What Are the Types of Amazon Advertising Models?

As one of the largest e-commerce platforms in the world, Amazon's advertising model holds an important position in the field of digital marketing. With the popularity of online shopping and increasing market competition, Amazon continuously optimizes its advertising products and services to help merchants more effectively reach their target customers and improve sales performance. So, what are the types of Amazon's advertising models?

Firstly, the most basic form of advertising on Amazon is Sponsored Products. This advertising model allows merchants to purchase keyword rankings for specific product pages. When users search for these keywords, merchants' products will appear at the top or bottom of the search results. For example, according to Amazon's data in 2025, an electronics brand successfully increased its click-through rate by 40% through Sponsored Products advertising. This indicates that this model is particularly attractive to small and medium-sized merchants. In this way, merchants can accurately target potential customers and increase product exposure.

Secondly, Amazon also launched Sponsored Brands, a higher-level advertising format. Unlike Sponsored Products, Sponsored Brands not only showcase individual products but can also display multiple products from the brand, including videos. These ads typically appear at the top or sidebars of search result pages, providing brands with more opportunities for exposure. For instance, during this year's Amazon Prime Day event, many well-known brands gained significant improvements in brand awareness through Sponsored Brands advertising. This advertising model is especially suitable for enterprises hoping to enhance their brand image and strengthen market competitiveness.

Amazon also offers another form of advertising called Sponsored Display. This type of advertising targets a broader audience group, recommending products based on user browsing behavior and interests. For example, if a user has previously browsed products in a certain category, Amazon may push related ads to them. The greatest advantage of this advertising format lies in its precision, as it can make personalized recommendations based on users' consumption habits and interest points. According to relevant reports, this advertising model's conversion rate is about 30% higher than traditional advertising, making it increasingly popular among merchants.

In addition to the above three main advertising formats, Amazon also provides programmatic advertising services called Amazon DSP. This advertising model allows merchants to buy ad spaces on third-party websites through Amazon's advertising platform. The advantage of Amazon DSP lies in its powerful data analysis capabilities, helping merchants achieve cross-channel integrated marketing. For merchants who wish to expand their brand influence and reach more potential customers, this is a very effective tool.

Finally, Amazon has also launched a new advertising model called Amazon Live. This model combines the characteristics of live-streaming e-commerce, allowing merchants to directly interact with consumers through Amazon's platform. During the live stream, merchants can not only showcase products but also answer viewers' questions and address consumer concerns in real-time. This advertising format is particularly suitable for industries such as fashion and beauty that emphasize experiential value, greatly enhancing consumer engagement and purchasing desire.

In summary, the diversity of Amazon's advertising models makes it an important tool for merchants to expand their markets. Whether it is a small merchant looking to increase product exposure through keyword rankings or a large enterprise aiming to enhance brand image through brand advertising, Amazon can provide corresponding solutions. In the future, with the advancement of technology and changes in consumer needs, Amazon's advertising models will continue to innovate and improve, offering merchants more possibilities.