For the first time, video advertising has become widely available for retailers who sell and advertise on Amazon. In January 2020, Amazon released Sponsored Brands video ads in beta, allowing a select number of retailers to include brief, product-focused videos with their Sponsored Brands ads with the goal of helping retailers stand out on the search results page. Today this format is available to any retailer who has a brand registry.
In this installation of Keeping Up With Amazon, we’ll explore what Sponsored Brands video ads are and how they will influence retailers’ Amazon advertising strategy.
Amazon released Sponsored Brands video ads in beta in January 2020. It is not available for all retailers who have a brand registry.
What It Is:
Sponsored Brands video ads allow retailers to create short, autoplaying video ads for their products. Unlike typical Sponsored Brands ads, video ads direct shoppers to a product detail page as opposed to a retailer’s Amazon Store. The ads can play for 6-45 seconds and highlight a single product.
Amazon recommends keeping the video length to 15-30 seconds, featuring the product prominently and immediately in the video, and adding closed captioning so that the video can be viewed easily with or without sound.
Video ads are bid on a cost-per-click basis, and retailers can target specific keywords in these campaigns. It’s important to note, though, that a minimum $0.25 bid is required for this ad format.
What It Means for Your Business:
Sponsored Brands video ads unlock a highly engaging ad format for retailers on Amazon. These ads tend to have a higher clickthrough rate than typical Sponsored Brands or Sponsored Product ads, and because they direct shoppers to the product details page, they may be more effective at driving a sale.
Sidecar marketing strategists recommend setting a smaller budget for these ads when launching because the CPCs are more expensive and the engagement is significant. Without a budget restriction, spend could ramp up quickly. Feature top-selling products in this ad format as well in order to offset the higher ACoS. Finally, monitor performance closely to determine if this campaign type warrants an increase in budget.
As Amazon continues to mature and competition increases on the platform, new ad formats like Sponsored Brands video ads are critical tools retailers can use to stand out from their competition. Especially if you have the creative assets, this format is an effective way to capture greater interest and engagement on Amazon.