Are you avoiding Sponsored Brands Ads?
Updated: Jun 30
Advertising is quickly becoming an indispensable way to gain visibility on Amazon. While organic reach is still important to build, launching new products almost necessitates the use of Sponsored ads to reach customers.
One of the MOST prominent placements on Amazon's search results page is the Sponsored Brands banner ad (previously known as headline search ad). Not too many sellers make use of this spot, and that's precisely why you should.
Why use Sponsored Brands Ads?
The simple answer is that they are prominent and can give you an opportunity for exposure especially if your competition has not invested in being there. You need to be visible and grab every chance you can get to be seen in the market.
While there may be some truth to the image of Sponsored Brands being more expensive than Sponsored Products, there are ways to set these up so that you not only build brand awareness but actually help boost sales and improve visibility.
A lot of sellers are focussed on reducing their Advertising Cost of Sale (ACoS) way more than on growing sales. A pitfall of this mindset is that it influences your ad choices too. Most sellers in this category would go for conservative budgets and make do with just Sponsored Products Ads.
The smartest sellers, however, will utilize ALL of the tools given by Amazon and know the strengths and weaknesses of each to leverage them in the right amounts. These tools can be used to get sales that you won’t otherwise have. Smart sellers will also use these tools in ways beyond what they were intended to be used for. Let's see how.
How to create effective Sponsored Brands ads
1. Understand the Costs - Here is a chart comparing minimum costs across ad types. While on the face of it, Sponsored Products ads are "cheaper" than Sponsored brands, don't be intimidated by those floors.
The minimum bid for keywords on Sponsored Products ads is 2 cents, while the lowest that you can spend on Sponsored Brand Ads in the U.S. is 10 cents.
A good strategy to prevent wasteful spending on Sponsored Brands ads is to avoid using too many broad keywords. Instead, capitalize on the long tail. Long tail keywords attract people lower in the funnel, which in turn creates more conversions and better ROI. Be laser targeted in your keyword strategy and try to use the main keywords in your ad copy.
Fortunately both Sponsored Products and Sponsored Brands are based on the CPC model, so you only have to pay when someone actually clicks.
2. Pick messaging that reflects your Avatars and their intent
If you know your avatar and "read their mind" by doing a little bit of thinking, you can have a much better success rate. At PPC Ninja, we routinely brainstorm a list of avatars for our products through competitor research, market research, and more. Another important thing we do is that we list our all possible buyer intent. To read more about this strategy refer to our post on Web Retailer.
We studied 42 different Sponsored Brands ads to identify different types of messaging brands use. Click here to download our swipe file.
3. Split test your creative
Don't just stick to one image creative. Do invest in split testing using services like Pickfu. Within a few hours you can gauge what might be most appealing to customers. Using attractive lifestyle photos to grab attention.
4. Test Out Landing Pages - There are two landing pages to consider: the product listing page or the storefront page. The product listing pages perform better because they are closer to what most customer avatars want. These pages will also help in more conversions. For those with general search terms, storefront pages are better landing pages.
Read more about our study on this other blogpost.
Do the hard work!
Sponsored Brands ads invariably demand some spreadsheet work. You'll need to carefully plan a set of ads in batch mode to save time. Factor in multiple avatars, messages, images, landing pages and choice of 3 products that will tie everything together.
Being vague and unplanned in your targeting and ad design can make your Sponsored Brands ads expensive. As they say, if you target everyone, you end up targeting no one. A little bit of planning can help you meet shoppers where they are.
Did this post spark your curiosity or triggered a question? Comment below or email us at email@example.com. We'd love to hear from you.