Amazon Ads Uncovered: Which Ad Formats Offer the Best ROI for Brands?

If you’re an e-commerce stakeholder, brand manager, or e-commerce business owner, you’re probably familiar with Amazon Ads. Amazon Ads is a powerful tool that allows brands to reach millions of customers on the world’s largest online marketplace. However, with so many ad formats to choose from, it can be challenging to determine which ones offer the best ROI for your brand. In this article, we’ll explore the different Amazon Ad formats and provide insights into which ones are most effective for e-commerce businesses.

Sponsored Brands

Sponsored Brands is an ad format that allows brands to promote their products and increase brand awareness. This ad format appears at the top of search results and features a custom headline, logo, and up to three products. According to Amazon, advertisers who used a combination of Sponsored Brands video, Store spotlight, and custom image ad formats saw a 5.5% increase in return on ad spend (ROAS) compared to advertisers only using one Sponsored Brands ad format.

Sponsored Products

Sponsored Products is an ad format that allows brands to promote individual products within Amazon’s search results. This ad format is cost-per-click (CPC), meaning that advertisers only pay when a customer clicks on their ad. Sponsored Products is a popular ad format for e-commerce businesses because it allows them to target customers who are actively searching for their products. According to Helium 10, Sponsored Products is the most popular Amazon Ad format, accounting for 85% of all Amazon Ad spend.

Sponsored Display

Sponsored Display is an ad format that allows brands to reach customers both on and off Amazon. This ad format uses Amazon’s demand-side platform (DSP) to target customers based on their browsing and purchase history. According to Amazon, advertisers who used a combination of Sponsored Brands custom image and Store spotlight ad formats saw a 57.8% increase in conversion rate compared to advertisers only using one Sponsored Brands ad format.

Amazon DSP

Amazon DSP is a programmatic advertising platform that allows brands to reach customers both on and off Amazon. This ad format uses Amazon’s proprietary data to target customers based on their browsing and purchase history. According to ROI Revolution, Amazon DSP is a powerful tool for e-commerce businesses because it allows them to target customers who are in the consideration phase of the purchase funnel.

In conclusion, Amazon Ads offers a variety of ad formats that can help e-commerce businesses increase brand awareness, promote individual products, and reach customers both on and off Amazon. While each ad format has its own unique advantages, the most effective ad formats for e-commerce businesses are Sponsored Brands, Sponsored Products, and Sponsored Display. By leveraging these ad formats, e-commerce businesses can increase their ROI and drive explosive profits.

If you’re interested in learning more about Amazon Ads and how they can help your e-commerce business, reach out to geekspeak Commerce today. Our team of experts can help you optimize your Amazon Ads strategy and drive more sales for your business.