Learn about the benefits of Amazon Sponsored Brands in this guest article from AMZ One Step.

Amazon Sponsored Brands are one of Amazon’s newest advertising features that you can use to make your brand and products more discoverable. The product ads are targeted to Amazon customers and appear in Amazon search results, detail pages, and other properties such as the Amazon shopping app or Amazon Prime Video.

In this post, we'll dig deeper into what Sponsored Brands are and how they work so you can start taking advantage of them today!

What are Sponsored Brands?

Sponsored Brands are the latest tool in Amazon’s advertising arsenal. Essentially, when you have a product to sell, you can advertise it alongside a competitor's for an additional fee.

You can choose competitors from your product category and the price you are willing to pay for each click.

How Sponsored Brands Work

Sponsored brands allow you to create a subsidized ad campaign that will display your products alongside your competitors’ in relevant searches. Your ads might be shown on top of, alongside, or within the search results.

The ads are keyword targeted, and you may promote multiple products or titles with a custom headline and logo. When a customer clicks on a product image within the ad, they will be taken to that specific product page. If a customer clicks on the brand logo or ad copy, they will be taken to a customized landing page such as your Brand Store.

You should create separate ads for target competitors using their product titles and keywords. Next, you'll enter information such as the headline, description, image (optional), and start and end dates of the campaign. These dates determine when your Sponsored Brand will appear alongside specific competitors.

Note that at this time Sponsored Brands are available in select countries for vendors and professional sellers enrolled in the Amazon Brand Registry. Specific criteria must be met, so be sure to review all of the conditions.

Pricing

When you create a Sponsored Brand ad, it shows the lowest bid price that your competitor is willing to pay per click (CPC). You can pick any CPC and enter a daily budget. However, if another seller has already selected your target competitor in a Sponsored Brand Campaign, they will see the CPC and daily budget that you chose for your ad.

Cost Per Click (CPC)

You can choose a maximum bid of up to $0.01 higher than your competitor’s existing CPC. So, for example, if your best-selling BBQ grill costs $50 and Brand X has already claimed your competitor’s listing, you can set your CPC at $0.51 to rank higher in search results.

Daily Budget

You can choose a daily budget based on how much you pay per click. The minimum daily budget is $1.00, or the equivalent in local currency.

Benefits of Amazon Sponsored Brands for Sellers

Offering a product in the same space as competitors with similar items can help you gain customers that otherwise would have chosen your competitors if they hadn’t seen your listing. In addition, you can set the Sponsored Brands to run on specific competitors' pages so that your ads don’t overlap.

You can see what your competition is advertising and tailor your ads accordingly. Sponsored Brands rank higher on searches which ultimately leads to more engagement.

Amazon Sponsored Brands are becoming increasingly popular for merchants and are particularly useful for sellers with lower-priced items. When it comes to getting more views on your products, Sponsored Brands can be pretty valuable in this regard.

Why You Should Consider Using Sponsored Brands

Amazon Sponsored Brand ads provide you with a unique opportunity to promote your products and grow your online presence.

Firstly, the ad will show your product next to other competitors, which means more exposure and potential sales for yourself. Plus, by sending customers to your Brand Store, you can encourage more repeat purchases by driving additional interest in your other products.

Secondly, they are easy to set up and self-manage, so you can update your campaign as needed without any involvement from Amazon or other third parties.

And finally, not only are they affordable, but the competitive intelligence they provide allows you to create advertisements on par with what others in the market are offering.

How to Set Up a Sponsored Brand Campaign

First, set your campaign duration and budget.
Next, create your ad. Customize it with a good headline and whatever products you want to feature.
Now it's time to focus your attention on which keywords to target and how much you want to bid for clicks.
Finally, submit your ad to Amazon for review. This process can take up to 72 hours.

Get Ahead of the Competition Today

Many Amazon sellers are not aware of this marketing opportunity yet, so if you're reading this, you’re probably already ahead of a lot of your competition. Hopefully this has given you a good idea of how Amazon's Sponsored Brands work and will aid you in continuing to grow your business!