Which Ad Type Should I Start With?
If you’re new to Amazon advertising or working with a limited budget, start with Sponsored Products. They’re the most straightforward to set up, they target shoppers who are actively searching for products like yours, and they typically deliver the most efficient return on ad spend. Industry data suggests Amazon advertisers typically see a ROAS of 3:1 to 4:1 with well-optimised campaigns (AdNabu, Amazon PPC Advertising Guide, 2025).
Sponsored Products also give you valuable data. By running automatic campaigns first, you can see exactly which search terms shoppers are using to find products in your category. That data then informs your manual campaigns, your listing optimisation, and your wider keyword strategy.
For a full walkthrough on setting up and structuring your campaigns, see our
Amazon PPC guide.
When Should I Add Sponsored Brands?
Add Sponsored Brands once you have a few products performing well and you want to build brand recognition. They’re particularly valuable if you sell multiple products in the same category, because they let you showcase your brand logo alongside up to three products in a single ad at the top of search results.
Sponsored Brands also give you access to video ads, which tend to achieve higher click-through rates than static formats. A short product demonstration or lifestyle video can be a powerful way to differentiate your brand from competitors in a crowded category.
You’ll need to be enrolled in Amazon Brand Registry to run Sponsored Brands. If you’re registered, make sure you also have your
Amazon Brand Story set up, as this works alongside Sponsored Brands to strengthen your brand presence across all your listings.
When Does Sponsored Display Make Sense?
Sponsored Display is most useful in two scenarios:
Retargeting: A shopper viewed your product but didn’t buy. Sponsored Display can show your product to that shopper again as they browse other pages on Amazon or visit other websites. This is particularly effective for higher-priced products where buyers tend to research before committing.
Competitor conquesting: You can target shoppers who are viewing competitor product pages and show them your product as an alternative. This works well if your product has a clear advantage on price, reviews, or features.
Sponsored Display isn’t typically where you’d start. It performs best as a complementary layer once you have Sponsored Products driving your core sales and you want to extend your reach to shoppers you’re currently missing.
Can I Run All Three Ad Types at Once?
Yes, and most successful Amazon advertisers do. Each ad type serves a different stage of the customer journey:
- Sponsored Products captures shoppers who are actively searching and ready to buy (bottom of funnel)
- Sponsored Brands builds awareness and introduces your range to shoppers who may not know your brand yet (middle of funnel)
- Sponsored Display re-engages shoppers who showed interest but didn’t convert, and targets competitor audiences (top and middle of funnel)
The key is not to spread your budget too thin. If you’re working with a modest budget, focus the majority on Sponsored Products where the return is most direct, then allocate a smaller portion to Sponsored Brands and Display once your core campaigns are profitable.
How Much Should I Budget for Each?
There’s no fixed rule, but a sensible starting split for a seller running all three ad types would be roughly 60% on Sponsored Products, 25% on Sponsored Brands, and 15% on Sponsored Display. Adjust based on what the data tells you — if Sponsored Brands are delivering strong returns, shift more budget there.
For a more detailed breakdown of budgets, ACOS targets, and what metrics to track, see our guide on
ACOS and what it should be.
Not Sure Where to Start? We Can Help.
At Kangaroo UK, we audit Amazon ad accounts every day. The most common problem we see is sellers running the wrong ad type for their situation — often spending on Sponsored Brands before their listings are ready, or ignoring Sponsored Display when retargeting would recapture lost sales.
Our
Amazon marketing services team builds a tailored ad strategy based on your products, your margins, and your goals. We don’t apply a one-size-fits-all approach because what works for a £15 kitchen gadget is completely different from what works for a £200 electronics product.
