Part 5: Should I Invest in Amazon Ads?

Published: October 5, 2021

Kayla Rott


Amazon has undeniably changed the way of online shopping and has become a leading online marketplace. With over 300 million active customer accounts worldwide, you likely want your products to be available to those customers. Getting your products listed on Amazon is only half the battle, consumers are most likely to buy the products listed on the first page, and it takes work to get your product there.

While you can sell your products on Amazon’s Seller Central, you can also promote and advertise those products to increase your rank on search results pages. As your ads are clicked on, your organic (original, non-sponsored) product listing will start to increase in rank. Ideally, you’d want to occupy the most space towards the top of the page to gather the most eyes on your product. This gives your product and brand the most awareness.

As part of our series on paid ad platforms today we are going to discuss Amazon Ads.

Should You Invest in Amazon Ads? Here’s How it Works.

Similar to Google and Microsoft, your ad setup will depend on the keywords you target and the information you put into your product listing to create the most relevancy for the search query. Budget allocation is also extremely similar, with bid strategies either being a daily budget allocation or a lifetime budget for the campaign.

A lifetime budget means that you do not want to spend any more than, say $1,000 on a campaign, once that $1,000 has been used Amazon will no longer run ads. It’s important to note that the lifetime budget option is only available for sponsored brand campaigns.

The Difference Between Sponsored Brands and Sponsored Products

When running sponsored ads on Amazon, you can choose whether you want to run a Sponsored Brand or a Sponsored Product campaign.

Sponsor Brand

Sponsored Brand campaigns are used when you want to drive awareness and traffic to your brand as a whole. These ads typically include your brand logo, a headline, and up to three different ASINs. ASIN is Amazon’s version of a SKU, in other words, 3 different products. When clicked, shoppers can be taken to your brand storefront on Amazon, the product listing, or a product category.

Example of Sponsored Brands on Amazon Ads
Example of Sponsored Brands on Amazon Ads

Sponsor Products

Sponsored Products are individual products that you promote. These are targeted based on the relevancy of the product information, your keywords, and the search term the shopper used. When clicking on this ad, the shopper will be taken to the product page. Use this type of ad when you’d like to drive sales and ranking for a particular product.

Example of Sponsored Products on Amazon Ads
Example of Sponsored Products on Amazon Ads

Types of Amazon Ads 

Like most paid search platforms, there are options to choose from with Amazon. Here’s a quick breakdown of the different types of ads:

  • Sponsored Ads: These can either be sponsored products, which is where you’re boosting a specific product, or they can be sponsored brands, which is where your brand profile is the ad highlighted on the search result. There are also sponsored display ads that utilize Amazon’s third-party and partner sites to showcase your products.
  • Amazon Demand-Side Platform: Reach audiences both on and off Amazon using their network of partners and third-party exchanges. To note, when using these ads, you do not need to be selling items on Amazon or linking back to Amazon. However, we don’t recommend this option unless you are seeing success in other advertising campaigns. As this typically requires around $35,000 yearly spend.
  • Audio Ads: These play as people are listening to Prime Music, often on their Alexa’s
  • Video Ads: These are similar to Google’s video ads, but appear on different platforms, like IMDb, Fire TV, etc.


If you work with an e-commerce business, we highly recommend adding Amazon Ads to your marketing strategy. You will have to access the millions of shoppers that are using this platform for their everyday necessities.

If you think that Amazon Ads are right for your marketing strategy and would like to gain a better understanding of what these services can do for your company, contact BrandCraft Marketing to chat with one of our Paid Ads Experts.

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