A Logo For Bamboo Boost
A 4 Star Trustpilot Logo For Bamboo Boost

Complete Guide to Amazon Advertising: Ad Types and Formats Explained

Learn about all Amazon advertising options to maximize your marketing ROI and stand out from competitors.

Amazon Advertising Dashboard showing different ad formats
• 8 min read • By Antonio Smith

Introduction

Amazon has evolved from an online bookstore to a global marketplace and advertising powerhouse. For brands and sellers, understanding the various Amazon advertising options is crucial for standing out in an increasingly competitive landscape.

In this guide, we'll break down each Amazon ad type, explain how they work, show visual examples, and provide strategic insights to help you maximize your advertising ROI.

Amazon DSP (Demand-Side Platform)

Example of Amazon DSP ads across multiple platforms
Amazon DSP enables rich media ads across multiple platforms

What It Is

Amazon DSP offers the most sophisticated targeting and reach of all Amazon advertising options. It allows programmatic buying of display, video, and audio ads both on and off Amazon.

Where Ads Appear

  • Amazon website and devices
  • Amazon-owned sites (IMDb, Twitch, etc.)
  • Third-party websites and apps
  • Connected TV

Key Benefits

  • Advanced Targeting: Utilize Amazon's rich customer data
  • Broader Reach: Extend beyond Amazon to third-party sites
  • Multiple Formats: Deploy display, video, and audio ads
  • Detailed Insights: Access comprehensive reporting and analytics

Campaign Types

DSP offers several campaign types to achieve different objectives:

  • Awareness Campaigns: Reach new customers who haven't encountered your brand before, focusing on impressions and brand visibility rather than immediate conversions.
  • Consideration Campaigns: Target shoppers who have shown interest in your category but haven't committed to a purchase yet, often leveraging Amazon's browse and search data.
  • Retargeting Campaigns: Re-engage shoppers who viewed your products or similar products but didn't convert, using Amazon's detailed shopping behavior data.
  • Custom Audience Campaigns: Upload your own customer data (like email lists) to create lookalike audiences or retarget existing customers with new products.

Budget Considerations

DSP typically requires a higher minimum investment than other Amazon ad types:

  • Managed-service DSP: Minimum spend typically starts at £10,000 per month
  • Self-service DSP: Available for smaller budgets but requires more expertise
  • Campaign minimums: Often £1,000 per campaign

Despite the higher entry point, DSP offers advanced capabilities that can significantly improve ROI for brands with sufficient budget and strategy.

Best For

  • Established brands with larger budgets
  • Upper-funnel brand awareness campaigns
  • Sophisticated retargeting strategies
  • Cross-device, omnichannel campaigns

Amazon Stores

Example of an Amazon Store for a brand
Amazon Stores provide a branded shopping experience within the Amazon marketplace

What They Are

Amazon Stores are free, multi-page branded destinations within Amazon that showcase your brand and product catalog in a curated, immersive shopping experience.

Where They Appear

  • Custom Amazon URL (amazon.com/stores/[your-brand])
  • Destination for Sponsored Brands ads
  • Linked from your brand name on product detail pages

Store Design Options

Amazon offers several templates and modules to build your Store:

  • Product Grid: Display multiple products in a clean, organized layout
  • Image with Text Overlay: Combine compelling visuals with key messaging
  • Video: Embed videos that showcase products or brand story
  • Image Carousel: Feature multiple images in a rotating gallery
  • Navigation: Create subcategories for easier browsing
  • Featured Deals: Highlight special offers or promotions
  • Best-Selling Products: Automatically display your top performers

Performance Metrics

Stores provide valuable insights through the built-in analytics dashboard:

  • Daily Visitors: Track traffic over time
  • Page Views: See which pages receive the most attention
  • Sales: Monitor revenue generated through your Store
  • Traffic Sources: Understand where visitors come from (Sponsored Brands, organic, etc.)
  • Sales by Page: Identify which pages drive the most conversions

Key Benefits

  • Brand Control: Create a fully branded experience
  • Custom Layout: Design multiple pages with rich media
  • No Additional Cost: Free to create and maintain
  • Detailed Analytics: Track Store visit and sales metrics

Best For

  • Building brand loyalty
  • Showcasing full product catalogs
  • Creating an immersive brand experience
  • Educating customers about your brand story

Best Practices

Advertising Strategy

  • Start Small: Begin with Sponsored Products before expanding to other formats
  • Layer Ad Types: Use different ad formats to cover the entire customer journey
  • Consistent Branding: Maintain visual consistency across all ad types
  • Budget Allocation: Distribute budget based on ROAS and business objectives

Optimization Tips

  • Regular Keyword Refinement: Continuously analyze and update your keywords
  • A/B Test Creatives: Test different images, copy, and calls-to-action
  • Adjust Bids by Placement: Optimize bids based on performance in different placements
  • Seasonal Adjustments: Increase budgets during high-demand periods

Performance Measurement

  • Look Beyond ACOS: Consider total ROAS, new-to-brand metrics, and brand lift
  • Attribution Windows: Understand how different ad types have different conversion timelines
  • Competitive Analysis: Monitor share of voice and competitor strategies
  • Long-term Impact: Track the impact on organic ranking and brand searches

Advanced Strategies

  • Defensive Advertising: Protect your brand by bidding on your own and competitor terms
  • Product Lifecycle Management: Adjust strategy based on product lifecycle stage
  • Dayparting: Schedule campaigns during peak shopping hours for your category
  • Category-Specific Approaches: Tailor strategies to your specific product category

Conclusion

Amazon's advertising ecosystem offers a comprehensive suite of options to help brands and sellers reach their target audience at every stage of the customer journey. By understanding the strengths and applications of each ad type, you can create a strategic advertising approach that drives both immediate sales and long-term brand growth.

Remember that successful Amazon advertising requires continuous optimization and adaptation to changing marketplace dynamics. Start with clear objectives, implement a data-driven approach, and regularly refine your strategy based on performance insights.

Whether you're just getting started with Sponsored Products or ready to expand into the more advanced capabilities of Amazon DSP, the key is to consistently test, learn, and refine your approach. The brands that succeed on Amazon are those that view advertising not as a one-time campaign but as an ongoing process of connecting with customers at the right moment with the right message.

At Bamboo Boost, we specialize in creating customized Amazon advertising strategies that align with your specific business goals. From account audits to full-service management, our team can help you navigate the complexities of Amazon's advertising platform and achieve sustainable growth.