Sponsored Brands: How to Manage Them and Benefits

Retail Media

5 min read

With Sponsored Brands you can create a message, an interaction tool, directly from your brand to your customers.

Sponsored Brands: How to Manage Them and Benefits

We all got a broader view on the benefits of different ad formats within our previous articles on Retail Media Ad types and Sponsored Products in detail. In fact, all ad formats offer a variety of services and come with different benefits and the goals of all ad formats alter in this sense. Sellers should evaluate the appropriate ad formats before creating an ad campaign.

“There are key aspects to consider before creating an ad campaign and it starts with setting goals and deciding on your ad format. Then, you can optimize your ad campaign to get the most out of it with different budgets, bids and audience targeting.”

So, what are Sponsored Brands?

Sponsored Brands are PPC ads that basically aim to increase your brand’s visibility and recognition. These ad formats may display your brand logo, personalized headlines, and multiple products. And, the best part of Sponsored Brands is that you can create a message, an interaction tool, directly from your brand to your customers.

Customers get to know your brand and gain awareness of your product lists in this way. While Sponsored Brands alone provide these benefits, Amazon reports indicate that there is a 30 percent increase in category impression shares of sellers using Sponsored Brands and Sponsored Product ads together.

You may directly impact customers by reaching out to them at the beginning of the purchasing process with Sponsored Brands. These ads have the opportunity and power of being the first thing that a consumer comes across on a retailers’ website. Thus, sellers can catch the consumer interest at the very first stage of their shopping journey. This makes Sponsored Brands highly powerful, because it is one of the things that most of the e-commerce brands and sellers struggle with the most, that is getting the consumer interest from the beginning.

Think about how you can attract customers and make your brand more appealing. Focus on the points that make your brand and products special. In the end, highlighting these points will help you stand out from your competitors.

Have the ability to guide customers to your brand store with your creative brand displays.

Where are Sponsored Brands displayed?

Generating the upper-funnel

Sponsored Brands are known to be upper-funnel in advertising because they are such powerful tools for brand awareness. But this does not mean that it will not have any effects on sales because, at some point, customers that are familiar with your brand and products will decide to make a purchase.

Drawing attention to your store

Sponsored Brands will also help you gain new customers, they simply improve the shopping experience and provide customer traffic by directing them to your brand store. This naturally increases conversions as you get more opportunities with more traffic.

Creating customizable ads

With Sponsored Brands, sellers hold the opportunity to increase brand awareness and attract new customers using creative elements, from visuals to texts. Sponsored Brands provide customers a very media-rich experience with their personalized logos, stunning headlines, call-to-action messages, images, and even video teasers.

The Power of Visual Advertising

Since visual information is transported to the brain at a rate of 90%, and it is processed 60,000 times more quickly than text, sellers have a high chance to engage a customer who sees the promotion of a product and brand with Sponsored Brand ads. It is very important that your brand is remembered easily by customers, so it’s a good idea to use an attractive brand logo to achieve that awareness. According to the Medical & Healthcare Digital Marketing Agency, “80% of people remember what they see, compared to 10 percent of what they hear and 20 percent of what they read.” That means that customers who will see your brand will actually recognize you and you will gain new customers.

You can also include videos in Sponsored Brands as mentioned before, and considering the following data, it will become much easier to attract customers’ attention; 80% of people prefer to watch a video but only 20% of people will go for reading a text.

Share of Ad Spend

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While Amazon’s share of ad spend was 9% percent in 2018 for Sponsored Brands, it reached 21% in 2021. The features of Sponsored Brands and higher opportunities in ad placements increased advertisers’ probability for higher RoAS.

The Highest RoAS

To investigate how brands and sellers advertise on Amazon and identify the ad types that generate the greatest return on investment, Jungle Scout analyzed over 3,500 brands and sellers, and it shows that Sponsored Brands ads generate the highest RoAS.

Click-through and Conversion Rate

According to the Sellics study, the median click-through rate for Sponsored Brands is 0.38%, and the best performers’ click-through rate is 0.68%. Also, the median conversion rate for Sponsored Brands is 7.19%.

It is stated that combining Sponsored Products and Sponsored Brands can boost overall conversion rates by 50% and ROAS by 24%.

How to run Sponsored Brand Ads

-Target keywords that you want to sell or that will best describe your brand

-Focus on bid optimization and lower ACoS

-Monitor and report data of your advertising campaign on a regular basis

-Come up with creative visuals and means of engaging customers

-Make comparisons and contrasts between the campaigns using diverse automation and analysis measures

Sponsored Brands are being used to attract more customers every other day, it seems like sellers are starting to explore and even expertise ways to win customers in the new era. We can even agree that gaining customers and increasing brand awareness has never been easier using Sponsored Brand ads. The world’s leading retailers are already taking advantage of Sponsored ad formats and features. In fact, it is only a matter of time for retailers, sellers, and brands to turn these tools and features into profit.