Yes, Sponsored Products deliver strong ROAS. But without full-funnel thinking? They can hinder performance too…
It’s easy to see why Sponsored Products (SP) remain the default starting point for Amazon Ads for many advertisers – they’re predictable, they’re measurable and they often deliver the strongest ROAS in the short term.
But as our own Elfie Brocklehurst (Paid Ads Specialist) highlights, leaning too heavily on Sponsored Products can create a ceiling on your growth, causing your performance to plateau.
Why?
Because over time, an overreliance on SP campaigns limits your reach, narrows your audience mix and erodes your ability to build brand equity on Amazon.
And it’s in the high-traffic periods, from seasonal events to launches and peak category moments, that this vulnerability gets exposed the fastest.
When the competition ramps up, SP performance can quickly become more expensive, less efficient – and less able to deliver gains on its own.
A future-ready strategy needs diversification
What too many advertisers forget is that Sponsored Products are only one part of the equation.
Brand-led growth on Amazon requires a balanced, full-funnel approach; one that warms your audience, protects your visibility and expands the reach of your catalogue to shoppers at all stages of intent.
And it’s here, Elfie says, that Sponsored Brands, Sponsored Display and Amazon TV (STV) come in too.
These formats increase discoverability, build memory structures and lift conversion not just today, but over time, offering the kind of diversification that helps your brand futureproof its presence as the marketplace gets ever more competitive.
How to think about Ads Diversification
You can see it like this:
Sponsored Brands (SB)
These are your bridge between performance and brand building across the whole customer journey.
A format that’s now matured to offer multiple campaign objectives and deeper integration into Amazon Marketing Cloud, Sponsored Brands have the ability to turn single-ASIN selling into a broader brand experience by:
- Showcasing your range under one creative banner.
- Driving traffic to your Amazon Store.
- Increasing Average Selling Price (ASP) through multi-product exposure.
- Strengthening brand trust at the point of consideration.
Sponsored Display (SD)
Perfect for recapturing interest, scaling your retargeting and protecting share against competitors, SD helps brands influence mid-funnel shoppers and defend your spend against high-intensity bidding environments.
Sponsored TV (STV)
Amazon’s streaming inventory is great for cost-efficient, brand-building at scale – a brilliant way to prime audiences long before they enter your conversion funnel.
The Bottom Line
Sponsored Products remain essential, but they can’t carry your long-term growth on their own.
If you want to build brand resilience, scale and equity on Amazon, it’s time to diversify your ad mix, investing in upper and mid-funnel formats and using Sponsored Brands and Sponsored Display to reach customers SP never touches.
If you need support to build a stronger Amazon Ads strategy, our award-winning PPC team is here to help you unlock sustainable, profitable growth.