What’s the Difference Between Sponsored Products, Sponsored Brands, and Sponsored Display Ads on Amazon?
Struggling to choose the right Amazon ad type? You’re not alone. With multiple options like Sponsored Products, Sponsored Brands, and Sponsored Display ads, Amazon sellers often get overwhelmed figuring out where to start—or scale. Each campaign type targets shoppers differently, serves unique business goals, and delivers distinct results.
In this post, we’ll break down the differences, strengths, and ideal use cases for each ad format—so you can advertise smarter and grow your sales faster.
Key Takeaways
- Sponsored Products are best for boosting individual product sales via PPC ads placed directly in search results or product pages.
- Sponsored Brands build brand awareness by featuring your logo, custom headline, and multiple products in a branded banner.
- Sponsored Display enables retargeting both on and off Amazon—ideal for reaching shoppers who viewed your listings or similar items.
- Each ad type maps to a stage in the customer journey: Products = conversions, Brands = awareness, Display = re-engagement.
- Your choice should align with your goal—whether launching a new product, increasing brand visibility, or protecting your listings from competitors.
Quick Guide
Sponsored Products: The Conversion Workhorse
What They Are
Sponsored Products are pay-per-click (PPC) ads that promote individual product listings directly within Amazon’s search results and product detail pages.
When to Use
- You want to drive direct product sales
- You’re launching a new product
- You want to rank higher for specific keywords
| Pros | Cons |
|---|---|
| High conversion rates | Competitive and can get expensive for popular keywords |
| Appear in highly visible placements (top of search, product pages) | Limited branding opportunity |
| Easy to set up and scale |
Best For:
- Sellers aiming for fast, measurable ROI
- Lower-funnel shoppers who are ready to buy
New to Sponsored Products or just getting started with PPC? Check out our Amazon PPC Campaign Strategies for 2025: AI and Beginner’s Guide.
Sponsored Brands: Build Awareness & Loyalty
What They Are
Sponsored Brands promote your brand with a custom banner that includes a logo, tagline, and up to three products. These ads typically appear at the top of Amazon search results.
When to Use
- You want to build brand recognition
- You have a portfolio of products
- You want to tell a brand story with creative assets
| Pros | Cons |
|---|---|
| Strong top-of-funnel awareness | Requires Brand Registry enrollment |
| Showcase multiple products at once | May have lower conversion rates than Sponsored Products |
| Custom headlines and brand logos = more control over messaging |
Best For:
- Brand-registered sellers launching a product line
- Businesses investing in long-term brand equity
Sponsored Display: Reach Beyond Amazon
What They Are
Sponsored Display ads target shoppers on and off Amazon—appearing on product pages, customer review pages, and even third-party websites and apps.
When to Use
- You want to retarget shoppers who viewed your product or similar products
- You want to protect your listing from competitor ads
- You want to reach audiences outside of Amazon
| Pros | Cons |
|---|---|
| Remarketing functionality | Less control over placements |
| Expands reach to external audiences | Performance can vary more widely than other types |
| Great for brand protection and targeting competitor listings |
Best For:
- Mid- to upper-funnel strategies
- Retargeting interested shoppers
Quick Comparison: Which Ad Type Should You Choose?
| Feature/Goal | Sponsored Products | Sponsored Brands | Sponsored Display |
|---|---|---|---|
| Drive direct sales |  Yes |
Yes |
Yes |
| Build brand awareness |  Limited |
Strong |
Strong |
| Retarget shoppers | No |
No |
Yes |
| Appear off Amazon | No |
No |
Yes |
| Control creative | Minimal |
Custom |
Basic |
| Requires Brand Registry | No |
Yes |
Yes (for some) |
FAQs About Amazon Ad Types
Sponsored Products are usually the most cost-efficient, especially for sellers focused on direct conversions.
No. You must be enrolled in Amazon Brand Registry to access Sponsored Brands.
Yes—but start small and monitor results closely. Sponsored Display can be more variable in performance.
Sponsored Products are ideal for launches due to high intent visibility and sales focus. Pair with Sponsored Brands for broader reach if your brand is registered.
Final Thoughts: Align Your Ad Type with Your Goals
The “right” ad type depends on what you’re trying to achieve:
- Quick conversions? Start with Sponsored Products.
- Brand visibility? Lean into Sponsored Brands.
- Retargeting or cross-platform exposure? Go with Sponsored Display.
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