Selling on Amazon is a game of exposure, but as markets get more and more crowded, it becomes harder to distinguish yourself and most of the FBA sellers face failure. Those who sell the best-performing products can make $1,000 to $2,500 monthly. But if the product isn’t winning in some way, you can make it win in different ways.
Obviously, advertising is the solution. While Amazon has many options for product advertising, we’ll be focusing on Amazon Sponsored Brand Ads because they’re so effective in 2023 at drawing attention to your products and brand.
Let’s answer some common questions and then talk about the most important trends in Amazon-sponsored brand ads in 2023.
Why choose Amazon sponsored brand ads over sponsored product ads?
It’s crystal clear that single-product sellers have no place in sponsored brand advertising. And if you’re only interested in selling one or two items on Amazon through sponsored product ads, you have no business competing.
Using only one form of advertising is ineffective for Amazon sellers. Combining sponsored brands with sponsored products is a fantastic choice. Also, it is TRUE that sponsored brand ads have an average CTR that is 0.38% lower than sponsored product ads, which have an average CTR of 0.42%. Then, why are we placing such tremendous emphasis on sponsored brand advertisements?
Because we need to ask the right question
Why do ads need to sell brands, not just products, in 2023?
In 2023, customers are getting more selective about the things they buy as a result of the spread of information and options available to them. They are looking for brands that share their beliefs and provide them with more than simply a product.
To successfully market a product or service, it is necessary to craft a story about the brand that will appeal to the intended consumers, elicit the desired emotional response, and effectively communicate the company’s USP.
In a competitive market, selling a brand rather than merely a product also enables businesses to stand out. Brands can differentiate themselves from the competition and establish an enduring identity by highlighting their core values, origin story, and company culture.
In this way, following marketing trends can foster customer loyalty and advocacy beyond the financial transaction at the heart of most business relationships.
Therefore, advertisements should promote brands rather than individual products so as to better connect with customers and leave a long-lasting impact.
Let’s get a brief overview of what’s included in an Amazon-sponsored brand ad.
What is a sponsored brand ad?
As we discussed, this type of ad is meant to promote Amazon brands and displays a company logo alongside a unique headline and various products. You want customers to think of your brand when they are in the market for something to buy. Just because of the Amazon-sponsored brand ad, L’Oréal’s sales in Mexico increased by 400% year over year, and the company brought in 140k new clients.
For this reason,
Advertisers observed an average 12.2% increase in return on advertising spend after launching sponsored brands following sponsored products.
- By strategically positioning your ad in a prominent location on Amazon, you can raise brand awareness and customer loyalty by targeting certain keywords, product categories, and specific products with sponsored brand ads.
- With this ad, you can direct consumers to a specific product listing page, a brand-new landing page, your store, or a custom URL.
- You can reap the benefits of sponsored brand advertisements in one of three distinct formats: product collections, store spotlights, or videos.
Top trends for Amazon sponsored brand ads in 2023
When it comes to the benefits of convenience that you value, Amazon has always been ready and proactive on your behalf. It has been diligently putting forth user-friendly technological features and tools. Changes to Amazon ads have been dramatic over the past few years, and 2023 promises to be an even bigger year.
Experts predict that the following will be 2023’s most influential developments in sponsored brand advertising on Amazon.
1-Everyone’s doing it; you should be creative with sponsored brand creatives.
What’s necessary, is necessary.
The success of your Amazon-sponsored brand ad depends on your ability to think outside the box when it comes to using Amazon’s creative assets, such as catchy titles, customizations, selections of products, and keyword targeting and strategy implementation.
Don’t expect any sales if you ignore these creative features.
The first creative feature element is an image. Compare the two Sponsored Brand Banners below and comment on which one you think will result in more clicks.
In the image above, the brand selling the Orbeez gun has used the customized image but the brand selling the packing tape has not. Amazon also reports that CTR is increased by 2.2 times for campaigns that include customized images compared to those that do not.
By the way, it’s obvious that the brand banner for the Orbeez Gun-sponsored product is more eye-catching and appealing.
The second creative feature element is the headline. The catchiness of the headline also matters. The more your headline is catchy, the more it converts better.
In the above two banners, the headlines are:
- “So comfortable that you can’t wait to brush”
- “The ultimate gel blaster. Elevate your game.”
- Remove up to 100% more stains in just 3 days”
- Your best choice to be mommy”
Each of the above headlines is excellent in its own way. The headlines are all attention-grabbing and convey a sense of urgency in a short and clear manner. Each one is well-suited to the service or product it advertises. You may quickly attract customers and boost sales with these kinds of headlines.
The positioning of the logo is the third creative element. The logo is a visual representation of your brand that can inspire trust in new customers. Therefore, make sure your logo is noticeable. After all, its main goal is to run sponsored brand ad campaigns.
To sum up, your 50% ad will perform best if you properly incorporate these three creatives.
2-One size doesn’t fit all – Personalize your ads with different ad formats.
The advertising platform on Amazon is incredibly versatile. It’s concerned with the nitty-gritty details of sellers’ lives. In a sponsored brand ad, there are three more ad formats: a product collection ad, a store spotlight ad, and a video ad.
Product collection and store spotlight ad
The purpose of a product collection ad is to advertise a group of products that share some sort of connection. Usually, the ad has multiple pictures of the product, a title, and a “call to action” button. The goal of a product collection ad is to draw attention to a group of products that customers might not be familiar with.
The purpose of a store spotlight ad is to draw attention to a single-brand store. It presents the brand’s USP, values, and backstory. Typically, the ad will consist of a single image or video clip coupled with a headline that conveys the essence of the brand. A store spotlight ad’s purpose is twofold: to raise brand recognition and to get people inside the store itself.
The two examples of sponsored product ads above are from the same brand, Seventh Generation. This brand has used the two ad formats very accurately and in accordance with the demands. Seventh Generation is a big brand. Therefore, it promotes awareness of the brand, builds credibility with its target audience via the spotlight ad format, and uses the product collection ad for the products that need to be advertised individually to boost sales.
According to Amazon data, advertisers who use more than one type of sponsored brand ad format have a higher return on investment (ROI), conversion rate (CR), and click-through rate (CTR) than those who use only one format.
So, it’s a trend for Amazon brand builders to use different ad formats for sponsored brands, and it’s a good idea for you to do the same.
Now is the time to talk about why video advertising – the third ad format for sponsored brand ads – is so crucial.
3-Tap into multimedia sponsored brand ads – unlock the power of video.
When it comes to Amazon ads, videos dominate first. Video advertisements perform better than any other kind of advertising on every platform. The structure of a sponsored brand video ad is a 6- to 45-second auto-paying video ad. It is shown between the shopping results. A buyer who clicks on this ad will be directed to the product’s detail page.
The trend is on the rise as more and more brands see the value in using sponsored brand videos in their advertising campaigns. Therefore, in order to differentiate yourself from the competition and make your video content mobile-friendly, you must tell an engaging story in under 45 seconds.
Best Practices to Make the Video Ad
- Put your best foot forward. In order to grab the attention of the buyer, you need to showcase your products or anything fascinating within the first few seconds. Use your imagination to highlight the benefits your product offers and the ways in which your brand stands out from the competition. Your company’s name and logo should be shown later in the video.
- Your video should be concise, simple, and to the point. — Keep in mind that the purpose of the video is not to educate viewers about the product at hand, but rather to pique their interest enough to prompt them to check out the product itself or your Stores page.
- Put money into video. Create eye-catching images that are simple to grasp to entice people into learning more about your business and product. A well-executed, high-quality, professionally-made video may do wonders for your brand’s credibility and sales.
- Establish your brand’s identity. Make your video memorable by keeping the images, colors, designs, and style the same throughout and by including an “end card” that boldly displays your brand name and logo.
4-Get actual data-driven insight, be aware of your impact and develop value around that.
The most important thing to remember when analyzing the success of sponsored brand ads is to have a clear goal in mind. What kind of outcome are you hoping to achieve with the marketing budget you have invested in your campaign? Then check impressions, hits, click-through rate (CTR), cost per click (CPC), and conversion rate, and use that information to measure ACOS and TACOS.
After that, analyze your data for patterns over time. Is there a link between the success of your ads and specific days of the week or hours of the day? Do you find that particular keywords result in increased interest or sales? Ad campaigns can be improved and optimized through the detection of trends.
If you want to know how sponsored brands and data work, you’ll be surprised to learn that there isn’t a 100% right answer. What works for you can be determined through testing the performance of campaigns with different ad groups, and this process can be repeated until you discover the secret to your campaigns’ success. Yes, if you are a new or intermediate seller, it is hard to figure out what the success point of an advertisement is. This is where Amazon’s advertising services come in. The advertisers have gotten so much experience with each new campaign that their quick analysis can make a big difference.
5-Integrate influencer marketing with Amazon-sponsored brand ads.
Since one-third of the global population regularly uses social platforms, they are intrinsically tied to the rapidly developing advertising landscape. Integrating influencer marketing with other Amazon ad formats always doubles revenue, even if most customers start their online purchase journey on Amazon.
Customers are more likely to rely on suggestions from a wide audience than A-list superstars. However, the number of social media influencers is growing, which raises the issue of whether or not the products they advocate actually work. By the way, that’s a different conversation.
Let’s look at the numbers to see how effective influencer marketing really is.
The above graphs were made using data from a survey of 20,000 customers. It shows that sponsored ads make customers more engaged, but interest doesn’t always lead to sales. Influencer marketing, on the other hand, reaches a smaller audience and gets less engagement, but because customers already believe the influencer, it brings in more sales.
So, it’s compulsory for brands to attach influencer marketing to sponsored brand ad campaigns for better outcomes.
Master tips for managing sponsored brand ads.
If you look closely, every technical or non-technical function has some tips and tricks that will help you do it better. Sponsored brand ads on Amazon are a complicated way to advertise, but the tips below can make it much easier for you. Let’s take a look at the tips:
- You need to do some digging to get the perfect branding keywords.
- Pay attention to price optimization and plan to cut ACoS.
- Optimize the ad copy so that it corresponds with the user’s search intent.
- Enhance and optimize your product listings so that the automated ad may pick the right keyword.
- If you want better results, try the A/B test. This could mean putting together landing pages, ASINs, pictures, headlines, and so on.
- Improve the quality of the material on landing pages, ads, and campaigns on a regular basis.
- Try using parts of video ads in your ads.
- Compare and contrast the ads by using different automation and analysis tools.
How can I follow all the trends in sponsored brand ads accurately?
Like many Amazon sellers, you may be wondering if it’s worth your time and money to run sponsored brand ads while following all the trends that reach your ideal customers. After all, Amazon could reject your ad if it doesn’t follow the rules. Or your ad may produce bad outcomes due to neglecting trends. Also, a badly made campaign ad might not reach the target audience you want it to, which would be a waste of money.
What if you could find a single platform that made it easy to create, customize, and launch Amazon-compliant sponsored brand ads that fit with your brand’s image?
Creative advertisers at eComFist use their skills to run a successful ad campaign for a brand. It’s simple to get started with the sponsored brand ad, and anyone may get started with it and run it. However, problems arise when considering the predicted outcomes of the advertisement, and the majority of the advertising spending looks to be flushed down the toilet.
Because of this, our Amazon advertising service shows you the whole process of how our experts work on your campaigns, from researching keywords to customizing them, launching them, analyzing how well they did, testing them, and more. Not only that, but you’ll also see that we follow the latest trends.
Closing thoughts on the Amazon sponsored brand ad
Amazon’s platform will likely remain the most important one for sponsored brand marketing in the years to come (2023). Advertising opportunities abound on Amazon because of the site’s large user base, data-driven targeting options, and an ever-evolving suite of ad solutions.
This is why sponsored brand advertisers that want to make the most of Amazon’s platform would do well to keep up with current trends and best practices in this field. Constantly experimenting with new ad formats and targeting tactics, as well as taking advantage of emerging tools and technology, are all part of this process.
Consider teaming up with eComFist, a leading Amazon advertising agency, to take your sponsored brand advertisements to the next level. An agency with expertise in the platform’s complexities will be able to assist you in maximizing the effectiveness of your ads and anticipating future trends and best practices.