What Are Sponsored Brands?
Sponsored Brands, formerly called Headline Search Ads, are a pay-per-click ad format available exclusively to brand-registered sellers on Amazon. Unlike Sponsored Products, which promote individual listings, Sponsored Brands showcase your brand as a whole: your logo, a custom headline, and a selection of your products -- all in a single ad unit.
Sponsored Brands appear in the most visible positions on Amazon:
- Above search results -- the highest-visibility placement on the entire page
- Within search results -- between organic listings
- Below search results -- a final touchpoint before the customer scrolls away
The mechanism works like all Amazon PPC formats: you bid on keywords, Amazon evaluates relevance and bid amount, and the ad with the best combined score wins the placement. You pay only when a customer actually clicks.
The key difference compared to Sponsored Products is where the click leads. Sponsored Brands can direct customers to your Amazon Brand Store -- a curated, competitor-free shopping environment that displays your complete range. That makes Sponsored Brands a tool for brand building, not just direct sales.
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Prerequisite: Amazon Brand Registry
To run Sponsored Brands, you need an active registration in the Amazon Brand Registry. Without it, this ad format is locked.
The requirements:
- A registered trademark (with the USPTO, EUIPO, or another Amazon-accepted trademark office)
- The trademark verified and enrolled in the Amazon Brand Registry
- A Professional selling account
If you have not completed this step, our Brand Registry guide walks you through the process. Registration is free and typically takes 2 to 4 weeks.
We also recommend setting up an Amazon Brand Store before launching Sponsored Brands. Linking ads directly to your Store improves conversion rates significantly compared to linking to a generic product list.
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The 3 Sponsored Brands Formats
1. Product Collection
The classic Sponsored Brands format. Your ad displays your brand logo, a custom headline, and up to three products in a row. Clicking the logo or headline takes the customer to your Brand Store or a custom landing page. Clicking an individual product goes to that product's detail page.
When to use it: When you want to promote multiple products from the same category. Ideal for product lines such as "all yoga mats from your brand" or "your top-3 bestsellers".
Tip: Choose products with strong reviews (4 stars or above) and competitive pricing. Amazon displays both the price and star rating inside the ad -- a product with 3.2 stars drags down the entire impression.
2. Store Spotlight
Store Spotlight promotes subpages of your Brand Store rather than individual products. The ad shows your logo, a headline, and up to three Store subpages, each with its own image and text. Clicking takes the customer directly into the relevant Store category.
When to use it: When you have a broad catalogue and want to funnel customers into your Store rather than to a single product page. Particularly effective for brands with multiple product categories.
Requirement: Your Brand Store must have at least three subpages, each containing at least one unique product.
3. Video
Sponsored Brands Video displays an auto-playing video directly in the search results. The video starts automatically without sound as soon as it scrolls into view. It occupies significantly more screen space than a static Product Collection ad and captures attention immediately.
When to use it: When your product benefits from being shown in action, or when it requires explanation. Video ads typically deliver the highest click-through rates of all Sponsored Brands formats because motion grabs attention in a way static images cannot.
Video requirements:
- Length: 6 to 45 seconds (Amazon recommends 15 to 30 seconds)
- Format: MP4, minimum 1280x720 pixels
- No letterboxing, no black bars
- The product should be visible within the first 2 seconds
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Creating a Campaign: Step by Step
Step 1: Choose the format
Open Campaign Manager in Seller Central under Advertising > Campaign Manager. Click "Create campaign" and select Sponsored Brands. Amazon asks you to choose a format: Product Collection, Store Spotlight, or Video. For your first campaign, we recommend Product Collection -- it is the simplest format and delivers actionable data quickly.
Step 2: Select brand and landing page
Choose the brand you want to advertise (if you have multiple registered brands). Then set your landing page: your Brand Store, a Store subpage, or a custom product list. In most cases, the Brand Store is the better choice because it does not show competitor products.
Step 3: Design the ad
Upload your brand logo (minimum 400x400 pixels, PNG or JPG). Write a concise headline with a maximum of 50 characters. Avoid generic phrases like "Best Quality" and use concrete statements instead: "Natural Rubber Yoga Mats -- Made in Germany" says more than "Premium Quality for Yoga".
Select up to three products to feature in the ad.
Step 4: Set up targeting
You have two options:
Keyword targeting: Bid on specific search terms. Start with keywords that already convert well in your Sponsored Products campaigns. Use a mix of Broad Match (wider reach) and Exact Match (higher relevance).
Product targeting: Bid to have your ad appear on specific product pages or in specific categories. Useful when you want to compete directly against known competitors.
Step 5: Set budget and bids
Set a daily budget. For the start, we recommend EUR 15 to 25 per day. For bids, begin with Amazon's suggested bid and adjust after 7 to 14 days based on performance data.
Step 6: Launch and monitor
Submit the campaign for review. Amazon typically reviews ads within 24 to 72 hours. After approval, the campaign starts serving. Give it at least 2 weeks before making significant adjustments.
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Sponsored Brands vs Sponsored Products
| Criterion | Sponsored Products | Sponsored Brands |
|---|---|---|
| Goal | Individual product sales | Brand awareness + catalogue |
| Ad placement | Search results & product pages | Above, within, below search results |
| Brand Registry required | No | Yes |
| Landing page | Product detail page | Brand Store, Store subpage, product list |
| Formats | Single product image | Product Collection, Store Spotlight, Video |
| Logo in ad | No | Yes |
| Typical CPC | EUR 0.30 - 1.20 | EUR 0.50 - 2.00 |
| Typical conversion rate | 8 - 15% | 4 - 10% |
| Ideal for | Direct sales, launches | Brand building, cross-selling |
Sponsored Products and Sponsored Brands are not mutually exclusive. The best results come from combining both. Sponsored Brands create brand awareness and drive traffic to your Store. Sponsored Products capture purchase-ready customers searching for a specific product.
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Best Practices
Test all three formats
Create a Product Collection, a Store Spotlight, and a Video campaign for the same keyword set. Run all three for at least 14 days, then compare ACoS, CTR, and conversion rate. Results vary dramatically by category -- what works for kitchen appliances may fail for sportswear.
Use your Brand Store as the landing page
Link Product Collection ads to your Brand Store whenever possible. Customers who shop through your Store do not see competitor products side by side, which lifts conversion and reduces bounce rate.
Write headlines with concrete value
Your headline has 50 characters. Use them for a specific benefit, not generic marketing. "3-Year Warranty -- Free Shipping" works better than "Discover Our Collection".
Add negative keywords from day one
Carry over negative keywords from your Sponsored Products campaigns. If you know that "free" or "used" do not convert, exclude them immediately.
Separate brand and generic keyword budgets
Create separate campaigns for your brand terms (your brand name + variations) and generic keywords (category terms). Brand terms typically have a much lower ACoS because the customer already knows you. Generic keywords cost more per click but bring in new customers.
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Sponsored Brands and Repricing: Why the Buy Box Is Everything
Here is where many sellers get caught off guard. You invest in Sponsored Brands, pay for clicks, drive customers to your Brand Store or product page -- and then the customer buys from a different seller on the same listing. How does that happen?
The answer is the Buy Box. When a customer clicks through to your product and another seller holds the Buy Box, the sale goes to that seller. You paid for the click but made no sale. That is the most expensive form of wasted ad spend.
This is exactly why Sponsored Brands and repricing belong together. Your repricer ensures that you hold the Buy Box when the advertising-generated traffic arrives at your listing.
How to implement this in practice:
Before launching a Sponsored Brands campaign, check your Buy Box percentage for the products you plan to advertise. If it is below 70%, optimise your repricing first. Set a minimum price that protects your margin and a maximum price that stays competitive. The repricer handles the dynamic adjustments -- you focus on campaign optimisation.
> Your next step: Check your Buy Box share for your top products. Above 80%? You are ready for Sponsored Brands. Below that? Optimise your repricing first. Try arbytrage.io free for 14 days
For a comprehensive introduction to Amazon PPC, read our PPC beginner's guide.
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Frequently Asked Questions
How much do Sponsored Brands cost?
There are no fixed fees. You pay per click (CPC). The actual CPC depends on keyword competition and typically ranges from EUR 0.50 to 2.00. You set a daily budget that is never exceeded. There are no additional charges beyond the CPC.
Can I run Sponsored Brands without a Brand Store?
Technically yes -- you can link to a product list instead. In practice, this is rarely effective because product lists can display competitor products. A Brand Store is free to create and takes only a few hours to set up.
How long does ad review take?
Amazon typically reviews Sponsored Brands ads within 24 to 72 hours. Video ads may take slightly longer, especially if Amazon requests changes to the text or visuals. The most common rejection reasons are trademark issues in the headline and technical problems with the video file.
Are Sponsored Brands worth it for small sellers?
Yes, provided you have a registered brand and at least 3 to 5 products in your catalogue. The higher CPC compared to Sponsored Products is offset by stronger brand perception and the long-term effect on customer loyalty. Start with a small daily budget of EUR 10 to 15 and scale based on results.
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> Get started now: Your Sponsored Brands budget only works efficiently when the Buy Box is locked in. A repricer ensures that no click goes to waste. Try arbytrage.io free for 14 days