The Power of Sponsored Brands Placements on Amazon

January 16, 2024
By The Badger

Sponsored Brands placements allow you to showcase your brand and products in strategic locations across Amazon. Optimizing these placements is critical for driving visibility, conversions, and sales.

In this blog post, Michael Facchin and Michael Tejeda from Ad Badger examine the benefits of Sponsored Brands placements, how to leverage them effectively, and key tips for maximizing performance.

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What Are The Benefits Of Leveraging Sponsored Brands Placement on Amazon?

Leveraging the different Sponsored Brands’ placements comes with several benefits, including increased visibility, brand recognition, precise targeting, cost efficiency, and improved conversion rates.

1st Benefit: Increased Visibility

Placements like top of search and product pages give your brand prime real estate to capture shopper attention. Optimizing your Sponsored Brands placement is like placing your product in the spotlight. They let you showcase your product on top of search results, in search results, and on product pages– which is basically some of Amazon’s prime real estate.

With your product featuring prominently in these high-visibility areas, you can capture shoppers’ attention and get more eyeballs on your products. More eyeballs is often the first step toward more sales.

2nd Benefit: Brand Recognition

Frequently exposing your brand name and logo across placements builds recognition and trust. It’s like you get a megaphone for your Brands. It draws attention to your brand messaging by showcasing it in high-visibility areas. This boosts brand recognition.

3d Benefit: Precise Targeting

Strategically play with Sponsored Brands placements to improve precision targeting. Sponsored Brands let you target and engage shoppers at different points of their purchase journey. It’s all about getting the right ad, to the right person, at just the right moment.

4th Benefit: Cost Efficiency

Different Sponsored Brands placements perform differently. By analyzing placement performance data, you can focus your budget on the best performing Sponsored Brand placements for optimal ROI.

5th Benefit: Improved Conversions

Strategically targeting high-intent placements boosts your chances of converting browsers into buyers. The multiple Sponsored Brands placements significantly increase your reach, which, when well optimized and executed, translates to improved conversions.

How Does Keyword Research And Selection Impact Sponsored Brands Ads Placement?

Proper keyword research is the backbone of effective Sponsored Brands. The right keywords ensure prominent placement in high-visibility areas, reaching a receptive audience and driving conversions.

Additionally, analyzing placement performance data enables cost-effective allocation of ad spend and provides a competitive edge by targeting competitors’ keywords. Furthermore, it enhances organic ranking by signaling increased sales velocity to Amazon’s SEO algorithm.

In summary, keyword research for Sponsored Brands is crucial for visibility, efficiency, competition, and organic growth. If your keyword selection isn’t on point, your campaign is dead in the water.

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How Do I Structure My Sponsored Brands Ads Placement?

Amazon’s algorithm prioritizes winners, be it products or keywords. To optimize your Sponsored Brands placement, focus on top keywords by creating separate ad groups when structuring your Sponsored Brands placement.

With 100 keywords, the top ten should receive the majority of your ad spend for better impressions.

If you already have numerous keywords, restructure your campaign by analyzing search term performance over the last 65 days. Allocate dedicated placement settings and budgets to the highest-spending search terms.

For less effective keywords, assess their relevance and use negative keywords to enhance Sponsored Brands placements, ensuring your campaigns appear in relevant searches and product pages.

Why Do Compelling Creative Elements In Sponsored Brands Placements Matter?

Compelling creative assets optimized for each placement grab attention when and where you want it. For example, a top-of-search placement can utilize a catchy headline with a product image. A scroll-stopping video, however, works well for rest-of-search placement to help your brand and products stand out in the sea of search results.

Boost your Sponsored Brands Placement creativity with these tips:

Use accurate, high-quality product images.
Craft compelling headlines with keywords.
Include your brand logo for recognition.
Utilize visuals to tell your brand's story.
Maintain a consistent brand identity.
Optimize for mobile to capture mobile sales.

Experiment with your Amazon Sponsored Brands placements to see what works best for you.

Should You Use Amazon’s Settings for Automated Bidding on Sponsored Brands?

No, you should not use Amazon’s settings for automated bidding on Sponsored Brands. You should set custom bid adjustments.

You have two options when it comes to bidding on Sponsored Brands affection: Amazon’s way or Ad Badger’s way.

The first option is the default, and it’s a wild card. When it comes to bidding for different Sponsored Brands Placements on Amazon, Amazon offers “automated bidding,” which allows Amazon to automatically optimize bids for placements other than top of search. This is a great choice if you don’t like optimizing and trust Amazon to have your money’s best interest at heart. (We do not advise going with this approach.)

The second option, the better option, is to follow Ad Badger’s way and customize the bids. Avoid Amazon’s automated billing and choose to manually increase or decrease bids. A custom bid strategy provides flexibility to adjust your bidding as needed, adapting to unexpected results.

Pro tip: Taking control of your Amazon account is recommended. In general, whenever there’s an option to take control of your Amazon account, you should probably do that.

In summary, avoid using Amazon’s automated bidding settings for Sponsored Brands. Instead, opt for custom bid adjustments, which offer greater control.

How Do I Monitor And Optimize Amazon Sponsored Brands Placement?

To ensure your Sponsored Brands placements perform well, monitor and optimize them. Use the Sponsored Brands placement report to identify top-performing and underperforming placements.

Key metrics to focus on include impressions, clicks, total spend, total orders, ACOS, new-to-Brands sales, percentage of total sales, and returning customers. Assess these metrics for each placement and adjust your strategy accordingly based on your objectives. Monitor these metrics for individual Sponsored Brands placements to determine the performance of each placement. You can then optimize depending on your goal.

Monitoring and optimizing your Sponsored Brands placements is essential to ensure they’re all firing from all cylinders and the metrics are moving in the right direction. Your Sponsored Brands placement report will help you pinpoint the best-performing Sponsored Brands placements and areas that need improvement.

What Are Common Sponsored Brands Placement Pitfalls To Avoid?

Using Sponsored Brands ads comes with common pitfalls that could negatively impact your individual placement’s effectiveness and profitability.

Let’s look at the Sponsored Brands placement pitfalls you should avoid.

Avoid: Unclear ACOS Goal

Failure to define a clear ACOS goal for individual SB placements can result in overspending and poor campaign performance. Ensure your ACOS goals are clear and work towards achieving them for optimal Sponsored Brands placements performance.

Avoid: Poor Keyword Selection

Irrelevant and low-performing keywords waste your ad spend and bottleneck your campaign. Using the wrong keywords could result in your Sponsored Brands appearing in irrelevant searches and product pages. Monitor your keyword click-share and conversion share per placement to weed out non-performing keywords.

Avoid: Ignoring Data Analysis

Failing to analyze the individual SB placement performance data for each campaign can result in missed opportunities for optimization and improvement.

Avoid: Poorly Defined Targeting

This point ties back to poor keyword selection. If you don’t have a clearly defined target audience, you probably won’t target the right keywords either, and your campaigns won’t be shown to the right people. Have a clear target audience and refine it depending on your individual Sponsored Brands placement performance.

Avoid: Overspending

Going overboard with your bidding will exhaust your ad budget fast. If you don’t have more money to supplement your ad budget, you’ll have to stop your campaigns, resulting in you losing some market share.

In a nutshell, to make the most of your Sponsored Brands placements, steer clear of the usual slip-ups like ignoring data analysis, picking bad keywords, not setting clear ACOS goals, having fuzzy targeting, and going overboard with your budget.

How Do I Leverage Sponsored Brands Placement For Brand Awareness?

Sponsored Brands ads are powerful tools for building brand awareness, and you can leverage your SB placements to improve brand awareness.

Your Sponsored Brands placements can enhance brand awareness, with the most visible placement being the “rest-of-search.”

To boost brand awareness, focus on the placement that garners the most attention and increase bids accordingly, such as top-of-search if it performs best.

If your campaign objective is to improve your brand awareness, look at your placement report to see the Sponsored Brands placement that get the most attention from shoppers. That is the placement you want to double down on.

How Do Sponsored Brands Placements Complement Other Amazon PPC Campaigns?

Sponsored Brands placements play well with other Amazon PPC campaigns, making your advertising strategy a real powerhouse. Combining Sponsored Brands with other types of Amazon PPC campaign types creates a holistic advertising strategy that targets different stages of the customer journey and maximizes ROI.

Effective Sponsored Brands placement can retarget campaigns to re-engage past shoppers of your brand. This complements the audience-focused Sponsored Display ads and the product-focused Sponsored Product ads. They’re like the cool kids who bring their own unique style to the group. They’re great for reeling in previous shoppers, which fits nicely alongside Sponsored Display and Sponsored Product ads.

You can also use other Amazon PPC campaign types to supplement Sponsored Brands placements that aren’t performing too well. Let’s say your top-of-search Sponsored Brands placement isn’t getting as many impressions and sales as the rest-of-search placement. You can use Sponsored Products ads, which appear on top of search results to capture the audience at the top of search results and supplement your top-of-search SB placement.

All in all, it’s a tag team effort that helps you reach customers at different points in their shopping journey and gets you more bang for your advertising bucks.

How Do I Measure The Success Of My Amazon Sponsored Brands Placement?

There are key performance metrics you need to consider when tracking and measuring the success of your Sponsored Brands Placements.

Consider these key metrics:

Placement rate measures the percentage of ad impressions you get at each placement. For example, how many impressions is your top-of-search Sponsored Brands placement getting?
Impressions are important metrics to gauge your Sponsored Brands placement’s reach and visibility.
Advertising cost of sales (ACOS) shows your ad spend as a percentage of sales. It helps you optimize ad spend and ROI for individual SB placements so you have an all-round effective Sponsored Brands campaign.
Click-through rate (CTR) is the number of clicks your Sponsored Brand placement gets. It’s a valuable metric for determining your keyword relevance and the effectiveness of your creative elements at placement level.
New-to-brand metrics let you measure orders from new customers within the last 12 months. They also help you calculate the cost of new customer acquisition and the Sponsored Brands placement that’s bringing in the largest share of new customers.
Keyword placement report offers all the performance metrics for individual keywords for all Sponsored Brands placements, allowing you to optimize targeting and campaign performance.

Wrapping Up Amazon Sponsored Brands Placement

Leveraging Sponsored Brands placement is not just about advertising. It’s about strategically positioning your brand so that it reaches shoppers at every stage of their buying journey.

As you leverage your Sponsored Brands Placement, remember to strategize wisely and monitor your performance diligently to get the most out of your campaigns.

What’s your experience with Sponsored Brands placements? Let us know in the comments, and follow our blog for more insightful Amazon PPC advertising content.