In-depth analysis of how Amazon brand promotion and product placement advertising work

In the modern e-commerce market, the effective use of advertising strategies has a significant impact on product exposure and sales. Amazon’s brand promotion ads and product placement ads are two main forms of pay-per-click (PPC) advertising, each with unique positioning and delivery methods.

The structure and performance of brand promotion advertising

Sponsored Brands is a keyword-based advertising model. This form of advertising is similar to traditional PPC advertising, mainly through pay-per-click. However, unlike other ads, branding ads can be displayed in a wider variety of locations and forms.

There are four main display positions for brand promotion ads, the most effective of which is the headline banner ad at the top of the search results. Other locations include the sidebar and bottom of search results. In addition, the display position of brand promotion ads has also been updated. It can not only appear on the keyword search page, but also be displayed on the product details page, further launching the product placement function.

In order to meet promotion needs, Amazon has also introduced a new brand promotion video advertisement (Sponsored Brands Video). Merchants can obtain the “Keyword Position Report” through advertising reports to analyze advertising performance in different locations. In the report, the placement of ads is divided into “top positions” and “other positions”, which provides important data basis for ad optimization and budget allocation.

There are two bidding methods for brand promotion ads: automatic bidding and manual bidding. Automatic bidding will automatically adjust bids based on the estimated conversion rate, while manual bidding allows merchants to adjust bids in different positions independently, thereby shifting more budget to the top position with better performance.

Precise positioning of product advertising

Product Targeting is also a type of PPC advertising, which allows merchants to choose manual operations to decide whether to use keyword placement or product placement. This form of advertising can help merchants accurately target specific categories, products and brands. They can choose categories individually or combine brands and categories.

By setting up product placement, sellers can display their products on competitors’ product detail pages. For example, if a merchant selects a competitor’s specific ASIN as a target, consumers will see its products in the advertising-related columns when browsing the competitor’s products. Therefore, the positioning logic of product placement is basically the same as that of keyword placement, but its core is to obtain more related traffic through product positioning, rather than relying solely on keyword search traffic.

Taken together, Amazon’s brand promotion ads and product placement ads provide a wealth of placement strategies and options, helping sellers gain exposure and sales opportunities in a highly competitive market.