Amazon Sponsored Brands vs. Sponsored Products: Which Works Best for Private Labels?

TL;DR

• Sponsored Products are best for quick sales, product launches, and keyword-based targeting.

• Sponsored Brands are ideal for building brand awareness and showcasing multiple products.

• Use Sponsored Products first, then add Sponsored Brands once you have reviews and a product range.

• Sponsored Products drive conversions, while Sponsored Brands support long-term brand growth.

• Small or new private label brands should start with a focused budget and scale slowly.

• Combining both ad types creates a balanced strategy that boosts visibility, sales, and brand trust.

80% of shoppers on Amazon click on ads that appear at the top of search results and for private label sellers, that prime space is where brands are built. With more sellers entering Amazon Australia daily, simply having a great product isn’t enough.

You need the right advertising strategy to stand out, earn clicks, and convert those clicks into loyal customers. Two of the most effective ad formats for private label sellers are Sponsored Products and Sponsored Brands. Each offers unique advantages, depending on your goals and stage of growth.

In this blog, we’ll explain the differences between the two, when to use each, and how private label brands can benefit from both. Whether you’re launching a new product or scaling your brand, understanding these ad types will help you run smarter campaigns, make better use of your budget, and grow your presence on Amazon more effectively.

What are Sponsored Products?

Sponsored Products are ads on Amazon that help your product show up when people search for something similar. These ads appear in search results and on other product pages. You only pay when someone clicks on your ad.

Here, private label sellers use Amazon Sponsored Products to get more views and sales. For example, if you’re selling a phone case, your ad might show up when someone searches for “iPhone 14 case.” It’s a simple way to make your product more visible and reach people who are already looking to buy.

When to use Sponsored Products?

Sponsored Products are useful when you want to increase visibility and sales for your product on Amazon. Use them when launching a new product, boosting a slow-moving item, or staying competitive in a crowded market.

Private label sellers should use Sponsored Products when launching a new product to gain quick visibility and build momentum. It’s also helpful when trying to rank for specific keywords or compete in a crowded niche.

Sponsored Products are also useful during promotions, seasonal sales, or when you want to push inventory faster. Because you only pay when someone clicks, it’s a smart way to drive traffic and test what messaging or keywords work best.

What are Sponsored Brands?

Sponsored Brands are Amazon product ads that promote your brand and a group of products together. These ads appear at the top of search results and usually include your logo, a custom headline, and multiple product listings. They help increase brand awareness and drive shoppers to your store or product pages.

Sponsored Brands are great for private label sellers who want to build a brand presence, not just sell individual items. For example, if you sell skincare products, you can showcase your bestsellers under one ad with your brand name and a message like “Gentle care for every skin type.”

When to use Sponsored Brands?

Private label sellers should use Sponsored Brands when they want to build brand awareness and showcase a range of products together. It's ideal once you have multiple products under the same brand and want shoppers to recognize and trust your name. These ads work well during seasonal campaigns, product launches, or when promoting a specific theme or collection.

Use Sponsored Brands to stand out in search results, drive traffic to your Amazon Store, and tell your brand story. It’s especially helpful if you’re focused on long-term growth and want customers to see your brand as a go-to choice.

Key differences between Sponsored Brands and Sponsored Products

Benefits of Sponsored Products for Private Label Sellers

• Appear in top search results and competitor pages for high visibility

• Drive direct traffic to individual product listings

• Great for product launches to gain early sales and reviews

• Help improve  Amazon ranking optimization through consistent sales

• Keyword targeting allows control over who sees your ad

• The pay-per-click model keeps costs performance-based

• Easy to set up, manage, and scale for growing brands

• Ideal for boosting visibility and conversions quickly

Benefits of Sponsored Brands for Private Label Sellers

• Showcase multiple products in one ad

• Feature your brand logo and custom headline for better branding

• Drive traffic to your Amazon Store or custom landing page

• Great for building brand awareness and recognition

• Appear at the top of search results for maximum visibility

• Help increase trust and credibility with shoppers

• Ideal for upselling and cross-selling related products

• Strengthen your brand presence across Amazon

Which works best for Private Labels?

Both Sponsored Products and Sponsored Brands are valuable for private label sellers, but which one works best depends on your goals and stage of growth.

Sponsored Products

Sponsored Products are ideal for getting quick visibility and driving direct sales. They’re easy to set up, cost-effective, and perfect for launching new products or boosting sales of bestsellers. If you're just starting, this is often the best place to begin.

Sponsored Brands

Sponsored Brands, on the other hand, are great for building long-term brand awareness. They let you promote multiple products, feature your logo, and send traffic to your Amazon Store making them a better fit once you’ve established a product lineup and want to grow your brand identity.

For most private label sellers, Amazon targeted ad types together work best. Sponsored Products drive conversions, while Sponsored Brands help create a strong, recognizable brand. The right mix will depend on your budget, goals, and where your brand is in its journey.

How private label brands can combine both ad types?

• Start with Sponsored Products to get quick traffic and early sales, especially for new or popular products. These ads help your product show up in search results and are great for getting conversions.

• Once you have some reviews and multiple products, add Sponsored Brands to your ad strategy.

• Sponsored Brands let you show your logo, custom headline, and several products in one ad.

• You can send traffic from Sponsored Brands to your Amazon Store to showcase your full range. This helps build brand awareness and trust with customers.

• Sponsored Products focus on sales, while Sponsored Brands focus on branding.

Using both together gives you a balanced plan that grows your brand and boosts sales.

Budget tips for small or new private label brands

Pro tip:

If you're just starting, keep your ad budget simple and focused. Start with Sponsored Products and set a small daily budget enough to get data, but not so much that you burn cash quickly. Focus on a few top keywords and one or two main products.

Avoid broad targeting in the beginning. Once you start seeing results, slowly scale your budget. Use automatic campaigns to discover new Amazon product keywords and manual campaigns to control spending. Track your ACoS regularly and pause ads that aren’t performing. Small, smart moves will help you grow without wasting your budget.

Ready to choose the smarter ad option for your brand?

Both Sponsored Products and Sponsored Brands play an important role in helping private label sellers grow on Amazon. Sponsored Products are great for driving immediate sales, especially during launches, while Sponsored Brands help build long-term brand recognition and trust.

The best results often come from combining both ad types in a smart, balanced way based on your goals and budget. If you're unsure where to start or how to get the most from your ad spend, our team of Amazon professionals can help. We’ll guide you with the right strategy to grow your brand and increase sales effectively.