Sponsored Brands vs. Sponsored Products: which to use and when—and why confusing them is costly
By Drizar VXI | Amazon Advertising
There is a question that almost all Amazon sellers ask themselves at some point: why aren't my campaigns converting as they should if I'm investing wisely? The answer, more often than not, is not about the budget or the keywords. It's about using the wrong tool for the wrong purpose.
Sponsored Products and Sponsored Brands are the two most widely used paid advertising formats within Amazon Advertising. Both are valid, both generate results—but they work at different stages of the purchasing process, and mixing them without a strategy is one of the quietest ways to waste money in the marketplace.
The most common mistake: treating Amazon Ads as if it were a single tool
Many sellers—especially those in the early stages or those who manage their accounts without specialized support—assume that Sponsored Products is sufficient for everything. It is the most accessible format, the one that appears first in Seller Central, and the one that generates the fastest results in terms of direct conversion. That is why it ends up being the default favorite.
The problem is not using it. The problem is using it for everything, even when the actual objective requires a different approach.
Sponsored Products capture demand that already exists. If someone searches for "ergonomic office chair" and your ad appears there, you are intercepting an active purchase intent. That's powerful. But it doesn't build awareness, it doesn't position your brand within a category, and it doesn't protect you when a competitor starts appearing in your own results.
That's what Sponsored Brands is for.
What each format does — and at what point in the funnel it operates
Before discussing when to use each one, it is worth understanding at what stage of the purchasing process each format comes into play.
Sponsored Products operates at the bottom of the funnel. The user already knows what they want, is actively searching for it, and the ad is inserted directly into that search. The logic is simple: capture purchase intent at the right moment. That's why ACoS is usually more controllable in well-optimized campaigns, and why it's the ideal format for new products that need initial traction or for SKUs with high purchase intent.
Sponsored Brands, on the other hand, works in the middle of the funnel. It appears at the top of search results with the brand logo, a customizable headline, and up to three products. Its function is not only to close a sale: it is to generate recognition, position the brand within a category, and, in many cases, defend the space you have already conquered from competitors who want to take it away from you.
The difference is not in performance—it is in purpose.
When does each campaign make sense?
There is no universal rule, but there are clear criteria that allow you to make better decisions based on the current status of the account.
Sponsored Products is suitable when:
The catalog is small—one or two SKUs—and the budget needs to generate immediate returns. Also, when the product has just been launched and does not yet have enough sales history or reviews to compete in more visible formats. And, above all, when the main objective is direct conversion on keywords with high purchase intent: specific terms, with a clear signal that the user is ready to buy.
Sponsored Brands is suitable when:
The catalog already has three or more related products that can be displayed together in a coherent manner. When the brand is registered in Brand Registry—an essential requirement for activating this format. When competitors are appearing in searches for your own brand. And when the objective is broader than a single conversion: positioning yourself as a leader in a category, building sustained recognition, or generating traffic to your own store within Amazon.
Budget allocation that works in practice
One of the most frequently asked questions we receive at Drizar is how to allocate the budget between both formats. There is no definitive answer, but the starting point that works most consistently for accounts in the growth stage is an approximate ratio of 70/30.
70% of the budget goes to Sponsored Products, where the goal is direct conversion and the return is more measurable in the short term. The remaining 30% is allocated to Sponsored Brands, focused on category keywords and protecting the brand from competition.
This distribution is not fixed. It changes depending on the maturity of the catalog, the seasonality of the product, the quarterly objectives, and the level of competition in the category. An account that is launching a new product will probably need to invest more in Sponsored Products during the first few weeks. An established brand with aggressive competition may need a greater presence in Sponsored Brands in order to avoid losing ground.
What the data says about the combined impact
Using both formats in a coordinated manner is not simply doubling the investment—it is multiplying the surface area of contact with the buyer. Amazon has documented that sellers who combine Sponsored Products with Sponsored Brands report an average increase in visibility of up to 30% compared to those who use only one of the formats. That increased visibility, when executed well, translates into more clicks, more accumulated reviews, and higher organic positioning in the medium term.
The key point is coordination. It's not about launching both types of campaigns and waiting for results: it's about defining what each one does, what keywords it uses, what budget it receives, and how its performance is measured separately.
Conclusion: the strategy is not about choosing one — it's about knowing when to use each one.
Sponsored Products and Sponsored Brands do not compete with each other. They are complementary tools that, when used at the right time and with clear objectives, allow you to build an advertising presence within Amazon that does not depend on a single point of contact.
The mistake is not using Sponsored Products. The mistake is not adding Sponsored Brands when the account is ready to take that step—and continuing to burn through the budget on direct conversion when what the business needs is to build its brand.
If you want to review how your current campaigns are structured and whether your budget allocation is aligned with your growth objectives, the Drizar team can perform a free assessment. Contact us here.
Tags: Amazon PPC, Sponsored Products, Sponsored Brands, Amazon Advertising, Amazon Mexico, campaign strategy, ACoS, Brand Registry
Suggested internal links:
- How to optimize your ACoS on Amazon without reducing visibility
- Brand Registry: what it is and why your brand needs it
- Guide to launching products on Amazon Mexico