Amazon Sponsored Brands & Sponsored Display: Advanced Strategies Beyond Sponsored Products

Amazon Sponsored Brands & Sponsored Display: Advanced Strategies Beyond Sponsored Products

Why Successful Amazon Sellers Think Beyond Sponsored Products

For most Amazon sellers, Sponsored Products campaigns form the backbone of their advertising strategy, and for good reason. They offer a direct link between search query and product offering, and typically deliver the highest direct conversion rates.

But if you want to truly succeed in the increasingly competitive Amazon landscape of 2025, you need to broaden your advertising horizons. As an Amazon agency, we observe that brands that strategically leverage all available ad formats can gain significant competitive advantages.

In this article, we explore how Sponsored Brands and Sponsored Display campaigns, when used correctly, can elevate your Amazon advertising strategy. We focus on concrete use cases and strategic considerations that will help you deploy these often-underestimated formats profitably.

The Complementary Roles of Amazon Ad Formats

Before diving into specific strategies, it's important to understand the different roles each ad format plays in the buying process:

• Sponsored Products: Primarily performance-oriented, focused on direct product sales
• Sponsored Brands: A combination of brand awareness and direct sales
• Sponsored Display: A versatile format for remarketing, cross-selling, and brand building

These formats work most effectively when deployed as part of an integrated strategy covering the entire customer decision process, from initial product discovery to final purchase.

Sponsored Brands: The Underrated Brand Builder

Sponsored Brands offer unique capabilities that go far beyond what Sponsored Products alone can achieve.

1. Strategic Headline Optimization

The headline is the central element of your Sponsored Brands ad and largely determines its success.

Best practices:

• Use clear value propositions instead of generic brand descriptions
• Integrate purchase-relevant keywords naturally
• Include direct calls to action
• Test different formulations systematically

Example:

• Less effective: "BRANDNAME - Quality kitchen products from Germany"
• More effective: "Cook like a pro with BRANDNAME - Discover our award-winning knives now"

As a specialized Amazon agency, we see that precise, benefit-oriented headlines can significantly improve Sponsored Brands click-through rates.

2. Strategic Product Selection

The products shown in your Sponsored Brands ad should never be left to chance.

Best practices:

• Present a logical product combination rather than unrelated individual products
• Place bestsellers alongside new products to promote cross-selling
• Choose products with complementary price points
• Consider seasonal relevance in your selection

Strategic approaches:

• Product family approach: Show different variants of the same product
• Good-better-best strategy: Present products in different price categories
• Use case strategy: Group products that are used together

3. The Potential of Sponsored Brands Video

Sponsored Brands Video combines the best of visual product demonstration with targeted keyword advertising.

Best practices:

• Show the product within the first 2 seconds
• Focus on a single, clear primary benefit
• Design videos that work without sound
• Keep the length between 15-30 seconds

Our Amazon full-service agency recommends focusing on Sponsored Brands Video especially for products that require explanation or have visually compelling advantages.

Sponsored Display: The Versatile Targeting Tool

Sponsored Display is Amazon's answer to classic retargeting and offers unique ways to reach customers at different stages of their customer journey.

1. Effective Audience Targeting

Unlike Sponsored Products and Sponsored Brands, Sponsored Display allows you to target customers based on their browsing and purchasing behavior.

Strategic audiences:

• Product-related audiences: Users who have viewed your or similar products
• Interest-based audiences: Users with specific interests or purchasing behavior
• Purchased audiences: Users who have bought specific products

Best practices:

• Create separate campaigns for different audience types
• Tailor ad copy to each target audience
• Test different lookback windows for optimal performance

As an Amazon PPC agency, we find that targeting users who have viewed competitor products can be particularly effective.

2. On-Amazon vs. Off-Amazon Placements

A distinctive feature of Sponsored Display is the ability to serve ads both on Amazon and on external websites.

Strategic considerations:

• On-Amazon placements are particularly suited for short-term conversion goals
• Off-Amazon placements support long-term brand building and remarketing
• Combined strategies can cover the entire buying process

Best practices:

• Use different success metrics for on-Amazon and off-Amazon placements
• Adjust budgets based on the respective goals
• Allow for longer attribution windows with off-Amazon placements

3. Product-Based Targeting for Strategic Cross-Selling

Sponsored Display allows targeted advertising based on specific ASINs, a powerful function for cross-selling and competitive strategies.

Strategic approaches:

• Complementary products: Advertise accessories on your main product pages
• Category dominance: Target top products in your category
• Upgrade strategy: Promote premium versions on your entry-level product pages

At PCO Studio, we observe that targeted Sponsored Display campaigns are an effective way to gain visibility among highly relevant audiences.

Budget Allocation and Performance Measurement for Advanced Ad Formats

One of the biggest challenges when implementing a multi-format strategy is optimal budget distribution and correct performance evaluation.

1. Budget Distribution Based on Campaign Goals

Recommended starting points:

• Sponsored Products: 60-70% of total budget for direct performance marketing
• Sponsored Brands: 20-25% for brand building with a performance component
• Sponsored Display: 10-15% for specific audience targeting and remarketing

This allocation should be adjusted based on your specific goals and the performance of each campaign type.

2. Holistic Performance Measurement

A common mistake is evaluating all ad formats by the same criteria. As an experienced Amazon agency, we recommend a differentiated approach:

• Sponsored Products: Primary KPI: ACoS; Secondary: Conversion Rate, CTR, Impressions
• Sponsored Brands: Primary KPI: New-to-brand customer rate; Secondary: CTR, ACoS, Brand Store visits
• Sponsored Display: Primary KPIs: ROAS, Reach; Secondary: CTR, Post-view conversions

3. Understanding Attribution and Cross-Format Synergies

Amazon's standard attribution windows can underestimate the true effectiveness of advanced ad formats. A more holistic approach considers:

• The role of Sponsored Brands and Display in the upper funnel of the customer journey
• Indirect attribution effects between formats
• Brand metrics alongside direct conversion KPIs

Our Amazon agency recommends regular A/B tests where specific formats are activated or paused to measure their true impact on overall performance.

Integrated Campaign Structure for Maximum Impact

The true power of the different ad formats unfolds only through thoughtful integration into a coherent overall strategy.

1. Keyword Continuity Across Ad Formats

Key keywords should be addressed consistently across all ad formats to ensure seamless coverage of the customer journey:

• Sponsored Products: Broad and specific keyword coverage
• Sponsored Brands: Top-performing and brand-building keywords
• Sponsored Display: Remarketing based on key keyword categories

2. Format-Specific Campaign Structure

A clear campaign structure is critical for transparency and optimization capability:

• Sponsored Products: Organized by product categories and match types
• Sponsored Brands: Organized by brand themes and product categories
• Sponsored Display: Organized by audience types and placements

3. Seasonal and Event-Based Adjustments

The importance and effectiveness of different ad formats varies by season and Amazon events:

• Prime Day & Black Friday: Increased budgets for Sponsored Brands to boost visibility
• Q4/Christmas: Heavier use of Sponsored Display for remarketing
• Product launch phases: Combined strategy with a focus on brand building

As an Amazon full-service agency, we develop dynamic advertising calendars for our clients that systematically plan for these seasonal adjustments.

Conclusion: The Next Level of Your Amazon Advertising Strategy

The full potential of Amazon Advertising unfolds only through the strategic integration of all available ad formats. While Sponsored Products form the foundation, Sponsored Brands and Sponsored Display enable additional dimensions of customer engagement and brand building.

The key to success lies in a deep understanding of each format's specific strengths, a structured integration into the overall strategy, and differentiated performance measurement.

By implementing the strategies outlined in this article, you can take your Amazon advertising to the next level and effectively support both short-term performance goals and long-term brand development.