One word to describe Amazon’s advertising landscape? Competitive, to say the least. For brands, new competition emerges daily, and standing out in the crowd can be difficult. And engaging customers? Nearly impossible with static ads. Enter Sponsored Brand video ads and Sponsored Display Video Ads, two of the most powerful tools in your Amazon marketing arsenal.

These ad formats don’t just push products in a static format — they tell stories, inspire consideration, and entice action, through the power of video. But how exactly do they work? And more importantly, how can they help your brand?

Let’s break it down.

What Are Sponsored Brand and Sponsored Display Video Ads?

Think of Sponsored Brand (SB) and Sponsored Display (SD) video ads as enhanced versions of the standard ad formats you already know. The key difference? Video creatives replace static images, making your ads more dynamic and attention-grabbing.

These ads aim to engage shoppers at every stage of their purchase journey — whether they’re just starting their search or ready to buy. But understanding these video ads starts with knowing how Sponsored Brand and Sponsored Display ads work on Amazon.

But why does it matter? Video ads can dramatically increase visibility and click-through rates. If you’re looking to differentiate your brand and products, this is where you need to invest.

Sponsored Brand Video Ads: Features and Placement

Sponsored Brand video ads are all about premium visibility. They offer placement in some of the most coveted real estate on Amazon, and because of its premium placement on the SERP, Sponsored Brand video ads are often the go-to for brands looking for maximum visibility.

Where Do Sponsored Brand Video Ads Appear?

  • Top of the Amazon search engine results page (SERP).
  • Additional placements, including the bottom of the SERP and Product Detail Pages (PDPs).

These placements give your brand the visibility it needs to capture attention during key moments of the shopping journey.

Ad Formats and Landing Pages

Sponsored Brand video ads offer flexibility with two main formats:

Product Collection Format:

  • Features a creative (image or video) showcasing three products.
  • Clicks drive traffic to your brand store or a custom landing page.
 

Single Product Format: 

  • Highlights one product.
  • Clicks drive traffic to that product’s PDP.
With video ads, you can also choose to promote:

  • A single product (directing shoppers to its PDP).
  • Multiple products (leading to a curated landing page).
This versatility helps you tailor campaigns based on your product strategy.

Sponsored Display Video Ads: Features and Placement

Sponsored Display video ads expand your reach beyond the typical SERP and PDP placements. These types of video ads are ideal for new product launches or educational campaigns designed to increase brand awareness.

Where Do Sponsored Display Video Ads Appear?

  • Across Amazon properties: SERP, PDPs, and Amazon’s homepage.
  • Off Amazon: Displayed on third-party websites and mobile apps.
This multi-channel approach is ideal for building brand awareness and driving new customer acquisition.

Ad Formats and Customization Options

Here’s what you can customize with Sponsored Display video ads:

Landing Pages:

  • Product PDPs (features one product/ASIN at a time).
  • Brand store subpages (logo and headline only—no individual ASINs).
Just like Sponsored Brand video ads, you can replace static creatives with video to maximize engagement.

Targeting Options for Sponsored Video Ads

A great video ad is only as effective as the audience it reaches. Sponsored video ads give you robust targeting options to ensure your message hits the right shoppers.

Sponsored Brand Video Targeting

You can target based on keywords, products, categories, brands, or product features. This type of targeting helps you position your ads alongside highly relevant search results.

Sponsored Display Video Targeting

Sponsored Display ads take targeting a step further with audience-based options:

Contextual Targeting: Targets users actively browsing or searching for products.

Audience Segments:

  • Remarketing: Engages users who have already viewed or purchased your products.
  • In-Market: Targets shoppers with high purchase intent.
  • Interest & Lifestyle: Focuses on users whose behavior aligns with certain long-term interests.

Custom Audiences: Advertisers can build these audiences themselves through Amazon Marketing Cloud (AMC). Here we can leverage AMC insights about our customers’ shopping journeys and build custom audiences based on that data.

These options allow for precise audience segmentation, enabling you to tailor ads based on buyer intent and behavior.

Understanding Cost Models for Sponsored Video Ads

Amazon video ads offer two cost models depending on your campaign goals:

CPC (Cost Per Click): You’re charged for each click, and conversions are attributed to clicks. VCPM (Viewable Cost per Mille): You pay for every 1,000 viewable impressions, and conversions are attributed to both impressions and clicks.

Cost Models by Campaign Goal

Your campaign objective dictates which cost model makes the most sense:

Sponsored Brand Video: Focus on page visits (consideration) or brand awareness (impression growth). Sponsored Display Video: Optimize for awareness, page visits, or conversions.

Understanding these models helps ensure your ad spend aligns with your marketing objectives.

Tools for Video Ad Creation on Amazon

Creating high-quality video content can be a challenge, especially for brands with limited resources. But it doesn’t have to be an all-or-nothing approach with video. Amazon offers a Custom Video Builder tool to help brands get started. While basic, it can be a helpful resource for testing video ads. Of course, partnering with an experienced agency like Code3 can take your video ad strategy to the next level with professional creative production.

Sponsored Brand and Sponsored Display video ads are game-changers in the world of Amazon advertising. They offer unparalleled opportunities to capture attention, drive clicks, and increase conversions. By leveraging these formats strategically, your brand can gain a significant competitive edge.

Need help getting started? Reach out to Code3 today for expert support in launching or optimizing your Amazon video ad campaigns.

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