Amazon Advertising: Sponsored Video vs Sponsored Product Campaigns

Last Updated on March 11, 2023 by

If you are eager to build marketing momentum and grow your e-commerce business faster, you should start using Amazon-sponsored ads effectively. 

Amazon advertising has been growing since 2019. Its market share has risen, occupying 50% of the total share in the e-commerce industry. Amazon offers different types of advertising campaigns. Sponsored product campaigns are the most popular feature of them. As more and more sellers start their business on Amazon, it has become tough and most important for them to compete with others using paid advertising campaigns. In the meantime, the Amazon tunnel is getting bigger day by day with so many brand new features. Sponsored video ad is one of the latest advertising features on Amazon. This article will give you an in-depth analysis of sponsored products and sponsored video campaigns, how they work, what are the benefits of them, and what you need to get started with these ads. 

Sponsored Products

Amazon sponsored products are the PPC ads that help to promote specific products in shopping results and relevant product pages. When a customer clicks an ad, they are directed to the corresponding product page. It helps to increase sales and attract traffic to product pages. 

Sponsored Video

Sponsored Brands video is a visual ad format that shows on Amazon search results pages and product detail pages to promote your products.

Where do sponsored product ads appear?

Sponsored product ads may be appeared at the top of the Amazon search result page, alongside, or within shopping results and on product pages, on desktop and mobile. Ads are shown to shoppers based on relevant keywords or products.

Where do sponsored video ads appear?

Sponsored video ads appear on both search result pages and product detail pages on desktop and mobile phones.

Advantages of Sponsored Products ads

 Here are some of the benefits of Sponsored Products Ads –

> Increase Product Visibility: Sponsored Products Ads use specific keyword targeting to provide product listing in related searches. This can potentially put your products in front of potential consumers looking to make a purchase. The ads can pop up on the top of the page, within the search results, and on the product detail page itself. It’s an excellent way to increase product visibility and attract consumers to your listings.

> Easy to Create: Anyone who has a professional seller or vendor account can create sponsored product ads.

> Multiplatform: Your Sponsored Products Ads can be seen across different devices, whether desktop computers or mobile devices. This makes your ad visible to various consumers.

> More Ad placement Area: In an Amazon search result page or product detail page there will be a wide area to place your sponsored product ads rather than any other ads.

> Helps to Improve Rank: Sponsored products ad is the best way to improve your product’s overall rank.

> Spark Interest in New Products: Sparking interest and gaining traction on new items can be difficult. After all, shoppers can’t buy items they aren’t aware of. Sponsored Products can help bring awareness to these new items by getting them in front of more potential customers.

Advantages of Sponsored Video ads

 Here are some of the benefits of Sponsored Video Ads –

> Visual is valuable:  65% of the world’s population are classified as “visual learners” and video is the best form of visual advertising. People get attracted easily to video ads.

> Boost Revenue Faster: Video advertising can grow revenue much faster than other sponsored ads. It has always high CTR and conversion rate compared with other sponsored ads.

> Customers like video better: Over 72% of customers reported that they preferred video to text ads. So there is always a better chance to earn money through video ads.

> Decision influencer: Not only do consumers prefer video but it’s also often a major factor in their buying decision process. In fact, 90% of customers say that video has helped them make a purchase decision.

> Less Competition: Not all sellers can run video ads if they want to. That’s why competition is less here compared with other forms of advertising.

Disadvantages of Sponsored Products ads

Every good thing has its own downsides. Amazon sponsored product ads also have some disadvantages.

> Taking Time: One of the disadvantages of sponsored product ads is that they can sometimes be quite time-consuming to gather traffic and conversion.

> Ad placement: As so many sponsored pads are shown in a row on Amazon search result pages and product detail pages that’s why customers can easily move to other sponsored product ads. 

Disadvantages of Sponsored Video ads

 Here are some disadvantages of Sponsored Video Ads –

> Seller Restrictions: Not all sellers can run sponsored video ads. Only those who have a brand registry on Amazon can run sponsored video ads.

> Video and audio specifications: Amazon has its own video and audio specifications to run sponsored video ads. They don’t allow any video that doesn’t meet their criteria.

Finally, Both Amazon sponsored product ads and sponsored video ads have a high potential of generating a good amount of sales. As sponsored video ad is the most recent feature of Amazon so we all should test this.

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