Do Sponsored Brands or Sponsored Display Convert Better?
When it comes to Amazon Advertising, sellers often wonder which ad type will generate the best results for their business. Two of the most common ad types on Amazon are Sponsored Brands and Sponsored Display. Both have their unique features and can help drive traffic and conversions, but which one performs better in terms of conversions? In this blog, we’ll compare these two ad types and discuss how an Amazon PPC management agency can help you optimize your strategy for better results.
When it comes to Amazon Advertising, sellers often wonder which ad type will generate the best results for their business. Two of the most common ad types on Amazon are Sponsored Brands and Sponsored Display. Both have their unique features and can help drive traffic and conversions, but which one performs better in terms of conversions? In this blog, well compare these two ad types and discuss how an Amazon PPC management agency can help you optimize your strategy for better results.
Key Takeaways
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Sponsored Brands and Sponsored Display ads serve different purposes and target audiences on Amazon.
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Sponsored Brands typically have better visibility and help build brand awareness, while Sponsored Display ads are often more focused on remarketing and retargeting.
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An Amazon PPC management agency can help you optimize the use of both ad types for higher conversions.
Sponsored Brands vs. Sponsored Display: Whats the Difference?
Before comparing conversion rates, its essential to understand the differences between Sponsored Brands and Sponsored Display ads:
|
Ad Type |
Description |
Best For |
|
Sponsored Brands |
These ads feature your brand logo, a custom headline, and multiple products. They appear at the top of Amazon search results. |
Brand awareness, driving traffic to your store or a group of products. |
|
Sponsored Display |
These ads appear on product detail pages, customer review pages, and on third-party websites. They target both new and retargeted customers. |
Remarketing and targeting audiences based on their previous behavior. |
While both ad types offer valuable opportunities for sellers, their effectiveness in converting traffic into sales can vary based on campaign goals, product type, and audience targeting.
Conversion Comparison: Sponsored Brands vs. Sponsored Display
The effectiveness of Sponsored Brands and Sponsored Display in terms of conversions depends largely on the nature of the product and the stage of the customers buying journey. Heres a breakdown of how they perform in terms of conversion:
|
Ad Type |
Conversion Rate |
Best Use Case |
|
Sponsored Brands |
Generally higher, as they appear at the top of the search results and attract high-intent shoppers. |
Excellent for increasing visibility and driving traffic to your product or brand page. |
|
Sponsored Display |
Slightly lower, as they target customers who have already interacted with your product or category. |
Ideal for remarketing and converting shoppers who have shown interest but havent yet purchased. |
While Sponsored Brands tend to have better initial conversion rates due to their high visibility in the search results, Sponsored Display ads are more effective for capturing users who are closer to purchasing or need a reminder to complete the sale.
Why Sponsored Brands May Convert Better
Sponsored Brands ads tend to have higher visibility and better conversion rates for the following reasons:
|
Reason |
Why It Contributes to Higher Conversions |
|
Prime Placement |
Sponsored Brands ads appear at the top of the search results, gaining attention from highly engaged shoppers. |
|
Brand Recognition |
These ads highlight your brand logo and multiple products, improving customer recognition. |
|
Multiple Products |
Sponsored Brands ads can showcase several products, giving customers options to choose from. |
If brand awareness and high visibility are your goals, Sponsored Brands ads often outperform Sponsored Display ads in terms of conversion.
Why Sponsored Display Might Work Better for Certain Products
Although Sponsored Brands ads are highly effective for visibility and conversions, Sponsored Display ads have their own advantages, especially in remarketing. Heres why Sponsored Display might outperform Sponsored Brands in certain scenarios:
|
Reason |
Why It Works for Certain Products |
|
Retargeting Ability |
Sponsored Display ads can target customers who have already interacted with your product, category, or brand. |
|
More Affordable |
Sponsored Display ads tend to have a lower cost per click (CPC) than Sponsored Brands. |
|
Broader Reach |
These ads appear both on and off Amazon, including on third-party websites. |
For products that require remarketing or have a highly competitive niche, Sponsored Display ads are a great way to re-engage potential buyers and drive conversions.
How an Amazon PPC Management Agency Can Help Maximize Your Results
An Amazon PPC management agency can provide expertise and strategic insights to optimize the use of both Sponsored Brands and Sponsored Display ads. Heres how an agency can help:
|
Service Offered |
What It Involves |
How It Maximizes Conversions |
|
Comprehensive Strategy |
Developing a tailored PPC strategy based on your business goals, product type, and target audience. |
Ensures the right mix of Sponsored Brands and Sponsored Display ads for your products, maximizing visibility and conversions. |
|
Bid Optimization |
Adjusting bids for each ad type to ensure youre getting the best placement without overspending. |
Helps you stay competitive while keeping costs low, ensuring high ROI. |
|
Performance Monitoring & Reporting |
Continuously tracking ad performance and making necessary adjustments. |
Ensures that your ads are always optimized, preventing wasted ad spend and maximizing conversions. |
|
Audience Targeting |
Refining audience targeting for Sponsored Display ads and using keyword research for Sponsored Brands. |
Improves targeting accuracy, ensuring that your ads reach the right people who are more likely to convert. |
Working with an Amazon PPC management agency allows you to get the most out of both ad types and optimize your campaigns for maximum conversions.
Final Thoughts: Choosing the Right PPC Strategy for Your Business
Both Sponsored Brands and Sponsored Display ads can be highly effective for driving conversions, but they serve different purposes. Sponsored Brands ads are ideal for increasing visibility and building brand recognition, while Sponsored Display ads excel in remarketing and targeting high-intent customers.
The key to success lies in understanding the strengths of both ad types and using them strategically. Partnering with an Amazon PPC management agency ensures that your PPC campaigns are optimized for your business goals, helping you achieve the highest possible return on investment.
FAQs
Q: Which ad type should I use for brand awareness?
If your goal is to build brand awareness, Sponsored Brands ads are the best option as they appear at the top of search results and include your brand logo.
Q: Can I use both Sponsored Brands and Sponsored Display ads at the same time?
Yes! Using both ad types can complement each other. Sponsored Brands can drive awareness, while Sponsored Display ads can target customers who have already interacted with your products.
Q: Which ad type has a higher cost?
Typically, Sponsored Brands ads tend to have a higher cost per click (CPC) due to their prominent placement, while Sponsored Display ads can be more cost-effective for remarketing purposes.
By understanding the unique strengths of Sponsored Brands and Sponsored Display ads and optimizing their use with the help of an Amazon PPC management agency, you can maximize conversions and drive significant sales growth on Amazon.
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