What Are Amazon’s Advertising Products? Sponsored Product, Brand, & Display Ads

Rebecca Brown

October 4, 2022

What Are Amazon’s Advertising Products? Sponsored Product, Brand, & Display Ads

Utilizing Amazon sponsored ads can be a smart way for a brand to drive greater traffic to a product listing and start increasing sales. While many brands still struggle to manage their advertising strategies, 30% of Amazon brand sellers increased their advertising budgets in 2022. As ecommerce VPs approve their 2023 advertising budgets, it may be worth it to take a look at Amazon’s advertising products and the benefit they may have on increasing conversions. 

​​Pattern is the premier ecommerce accelerator with all of the expertise, data-driven insights, and technology brands need to gain control on Amazon and maintain their competitive niche. We know the high value of and how to utilize Amazon’s advertising products to drive the most traffic and conversions to benefit and accelerate your brand.

Here are Amazon’s three main advertising products you should know about in order to drive listing traffic to your products and increase conversions: 

For a brand executive who is selling their product on Amazon, you may not already know the differences between campaign type, so we will walk you through the differences and uses for each of these three ad campaigns.

Sponsored Product Ads

Sponsored Products are a mid-funnel advertising strategy that gives visibility to products above the top organic listings (see example below). This strategy uses custom keywords to get products in front of the consumers who are searching for them, however it can be used to capture new audiences as well.These cost-per-click (CPC) ads require no additional copy or images, but usually receive the most interaction of the campaigns and need to be monitored closely.

Sponsored Product Ads on Amazon

As you can see, these ads look just like an organic listing, however they say, “Sponsored,” on them. These types of ads can be especially effective forms of advertising because they tend to blend in with the organic results around them. With Sponsored Products, you can get your products in front of qualified customers who are searching for your product in such a way that doesn’t make them feel like they are being served an advertisement.

Sponsored Brand Ads

Sponsored Brand Ads are a top-of-funnel brand awareness tool and function on keywords. This ad format helps show a customer what they may be in need of and where to get it.  Commonly used to promote product lines or best sellers, a Sponsored Brand ad shows up as a banner above the search results (see example below). This type of ad requires that the brand showcase at least three separate products.

Sponsored Brand Ads on Amazon

Unlike other campaigns used on the Amazon platform, Sponsored Brand ads require ad copy and a unique logo. These ads also can take customers to a custom landing page, or a page on the brand store, that way they get a clear and overall picture about who your brand is, what other products you sell, and why they can trust your brand

Sponsored Display Ads

Sponsored Display ads can be a tactic for top, middle, or bottom of the advertising funnel due to its varying targeting abilities. Although most commonly found under the bullet points of a detail page, these ads can also show in emails, newsletters, and even more locations off platform.

Unlike the previous ad campaigns discussed, sponsored display ads can target shopping behaviors, like repeat purchasers, similar product purchasers, and even people who viewed the detail page but did not buy. Sponsored Display ads help customers discover your brand, drive awareness, and create loyalty. 

Sponsored Brand Ads on Amazon

The example above shows just one of the many placements Sponsored Display has.

Accelerate Your Sponsored Products With Pattern 

Rather than competing with each other, each of the three sponsored ad products focus on a different section of the sales funnel, allowing you to target your customers and hit your sales numbers, all while edging out possible competitors. When brands use these advertising campaigns, they can better optimize their ad budget to improve ROAS and build revenue. 

At Pattern, we have all the resources to help your brand build successful advertising and digital marketing campaigns on Amazon so you can increase traffic and conversions, which will in turn increase your revenue

Explore Our Ecommerce Resource Library

Find relevant content to accelerate your ecommerce business. Stay on top of industry trends and best practices.

6 Executive Trading Problems on Amazon and How to Avoid Them - blog header
Blog

6 Executive Trading Problems on Amazon and How to Avoid Them

At Pattern, we are constantly trying to better understand brands' performance and experience on Amazon through our research and marketplace data. Our latest Amazon Seller report uncovered common pain points executives faced throughout 2022 on Amazon in Europe and the Middle East. 

Not too surprisingly, there was more than one trading challenge for CEOs selling on Amazon in Europe and the Middle East. There were several top responses such as supply chain issues, advertising, and stock outs–all challenges we hear frequently from 1P Sellers on Amazon no matter the region.  

Here is what we learned about 1P seller trading problems on Amazon:

1. Getting Product into Amazon Warehouses 

Of the brand CEOs who took the survey, 52% mentioned this challenge–making it the most common issue for the second year in a row.  Basically, executives struggle with getting their product into Amazon warehouses, which typically happens because Amazon FBA can be difficult to navigate and comply with. Illegible barcodes, not labeling your products correctly, and a failure to include certain details on barcodes are all reasons your product could be rejected by Amazon FBA works. 

2. Increasing Chargebacks

51% mentioned increasing chargebacks on their products on Amazon, which occurs when brands fail to maintain stock levels or fulfill orders on time. As a 1P seller, if there are any issues with the products you send to Amazon, they will charge you for the time and effort it took for them to resolve those issues. 

Various types of chargebacks could include unauthorized use of credit cards, operational malfunctions (late arrivals, technical issues, etc.), and packaging non-compliance. In a 1P Seller relationship, Amazon will charge vendors with these chargebacks, and disputing them is typically a long, time-intensive, and costly endeavor for any brand.

3. Increasing CPC Costs for Amazon Advertising 

Increasing CPC costs for Amazon Advertising was mentioned by 45% of respondents as a top trading problem. Getting traffic to a product listing helps brands keep their inventory levels stable, so that they never have too much or too little of the product. Increasing CPC costs leads to a possible loss in traffic to a brand’s product, leading to fewer conversions and sales in the long run. 

4. Your Own Supply Chain Being Disrupted 

Sometimes it is not an Amazon issue, but an internal resource and capabilities scenario. 43% of respondents mentioned their own supply chain being disrupted as a common trading problem. Supply chains can be disrupted by a variety of factors, such as inventory order delays, supplier issues, shipping expenses, and problems with existing inventory. 

5. Inadequate Forecasting Methods to Keep Enough Stock in Hand

Many brands lack the resources and expertise to accurately forecast stock levels, according to 38% of the survey respondents. Inadequate forecasting methods can lead to high costs, non-competitive prices, and dissatisfied customers.

6. High Out of Stock Levels Due to Amazon’s Algorithm-driven Price Reductions

High out of stock levels due to Amazon’s algorithm-driven price reductions frustrated 37% of respondents in 2022. Amazon’s dynamic pricing strategy makes sure that the most competitive prices are being offered to shoppers. Low prices are great for shoppers, but sometimes stressful for brand executives. Amazon’s sudden algorithm-driven price reductions can catch a brand off-guard, leading to stockouts. 

Why Most Brand Executives Face the Same Challenges

Being in a 1P relationship with Amazon has its ups and downs—just like any relationship. One of those downsides includes the trading problems mentioned above. In a 1P relationship, Amazon buys your product wholesale and handles most of the selling details, which can be very beneficial in some ways, but may lead to less brand control on your end. Brand executives selling their products through Amazon in Europe and the Middle East face the same challenges that brands are facing world-wide–a lack of brand control and resources to succeed.

Trading problems are just one aspect of the challenges brands face as 1P sellers on Amazon. Learn more about these issues in the full Amazon Vendor Survey from 2022.

How to Avoid These Issues on Amazon

The good news about the trading challenges brand executives are facing as a 1P seller on Amazon is that they are all avoidable. In a 1P relationship, you’re constantly being forced to work around their erratic forecasts, limited communication, and changing priorities. But in a 3P partnership, you dictate inventory management, allowing you to stay in-stock, maintain control of forecasting, and plan for promotions or holidays.

With Pattern as your 3P accelerator, you can simplify forecasting and get inventory to the right place. You ship inventory to one of our warehouses, and we handle the rest—distribution across Amazon’s warehouse network for FBA, repackaging products into bundles, and delivering your orders on time.

Avoid the trading problems on Amazon by partnering with Pattern. Contact us. 

Discover more insights by downloading our annual Amazon Vendor Survey EMEA.

Pattern UAE Shopper Report 2022 Cover Image
Blog

Shopper trends and growth opportunities for brands in the United Arab Emirates

Pattern’s 2022 Amazon United Arab Emirates (UAE) shopper research has highlighted the consumer habits in the region, and demonstrated why it is fast becoming one of the most exciting growth opportunities for brands selling online. We surveyed UAE online shoppers at the beginning of 2022 to determine how their shopper behaviour was likely to develop during the year compared to 2021. We compiled our findings in the UAE Shopper Report 2022 and share the most interesting insights shown below. Shoppers have an appetite to spend Online spending in the UAE is set to see a year-on-year increase during 2022. Overall, 74% of online shoppers polled said they would spend more online shopping this year compared to 2021. A further 19% expected to spend the same as in 2021, with just 6% expected to spend less. Of the 74% who expect to spend more during 2022, nearly half (47%) said this figure was likely to be a lot more. Online marketplaces lead the way More respondents expected to purchase online this year from Amazon or Noon than other online retailers for every major product category, including fashion, consumer electronics, home and kitchen, and beauty. For example, in the consumer electronics category, 61% of online shoppers expect to buy from Amazon, and 42% from Noon. In comparison, only 14% expect to buy online from retailers with both stores and a website. For home and kitchen, 60% expect to buy from Amazon, 46% from Noon and just 18% to buy online from retailers with a store and website. This pattern is mirrored in many other categories. Amazon opens new doors The opportunity for consumers to discover new products and brands through Amazon is evident. 42% of Amazon.ae shoppers purchased a product from a brand that they had never purchased before. Our findings show that Amazon.ae is a great platform for brands to raise their profile amongst UAE’s online shoppers. Our UAE Shopper Report shows the growing popularity of Amazon in the region, with shoppers using Amazon to find new products and discover new brands. With increases in usage, spending and Prime membership across almost all age groups, Amazon.ae is a platform where consumer brands must build a strong presence if they want to achieve Middle Eastern sales growth. The UAE’s ecommerce market size is predicted to grow from US$10 billion in 2021, to US$17 billion in 2025, reinforcing the opportunity for brands to achieve profitable growth in the region. Download the full [2022 UAE Shopper Report](https://info.pattern.com/uae-shopper-report-2022) to learn more about the insights we have gained from this research.

People of Pattern - Ellie Dolphin
Blog

Ellie Dolphin, Brand Manager: People of Pattern

At Pattern, we believe the key to success is our team members. Our PeopleofPattern series shines a light on the people that make Pattern great, learning about their roles, experiences, and what it’s like to work at Pattern. This week we spoke with Ellie Dolphin, Brand Manager in our London office. Could you tell me a bit about your role and experience working at Pattern? I work as a Brand Manager in the Brand Management team here in Pattern’s London office. I’ve been working here for two years now, having started in 2020. I act as the main point of contact for our brand partners, in my case I work with Rituals. I work as their key stakeholder within the business to help them liaise with all of our other functions. This includes our merchandising team, ordering team, advertising team, the warehouse team, and operations team, so it is a beast of a task! This alignment ensures the brand’s business is optimised and we are making good commercial decisions to hit their objectives on marketplaces like Amazon. Why do you choose to work at Pattern? My previous role was quite different to where I am today. I previously worked in a translation team, so we were always reacting to decisions that other people made and translating work that they’d made for other marketplaces. What I liked about Pattern, was that I would be the driver instead. Here, I get to drive forward the strategy and tactics for my brand partners that are best for them on the platform. In my role as a Brand Manager I am no longer reactive to other’s actions, I get to be really proactive and make key decisions. This suits me really well and has helped me develop as a person in terms of my commercial and strategic knowledge. I have learnt a lot about ecommerce in general and also about Amazon and marketplaces specifically, which has been really beneficial for my personal development. What has been the most rewarding part of working at Pattern for you? For me, it’s when I get positive feedback from my partners and when I’m able to cultivate a good relationship with them as well. When a brand partner is succeeding on marketplaces, it means we’re both winning. Pattern is winning, and most importantly our brand partners are winning as well. It feels great knowing that our team has helped them, such as supporting them in achieving their internal goals or sharing data that allows them to validate trends they see in other areas of their business. I enjoy championing my brand partner’s best interests and being their advocate. What does a typical day as a Brand Manager look like? One of the best things about being a brand manager is that no two days look the same. For me, it’s normally reviewing how my brand partner’s business is performing as a whole, so how my listings are appearing, how sales are performing, and then seeing if there are any opportunities to drive more sales in the short term. I plan for new product launches, coordinating with the creative team for new assets, or with the ordering team for forecasting what we might need to order, or with the overseas team on actually setting up those listings and getting them live. I also look at the bigger picture, thinking about the brand’s biggest goals for marketplaces and what our strategy will be in order to achieve this over the next quarter and year, The other part would be communicating with the brand partners themselves, to make sure they are aware of all developments and updates in the business, they have all the information they need to make decisions on their side, and that they are confident in what we’re doing and aware of the results. Why would you recommend working at Pattern? Like I said earlier, the days are really varied and interesting. This is great from a working perspective. For me, it’s also the people I work with. Pattern is a really social company, which makes coming into the office and getting through the work day really enjoyable. I’m actually in the social committee, a responsibility I really enjoy. I love getting the team involved in all the activities that we do. We enjoy going to the pub together, participating in charity races, we have our own Pattern bar in the London office called the Pattern & Crown where we host events each month, there’s lots of things that we all enjoy getting involved in as a team - it’s great. We’re growing our team at Pattern! If you're looking to start a career in ecommerce or even if you're a seasoned professional and want to learn more about our exciting opportunities, check out [our open positions here](https://pattern.com/about/careers/).