Once you have gotten started on your Amazon PPC journey, it’s time to take a closer look at the more detailed segments of your budget. If you’re unfamiliar with Amazon advertising, it’s important to understand the three ad types on the platform.
That is why we gathered up the three types of Amazon ads:
- Sponsored Products
- Sponsored Brands
- Sponsored Display
These three ad types offer a variety of pros and cons and should definitely be in the mind of every seller. However, when it comes to budgets, the three ad types are not equally valued.
While spreading your ad spend across too many keywords can be ineffective, allocating too much stock in Sponsored Brands and Sponsored Display can make it hard for sellers to get the most out of their ad spend when getting started.
Why are these two ad types “less effective” for sellers forming their first Amazon PPC budget?
It is because Sponsored Display ads don’t have negative audience targeting and the attribution model for these ads isn’t still clear. Sponsored Display ads also have a CPM model rather than a CPC model which can make performance hard to understand for new Amazon family members.
Sponsored Brand ads are extremely competitive. Putting three of your products at the top of an Amazon SERP can get really expensive, and while they can be incredibly effective, there is certainly a reason for limiting your ad spend on this ad type.