A beginner's guide to Amazon Sponsored Brands

sponsored brands Dec 17, 2019

It appears Amazon Sponsored Brands Ads (formerly ‘Amazon Headline Search Ads’) are growing in popularity as sellers look for new ways to increase brand awareness.

According to a survey conducted by Tinuiti, advertiser investment in Sponsored Brands increased by 19% year-over-year in Q3 2019.

These banner-style ads are only available to vendors and sellers who are enrolled in Amazon’s Brand Registry.

They appear at the very top of Amazon search results - prime real-estate for search visibility - which means your ad will be the first thing seen by customers browsing for products similar to yours on Page 1 of the search results.

They are different from Sponsored Products ads in that they allow advertisers to showcase their brand. They feature your logo, brand creative with custom messaging, and top-selling products. 

In addition to the highly coveted ‘Top of Search’ placement, Amazon Sponsored Brands ads also appear on the left-hand rail and the bottom of page in search results. 

In a nutshell, here's what the main benefits of Sponsored Brands are:

Grow brand awareness

The placement of Sponsored Brands in the search results helps to drive the discovery of your brand. 

This can be very powerful given “75% of shoppers using Amazon to discover new products or brands,'' according to a 2019 Amazon Consumer Shopping Study by CPC Strategy.

Acquire new customers

Sponsored Brands will help you to reach customers by bringing customers to your products when they're looking for what to buy.

Think of them as “top of funnel” marketing. When shoppers click on your brand logo, they're taken to your Amazon store instead of a product list page.

However, it's important to bear in mind that these ads tend to carry a much higher cost per click (CPC) than Sponsored Products ads because of the prominent placement of these ads on the search results page.

In particular, the Top of Search placement will have the highest bid competition amongst advertisers, who are all jockeying for the top advertising spot that they know will get them the most eyeballs.

As always, make sure you define your advertising goals and KPIs for Amazon Sponsored Brands Ads. For example, if your goal is to drive brand awareness, you will want to pay close attention to your impressions. If your goal is to drive sales, you will want to look at your conversion rate.

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