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Tinuiti Amazon Sponsored Brands in Q2 Aug2020US Sponsored Brands spend via Amazon’s ad console rose 60% year-over-year in Q2, helped by new customization capabilities, according to new figures [download page] from Tinuiti. The ad format, despite not being as prevalent as Sponsored Products, saw significant growth across the board in Q2 after several consecutive quarters of growth.

The report, based on anonymized performance data from Amazon programs in the US under Tinuiti management, highlights Sponsored Brands’ growing share of spend, impressions and clicks. Although Sponsored Products show up as the predominant ad format accounting for 81% of impressions, 86% of clicks and 88% of spend in Q2, Sponsored Brands follow with 15% of impressions, 13% of clicks and 11% of spend.

According to the report, 87% of spend attributed to Sponsored Brands in Q2 were accounted for by top of search placements. Though these placements only accounted for about 3 in 10 Sponsored Brand impressions, some 79% of clicks and 85% of Sponsored Brand conversions were driven from top of search placements. The conversion data suggests buyers are much more likely to buy from results at the top of the first page, a finding previously noted by Tinuiti and even as far back as 2014, per data from Compete.

Sponsored Brands saw growth in several key metrics. For the third consecutive quarter, the format saw strong growth in spend, reaching an increase of 60% in Q2, as well as a 79% increase in sales and an 84% increase in clicks. Although there was a 13% decline in cost per click, a similar decline (14%) was also seen in this metric for Sponsored Products in Q2.

And, of Sponsored Brands sales attributed to exact match keywords, 64% were deemed new-to-brand by Amazon (i.e that the buyer had not purchased from the brand in question in at least the last eight months). This percentage was slightly higher for broad match (68%) and phrase match (68%).

The success of Sponsored Brands ads, also seen last year in research by Merkle which reported Sponsored Brands y-o-y ad growth of 202% in Q1 2019, is likely a result of Amazon’s general dominance of e-commerce purchase journeys from the start.

Read more about Amazon ads in the full report here.

About the Data: Results are based on anonymized performance data from Amazon programs under Tinuiti management, with annual Amazon ad spend under management totaling more than $400 million. Samples are from programs that have remained active and with a consistent strategy.

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