Amazon US Sponsored Brands Videos Maintain High Conversion Rate

February 11, 2021

This article is included in these additional categories:

Advertising Trends | Creative & Formats | Digital | Display & Rich Media | Industries | Retail & E-Commerce | Spending & Spenders | Video

Tinuiti Amazon Sponsored Brands Video Performance Feb2021Amazon US Sponsored Brands video ads continue to perform well. Indeed, they once again outperformed static Sponsored Brand ads in conversion rate as well as click-through rate in Q4 2020, per a report [download page] from Tinuiti.

An analysis of anonymized performance data from Amazon programs under Tinuiti management shows that Sponsored Brands video ads account for one-quarter (26%) of all Sponsored Brands conversions. And, when it comes to conversion rate, Sponsored Brands video ads’ conversion rate was 29% higher than that of static images for the median advertiser. This is somewhat less of a gap than what was seen in Q3 2020, though, when video outperformed static images on this metric by 38%.

The fourth quarter of 2020 also saw Sponsored Brands video ads outperform static ads in click-through rate (CTR), by 442%. This is even more impressive than Q3, when CTR for video ads was 351% higher than for static ads. However, the average order value for Sponsored Brand video ads was slightly lower (-3%) than static ads for the quarter

Although Sponsored Brands ads account for less than one-fifth (17%) of total Amazon Ad Console spend, in Q4 spending on the format grew 91% year-over-year (y-o-y). Sponsored Brands also saw y-o-y growth in sales (107%), clicks (50%) and CPC (20%).

Sponsored Products ads, which accounted for a full 80% of total Amazon Ad Console spend during the last quarter of 2020, experienced more modest growth in spending in Q4, up 25% over Q4 2019. Sales of Sponsored Products saw a lift of 31% y-o-y, while clicks grew by 23%.

CPC for Sponsored Products was up slightly (+1%) during the quarter, after experiencing decreases in Q2 and Q3. The growth in CPC was highest for Sponsored Products in the Automotive & Powersports category (+20%), followed by Health & Personal Care (+18%) and Apparel (+12%).

The full report can be found here.

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