Amazon Sponsored Brands video: what advertisers need to know.

By Kristie Schmuck on April 6, 2020

In a limited Beta towards the end of 2018, Amazon rolled out a new ad unit called Video in Search. The Beta was only available to brands through a managed service model and required a commitment of at least $35,000 over 60 days.

In December 2019, Amazon quietly introduced a new iteration of this ad unit: Sponsored Brands video (or video in Sponsored Brands), also in Beta. Sponsored Brands video offers the same inventory as Video in Search, but is accessible through Seller Central and the Amazon Advertising ads console- without the pricey minimums.

Sponsored Brands video ads are mobile and desktop ad units that appear directly on the search results page on Amazon. Similar to in-feed video ads from Facebook and Instagram, the video will play automatically as it scrolls into view. Sound is muted by default with an audio track that can be toggled on and off by tapping a button.

They are immersive, but also relevant in a shopping context. Unlike their disruptive pre-roll video counterparts, Sponsored Brands video ads drive purchases and are likely to draw direct-response budgets from advertisers. High-performing Sponsored Brands video ads are product-focused and typically show the product within the first second.

See the below example from supplement brand HVMN:

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We believe Sponsored Brands Video ads will be incredibly powerful for many reasons. To start, Sponsored Brands Video is a brand new ad unit, so early-mover benefits are at play. Advertisers who move quickly will enjoy lower CPC on a highly engaging ad unit, which is perfect for brands looking for an advantage on Amazon.

Ultimately though, Amazon's goal with video is to help advertisers create a direct connection with shoppers. And of course, drive more sales and advertising revenue in the process. Sponsored Brands Video ads are the next step in that direction.

Why video has become a priority:

  • 50% of internet users look for videos related to a product or service before visiting a store (Google)

  • Shoppers who watch videos are 3.6x more likely to purchase than those who do not (Amazon)

  • 90% of customers report that product videos help them make purchasing decisions (HubSpot)

The rise of YouTube and decline of traditional publishing is the clearest indication of a consumer preference towards digital video.

As humans, it is in our DNA to quickly respond to the combination of image, sound and motion. We process visuals 60,000 times faster than we can process text, making video an incredibly efficient communication tool.

Understanding the connection that humans have to video is at the core of the Sponsored Brands video product experience that we're creating for our customers.

What we know about Sponsored Brand Video Ads

Amazon has published the creative guidelines and best practices here: Sponsored Brands Video.

Perpetua brings the simplicity and delightfulness of consumer apps to Amazon advertisers. We make it so easy that anyone can launch Amazon campaigns, straight from their mobile device or web browser, in less than a minute. We challenge ourselves to be first to market for all new Amazon Advertising products, and Sponsored Brands video is no exception.

As an advertiser, the best thing you can do to take advantage of SBV is to launch video ads as soon as possible. To get started today, reach out to us at hello@perpetua.io.

For one of our customers in the first week, at 1/10th the spend of Sponsored Products campaigns, we saw:

  • CPC was 1/2 their CPC on Sponsored Products

  • ACOS was 1/3 compared to Sponsored Products Ads

Once launched, the next move is to optimize your creative.

The explosion of video in consumer social networks has been driven by frictionless and delightful video creation tools. When any modern smartphone can shoot stunning high def video combined with apps like Instagram, TikTok, Snapchat, anyone in the world can be a movie maker.

Experimentation and data-driven decision making are paramount to generating video creative that converts. For example, one of our clients in the health food category ran two video ads for the same product with the same targets and saw dramatically different performance results:

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Results: Video A had a 57% higher click through rate and converted 290% better than Video B, both with >99% confidence.

When performance metrics are placed side-by-side and insights are surfaced as above, it's easy to make tactical decisions about where you should allocate ad spend. However in its current form, this capability does not yet exist for Sponsored Brands video.

We recognize, for this reason and several others, that experimentation for video can be expensive and in some cases, impossible. It's currently difficult to launch multiple video variations and compare and contrast performance results.

Further to this, the creative guidelines published by Amazon help you understand what is required to get a video ad approved - not to create a video ad that will convert. That level of insight will require deep analysis across many data points, the kind of analysis that is perfectly suited for Perpetua's ad engine. We'll have more news to share on this in the coming weeks.

Until then, if you'd like us to help you get started with Sponsored Brands video, let us know at hello@perpetua.io.