On Tuesday a shopper searches Amazon and sees your brand banner at the top of the results. They scroll on. On Thursday they search “protein powder chocolate 1kg”, your Sponsored Product appears, they click it and buy.
Which ad sold it? Amazon credits the Thursday ad. The Tuesday banner gets nothing.
Sponsored Brands banner · Your brand, 3 products
Sponsored Products and Sponsored Brands do different jobs. Sponsored Products catch a shopper who has decided to buy. Sponsored Brands reach them earlier. Judge them by the same ROAS and the second one almost always looks worse.
Sponsored Products: the ad on Thursday
Sponsored Products sit among the organic results, on product pages and in category pages. Each one links to a single listing with reviews, images, price and an add-to-cart button.
There is no gap between the ad and the purchase. The shopper is ready and the page closes the sale. That is why Sponsored Products show the highest direct ROAS.
Sponsored Brands: the banner on Tuesday
Sponsored Brands sit at the top of search results, above the organic listings and the Sponsored Products. They link to a branded storefront or a page of several products, so they sell the brand, not one SKU. They also come as video, which autoplays in search and suits products that look good on screen, such as skincare, supplements and kitchen equipment.
Their ROAS is almost always lower. Many brands pause them for that reason, then watch total sales stall.
The Tuesday shopper never clicked the banner. On Thursday the Sponsored Product took all the credit. The banner’s part in the sale is real, and the report does not show it.
Run both
Run only Sponsored Products and you get strong short-term sales with a weak brand. Run only Sponsored Brands and you get awareness without the close. Run both and Sponsored Brands make Sponsored Products convert better over time.
How to split the budget
| Annual Amazon revenue | Sponsored Products | Sponsored Brands | Priority |
|---|---|---|---|
| Under £500k | 100% | 0% | Build the conversion base |
| £500k to £2M | 80% | 20% | Add brand presence |
| Above £2M | 65 to 70% | 30 to 35% | Own category terms |
Under £500k. Put every pound into Sponsored Products, across broad, phrase and exact match for your core keywords. You do not yet have the reviews, sales history or creative for Sponsored Brands to work.
£500k to £2M. Add Sponsored Brands for your top 10 category keywords and your own brand name. Build the storefront first. A weak storefront wastes the banner click.
Above £2M. Sponsored Brands now help you own category terms. Video becomes worth testing against static banners.
Where each type wins
Sponsored Products:
- new product launches, the fastest route to sales velocity and organic rank
- competitor conquest, appearing when someone searches a rival brand or ASIN
- long-tail keywords, where the search is specific and the intent high
- ASIN targeting, appearing on competitor product pages
- any product with strong reviews, images and A+ content
Sponsored Brands:
- your core 5 to 10 category search terms
- promoting 3 products in one ad
- your own brand name, so you hold the top spot
- a new product in an established range
- visual categories where the look matters, such as skincare, supplements and homeware
Our Amazon ads agency team sets up both formats for Shopify brands.
Before you split the budget, work out how much each ad type needs to spend to tell you anything.
Related reading:
- Amazon PPC for Shopify brands: what you need to know: how Amazon fits into a multi-channel plan
- Meta Ads vs Google Ads for ecommerce: the same demand creation vs capture logic, applied to social and search
- How to allocate your ecommerce marketing budget: where Amazon fits among all your channels
If Amazon spend is growing but profit is not, book your free strategy call now. We will help you choose the campaign structure that serves profit, not ad-console ROAS.
Quick answers
What is the difference between Sponsored Products and Sponsored Brands on Amazon?
Sponsored Products are keyword- or ASIN-targeted ads that appear in search results and product pages, linking directly to a single product listing. Sponsored Brands are banner-style ads at the top of search results that link to a branded storefront or custom landing page. They promote your brand rather than a single SKU.
Which Amazon ad type has better ROAS?
Sponsored Products typically generate higher direct ROAS because they send shoppers to a ready-to-buy product page with reviews, price and an add-to-cart button. Sponsored Brands drive awareness and consideration. They show lower direct ROAS but contribute to brand recognition and influence purchases that register as organic.
Should I run both Sponsored Products and Sponsored Brands?
Yes, most established sellers benefit from running both. Use Sponsored Products as your primary revenue driver, then layer Sponsored Brands once you have strong creative assets and want to dominate category search terms. Starting with Sponsored Products is almost always right for newer brands.
How much of my Amazon ad budget should go to Sponsored Brands?
Start at 100% Sponsored Products, then move to 80/20 once Amazon revenue passes £500k. As your brand matures, you can push Sponsored Brands toward 30 to 35%, particularly for high-competition category terms where appearing above organic results builds lasting awareness.
