Our Guide to Understanding The Different Types of Amazon Ads

Updated
April 24, 2024

Helpful Summary

Overview: We provide a comprehensive guide to the various types of Amazon Ads, emphasizing how these ads can enhance product visibility, drive sales, and meet marketing objectives on Amazon. This includes Sponsored Products, Brands, Displays, Videos, Stores, DSP, and Attribution.

Why Trust Us: Merch Jar, with our innovative tools like Automation Recipes and Smart Bids, has shown success in optimizing Amazon ad campaigns with our powerful suite of features. A notable client win, Christopher Goettl, experienced significant workflow improvements, underscoring our effectiveness in the highly competitive Amazon marketplace.

Why This Is Important: Utilizing Amazon Ads effectively increases visibility and sales within Amazon's competitive space. Targeted advertising options and measurable results enable advertisers to reach specific audiences, enhancing brand exposure and driving conversions.

Action Points: Consider your campaign objectives, target audience, product portfolio, budget, competitive landscape, and desired ad placements to choose the most suitable Amazon Ad type. Our guide assists in aligning your advertising goals with the right ad format.

Further Research: Explore Merch Jar's features to further automate and optimize your Amazon ad campaigns, leveraging user feedback and case studies to guide your strategy.

Amazon ads have helped businesses who are looking to expand their reach, drive traffic, and boost sales on the largest online marketplace globally. The ads offer opportunities to target the desired audience with precision and efficiency.

But Amazon ads are not as simple as you might think. There are different types of Amazon ads and knowing which one aligns with your marketing goals can help you optimize your advertising strategy.

In this Merch Jar guide, join us as we check out the different types of Amazon ads!

Why Listen To Us?

At Merch Jar, we're not just another voice in the crowd – we're your dedicated partner in navigating the ever-evolving e-commerce landscape.

With years of hands-on experience in the e-commerce industry, our team has encountered and overcome the daily challenges you face. We understand the intricacies of selling on platforms like KDP and Amazon, and we leverage this knowledge to develop solutions tailored to your needs.

What are Amazon Ads?

Amazon Ads refers to the various advertising solutions and tools provided by Amazon to help businesses promote their products and reach potential customers on the Amazon platform. These ads enable sellers, brands, and advertisers to increase product visibility, drive sales, and achieve various marketing objectives within the Amazon ecosystem.

Amazon offers several types of advertising options, including:

  • Sponsored Products: These are ads for individual product listings that appear in search results and on product detail pages. Sponsored Products are keyword-targeted and operate on a cost-per-click (CPC) basis.
  • Sponsored Brands (formerly known as Headline Search Ads): These ads feature a custom headline, logo, and a selection of products. They appear above search results and are also keyword-targeted with a CPC pricing model.
  • Sponsored Display: These ads allow advertisers to target shoppers both on and off Amazon, including on-site placements such as product detail pages and off-site placements through the Amazon Demand-Side Platform (DSP).
  • Sponsored Brands Video: These video ads allow brands to tell their story and showcase their products in a video format. They appear in relevant search results and on product detail pages.
  • Sponsored Brands Stores: These are customizable multi-page stores hosted on Amazon where brands can showcase their products and create a curated shopping experience. They are accessible via Sponsored brand campaigns.
  • Amazon DSP (Demand-Side Platform): Amazon DSP offers display and video ad placements both on and off Amazon, allowing advertisers to reach audiences across the web.
  • Amazon Attribution: This tool provides insights into how non-Amazon marketing channels contribute to sales on Amazon, helping advertisers measure the impact of their campaigns across various touchpoints.

Merch Jar is an innovative Amazon advertising tool that streamlines and automates the process of managing and optimizing Amazon ad campaigns. It's designed to assist sellers in achieving better efficiency and profitability in their advertising efforts on Amazon's highly competitive platform.

Here are some of its key features: 

  • Automation Recipes: Users can craft complex ad automations using natural language, allowing for actions such as pausing campaigns, increasing bids, lowering budgets, and more​​.
  • Smart Bids: This feature continuously adjusts your ad bids to align with your ACoS goals through daily, data-driven adjustments​​.
  • Bulk Actions: Simplifies campaign management by allowing users to manage multiple campaigns with bulk updates to bids, keywords, and ad statuses​​.
  • Promotions and Dashboard Insights: Automates keyword management and offers a clear view of ad performance through an intuitive dashboard​.

Merch Jar Customer Review: Christopher Goettl

Christopher Goettl, a KDP seller, used to find himself buried in ad dashboards, spending hours navigating through the complexities of managing his advertising campaigns. However, upon implementing Merch Jar's automation tools, he experienced a significant transformation in his workflow. 

The time-saving features provided by Merch Jar allowed Christopher to redirect his focus back to his core pursuits of writing and creating.

Benefits of Using Amazon Ads

  • Increased Visibility and Sales: Amazon ads enable businesses to increase their product visibility within the highly competitive marketplace of Amazon. By appearing in search results, product detail pages, and other strategic placements, ads help attract more attention to products, leading to increased sales and revenue.
  • Targeted Advertising: Amazon provides robust targeting options for ads, allowing advertisers to reach specific audiences based on factors such as keywords, interests, shopping behavior, and demographics.
  • Measurable Results: Amazon's advertising platform offers detailed analytics and reporting tools that provide insights into ad performance, including metrics such as impressions, clicks, conversions, and return on ad spend (ROAS). 
  • Brand Exposure and Awareness: In addition to driving direct sales, Amazon ads also help increase brand exposure and awareness among shoppers. Even if users don't click on an ad immediately, seeing a brand's products prominently displayed can leave a lasting impression and influence future purchase decisions. 

Criteria To Consider When Choosing Which Type of Amazon Ad To Use

Campaign Objectives

Determine your advertising goals, whether they are to increase product sales, drive brand awareness, promote new product launches, or boost store traffic. 

Different types of Amazon ads are designed to achieve specific objectives, so aligning your campaign objectives with the appropriate ad format is crucial.

Target Audience

Understand your target audience's demographics, interests, shopping behavior, and purchase intent. 

Choose an ad type that offers targeting options that align with your audience profile to ensure that your ads reach the right people with relevant messaging.

Product Portfolio

Consider the types of products you want to promote and their suitability for different ad formats. 

For example, Sponsored Products are ideal for promoting individual product listings, while Sponsored Brands may be more suitable for showcasing a range of products or building brand awareness.

Budget and Cost Considerations

Evaluate your budget and consider the cost-effectiveness of each ad format for your advertising goals. Some ad types, such as Sponsored Products, operate on a cost-per-click (CPC) basis, while others, like Sponsored Displays, may have different pricing models. 

Choose an ad format that fits within your budget and offers a favorable return on investment (ROI).

Competitive Landscape

Assess the level of competition in your product category or niche on Amazon. Consider how competitive keywords and placements may impact the performance and cost of your ads. 

Choose ad types that allow you to effectively compete for visibility while maximizing your advertising budget.

Ad Placement and Visibility

Evaluate where you want your ads to appear on Amazon's platform, such as search results, product detail pages, or elsewhere. Different ad formats offer varying placement options and visibility levels. 

Consider which placements are most relevant to your target audience and align with your campaign objectives.

Types of Amazon Ads 

Amazon offers several types of advertising options for businesses looking to promote their products and reach potential customers on the platform. These include:

  1. Sponsored Products
  2. Sponsored Brands
  3. Sponsored Display
  4. Sponsored Brands Video
  5. Sponsored Brands Stores
  6. Amazon DSP (Demand-Side Platform)
  7. Amazon Attribution

1. Sponsored Products

Sponsored Products are a type of Amazon advertising that allows sellers and vendors to promote their product listings within search results and on product detail pages. These ads are keyword-targeted and operate on a cost-per-click (CPC) basis.

Benefits of Using Sponsored Products 

  • Increased Visibility: Sponsored Products can significantly boost the visibility of your products on Amazon, ensuring they appear prominently in search results and on relevant product pages.
  • Targeted Reach: With keyword targeting, you can reach shoppers who are actively searching for products similar to yours, increasing the likelihood of conversion.
  • Flexible Budgeting: Sponsored Product campaigns allow you to set your budget and bids, giving you control over how much you spend on advertising.
  • Performance Tracking: Amazon provides detailed performance metrics for Sponsored Products campaigns, allowing you to monitor your ad's performance and optimize your strategy for better results.

Who Should Use Sponsored Products 

Sponsored Products are ideal for individual sellers, brands, and vendors looking to increase product visibility, drive sales, and maximize their presence on Amazon. Whether you're launching a new product, promoting seasonal offers, or aiming to boost sales for existing listings, Sponsored Products can help you achieve your advertising goals.

Example:

When searching for baby care products, Jack & Jill used Amazon-sponsored product ads, giving them great visibility at the top of search results.

2. Sponsored Brands

Sponsored Brands, formerly known as Headline Search Ads, are a type of Amazon advertising format that allows brands to promote their products and increase visibility on the platform. These ads feature a custom headline, logo, and a selection of products, and they typically appear above search results on Amazon.

Benefits of Using Sponsored Brands

  • Enhanced Brand Visibility: Sponsored Brand ads allow brands to prominently showcase their logo and products at the top of search results, increasing brand visibility and awareness among shoppers.
  • Customizable Messaging: Brands have the flexibility to create custom headlines that effectively communicate their brand message, promotions, or unique selling points, helping to attract and engage potential customers.
  • Drive Traffic to Brand Store or Landing Page: Sponsored brand ads can include a clickable headline that directs shoppers to a brand's Amazon Store or a custom landing page, providing an opportunity to showcase a wider range of products or promotions.
  • Boost Sales and Conversions: By appearing prominently in search results and featuring multiple products, Sponsored Brands ads can drive traffic and conversions for specific products or product lines, ultimately increasing sales and revenue.

Who Should Use Sponsored Brands

Sponsored Brand ads are suitable for brands and businesses looking to increase their visibility, drive traffic, and promote their products on Amazon. This advertising format is particularly effective for established brands with a diverse product catalog or unique brand messaging.

Example:

When choosing a Sponsored Brand Ad, you can expect to see your brand logo, custom headline, and a selection of your best-selling products showcased at the top of relevant search results.

3. Sponsored Display

Sponsored Display is an advertising solution offered by Amazon that allows advertisers to target shoppers both on and off Amazon. These ads can appear on Amazon's website, including product detail pages and search results, as well as off-site placements through the Amazon Demand-Side Platform (DSP).

Benefits of Using Sponsored Display

  • Retargeting Capability: Sponsored Display ads enable advertisers to retarget shoppers who have previously viewed their products or shown interest in similar products, increasing the likelihood of conversions.
  • Audience Targeting: Advertisers can target specific audience segments based on factors such as shopping behavior, interests, demographics, and past purchase history, ensuring that ads reach relevant and engaged shoppers.
  • Increase Brand Awareness: Sponsored Display ads can help increase brand visibility and awareness among shoppers, even if they're not actively searching for the advertised products, leading to improved brand recognition and consideration.
  • Flexible Ad Creative: Advertisers have the flexibility to create customizable ad creative, including product images, headlines, and messaging, allowing them to showcase their products and promotions to potential customers effectively.

Who Should Use Sponsored Display

Sponsored Display ads are suitable for a wide range of advertisers, including sellers, brands, and vendors, looking to increase brand visibility, drive traffic, and boost sales on Amazon. This advertising format is particularly effective for advertisers looking to retarget shoppers and expand their reach beyond traditional Amazon search ads.

Example: 

With Sponsored Display Ads, you can see personalized product recommendations across Amazon’s platform and beyond. These ads target shoppers based on their browsing behavior and purchase history.

4. Sponsored Brands Video

Sponsored Brands Video is a type of Amazon advertising format that allows brands to showcase their products and tell their story through video content. These video ads are featured in relevant search results and on product detail pages, offering a dynamic way to engage shoppers and drive conversions.

Benefits of Using Sponsored Brands Video

  • Visual Impact: Video content is highly engaging and captures users' attention more effectively than static images or text, helping to increase brand awareness and engagement.
  • Storytelling Opportunities: Sponsored Brands Video ads enable brands to convey their brand story, product features, and unique selling points compellingly and memorably, fostering a deeper connection with shoppers.
  • Product Demonstration: Brands can use video ads to demonstrate product functionality, showcase different use cases, and highlight key benefits, providing shoppers with valuable information to aid in their purchasing decisions.
  • Increased Conversions: Video content has been shown to drive higher conversion rates compared to other ad formats, making Sponsored Brands Video ads an effective tool for driving sales and revenue on Amazon.

Who Should Use Sponsored Brands Video

Sponsored Brands Video ads are suitable for brands and businesses looking to leverage the power of video content to promote their products and engage with shoppers on Amazon. This advertising format is particularly beneficial for brands with visually appealing products, compelling storytelling capabilities, and a desire to stand out in a competitive marketplace.

Example:

Perfect Keto used this campaign type to promote their keto snacks, resulting in strong engagement and increased visibility for their products on the platform.

5. Sponsored Brands Stores

Sponsored Brands Stores are customizable multi-page storefronts hosted on Amazon where brands can showcase their products and create a curated shopping experience for customers. 

These stores serve as dedicated destinations for shoppers to explore a brand's offerings, learn more about its story, and discover related products.

Benefits of Using Sponsored Brands Stores

  • Brand Immersion: Sponsored brand stores allow brands to create a branded destination on Amazon, providing shoppers with an immersive and cohesive brand experience that showcases the full range of products, promotions, and brand messaging.
  • Customization: Brands have full control over the design and layout of their store, enabling them to create a visually appealing and on-brand storefront that reflects their unique identity and resonates with their target audience.
  • Cross-Selling Opportunities: Sponsored Brands Stores offer opportunities for cross-selling and upselling by featuring related products, product bundles, and curated collections, encouraging shoppers to explore and discover additional items.
  • Data Insights: Amazon provides analytics and insights into store performance, including metrics such as page views, unique visitors, and sales, allowing brands to track the effectiveness of their storefront and optimize their Amazon PPC strategy accordingly.

Who Should Use Sponsored Brands Stores

Sponsored Brands Stores are ideal for brands and businesses looking to elevate their presence on Amazon and create a differentiated shopping experience for customers. 

This advertising format is particularly well-suited for established brands with a diverse product catalog, a strong brand identity, and a desire to showcase their products in a curated and visually appealing manner.

Example: 

With Amazon Sponsored Brands Store, expect to find a tailored storefront highlighting the brand's products prominently in search results when a brand utilizes Sponsored Brands Stores on Amazon. This immersive shopping experience, like that of JCB, effectively showcases their full product range to customers.

6. Amazon DSP (Demand-Side Platform)

Amazon DSP (Demand-Side Platform) is an advertising solution that allows advertisers to programmatically buy display and video ad placements both on and off Amazon. It offers advanced targeting capabilities, real-time Amazon bidding, and detailed reporting to help advertisers reach relevant audiences and drive campaign performance.

Benefits of Using Amazon DSP

  • Expanded Reach: Amazon DSP enables advertisers to extend their reach beyond the Amazon platform and target audiences across the web, including on third-party websites, apps, and devices. This allows advertisers to engage with customers at various touchpoints throughout their online journey.
  • Advanced Targeting: Amazon DSP offers sophisticated targeting options based on factors such as demographics, interests, shopping behavior, and online activity. Advertisers can leverage first-party Amazon data as well as third-party data sources to reach specific audience segments with precision.
  • Dynamic Creatives: Amazon DSP supports dynamic creative optimization, allowing advertisers to tailor ad creative elements such as images, messaging, and calls-to-action based on audience characteristics and campaign performance. This helps increase ad relevance and effectiveness.
  • Comprehensive Reporting: Amazon DSP provides detailed analytics and reporting tools that offer insights into campaign performance, audience engagement, and conversion metrics. Advertisers can track key performance indicators (KPIs), optimize campaign strategies in real-time, and measure the impact of their advertising efforts.

Who Should Use Amazon DSP

Amazon DSP is suitable for advertisers looking to reach and engage with audiences across multiple channels and devices, including on and off the Amazon platform. 

This advertising solution is particularly beneficial for brands and agencies seeking to implement data-driven, omnichannel marketing strategies and maximize their advertising ROI.

Example:

When a brand selects Sponsored Brands Stores on Amazon, expect a customized storefront experience showcasing their products prominently. For example, Black + Decker's storefront appearing at the bottom of the screen offers a seamless shopping journey, presenting their range of products effectively.

7. Amazon Attribution

Amazon Attribution is a measurement and analytics solution provided by Amazon that allows advertisers to track and measure the impact of their marketing efforts across multiple channels on Amazon's platform. 

It provides insights into how non-Amazon marketing channels contribute to sales and conversions on Amazon, helping advertisers understand the full customer journey and optimize their Amazon ads strategies accordingly.

Benefits of Using Amazon Attribution

  • Holistic Measurement: Amazon Attribution offers a holistic view of the customer journey by tracking and attributing sales and conversions across various touchpoints, including display ads, search ads, social media, email marketing, and more. 
  • Attribution Insights: Amazon Attribution provides detailed insights into which marketing channels, campaigns, and tactics are driving conversions on Amazon, enabling advertisers to identify top-performing channels and optimize their marketing mix accordingly.
  • Optimization Opportunities: Armed with attribution insights, advertisers can optimize their marketing strategies in real time by reallocating budgets to high-performing channels, adjusting campaign targeting and messaging, and refining audience segmentation to maximize ROI and drive sales.
  • Cross-Channel Optimization: Amazon Attribution enables advertisers to measure the impact of their off-Amazon marketing efforts on Amazon sales, allowing for cross-channel optimization and coordination between Amazon and non-Amazon marketing channels to maximize overall campaign effectiveness.

Who Should Use Amazon Attribution

Amazon Attribution is beneficial for advertisers, brands, and agencies looking to gain deeper insights into the effectiveness of their marketing efforts across multiple channels and platforms, particularly about driving sales and conversions on Amazon. 

Example:

With Amazon Attributions, brands can expect detailed data on how their ads influence customer purchases on Amazon and beyond, allowing for more informed marketing decisions and improved campaign performance.

Take Your Amazon Ads Management to The Next Level With Merch Jar

Amazon offers a diverse range of advertising solutions tailored to meet the diverse needs of businesses aiming to succeed on the platform. From Sponsored Products and Sponsored Brands to Sponsored Display, Amazon DSP, and Amazon Attribution, advertisers have access to powerful tools that enable them to increase product visibility, drive sales, and optimize marketing strategies. 

Merch Jar presents a comprehensive solution for Amazon sellers looking to automate and optimize their ad campaigns. Its range of features from Smart Bids to Bulk Actions and beyond, combined with supportive user feedback, suggest that it can significantly contribute to the efficiency and profitability of Amazon's advertising efforts. 

Get started for free today!