Comprehensive Guide to Amazon Ad Types and Campaigns

For eCommerce brands looking to expand their digital footprint, improve sales, and streamline operations on Amazon, having a solid grasp of Amazon’s advertising ecosystem is essential. With millions of products competing for attention, a well-executed advertising strategy ensures that your listings not only reach the right audience but also convert at an optimal rate.

Amazon provides various ad types, each serving a specific role in a brand’s marketing funnel. A strategic combination of these ad types can help boost brand visibility, engage potential customers, and drive profitable sales. This guide breaks down Amazon’s key ad formats, their benefits, and best practices for creating high-impact campaigns.

Types of Amazon Ads

Amazon offers multiple advertising solutions, each designed to target shoppers at different stages of the purchasing journey. These include:

• Sponsored Products – Best for driving immediate product sales by appearing in search results and product pages.
• Sponsored Brands – Helps increase brand awareness and promote a collection of products.
• Sponsored Display – Expands ad reach to audiences both on and off Amazon, focusing on retargeting shoppers.
• Amazon Demand-Side Platform (DSP) – A programmatic advertising solution that helps brands reach specific audiences beyond Amazon’s ecosystem.

Each of these ad types plays a unique role in an advertiser’s toolkit, allowing brands to attract, engage, and convert shoppers effectively.

Sponsored Products

Sponsored Products are one of the most widely used Amazon ad types. These are cost-per-click (CPC) ads that appear within search results and product detail pages, helping sellers promote individual items based on relevant keywords or product targeting.

Key Benefits:

• Targets high-intent shoppers actively searching for similar products.
• Drives traffic directly to the product detail page, increasing conversion rates.
• Offers flexibility in targeting methods, including keyword, category, and ASIN targeting.

Best Practices for Sponsored Products

• Leverage Negative Keywords: Filtering out irrelevant searches prevents wasted ad spend and improves campaign efficiency.
• Start with Automatic Targeting: Let Amazon gather data on the best-performing keywords before switching to manual targeting for greater control.
• Use Bid Adjustments Strategically: Experiment with Amazon’s Bid+ feature, which increases bids by up to 50% to secure top placements in high-converting search results.

Sponsored Brands Ads

Sponsored Brands are designed for advertisers looking to build brand awareness while showcasing multiple products within a single ad. These ads appear prominently in search results and allow advertisers to drive traffic to a brand’s Amazon Store or a dedicated landing page.

Ad Formats:

1. Product Collection – Promotes up to three products within a single ad, allowing brands to introduce a mix of high-performing and new products.
2. Store Spotlight – Directs traffic to different sections of an Amazon Store, ideal for brands selling across multiple categories.
3. Sponsored Brands Video – Engages shoppers with auto-playing videos, increasing click-through and conversion rates.

Best Practices for Sponsored Brands

• Combine New and Best-Selling Products: Feature well-performing items alongside newer products to generate more exposure.
• Optimize Creative Elements: Use engaging headlines, high-quality images, and compelling ad copy to improve brand recall.
• Drive Traffic to an Optimized Storefront: Ensure your Amazon Store has well-organized categories and detailed product descriptions to maximize conversion rates.

Sponsored Display Ads

Sponsored Display allows brands to expand their reach beyond Amazon, using audience targeting and retargeting capabilities. These ads appear on Amazon’s network and third-party websites, engaging customers based on their shopping behavior.

Key Benefits:

• Retargeting Capabilities: Re-engages shoppers who have viewed your product but haven’t made a purchase.
• Expands Audience Reach: Targets potential customers across multiple platforms, including Amazon, third-party sites, and apps.
• Flexible Bidding Models: Offers CPC (cost-per-click) and CPM (cost-per-thousand-impressions) options for greater control over ad spend.

Best Practices for Sponsored Display

• Use Retargeting to Boost Conversions: Re-engage shoppers who have viewed your product within a defined lookback period.
• Leverage Audience Insights: Amazon provides valuable data on shopper intent, helping you refine targeting strategies.
• Test Different Creatives: Experiment with varying images, headlines, and ad placements to identify the best-performing ad variations.

Amazon DSP (Demand-Side Platform)

Amazon DSP is a powerful programmatic advertising tool that enables brands to run highly targeted display, video, and audio ads across Amazon-owned properties and external websites. Unlike Sponsored Ads, DSP is not limited to CPC bidding but uses advanced data-driven targeting to reach audiences at different stages of the buying cycle.

Key Benefits:

• Advanced Audience Targeting: Utilize first-party Amazon shopper data to build precise audience segments.
• Cross-Platform Advertising: Expand reach across Fire TV, Twitch, and third-party websites.
• Retargeting Capabilities: Bring back customers who previously interacted with your brand.

Best Practices for Amazon DSP

• Use Lookalike Audiences: Target potential customers with similar purchasing behaviors to your existing buyers.
• Combine DSP with Sponsored Ads: A hybrid strategy increases brand presence across multiple touchpoints.
• Leverage Video and Audio Ads: Engage audiences with multimedia formats for a more immersive brand experience.

Building Effective Amazon Ad Campaigns

Creating a successful Amazon advertising strategy requires a structured approach to ensure ads reach the right audience and deliver a high return on investment (ROI).

1. Define Your Advertising Goals

Before launching campaigns, identify key objectives:

• Brand Awareness: Use Sponsored Brands and DSP to introduce your brand to new customers.
• Sales Growth: Focus on Sponsored Products and keyword-targeted campaigns.
• Customer Retention: Leverage retargeting with Sponsored Display and DSP.

2. Optimize Targeting Strategies

Amazon provides multiple targeting options to refine your audience:

• Automatic Targeting: Amazon selects relevant keywords and ASINs based on its algorithm.
• Manual Keyword Targeting: Advertisers select specific keywords to target relevant searches.
• Product & Category Targeting: Focus on competitor products or similar categories.
• Audience Targeting: Retarget shoppers based on browsing and purchasing behavior.

3. Budget Allocation and Bid Management

• Set Realistic Budgets: Allocate budgets based on campaign objectives and performance data.
• Use Dynamic Bidding: Amazon offers three bidding strategies—fixed, down-only, and up-and-down—to optimize cost-efficiency.
• Monitor Ad Performance Regularly: Adjust bids and budgets based on key performance indicators (KPIs) like ACoS, CTR, and ROAS.

Successful Amazon advertisers emphasize:

• Continuous Campaign Optimization: Regularly analyze data to refine keyword selection, audience targeting, and bid strategies.
• Data-Driven Decision Making: Use Amazon’s advertising reports to assess performance and adjust tactics accordingly.
• A/B Testing: Experiment with different creatives, headlines, and ad placements to identify the best-performing variations.

Final Thoughts

Mastering Amazon advertising requires a combination of strategic planning, data-driven insights, and continuous optimization. By leveraging the right ad types, refining targeting strategies, and optimizing bids, eCommerce brands can drive greater visibility, engagement, and sales

At SalesDuo, we simplify Amazon advertising, making sure your campaigns are always optimized for the best results. With AI-powered insights, expert keyword analysis, and continuous performance tracking, we help brands refine their ad strategies for long-term success.

Want to boost your Amazon ads? Schedule a call with SalesDuo today, and let our experts create a data-driven strategy tailored to your brand!

About the Author

Badal Tharayil is a master of customer success, turning first impressions into lasting partnerships. Known for proactive communication and flawless onboarding, he’s the bridge between client satisfaction and operational excellence. Outside work, Badal loves exploring cinema, expressing himself on the dance floor, and staying energized through fitness pursuits.