Amazon Sponsored Products vs Sponsored Brands vs Sponsored Display: What is the Difference?
Amazon's advertising suite offers three distinct Sponsored ad formats, each designed for a different purpose in the marketing funnel. Understanding when and how to use Sponsored Products, Sponsored Brands, and Sponsored Display — and how to combine them effectively — is the foundation of a mature Amazon advertising strategy.
Sponsored Products: The Foundation of Amazon Advertising
Sponsored Products are cost-per-click ads that appear in Amazon search results and on product detail pages. They blend naturally into organic search results and are the highest-volume, most widely used ad format. Sponsored Products are keyword-targeted or ASIN-targeted, and they drive traffic directly to a single product detail page. For most categories and most advertising budgets, Sponsored Products should receive the majority of ad investment.
Sponsored Brands: Building Brand Awareness and Traffic
Sponsored Brands are headline banner ads that appear at the top of search results pages. They feature your brand logo, a custom headline, and up to three products. Sponsored Brands link to a Brand Store page or a custom landing page — not a single product. They are best used for brands with multiple products in a category, as they drive category-level awareness and capture shoppers at the research stage before they have selected a specific product.
Sponsored Display: Retargeting and Conquesting
Sponsored Display ads appear on product detail pages, customer review pages, and on Amazon and third-party websites. Unlike Sponsored Products and Brands which are primarily keyword-triggered, Sponsored Display targets audiences and ASINs directly. It is best used for: retargeting shoppers who viewed your product but did not purchase, placing ads on competitor product detail pages to capture consideration, and reaching in-market category shoppers off-Amazon.
Key Differences at a Glance
- Targeting: SP and SB use keywords and ASINs; SD primarily uses audiences and ASIN targeting
- Placement: SP appears in search and on PDPs; SB appears at top of search; SD appears on PDPs and off-Amazon
- Objective: SP = direct sales and ranking; SB = brand awareness and traffic; SD = retargeting and conquesting
- Creative: SP uses your product image and title; SB requires a custom headline and logo; SD uses your product image with headline and callout
| Factor | Sponsored Products | Sponsored Brands | Sponsored Display |
|---|---|---|---|
| Targeting | Keywords, ASINs | Keywords, ASINs | Audiences, ASINs |
| Placement | Search results, PDPs | Top of search | PDPs, off-Amazon |
| Primary objective | Direct sales, ranking | Brand awareness, traffic | Retargeting, conquesting |
| Creative required | None (uses listing) | Logo + headline | None (auto-generated) |
| Brand Registry needed | No | Yes | Yes |
The Recommended Full-Funnel Approach
- Foundation: 60–70% of ad budget in Sponsored Products for direct conversion efficiency
- Awareness: 15–20% in Sponsored Brands to capture research-phase shoppers and brand searches
- Retargeting: 10–20% in Sponsored Display to re-engage product page viewers who did not convert
Brands that jump directly into Sponsored Brands or Sponsored Display before optimising Sponsored Products waste budget. Sponsored Products establish baseline conversion data, identify converting keywords, and generate the organic ranking signals that make your Brand Store worth visiting. Build a profitable SP foundation before adding the other formats.
New-to-Brand Metric: Why It Matters Across All Three
All three formats report a "New-to-Brand" metric showing what percentage of purchases came from customers who had not bought from your brand in the past year. New-to-Brand sales represent genuine customer acquisition rather than repeat purchases you would have made anyway. A high New-to-Brand percentage in your Sponsored Brands and Sponsored Display campaigns validates those formats as growth investments, not just remarketing costs.
Frequently Asked Questions
Sponsored Products are cost-per-click ads in search results and on product pages — the highest-volume format driving traffic to a single product. Sponsored Brands are headline banner ads at the top of search linking to a Brand Store. Sponsored Display targets audiences and ASINs directly on product pages and off-Amazon for retargeting and conquesting.
For most categories and budgets, Sponsored Products delivers the highest direct ROI because it captures shoppers already searching for your product. The recommended budget split is 60 to 70% in Sponsored Products, 15 to 20% in Sponsored Brands, and 10 to 20% in Sponsored Display for a full-funnel approach.
Sponsored Products and Sponsored Brands use keyword and ASIN targeting. Sponsored Display primarily uses audience and ASIN targeting — it can show ads to shoppers who viewed your products or competitor products regardless of what they are currently searching.
Sponsored Products use your product image and title automatically from the listing — no additional creative required. Sponsored Brands require a custom headline, brand logo, and selection of up to three products. Sponsored Display uses your product image with an Amazon-generated headline and callout text.
New-to-Brand is a metric available across all three Sponsored ad formats that shows what percentage of purchases came from customers who had not bought from your brand in the past year. A high New-to-Brand percentage in Sponsored Brands and Sponsored Display campaigns validates those formats as genuine customer acquisition investments.
Use Sponsored Products as your primary format for capturing purchase-intent search traffic. Add Sponsored Display to retarget shoppers who viewed your products but did not purchase, to place ads on competitor product pages, and to reach in-market category shoppers off-Amazon. Sponsored Display works best as a complement to Sponsored Products, not a replacement.
About Perfality
Perfality is an end-to-end ecommerce and marketplace management agency trusted by 75+ global CPG and DTC brands including Spectrum Brands, Kenneth Cole, Black+Decker, Stella & Chewy's, and Galderma. With 8 years of hands-on experience and a 100+ specialist team based in Jaipur, India, Perfality helps brands grow on Amazon, Walmart, Chewy, Petco, and other major marketplaces through listing optimization, A+ content, PPC management, account operations, chargeback recovery, and data intelligence. Learn more at www.perfality.com.
Perfality's advertising team manages Sponsored Products, Brands, and Display campaigns for 75+ global CPG brands. Let's review your account and build the right budget split.
