3 Types of Amazon Ads and How to Use Them Effectively
Advertising is essential for growing a profitable Amazon business. Understanding how Amazon ads work gives sellers a massive advantage in visibility, rankings, and scaling revenue.
This guide covers the three main types of Amazon ads, their placements, costs, and expert strategies to maximize ROI.
What Are the Types of Amazon Ads?
Amazon PPC advertising is divided into three main categories:
- Sponsored Brands: Highlight your brand with a custom headline, logo, and multiple featured products. Boosts brand awareness and drives traffic to your Amazon Store or landing page.
- Sponsored Products: Promote individual listings in search results and product pages to drive sales and improve ranking.
- Sponsored Display (formerly Product Display Ads): Target audiences based on behavior and interest, on and off Amazon. Perfect for retargeting and expanding reach.
Sponsored Brands Ads
Sponsored Brands push your brand in front of high-intent shoppers. They appear prominently in search results and feature your logo, headline, and multiple products.
Where Do Sponsored Brand Ads Appear?
- Top of search results
- Mid-search results
- Product detail pages
- Other browsing placements within Amazon
How Much Do Sponsored Brand Ads Cost?
Sponsored Brands operate on a cost-per-click (CPC) auction model. You pay only when someone clicks your ad. Costs depend on:
- Competitiveness of keywords
- Category demand
- Your bid strategy
Average CPC in 2024: ~$0.97. Typical ACoS: 25%–36%.
Expert Tips for Sponsored Brand Ads
- Conduct keyword research using multiple match types
- Create eye-catching creatives with a strong headline and logo
- Feature best-selling or high-converting products
- Analyze CTR, ACoS, and conversions regularly
- Use negative keywords to avoid wasted spend
- A/B test creatives to see which messaging resonates
- Leverage Brand Analytics to refine targeting
Sponsored Products Ads
Sponsored Products are Amazon’s most widely used ad format, promoting individual listings in search results and product pages. They are crucial for ranking, scaling winners, and defending shelf space.
Where Do Sponsored Product Ads Appear?
- Top of search results
- Mid-search listings
- Product detail pages
- Carousels on competitor listings
How Much Do Sponsored Product Ads Cost?
Costs depend on keyword competition and bidding strategy. CPC auction model applies, with Amazon suggesting bids, dynamic bidding, and daily budget control.
Expert Tips for Sponsored Product Ads
- Use Helium 10, Ahrefs, or Google Keyword Planner for keyword research
- Prioritize long-tail, high-intent keywords
- Track competitor keywords and seasonal trends
- Use negative keywords to filter irrelevant traffic
- A/B test images, titles, and prices
- Review campaigns regularly and adjust bids
- Organize campaigns by product type or profitability
Sponsored Display Ads (Product Display Ads)
Sponsored Display Ads target audiences using browsing history, purchase signals, and demographics. Useful for retargeting, competitor conquesting, and expanding reach outside Amazon.
Where Do Sponsored Display Ads Appear?
- Amazon product pages
- Search results
- Competitor listings
- Customer review sections
- Third-party apps and websites
- Mobile and desktop browsing experiences
How Much Do Sponsored Display Ads Cost?
CPC ranges $0.50–$3.00, depending on audience size, competition, and bid type (CPC/CPM).
Expert Tips for Sponsored Display Ads
- Target competitor ASINs and high-traffic categories
- Use high-quality visuals and clear CTAs
- Review CTR, ACoS, and conversion rates
- Leverage retargeting for shoppers who didn’t buy
- Improve product detail pages for higher conversions
Additional Amazon Advertising Solutions
- Lock Screen Ads: Ads on Kindle and Fire devices, ideal for authors and reader-focused brands.
- Amazon Attribution: Track off-Amazon marketing’s contribution to conversions.
- Amazon DSP: Programmatic buying of display, video, and audio ads across Amazon and external inventory.
Is It the Right Time to Run Amazon Ads?
Yes. Ads drive traffic, improve rankings, and create a flywheel effect: more clicks → more sales → better organic visibility.
Strategy depends on budget, product maturity, competition, and goals. Every seller has at least one ad type that fits their stage.
FAQs
How many types of ads are on Amazon?
Three: Sponsored Products, Sponsored Brands, and Sponsored Display.
How many types of PPC campaigns does Amazon offer?
Two: Automatic and Manual Targeting.
What are ad groups in Amazon?
Ad groups organize sets of ads and keywords within a campaign for better management and reporting.
What is Amazon ACOS?
ACOS (Advertising Cost of Sales) = Ad Spend ÷ Sales. Lower ACOS = higher efficiency.
What is CPC in Amazon PPC?
CPC (Cost Per Click) is what you pay each time a shopper clicks your ad.
