Amazon offers multiple advertising formats, each with different placements, targeting options, and use cases. Understanding when to use each—and how they complement each other—is essential for building an effective advertising strategy.
Overview: The Four Ad Types
| Ad Type | Best For | Min. Requirements | Pricing |
|---|---|---|---|
| Sponsored Products (SP) | Direct sales, keyword targeting | Active listing | CPC |
| Sponsored Brands (SB) | Brand awareness, portfolio showcase | Brand Registry | CPC |
| Sponsored Display (SD) | Retargeting, audience expansion | Brand Registry | CPC or vCPM |
| Amazon DSP | Full-funnel, off-Amazon reach | $35K+ spend or agency | CPM |
Sponsored Products (SP)
The Workhorse of Amazon Advertising
Sponsored Products are single-product ads that appear in search results and on product detail pages. They look like organic listings with a small "Sponsored" label. For most sellers, SP campaigns drive 70-80% of ad revenue.
Where Sponsored Products Appear
- Top of Search: First 2-4 results (highest visibility, highest CPC)
- Rest of Search: Mixed throughout search results
- Product Pages: "Products related to this item" carousel
Targeting Options
Automatic Targeting
Amazon chooses keywords based on your listing. Good for discovery and research.
Keyword Targeting
You choose specific keywords with exact, phrase, or broad match types.
Product Targeting
Target specific ASINs or product categories.
Negative Targeting
Exclude keywords or products you don't want to show for.
When to Use Sponsored Products
- Launching new products (build sales velocity)
- Defending your brand keywords
- Targeting competitor products
- Keyword harvesting and research
- Direct response/conversion campaigns
Sponsored Brands (SB)
Showcase Your Brand
Sponsored Brands appear at the top of search results with your logo, a custom headline, and multiple products. They drive traffic to your Brand Store or a custom landing page.
Sponsored Brands Formats
- Product Collection: Show 3+ products with your logo and headline
- Store Spotlight: Feature 3 store subpages (drives Store traffic)
- Video: Autoplay video in search results (high engagement)
Where Sponsored Brands Appear
- Top of search results (banner format)
- Middle of search results
- Left sidebar (desktop)
Should I Start With SP or SB?
Start with Sponsored Products. They're simpler, have more placement options, and provide clearer performance data. Add Sponsored Brands once you have a Brand Store and want to build brand awareness or showcase your product line.
Sponsored Brands Video
Video ads appear in search results and autoplay on mute. They're highly effective because:
- Higher CTR than static ads (often 2-3x)
- Demonstrate product usage and features
- Stand out in search results
- Build brand recognition
Video requirements: 6-45 seconds, 1920x1080 or 1280x720, MP4 or MOV, file size under 500MB.
Sponsored Display (SD)
Reach Shoppers On and Off Amazon
Sponsored Display is Amazon's self-serve display advertising. It can retarget shoppers who viewed your products, target competitor audiences, and reach shoppers across Amazon's ad network.
Targeting Options
- Views Remarketing: Target people who viewed your products
- Purchases Remarketing: Target past purchasers (upsell/cross-sell)
- Product Targeting: Show on competitor product pages
- Audience Targeting: Lifestyle, interests, in-market segments
CPM vs CPC for Sponsored Display
Which Pricing Model to Choose?
CPC (Optimize for page visits): Best for direct response and conversion goals. You pay only when someone clicks.
vCPM (Optimize for viewable impressions): Best for brand awareness when you want maximum visibility. You pay per 1,000 viewable impressions.
Where Sponsored Display Appears
- Product detail pages (below the buy box, in "related products")
- Customer review pages
- Amazon home page
- Twitch, IMDb, and third-party apps/websites
Amazon DSP
Full-Funnel Programmatic Advertising
Amazon DSP (Demand-Side Platform) is Amazon's programmatic advertising platform. It offers the most sophisticated targeting and reaches audiences across the internet, not just on Amazon.
DSP vs Sponsored Display
| Feature | Sponsored Display | Amazon DSP |
|---|---|---|
| Self-service access | Yes | $35K+ min or via agency |
| Off-Amazon reach | Limited | Extensive |
| Custom audiences | Basic | Advanced (lookalikes, 1P data) |
| Creative formats | Auto-generated | Full custom display/video |
| Best for | Small/mid brands | Enterprise brands, agencies |
Placements and Bidding
Top of Search Placement
The top of search positions (first 2-4 sponsored slots) get the most visibility but cost more. You can adjust bids specifically for top of search:
- Placement adjustment up to 900%: Increase bids only for top of search
- When to increase: High-converting keywords where visibility matters
- When not to: Discovery campaigns where you want broad coverage
Should I Always Bid Higher for Top of Search?
Not always. Top of search has higher CTR but often lower conversion rates (more casual browsers). Test your specific products—some convert better in "rest of search" where shoppers are more intentional.
Product Page Placements
Ads on product detail pages appear when shoppers are actively considering a purchase. These placements can be highly effective for:
- Complementary products (cross-sell)
- Competitive conquesting (steal competitor traffic)
- Lower-priced alternatives
Campaign Naming Conventions
A consistent naming convention makes bulk operations and reporting much easier. Include these elements:
Recommended Naming Format
[Type]_[ASIN/SKU]_[Targeting]_[Match]_[Goal]
Examples:
SP_B08XYZ_KW_Exact_Conv(Sponsored Products, keyword targeting, exact match, conversion goal)SB_Brand_Video_Awareness(Sponsored Brands video for awareness)SD_B08XYZ_Retarget_Views(Sponsored Display retargeting viewers)
Building Your Full-Funnel Strategy
Different ad types work best at different stages of the customer journey:
| Funnel Stage | Goal | Best Ad Types |
|---|---|---|
| Awareness | Brand discovery | SB Video, SD Audiences, DSP |
| Consideration | Product research | SP (broad), SB, SD Product |
| Conversion | Purchase | SP (exact), SD Retargeting |
| Loyalty | Repeat purchase | SD Purchases, DSP |
Key Takeaways
- Start with Sponsored Products—they're the foundation of Amazon advertising
- Add Sponsored Brands once you have Brand Registry and want to build awareness
- Use Sponsored Display for retargeting and reaching shoppers off Amazon
- Consider DSP when you have significant budget and need advanced targeting
- Use consistent naming conventions to make management and reporting easier
- Match ad types to funnel stages for full-funnel coverage
Need Help Choosing the Right Ad Types?
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