If you’re an Amazon seller, choosing the right advertising type can make or break your PPC performance. Two of the most powerful campaign types inside Amazon Ads are Sponsored Products (SP) and Sponsored Brands (SB).

Both increase visibility, boost sales velocity, and help you dominate search results but they work very differently.

Using them correctly can reduce ACoS, improve conversions, and help you scale faster.

This guide explains:

• What Sponsored Products are

• What Sponsored Brands are

• Key differences between the two

• Strengths & weaknesses of each

• Exact scenarios for when to use SP or SB

• How to combine them for maximum results

• Common mistakes and best practices

Let’s begin.

What Are Sponsored Products (SP)?

Sponsored Products are Amazon’s most widely used ad type. They promote individual ASINs inside search results, category results, and competitor listings.

You’ve seen them everywhere search results labeled “Sponsored,” product detail pages, and even carousel placements.

How They Work

• You select a single ASIN

• Choose keywords or let Amazon automatically target shoppers

• Your product shows up where buyers are searching or browsing

• You pay per click (CPC)

Why Sponsored Products Matter

1. High conversion rate – Shoppers clicking SP ads are often ready to buy.

2. Best for lower ACoS – Usually the most efficient campaign type.

3. Ideal for ranking keywords – Helps boost organic rankings fast.

4. Very flexible – Works for launches, scaling, retargeting, competitor targeting, and more.

Where Sponsored Product Ads Appear

• Top of search

• Middle of search

• Bottom of search

• Product detail pages (PDP)

• Featured on competitor listings

What Are Sponsored Brands (SB)?

Sponsored Brands highlight your brand, not just a product. They appear in premium placements such as the very top of search and allow you to showcase multiple ASINs.

Features of Sponsored Brands

• Display your brand logo

• Add a headline

• Feature 1–3 products

• Link to your Storefront or a custom landing page

Sponsored Brands include multiple formats:

1. Product Collection Ads

2. Store Spotlight Ads

3. Video Ads (SB Video)

Why Sponsored Brands Matter

1. Brand awareness – Ideal for making your brand look BIG.

2. Premium placements – Top-of-page visibility.

3. Multi-product exposure – Great for brands with multiple related SKUs.

4. Great for defense – Protect your brand name from competitors bidding on it.

Key Differences: Sponsored Brands vs Sponsored Products

When to Use Sponsored Products

Sponsored Products are the foundation of Amazon PPC. They should be the first campaigns every seller launches.

Below are the situations where SP works best.

1. Product Launch & Ranking New Keywords

If you want to quickly push your product into page 1 for your main keywords, Sponsored Products are essential.

Why?

SP ads appear exactly where buyers click the most, making them perfect for:

• Increasing organic keyword rank

• Driving consistent sales velocity

• Getting rapid PPC data

Pro tip:
Start with keyword-targeted SP campaigns using exact match for your top 5–10 high-intent keywords.

2. Scaling Best-Selling Products

After a product starts generating good customer feedback and organic reviews, SP is the best tool to scale up.

You get:

• Lower CPC

• High conversion rate

• Broader keyword coverage

Use SP to expand keyword targeting into:

• Phrase match

• Broad match

• Auto campaigns

• Competitor ASIN targeting

3. Retargeting on Product Detail Pages

Sponsored Products appear heavily on competitor listings.

This helps you:

• Take shoppers from weaker listings

• Position your product next to high-priced competitors

• Steal traffic from top brands

If your product has better reviews, a lower price, or stronger offer, SP campaigns can convert extremely well.

4. Budget-Limited Situations

If your budget is tight, Sponsored Products should be prioritized over Sponsored Brands.

You get:

• More clicks for the same budget

• Better ROI

• Lower ACoS

When to Use Sponsored Brands

Sponsored Brands work best after your Sponsored Products campaigns are already performing well.

They serve a different purpose: boosting visibility and brand authority.

1. When You Have 3+ Related Products

If you offer multiple products in the same niche, Sponsored Brands help increase:

• Cross-selling

• Upselling

• Multi-ASIN exposure

Example:
If you sell a Garlic Press, Peeler, and Storage Box → SB Product Collection ads help show the entire bundle together.

2. To Drive Traffic to Your Amazon Storefront

Sponsored Brands allow you to link directly to a Storefront page.

Perfect for:

• Increasing repeat purchases

• Telling your brand story

• Showing a full catalog

• Improving brand engagement metrics

3. When Competing for Highly Competitive Keywords

Top-of-search placements are extremely valuable.

If your goal is to look bigger than competitors, use Sponsored Brands strategically for:

• Category-level searches

• Branded searches

• High-volume seasonal keywords

Even if shoppers don’t click, the top placement boosts your brand impression.

4. Creative Ads (Logo + Headline + Video)

Sponsored Brands give you creative controls that SP doesn’t allow.

You can:

• Add a lifestyle video (SB Video)

• Highlight your brand value

• Use your own logo

• Write a compelling headline

This builds brand trust and helps differentiate from cheaper competitors.

5. Brand Defense (Protecting Your Brand Name)

If you don’t advertise on your own brand name keywords, your competitors will.

Sponsored Brands are extremely effective for defending:

• Your brand name

• Your top-selling ASINs

• New product launches

Running SB campaigns on your brand terms prevents competitors from hijacking your traffic.

Sponsored Brands vs Sponsored Products

The correct strategy is:

Start With Sponsored Products

Why?

• Best for sales

• Best for ranking

• Lower CPC

• Faster data

Scale With Sponsored Brands

Why?

• Best for visibility

• Best for cross-selling

• Supports long-term brand growth

Best Strategy: Use Both Together

The strongest Amazon PPC accounts use a full-funnel strategy combining both types.

Here’s a simple structure:

Top of Funnel (Awareness) – Sponsored Brands

• Branded keywords

• Category keywords

• Video ads

• Store spotlight ads

Goal: More traffic, brand recognition, and multi-product exposure.

Middle of Funnel (Consideration)

• Product collection ads

• Video ads

• Competitor keywords

• Category-level searches

Goal: Reach shoppers comparing multiple products.

Bottom of Funnel (Conversion) – Sponsored Products

• Exact match keywords

• Product targeting ads

• Retargeting ASINs

• Buy-box targeting

Goal: Capture ready-to-buy shoppers and close the sale.

Cost Differences and What to Expect

If your objective is:

• Sales → use SP

• Branding → use SB

Common Mistakes Sellers Make

Mistake #1: Launching Sponsored Brands Before SP Is Profitable

SB is NOT ideal for new products with low reviews or weak conversion.

Mistake #2: Using Weak Creatives in Sponsored Brands

Your headline and image should grab attention immediately.

Mistake #3: Not Linking SB Ads to the Storefront

This hurts browsing time and lowers total brand engagement.

Mistake #4: Letting Competitors Win Your Brand Keywords

Always run SB + SP on your own brand terms.

Mistake #5: Ignoring ASIN Targeting in SP Campaigns

This is one of the most profitable strategies, especially against weaker competitors.

Conclusion

Choosing between Sponsored Brands and Sponsored Products isn’t about picking one over the other—it’s about knowing when to use each to support your goals. Sponsored Products drive conversions, increase keyword ranking, and offer the strongest return on ad spend. They are the backbone of every successful PPC strategy and should be your first focus when launching or scaling a product.

Sponsored Brands, on the other hand, elevate your brand visibility, showcase multiple products, and help you dominate top-of-search placements. They’re ideal for established sellers looking to build trust, cross-sell related products, and protect their brand from competitors.