sponsored Brands AT ALL. This is a mistake. This is one of the most content rich methods to connect with customers and bring them into your brand. Done correctly, shoppers can easily envision using your brand, and see multiple options, one of which will likely draw them in.
Let's jump in to the options that Sponsored Brands offers.
Amazon Sponsored Brands Ad Format
Amazon currently offers 3 options under Sponsored Brands : Product Collection, Store Spotlight, and Video.

All formats can be set to target Keywords and Products (Both by category and specific ASINs). Now that we understand some details behind each format, let's look at each in a bit more detail/
Product Collection
These ads highlight three products. The products and the order of their appearance is left to you. This is a great starting point if you are just getting into Sponsored Brands, and is perfect if you are limited on the content you have available. All you need are your logo, an image, and a quick headline. The image we used at the beginning of this article is a Product Collection ad. Lets look at it again and then describe the elements.

You see the logo is placed in the top left. To the right of that is the headline, which you write yourself.
Below that you see an image. You can use any image you like here. While many brands are using product photos, we highly recommend lifestyle images like the one above. These images can be easily created, and Amazon has shown a more than 20% CTR increase when the creative is a lifestyle image. To the right of that image are three products the company is offering. As you see, they've chosen to show color variations of the same product. If any of them catch a shoppers eye, they will be directed to that PDP after clicking.
You should also know a version of the ad appears below the search and look like this:

A few tips on Product Collection:
It is worth investing in the lifestyle image. Shoppers on Amazon make decisions based on images, so you have to wow them.
Also spend time on the headline. While the company in the image above has done a great job, our split testing shows better results when NOT capitalizing every word. In other words, we would write "Peak performance for next-gen dominance" instead of capitalizing the first letter of every word.
If you have a brand store with extensive product selection, link to it to improve your conversion rate. Once shoppers are in, they tend to stick around. Direct them to sub pages though if your products are widely varied.
Store Spotlight
The difference between Store Spotlight and Product Collection is small, but important. Store Spotlight features, you guessed it, stores! What's important about stores? Well, it is one of the only places where competitors cannot advertise. Everything in your store is about your brand and products.

Stores are typically used by brands with many products, but that's not required. Regardless, getting someone into your store is lucrative, Amazon found a 29% increase in ROAS when linking to a store vs a PDP.
A few tips on Store Spotlight:
Have creative available or be prepared to invest so that your content is engaging and high quality. More products means more room to tell the story.
Just like Product Collection, your headline should draw shoppers in. Try using a CTA word that encourages shoppers to visit your store, like "Visit" or "Explore" or "Discover."
Videos
If you want to hyper focus on one of your best products AND invest in an ad strategy with one of the best CTR and ROAS on Amazon, you have to do a video.
This is one of the strongest, and as of right now, most under utilized options on Amazon. We encourage our clients to use it as soon as it makes sense.
Videos showcase one product in the middle of search. It is disruptive, drawing attention away from the same looking search that every Amazon customer has seen a thousand times.
Part of what holds many back from Videos is not having video in the first place. This is one time we think it makes sense to invest and have a professional, well made and edited video. The video should be "lifestyle," pulling shoppers into your world, where their life only makes sense with your product, or educational, allowing customers to learn more about the product and why it is a good buy.
To see one in action, we did a search for skateboard, and a video came up.

This is how it displays, but of course you have to find it on Amazon to see it in action.
A few tips on Videos:
Focus on best sellers and aim to create a lifestyle or an educational video.
Attention spans are short, so sell quickly and don't make them wait to see what the product is.
15 - 30 seconds length, again, attention spans are short.
Unless you are experienced, we recommend professional help in creating video.
Videos will start muted (and are usually not unmuted) so plan to provide closed captions. Your video will play on a loop, so if possible, make it seamless. In the skateboard example, the model gets on the skate board, rides, then gets off the board. Repeating that makes sense, as you have to get off the board before you get on again.
As we recommend in most cases, don't spend time on shaming the competition, just focus on why you are the best.
Sponsored Brands Eligibility.
To make use of Sponsored Brands, keep the following requirements in mind:
Must be brand registered
Be in a permitted category
Have at least three products from the same brand
Have a logo (though not required, we recommend it be a well designed logo by a professional, remember, this is representing your brand)
Sponsored Brands Setup and Strategy
Once you click New Campaign and choose Sponsored Brands, you have some decisions to make. First, do you have a product that makes sense? Focus on products that are high performing, with a solid review base, competitive price, and a well optimized listing.
Next, budget. How much of your total PPC budget should you commit to Sponsored Brands?
20-25% is a good starting point, and then adjust based on your results.
Now, it is time to choose what to target. Since most people start with Sponsored Products, you should already have data on your best performing keywords. Bring those over to give you the best opportunity to convert.
Don't be afraid to target both normal (dog bowl) and longtail (silver 8 ounce dog bowl) keywords. You can also key in on brands, both your own and competitors.
Analyze Your Results
Since Sponsored Brands are considered top of funnel, brand awareness may be your top concern here. Look to impressions to determine which keywords are giving you the most eyes, then CTR to see the most relevant keywords. As you discover new keywords within Sponsored Products, test them in Brands as well.
Wrap Up
You now have an excellent grasp on Amazon's powerful Sponsored Brands campaigns. Take advantage of your competitors lack of knowledge and grow your business.
We are always here to help, so feel free to contact us if you want to discuss this strategy more.
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