The Ultimate Guide to Amazon Sponsored Brands Ads

This article is divided into two sections: part one and part two. Part one is an introduction to Amazon sponsored brand ads and their relevance in the competitive landscape. The first part also discusses four primary benefits of using Amazon sponsored brand ads. Section two covers how to optimize your Amazon sponsored brand ads. We recommend seven fundamental strategies you can use to optimize your Amazon sponsored brand ad campaigns.

The Ultimate Guide to Amazon Sponsored Brands Ads

One of the main reasons Amazon is so popular among sellers is that it offers many sponsored brand ad opportunities and encourages campaign customization. Amazon sponsored brands recognize the importance of visibility in terms of advertising. It has the potential to increase sales and boost brand awareness. 

If you are someone who wants more success with PPC (pay-per-click) ads, you should be redirecting your resources to Amazon sponsored brand ads.

What Are Amazon Sponsored Brand Ads?

Once known as headline search ads, Amazon sponsored brand ads are PPC ads that increase brand awareness and facilitate product and brand discovery. These types of ads have the edge over other ads in the sense that they are customizable and appear on search results pages. 

The advertising space reserved at the top of search results is the prime real estate on Amazon. Advertisers using Amazon sponsored brand ads can:

  • Customize the position of the ad within a limited area
  • Add a featured image
  • Add a video
  • Write their own ad copy
  • Choose to advertise three different products belonging to the same brand

When consumers click the featured image, they arrive at the designated URL address, Amazon store, or landing page. Additionally, potential customers can also click the product to inquire about more details.

Amazon Sponsored Brands Ads 

Benefits of Amazon Sponsored Brand Ads

Amazon has 15 marketplaces, with roughly eight million sellers worldwide. The rule is simple, the more sellers on Amazon, the fiercer the competition. Amazon sponsored brand ads allow you to distinguish your product from the competition by making your brand more conspicuous.

Amazon sponsored brand ads can be the difference between a win or a loss in modern businesses where the competitive landscape is far from scarce. Amazon recognizes this aspect of its platform and therefore affords vendors the possibility to build brand awareness.

Four Primary Benefits of Using Amazon Sponsored Brand Ads:

  1. Better Visibility Products with sponsored brand ads are allocated a special spot at the top of search results, pages, and headers. This desired location is Amazon's prime real estate area, and it is reserved for ads that are separate from displayed products. These areas are recognized for having excellent visibility and yielding significant results. Putting brand products here ensures visibility.
  2. You Can Expose Multiple Products Another benefit of having Amazon sponsored brand ads is that it allows you to display three products simultaneously. Displaying several products at once can boost your sales exponentially while diversifying your offer and showing variety. This is especially powerful if you have several flagship products that your customers love. 
  3. Increased Store Traffic Similar to PPC ads, sponsored brand ads are an easy way to increase traffic to your store. These types of sponsored brand campaigns directly drive traffic to product descriptions and their ASINs in store. At the same time, you can generally look to connect more people with your brand by driving them to your store directly. This way, they can browse all your featured products.
  4. Increased Sales Ultimately, sales are all that matters in the world of eCommerce. As discussed, Amazon sponsored brand ads provide better visibility, encourage multiple displays, and increase traffic, but that is not all that they do. They also increase sales and improve your chances of converting a lead into a sale. 

How to Optimize Your Amazon Sponsored Brand Ads Appropriately

Of course, every advertising strategy can yield great results. However, the approach needs to be strategic to achieve success. You cannot just invest money without optimizing your advertising campaign. The goal is to make the most out of the money you invested. 

Luckily, with a bit of effort and understanding, you can quickly learn to optimize your ads. This next section offers a detailed overview of seven fundamental strategies to optimize your Amazon sponsored brand ad campaigns.

Amazon Sponsored Brands Ads 

Seven Fundamental Strategies to Implement to Your Amazon Sponsored Brand Ad Campaigns:

1. Proper Keyword Targeting Is Key

For a sponsored brand strategy to work, it is essential to do thorough Amazon keyword tracking and Amazon keyword research. The ad you create will be displayed to users in their searches only if one or more of the keywords you use is part of their search query.

This means that your keywords need to be relevant to what customers are looking for and the products you plan on advertising. Still, not all keywords are the same. Your keywords will be different depending on what you want to focus your campaign on.

  •  Building Brand Awareness With Keywords: If you want to build brand awareness with your campaign, you need to find common short-tail keywords relevant to your products and search queries. These keywords need to be unbranded and refer to general product descriptions. Simply put, you need to match the intent of the shopper.  For example, if someone searches for “organic makeup,” they know what kind of product they want but may not necessarily know which brand to buy it from.  In this situation, you will include the keyword “organic makeup” and display your best products so that shoppers can learn about them and your store. 
  • Branded Keyword for Retaining Your Market: Branding is not only about expanding your influence but preserving your current market, as well. You can do this with the right keywords. In a situation where you already have a group of customers that shop from your competitors, you can use branded keywords to put your products in front. This is how you can compete with the current competition and new upcoming companies. Branded keywords can include your store’s name, the name of your brand, some abbreviation of your products, and so on.
  • Use the Manual Campaign to Find High-Converting Keywords: Manual campaigns allow Amazon sellers to select which keywords they want to bid on. By manually bidding on keywords, you have more precise targeting, which can, in turn, lead to more sales. In sum, if you have potential keyword ideas, use manual campaigns to help you find the most effective one for your Amazon sponsored brand ad. 

2. Know Your KPIs and Advertising Goals

You need to know what you want to achieve before you can start an ad campaign. Once you have a determined goal in mind, you need to decide which metrics are best suited to help you measure the success of the said goal. 

For example, if you want to build brand awareness, impressions are crucial. Impressions equate to awareness, and they can also help you understand which campaigns had the most success. However, if you are looking to increase sales, the Amazon conversion rate is the most logical metric to follow. 

  • Do Not Neglect “New-to-Brand” Metrics: Advertising campaigns should always strive to attract new customers. If this is the goal of your campaign, the “new-to-brand” metric can be used to track who is buying products through the A sponsored brand ads. In other words, the metric determines whether existing or new customer purchases can be attributed to your sponsored ad.  All other “new-to” metrics could also help assess the effectiveness of your Amazon sponsored brand ad campaign. At the same time, you could use such metrics to establish how much it costs to get new customers.

3. Test Out Different Placements

When you start your Amazon sponsored brand ad campaign, you should test out different placements and see how they affect the performance of your campaign. Amazon offers you various advertising reports to better understand what works well and what does not. The platform also provides custom bid adjustments and automated bidding features.

  • Custom Bid Adjustments: With custom bid adjustments, advertisers can adjust the volume of bids with a percentage modifier and manage all placement bids. They work to either decrease or increase your bid throughout different placements. If your other placements are not working well, this option allows you to lower the bid percentage and focus your efforts elsewhere. Keep in mind, custom bidding for Amazon sponsored brand ads requires constant manual work. 
  • Automated Bidding: Using automated bidding for your Amazon sponsored brand ad campaign will automatically work to maximize your advertising cost of sales (ACOS) across placements. Essentially, this type of bidding gives Amazon the power, through data-driven insights, to place a bid on a keyword. It will set placements on the expected conversion statistics while looking at the top of search placement numbers.  

4. Align Search Intent and Advertising Copy 

Typically, advertisers do not pay much attention to the copy of their ads. Advertising copy is a sort of branded content that seeks to persuade potential leads into becoming customers. We believe that advertising copy has undeniable potential when it comes to making the most out of your Amazon sponsored brand ad. 

Content has power; for example, incorporating keywords in your headline can connect a product to a potential customer. Rule of thumb: advertising copy should be short and sweet and should only include relevant information to ensure consumers click on your products. Additionally, when it comes to Amazon sponsored brand ads, you should aspire to add more character to your copy. For instance, you can incorporate your unique selling line or your brand tagline and use words that best describe your brand or products.

5. Perform A/B Testing

While it may seem like tedious work, A/B testing Amazon sponsored brand ads can save advertisers and brands in the future. This type of testing allows brands to see what consumers looked for and what made them most likely to convert.

Since Amazon sponsored brand ads have several customizable features, A/B testing allows you to test several variables. Moreover, testing sponsored brands have the utmost potential to increase campaign efficacy, diminish the possibility of a disconnect with the market, and decrease the chance of a loss in sales.

Suggestions for A/B testing Amazon sponsored brand campaigns:

  1. Avoid changing multiple variables to get better conclusions.
  2. Run multiple campaigns at the same time.
  3. Perform testing for at least ten days to spot trends, changes, and the effects of your actions.
  4. Look for the criteria that align with your test results and business goals.

6. Custom Landing Page or Store?

This is a very important question that needs answering. However, the answer is not always straightforward as it depends on several factors. For example, if you want to boost brand awareness with Amazon sponsored brand ads, you should send traffic to your store page.

This is where you can make a good impression on new customers and connect them to your brand. However, if the primary goal of your advertisement is to drive sales, sending customers to a custom landing page allows you to display your ASINs without additional visual distractions. 

Nevertheless, it is always beneficial to compare the performance of your custom landing page and store to see which one performs better with sales. To increase sales, look at your ASIN selection conversion rate to determine which products to feature in your ad. It is also effective to emphasize products that have positive reviews as the star rating will also be present in your ad.

Amazon Sponsored Brand Ads 

7. Determining Your Budget

It is also important to consider what course of action you would like to take to budget for your ad campaign. After all, you want to make the most out of the money you invest. When choosing your budget, there are two options: 

  1. Daily budget
  2. Lifetime budget 

The daily budget option is the price you are willing to spend every day on your Amazon sponsored brand. For example, if your daily budget is $20, you will never pay over that. Remember, you will not always reach your daily budget if your campaign is unsuccessful. 

The lifetime budget is the total price you are willing to spend on the ad campaign for as long as it runs. 

We recommend going with the daily budget for your campaign's beginning phases and increasing your budget incrementally over time. Although, the lifetime budget can be a good idea during particular seasons or holidays. For instance, if you are expecting a surge of customers, you can use this option to get as many customers as possible in a short period. 

Conclusion and Final Remarks

Amazon sponsored brand ads are a good option for sellers looking to promote their brand and increase sales. To develop an effective advertising strategy, be sure to use an Amazon keyword research tool to optimize your campaign. It all comes down to being relevant and satisfying a customer's needs. 

If you trick customers into clicking on your store or landing page by not providing relevance, they will bounce right off your store. For one, this is not how you build a great brand. Instead, start slowly; make sure to test your campaigns to determine what works best for your products and brand.

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