The Three Ad Types at a Glance
| Feature | Sponsored Products | Sponsored Brands | Sponsored Display |
|---|---|---|---|
| Placement | Search results, product pages | Top of search, product pages | Product pages, search, off-Amazon |
| Format | Single product listing | Brand banner with logo + 2-3 products (or video) | Product creative with auto-generated or custom content |
| Targeting | Keywords, product/ASIN targeting | Keywords, product/ASIN targeting, categories | Audiences, views remarketing, product targeting |
| Eligibility | All sellers | Brand Registry required | Brand Registry required (for most features) |
| Typical Purpose | Drive direct sales | Brand awareness + sales | Retargeting + audience expansion |
| Avg CPC Range | $0.50-$3.00 | $0.50-$4.00 | $0.30-$2.00 |
| Typical ACoS | 15-35% | 20-40% | 15-30% (retargeting) to 40-60% (prospecting) |
| Budget Allocation | 60-70% | 15-20% | 10-20% |
Sponsored Products: The Revenue Workhorse
Sponsored Products is Amazon’s highest-volume, highest-intent ad type. Your product appears in search results and on product detail pages, looking nearly identical to organic listings (with a small “Sponsored” tag). When a shopper clicks, they go directly to your product page.
When to Use Sponsored Products
Always. Sponsored Products should be the foundation of every Amazon advertising strategy. They capture high-intent shoppers who are actively searching for products to buy. No other ad type converts at this rate.
Specific use cases:
- Driving sales on proven keywords with known conversion rates
- Defending your brand name in search results
- Targeting competitor product pages (your ad appears on their listing)
- Product launches — establishing initial sales velocity and keyword ranking
- Maintaining visibility for your top-selling ASINs
Campaign Structure
Following the SPAG methodology from our PPC strategy guide →:
Brand Defense Campaigns: Target your brand name and brand + product keywords. Low CPC ($0.30-$0.80), low ACoS (5-15%). These are must-win — don’t let competitors steal your branded traffic.
Category Campaigns: Target generic product keywords (“portable blender,” “yoga mat thick”). Moderate CPC ($0.80-$2.50), moderate ACoS (20-35%). This is where most of your revenue comes from.
Competitor Campaigns: Target competitor brand names and ASINs. Higher CPC ($1.00-$3.00), higher ACoS (30-50%). Strategically valuable but not always profitable on first purchase — the value is in customer acquisition.
Discovery Campaigns: Auto campaigns and broad match for finding new keywords. Budget-capped at 5-10% of total spend. Harvest winners weekly and move them to exact-match campaigns.
Targeting Options
Keyword Targeting: Exact match (most precise, highest conversion), phrase match (moderate reach), broad match (widest reach, lowest precision). Start exact, expand to phrase as data justifies.
Product Targeting: Target specific ASINs (your ad appears on their product page) or entire categories. ASIN targeting is excellent for competitive conquest — show your product to people actively looking at a competitor’s listing.
Negative Targeting: Equally important. Negative keywords prevent your ads from showing for irrelevant searches. Negative ASINs prevent your ads from showing on irrelevant product pages. Maintain weekly.
Bidding Strategies
Dynamic Bids — Down Only: Amazon reduces your bid when conversion is unlikely. Good starting point for new campaigns — limits overspending while you collect data.
Dynamic Bids — Up and Down: Amazon increases your bid (up to 100% for Top of Search) when conversion is likely, and decreases when it’s not. More aggressive — use once you have conversion data that justifies the increased spend.
Fixed Bids: Your bid stays exactly as set. Useful for controlled testing and for campaigns where you want predictable spend.
Placement Adjustments: Increase bids for Top of Search (up to 900%) or Product Pages (up to 900%). Top of Search typically converts 2-3x better than other placements. Start with a 25-50% increase for Top of Search on your best-performing keywords.
Sponsored Brands: The Awareness Builder
Sponsored Brands ads feature your brand logo, a custom headline, and up to three products. They appear at the top of search results — the most prominent placement on Amazon. Clicking the logo takes shoppers to your Amazon Store. Clicking a product takes them to the product page.
When to Use Sponsored Brands
After Sponsored Products are established. Sponsored Brands are not a starting point — they’re an expansion. Launch them once your Sponsored Products campaigns have 30+ days of data and you know which keywords convert.
Specific use cases:
- Building brand awareness for shoppers searching category terms
- Owning the top of search results for your brand name (brand defense at the highest level)
- Promoting your Amazon Store and full product catalog
- Product launches — combining a new product with established products in one ad
- Video ads — the highest-engagement format on Amazon
Ad Formats
Product Collection: Your logo, a headline, and 2-3 product images. Links to your Store or a custom landing page. Good for brand awareness and driving traffic to your full catalog.
Store Spotlight: Your logo, a headline, and 2-3 Store pages (e.g., “Men’s Collection,” “Best Sellers,” “New Arrivals”). Links to your Store. Best for brands with well-organized, multi-page Stores.
Video: A single product with an auto-playing video in search results. The highest CTR format on Amazon. Videos should be 15-30 seconds, lead with the product benefit (not the logo), and include captions (most video is viewed without sound).
Campaign Structure
Brand Defense: Target your brand name with Product Collection or Store Spotlight format. Ensures you own the top of search for your own brand. Low cost, high conversion.
Category Awareness: Target top category keywords with Product Collection showing your best-selling products. Higher cost than Sponsored Products for the same keywords, but the premium placement drives both clicks and brand impressions.
Video Campaigns: Target high-volume category keywords with Video format. Video ads have the highest engagement rates and are particularly effective for products that benefit from demonstration (how it works, how it looks in use, size/scale reference).
Measuring Sponsored Brands
Sponsored Brands have a dual purpose — direct sales AND brand awareness. Measure both:
Direct metrics: ACoS, ROAS, click-through rate, conversion rate (same as Sponsored Products).
Brand metrics: New-to-brand orders (what percentage of purchases came from shoppers who hadn’t bought from your brand in the past 12 months), brand search volume growth (are more people searching for your brand name over time?), and Store traffic.
A Sponsored Brands campaign with a 40% ACoS but 70% new-to-brand rate is acquiring new customers at scale — the lifetime value of those customers far exceeds the first-purchase ACoS.
Sponsored Display: The Retargeting Engine
Sponsored Display ads appear on product detail pages, in search results, and on third-party websites and apps through Amazon’s demand-side platform. The key differentiator: Sponsored Display can retarget shoppers who viewed your product but didn’t buy — bringing them back to complete the purchase.
When to Use Sponsored Display
After Sponsored Products and Brands are running. Sponsored Display is the third layer — it catches shoppers who slipped through the first two.
Specific use cases:
- Retargeting shoppers who viewed your product page (highest-intent audience on Amazon)
- Retargeting shoppers who viewed similar products in your category
- Targeting audiences by interest (in-market for your category, lifestyle segments)
- Appearing on competitor product detail pages
- Extending reach off-Amazon (apps, websites in Amazon’s network)
Targeting Options
Views Remarketing: Target shoppers who viewed YOUR product page but didn’t purchase. This is the highest-converting Sponsored Display tactic. These shoppers have already shown interest — a reminder ad often converts at 15-25%.
Purchases Remarketing: Target shoppers who previously purchased from you. Useful for cross-selling related products or re-engaging for repurchase.
Product Targeting: Your ad appears on specific competitor product pages. Similar to Sponsored Products ASIN targeting, but with the Sponsored Display creative format.
Audience Targeting: Reach shoppers based on Amazon’s behavioral segments — in-market audiences (actively shopping your category), lifestyle audiences (behavioral patterns suggesting interest), and lookalike audiences (people similar to your existing customers).
Creative Options
Auto-Generated: Amazon creates the ad using your product image, title, and pricing. Quick to launch, no design needed.
Custom Creative: Add a brand logo, custom headline, and lifestyle image. Higher CTR than auto-generated — worth the extra setup effort for your top campaigns.
Budget and Expectations
Sponsored Display typically has lower CPC than Sponsored Products ($0.30-$2.00) but also lower conversion rates for prospecting audiences. Retargeting campaigns convert well and should be profitable. Prospecting audiences (interest-based, lookalike) are more expensive per conversion but valuable for customer acquisition.
Budget allocation: 10-20% of total Amazon ad spend. Within that, weight 60-70% toward retargeting (highest ROI) and 30-40% toward prospecting.
How the Three Ad Types Work Together
The full-funnel framework:
AWARENESS (Top of Funnel)
Sponsored Brands → Category keywords, video
Sponsored Display → Audience targeting, interest-based
↓
CONSIDERATION (Mid Funnel)
Sponsored Products → Category keywords, competitor targeting
Sponsored Brands → Product collection, Store traffic
↓
CONVERSION (Bottom Funnel)
Sponsored Products → Exact match, high-converting keywords
Sponsored Display → Views remarketing (retargeting)
↓
RETENTION
Sponsored Display → Purchases remarketing, cross-sell
Sponsored Brands → New product launches to existing customers
The key insight: Sponsored Products alone captures the bottom of the funnel — shoppers who are already searching for your product type. Adding Sponsored Brands captures the middle (shoppers searching your category but undecided on brand). Adding Sponsored Display captures the top (reaching new audiences) and recovers lost conversions (retargeting visitors who didn’t buy).
Most sellers leave 30-50% of their potential revenue on the table by only running Sponsored Products.
Budget Allocation Framework
For Brands Spending Under $5K/month
| Ad Type | Allocation | Focus |
|---|---|---|
| Sponsored Products | 80% | Brand defense + top category keywords |
| Sponsored Brands | 15% | Brand defense + 1-2 category video campaigns |
| Sponsored Display | 5% | Views remarketing only |
For Brands Spending $5K-$20K/month
| Ad Type | Allocation | Focus |
|---|---|---|
| Sponsored Products | 65% | Full SPAG structure across top 10-20 products |
| Sponsored Brands | 20% | Category awareness + video + Store spotlight |
| Sponsored Display | 15% | Retargeting + competitor product pages |
For Brands Spending $20K+/month
| Ad Type | Allocation | Focus |
|---|---|---|
| Sponsored Products | 55% | Comprehensive keyword coverage |
| Sponsored Brands | 20% | Full-funnel awareness + video |
| Sponsored Display | 15% | Retargeting + audience prospecting |
| Amazon DSP | 10% | Programmatic, off-Amazon, video |
Frequently Asked Questions
Which ad type should I start with?
Sponsored Products. Always. They have the highest conversion rate, the most straightforward targeting, and provide the data foundation for everything else. Add Sponsored Brands in Month 2-3. Add Sponsored Display in Month 3-4.
Do I need Brand Registry for all ad types?
Sponsored Products: No — any seller can run them. Sponsored Brands: Yes — Brand Registry required. Sponsored Display: Most features require Brand Registry. If you’re not yet registered, see our Brand Registry guide →.
Can I run the same keywords across all three ad types?
Yes, and you should for your highest-priority keywords. Each ad type occupies different placements, so you’re not bidding against yourself. Running your brand name across all three means you own the top of search (Sponsored Brands), the in-search placement (Sponsored Products), and the product page retargeting (Sponsored Display) simultaneously.
What’s a good ACoS for each ad type?
It depends on the strategic purpose: brand defense campaigns across all types should target 5-15% ACoS. Category conversion campaigns (Sponsored Products) should target 20-35%. Awareness campaigns (Sponsored Brands category, Display prospecting) can tolerate 35-50% if they’re driving high new-to-brand rates. Retargeting (Display) should target 15-25%.
How do I measure the combined impact of all three?
TACoS (Total Advertising Cost of Sales) is the metric that captures the combined effect. TACoS = total ad spend ÷ total revenue (including organic). If TACoS is stable or declining while total revenue grows, your advertising program is working — ad spend is driving organic growth that compounds beyond the direct ad attribution. See: ACoS vs TACoS →
Next Steps
Want your Amazon advertising audited across all three ad types? We’ll analyze your current campaign structure and identify which ad types you’re underusing and where budget is being wasted. Get your free audit →
Keep reading:
- Amazon PPC Strategy 2026: How to Cut ACoS by 40% →
- Amazon DSP Advertising: Complete Guide for Brands →
- Amazon ACoS vs TACoS: Which Metric Actually Matters? →
Last Updated: March 2026