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What's the Difference Between Sponsored Products and Sponsored Brands?—A Complete Guide to Amazon Ads for Beginner Sellers
This guide provides an overview of ad structures and explains the differences and uses of Sponsored Products, Sponsored Brands, and Display Ads.
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Hello everyone! I’ll walk you through the basics of advertising on Amazon for sellers, especially sellers who are ready to start managing ads more seriously. Along with how to use Sponsored Products, Sponsored Brands, and Display Ads, I will also explain the basic structure you need for effective ad management.
Table of Contents
1. Sponsored Products vs. Sponsored Brands vs. Display Ads—A Guide to Using Different Ad Types
Amazon Ads features multiple ad types, each with different purposes and characteristics. Here, I will explain the differences and how to properly use the three main types of ads: Sponsored Products, Sponsored Brands, and Display Ads.
Since each ad type complements the others, using multiple ad types in combination will allow you to build an even more effective advertising strategy. As the first step, we recommend clarifying your advertising goals and starting with the ad types that best suit those goals.
Since each ad type complements the others, using multiple ad types in combination will allow you to build an even more effective advertising strategy. As the first step, we recommend clarifying your advertising goals and starting with the ad types that best suit those goals.
Comparison of Ad Types
Ad type
Recommended use cases
Format
Detailed guide
Sponsored Products
For raising awareness of individual products being sold
No custom creatives are required. Existing product information is used as an ad. It links directly to the product detail page.
Sponsored Brands
Grow your brand awareness
• Product collections: Showcase multiple products or promote an existing brand store.
• Store spotlight: Drive traffic to brand stores.
• Video: Video ads for a single product or brand that take shopping customers to a product detail page or brand store.
• Store spotlight: Drive traffic to brand stores.
• Video: Video ads for a single product or brand that take shopping customers to a product detail page or brand store.
Display Ads
Drive awareness, consideration, and conversions at scale
• Image: Mainly targeting a single product
• Video: Video advertisement featuring a single product
• Video: Video advertisement featuring a single product
Sponsored Products
Sponsored Products are often the first ad type advertisers use on Amazon. They are a cost-per-click (CPC) ad. There is no cost for displaying the ad, so advertisers only pay for the actual number of clicks. This method allows you to target highly interested customers.
Key features:
• Promote individual products and display them on product search results pages
• Help customers find and buy products easily
• Take buyers directly to product detail pages
Purpose:
Perfect for increasing sales and product engagement. Perfect for sellers who want to raise product awareness and promote purchases.
Ad Placement:
• Product search results page
• Product detail page
Key features:
• Promote individual products and display them on product search results pages
• Help customers find and buy products easily
• Take buyers directly to product detail pages
Purpose:
Perfect for increasing sales and product engagement. Perfect for sellers who want to raise product awareness and promote purchases.
Ad Placement:
• Product search results page
• Product detail page
Sponsored Brands
Sponsored Brands are an ad solution that helps customers discover brands and promotes engagement by placing ads in highly visible locations.
Key features:
• You can express your brand identity with your brand logo and custom headlines
• You can simultaneously introduce multiple products or promote your entire store
• Select either a cost-per-click (CPC) or cost per 1,000 viewable impressions (vCPM) billing structure
Purpose:
Perfect for building brand awareness and loyalty. Sponsored Brands helps customers shopping for similar products discover your brand.
Ad Placement:
• Top, middle, and bottom of product search results
• Product detail page
Note:
To use Sponsored Brands, you must register for Amazon Brand Registry.
Key features:
• You can express your brand identity with your brand logo and custom headlines
• You can simultaneously introduce multiple products or promote your entire store
• Select either a cost-per-click (CPC) or cost per 1,000 viewable impressions (vCPM) billing structure
Purpose:
Perfect for building brand awareness and loyalty. Sponsored Brands helps customers shopping for similar products discover your brand.
Ad Placement:
• Top, middle, and bottom of product search results
• Product detail page
Note:
To use Sponsored Brands, you must register for Amazon Brand Registry.
Display Ads
Display Ads are a self-service display advertising solution that reaches customers wherever they are.
Key features:
• Uses registered product information to distribute automatically generated ad creatives
• Displayed not only on the Amazon site but also on external websites and apps
• Offers abundant target options such as audience targeting and retargeting
Purpose:
Perfect for reaching new audiences and building brand loyalty.
Ad Placement:
Based on your chosen targeting strategy, the ad will be placed not only on the Amazon site, but also on external websites and apps.
Key features:
• Uses registered product information to distribute automatically generated ad creatives
• Displayed not only on the Amazon site but also on external websites and apps
• Offers abundant target options such as audience targeting and retargeting
Purpose:
Perfect for reaching new audiences and building brand loyalty.
Ad Placement:
Based on your chosen targeting strategy, the ad will be placed not only on the Amazon site, but also on external websites and apps.
2. Let's go over the basic structure of Amazon Ads
Amazon Ads is structured in a hierarchy consisting of three tiers: campaigns, ad groups, and individual ads. In this structure, each level has different roles and responsibilities. Also, portfolios are an optional feature for grouping and managing multiple campaigns. Let's take a look at each tier.
1) Portfolio: An optional feature for strategic management of groups. Use a portfolio to group multiple campaigns.
2) Campaign: For budget control and ad type decision.
3) Ad group: For grouping products, setting bids, targeting units, and managing ad variations.
2) Campaign: For budget control and ad type decision.
3) Ad group: For grouping products, setting bids, targeting units, and managing ad variations.
What are Campaigns?
A campaign is a hierarchy for managing budgets and determining ad types in Amazon Ads. Here, choose between Sponsored Products, Sponsored Brands, or Display Ads, and set a daily budget and ad schedule. A campaign is a unit that contains multiple ad groups. It is used to set major policies for advertising activities. Budgets can be flexibly adjusted according to product conditions and market fluctuations, so campaigns lay the foundation for efficient ad management.
Campaign Usage Methods and Benefits
Using Different Ad Types
You can set a comprehensive marketing strategy by selecting ad types according to your purpose. For example, pursuing direct sales through Sponsored Products, increasing brand awareness through Sponsored Brands, and achieving broad reach and retargeting with Display Ads. Since each ad type complements the others, using them in combination will produce even more effective results. For details, please refer to the “A Guide to Using Different Ad Types” at the first half of this page.
Flexible Budget Management
Detailed control of your daily budget allows you to quickly adjust your budget according to product conditions and market changes. By optimizing budget allocations in real time according to inventory conditions and seasonal factors, you can increase return on advertising costs. Flexible operations based on data are possible; for example, concentrating the budget on high-performing campaigns.
Optimization of Targeting Strategy
Efficient advertising management is achieved through a phased approach of using automatic targeting to collect data and manual targeting to concentrate on effective keywords. You can reduce unnecessary advertising costs by first collecting a wide range of data, determining which keywords are effective, and then narrowing down to keywords that produce results. This approach makes it possible to optimize based on actual data rather than assumptions.
Visualize Performance
Visualization makes it easier to measure the effectiveness of each campaign, so you can clearly understand which ad types are effective and which targeting methods are producing results. By comparing key metrics such as click-through rates and conversion rates, you can see at a glance which ads are effective and which ones need to be improved. This highly transparent data analysis makes it possible to continuously improve ad management.
What To Set in a Campaign
• Ad types: Sponsored Products (direct increase in product sales), Sponsored Brands (increased brand awareness), Display Ads (broad reach and retargeting)
• Campaign name: Naming that indicates ad types, products, and targeting methods
• Daily budget: Set according to product status and purpose
• Display schedule: Specify the start date and end date (continuous display or for a limited time)
• Targeting policy: Automatic targeting (data collection) or manual targeting (optimization)
• Bidding strategy: Dynamic bidding (up and down), dynamic bidding (down only), fixed bidding
It is important to specify campaign names that clearly indicate the ad types, products, and targeting methods. Adopt naming conventions that make the content easy to understand even when reviewed later. You can make your targeting strategy even more efficient by using automatic targeting during the data collection phase and switching to manual targeting during the optimization phase.
• Campaign name: Naming that indicates ad types, products, and targeting methods
• Daily budget: Set according to product status and purpose
• Display schedule: Specify the start date and end date (continuous display or for a limited time)
• Targeting policy: Automatic targeting (data collection) or manual targeting (optimization)
• Bidding strategy: Dynamic bidding (up and down), dynamic bidding (down only), fixed bidding
It is important to specify campaign names that clearly indicate the ad types, products, and targeting methods. Adopt naming conventions that make the content easy to understand even when reviewed later. You can make your targeting strategy even more efficient by using automatic targeting during the data collection phase and switching to manual targeting during the optimization phase.
What are ad groups? How can I use them?
An ad group is a unit for even more detailed targeting within a campaign. Specific bid amounts, keywords, product targeting, and other settings are configured, and the details of actual ad display are determined. At the campaign level, you set the overall strategy. At the ad group level, you optimize settings for individual keywords or products.
How to Use Ad Groups and Their Benefits
Management by Keyword Characteristics
By managing keywords with different characteristics, such as brand keywords (example: Nike), general keywords (example: shoes), and long-tail keywords (example: wide high instep sneakers) in separate ad groups, you can apply an optimal strategy for each group. For example, brand keywords are expected to have high conversion rates, so you can bid aggressively on them, while general keywords can be set with moderate bids to aim for broader reach. In this way, you can manage campaigns according to the characteristics of each keyword. These classifications allow you to clearly understand which keywords work best, which can help you optimize your budget allocation.
Using Different Match Types
By managing exact matches, phrase matches, and broad matches in separate ad groups, you can optimize ads according to each characteristic. You can set different goals for each match type. For example, exact matches aim for highly relevant and reliable results, and broad matches can be used to discover new opportunities through a broad reach. By comparing the performance of each match type, you can find the best targeting method for your products.
Implementing Competitive Measures
Creating ad groups that target competing products allows you to promote your own products to customers who are considering those competitors. By displaying your ads on competitor product detail pages and search results, you can present customers with options when they are comparing products and increase opportunities to acquire new customers. However, targeting competitor products requires a different strategy than regular keywords, so managing them in dedicated ad groups enables more effective optimization.
Detailed Analysis of Performance
You can clearly identify which keyword groups are effective and which match types are delivering results. This allows you to quickly spot and exclude low-performing keywords and focus your budget on high-performing ones. By checking detailed data for each ad group, you can see at a glance which parts of the overall campaign are successful and where there is room for improvement. Using this data as a basis for decisions makes it possible to continuously improve the effectiveness of advertising.
Flexible Strategy Changes
You can change your strategy for individual ad groups. Even if some keywords have a drop in performance, you can adjust only those ad groups without stopping the entire campaign. For example, even if you lower bids or pause placement for a specific keyword group, other ad groups will continue to be placed as normal. This lets you make improvements while minimizing risk. This flexibility allows you to respond quickly to market changes and product conditions, and to manage ads optimally at all times.
What To Set in an Ad Group
• Ad group name: Name indicating the targeting details
• Default bid amount: Bid amount serving as the standard for keyword and product targeting
• Targeting method: Automatic targeting, manual targeting (keyword and product)
• Negative keywords: Keywords excluded to prevent unnecessary clicks
It's important to name your ad group so that the type of targeting is clear at a glance. When selecting keywords, understanding the characteristics of match types and using them appropriately according to your goals will enable you to manage your campaign effectively. By appropriately setting negative keywords, you can reduce unnecessary advertising costs and manage your ads efficiently.
• Default bid amount: Bid amount serving as the standard for keyword and product targeting
• Targeting method: Automatic targeting, manual targeting (keyword and product)
• Negative keywords: Keywords excluded to prevent unnecessary clicks
It's important to name your ad group so that the type of targeting is clear at a glance. When selecting keywords, understanding the characteristics of match types and using them appropriately according to your goals will enable you to manage your campaign effectively. By appropriately setting negative keywords, you can reduce unnecessary advertising costs and manage your ads efficiently.
What are Portfolios?
Portfolios are a feature for grouping and managing multiple campaigns. They are not an essential function; rather, they are perfect for users who want to run multiple campaigns more efficiently. By clearly allocating budgets by category or strategy, comparing and analyzing performance, and enabling bulk actions across multiple campaigns as well as data extraction at the portfolio level, portfolios can help reduce management workload. This is especially true once you’ve been running ads for a while and your number of campaigns has grown.
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3. Summary
This article explained the basic structure and main ad types for sellers using Amazon Ads for the first time.
Amazon Ads is structured in a hierarchy consisting of three tiers: campaigns, ad groups, and individual ads. There are also portfolios, which are an optional feature for managing multiple campaigns together. Skillfully using each feature will enable even more efficient management of your advertising.
There are three main ad types: Sponsored Products for promoting individual items and increasing sales; Sponsored Brands for boosting brand awareness and building loyalty; and Display Ads reaching new audiences and retargeting. Since each ad type complements the others, using them in combination will allow you to build an even more effective advertising strategy. As the first step, we recommend clarifying your advertising goals and starting with the ad types that best suit those goals.
Amazon Ads is structured in a hierarchy consisting of three tiers: campaigns, ad groups, and individual ads. There are also portfolios, which are an optional feature for managing multiple campaigns together. Skillfully using each feature will enable even more efficient management of your advertising.
There are three main ad types: Sponsored Products for promoting individual items and increasing sales; Sponsored Brands for boosting brand awareness and building loyalty; and Display Ads reaching new audiences and retargeting. Since each ad type complements the others, using them in combination will allow you to build an even more effective advertising strategy. As the first step, we recommend clarifying your advertising goals and starting with the ad types that best suit those goals.
FAQs
If I have issues related to advertising, where should I check for advice and who should I contact for inquiries?
Please refer to this help page for more details.
Also, you can contact us by clicking the “?” icon in the upper right corner of the ad Campaign Manager screen.
Also, you can contact us by clicking the “?” icon in the upper right corner of the ad Campaign Manager screen.
What ad types should I start with?
If you're new to Amazon Ads, we recommend starting with Sponsored Products.
Sponsored Products are perfect for beginners for the following reasons:
• Simple setup: Simply select individual products and create an ad to get started right away
• Clear results: Direct traffic to product detail pages makes it easy to measure the contribution to sales
• Low risk: Billing is cost-per-click (CPC), so you only pay for actual clicks
• Easy to learn: It is easy to learn the basics of ad operation (keyword selection, bid adjustments, etc.) as you go.
Once you get used to basic operations with Sponsored Products, consider using Sponsored Brands and Display Ads as the next step. Using multiple ad types in a combination appropriate for your purpose will allow you to build an even more effective advertising strategy.
Sponsored Products are perfect for beginners for the following reasons:
• Simple setup: Simply select individual products and create an ad to get started right away
• Clear results: Direct traffic to product detail pages makes it easy to measure the contribution to sales
• Low risk: Billing is cost-per-click (CPC), so you only pay for actual clicks
• Easy to learn: It is easy to learn the basics of ad operation (keyword selection, bid adjustments, etc.) as you go.
Once you get used to basic operations with Sponsored Products, consider using Sponsored Brands and Display Ads as the next step. Using multiple ad types in a combination appropriate for your purpose will allow you to build an even more effective advertising strategy.
Do portfolios, campaigns, and ad groups all need to be set up?
Campaigns and ad groups are required, but portfolios are optional. Understand each role and use them according to your purpose.
Start by focusing on setting up campaigns and ad groups. We recommend using portfolios to improve the efficiency of managing your advertising once you start running multiple campaigns.
Start by focusing on setting up campaigns and ad groups. We recommend using portfolios to improve the efficiency of managing your advertising once you start running multiple campaigns.
Are there restrictions on which products can be advertised?
Yes, there are prohibited content, products, services and restricted categories. Please see this page for details.
How do I use a portfolio?
Portfolios are especially useful when managing multiple campaigns at once. Please refer to the example below.
• Management by product category: Budget allocation and effect measurement for each category, such as home appliances, daily necessities, seasonal products, etc.
• Organization by brand: Clearly grasp the advertising effects of each brand when offering multiple brands
• Grouping by strategy: Measurement of results by purpose, such as new product launch, inventory disposal, brand awareness improvement, etc.
• Management by season: Optimization according to the season, such as spring/summer products, fall/winter products, year-end and New Year special products, etc.
• Automatic setting of budget upper limit: Set an upper limit for monthly or in-period budget
• Automatic budget sharing: For campaigns within the same portfolio, budgets not used until the day before that month can be automatically shared with other campaigns that have already used up their daily budget
• Integrated performance measurement: Comprehensive measurement of performance for the entire ad type on a portfolio basis
Note: Portfolio budgeting takes precedence over campaign budgeting.
• Management by product category: Budget allocation and effect measurement for each category, such as home appliances, daily necessities, seasonal products, etc.
• Organization by brand: Clearly grasp the advertising effects of each brand when offering multiple brands
• Grouping by strategy: Measurement of results by purpose, such as new product launch, inventory disposal, brand awareness improvement, etc.
• Management by season: Optimization according to the season, such as spring/summer products, fall/winter products, year-end and New Year special products, etc.
• Automatic setting of budget upper limit: Set an upper limit for monthly or in-period budget
• Automatic budget sharing: For campaigns within the same portfolio, budgets not used until the day before that month can be automatically shared with other campaigns that have already used up their daily budget
• Integrated performance measurement: Comprehensive measurement of performance for the entire ad type on a portfolio basis
Note: Portfolio budgeting takes precedence over campaign budgeting.
Arisa Kida
I work as Learning Program Manager at the Seller Service Business Division, Amazon Japan LLC. Every day, I support the growth of consultants and account managers, and work to improve the skills of the entire team. In my private time, I enjoy hobbies such as traveling, knitting, and visiting craft breweries.
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