Most brands treat Amazon Sponsored Brands like this:

• “We’ll throw a logo, a generic headline, three random products up there and hope it does something.”
  

Meanwhile:

• Sponsored Products still eat ~80%+ of Amazon ad spend, which means most sellers are fighting in the most crowded part of the auction and under-using Sponsored Brands.
  

Going into 2026, that’s a missed opportunity.

Sponsored Brands:

• Sit in prime real estate (top of search + high-visibility placements)
  
• Can feature multiple products, your logo, and a custom headline
  
• Get strong engagement when done right (Amazon ad CTR averages ~0.3–0.8%, top performers push past 1%+).
  
• Are built for awareness + mid-funnel consideration, not just bottom-of-funnel clicks.
  

This post is your 2026 playbook for Sponsored Brands:

• What they are and where they fit in your funnel
  
• The 3 formats and when to use each
  
• Benchmarks (CTR, CVR, CPC) so you can tell if they’re actually working
  
• Practical campaign setups and optimization loops you can hand to your team
  

1. What Exactly Are Sponsored Brands in 2026?

Sponsored Brands are creative-rich ads that show:

• Your logo
  
• A custom headline
  
• A set of products or a video
  

They can appear:

• Top of search, before organic results
  
• Within search results as shoppers scroll
  
• On product detail pages in certain placements
  

To run them you must:

• Be brand registered
  
• Advertise products under that brand
  
• For Product Collection / Store Spotlight: have minimum 3 products from the same brand; video can run with a single ASIN.
  

They’re keyword/category/product targeted, just like Sponsored Products – but their job is slightly different:

• Sponsored Products → mostly bottom of funnel (intent to buy a specific item)
  
• Sponsored Brands → awareness + consideration + cross-sell (help shoppers discover you and your product range)
  

2. The 3 Sponsored Brands Formats (and When to Use Each)

In 2026, Sponsored Brands offers three main formats:

1. Product Collection
   
2. Store Spotlight
   
3. Sponsored Brands Video
   

2.1 Product Collection – Your Default Workhorse

What it is:

• Logo + headline + 3–4 products
  
• Clicks can go to a custom landing page, a Store page, or a product detail page
  

Best for:

• Most brands as a starting point
  
• “Best sellers” showcase
  
• Bundled solutions (e.g., “Sleep stack,” “Hydration kit”)
  

Use it when you want:

• Flexible multi-product promotion
  
• Simple setup and fast testing
  
• To highlight a small curated set of SKUs
  

2.2 Store Spotlight – When Your Brand Store Actually Slaps

What it is:

• Logo + headline
  
• 3 Store tiles that link to different pages of your Brand Store (e.g., “Electrolytes,” “Gummies,” “Bundles”)
  

Best for:

• Brands with a real Store build-out
  
• Category-level browsing (“shop the brand”)
  

Use it when you want:

• To drive traffic into your Brand Store
  
• To segment shoppers by interest (e.g., performance vs wellness vs kids)
  
• To treat Amazon more like your own mini website
  

If your Store is basic or neglected, fix that first before going heavy on Store Spotlight.

2.3 Sponsored Brands Video

What it is:

• Auto-play video unit inside search results
  
• Shows alongside/under the result grid
  
• Clicks go straight to a product detail page
  

Best for:

• Grabbing attention mid-scroll
  
• Explaining a product quickly
  
• Differentiating in crowded SERPs
  

Studies and Amazon partners consistently report higher engagement (CTR/scroll-stop) on video formats compared to static Sponsored Brands in many categories. 

Use it when you want:

• To stand out in competitive, visual categories
  
• To demo function or format (mixing, applying, using)
  
• To show transformation (before/after, lifestyle use)
  

If you only run one Sponsored Brands format in 2026, video deserves serious testing.

3. Sponsored Brands Benchmarks & Where They Sit vs Sponsored Products

Let’s talk numbers so you’re not flying blind.

Across recent Amazon ad benchmark reports and platform data:

• Overall Amazon ads CTR: typically ~0.3–0.8%, with top performers crossing 1%+
  
• Average conversion rate: often around 10–15% for optimized campaigns across formats
  
• Sponsored Brands vs Sponsored Products:
  
  • Sponsored Products: generally stronger ROAS / lower ACoS
    
  • Sponsored Brands: stronger top- and mid-funnel discovery and brand exposure
    

CPC trends:

• Sponsored Brands CPCs have been rising year over year, with some reports showing double-digit Y/Y increases in 2024 and further upticks around big events like Prime Day.
  

What that means for you going into 2026:

• Expect CPCs to keep creeping up, especially in competitive categories
  
• But Sponsored Brands can still be very efficient if:
  
  • Creative is strong
    
  • Targeting isn’t lazy
    
  • You measure beyond just “last-click ROAS”
    

4. Where Sponsored Brands Belong in Your 2026 Funnel

Think of Sponsored Brands as your “mid-funnel + brand layer” sitting between:

• Sponsored Products → bottom-of-funnel conversion workhorse
  
• DSP / off-Amazon channels → broader awareness and remarketing
  

In practical terms, Sponsored Brands do best when you use them for:

1. Brand discovery in-category
   
   • Target non-branded, high-intent keywords:
     
     • “electrolyte powder,” “sleep gummies,” “omega 3 softgels”
       
   • Goal: introduce your brand as a legit contender when shoppers are still comparing options
     
2. Branded defense
   
   • Own your brand name plus core product line terms:
     
     • [your brand], [your brand electrolytes], [your brand sleep gummies]
       
   • Prevent competitors from sitting on top of your branded searches
     
3. Product line storytelling
   
   • Use Product Collection / Store Spotlight:
     
     • “Build your nightly routine”
       
     • “Hydration before / during / after workout”
       
   • Cross-sell and increase average order value
     
4. Category differentiation
   
   • Video formats explaining:
     
     • “Why ours mixes cleaner”
       
     • “Why our formulation is different”
       
     • “How our delivery system works”
       

This is consideration advertising in Amazon’s own language: showing up while people are comparing, not just when they’ve already decided. 

5. Building High-Performing Sponsored Brands Campaigns (Step-by-Step)

Here’s a tactical build you can plug into your account.

Step 1: Prereqs – Make Sure You’re “Sponsored Brands Ready”

Before you scale SB, confirm:

• ✅ Brand Registry is active
  
• ✅ You have at least 3 products under the brand for Product Collection/Store Spotlight
  
• ✅ Your Brand Store isn’t trash (at least:
  
  • A clean home page
    
  • Clear navigation by product type/benefit
    
  • Updated assets & copy)
    

If any of that is missing, fix it first. Sponsored Brands amplify your brand presence; you don’t want to amplify a half-finished experience.

Step 2: Choose the Right Formats for Your Stage

If you’re just getting into Sponsored Brands:

• Start with Product Collection:
  
  • One branded campaign
    
  • One non-branded campaign per major product line
    

If you have a solid Store:

• Layer in Store Spotlight:
  
  • “Shop Hydration”
    
  • “Shop Sleep Support”
    
  • “Shop Bundles”
    

If your category is visual or demo-friendly:

• Add Sponsored Brands Video:
  
  • 15–30 seconds
    
  • Hook in the first 2–3 seconds
    
  • Show the product in use, not just a static pack shot 

Treat each format like a different ad unit with a job, not just three ways to show the same thing.

Step 3: Targeting Strategy – Don’t Be Lazy Here

Break your Sponsored Brands targeting into three layers:

Branded campaigns

• Keywords:
  
  • [your brand]
    
  • [your brand + category]
    
  • [your brand + best seller name]
    

Goal:

• Own your name
  
• Keep ACoS low
  
• Control the message (headline, product mix) when someone is already searching for you
  

These should be some of your most efficient Sponsored Brands campaigns.

High-intent non-branded campaigns

• Keywords:
  
  • Core category terms (“electrolyte powder,” “hydration packets,” “kids multivitamin”)
    
  • Higher-intent modifiers (“for sleep,” “for runners,” “for women”)
    

Goal:

• Get your brand in front of shoppers in comparison mode
  
• Drive both ad-attributed and organic lift over time
  

Keep these tightly themed:

• Don’t lump “electrolytes,” “collagen,” and “sleep gummies” together in the same ad
  
• One clear message per campaign/ad group
  

Competitor & complementary campaigns (optional, controlled)

• Target:
  
  • Competitor brands
    
  • Complementary categories (e.g., targeting “pre-workout” if you sell hydration, etc.)
    

Goal:

• Carefully intercept shoppers who are close to choosing a competitor
  
• Or add yourself as a complementary buy to increase basket size
  

Use strict ACoS caps and test budgets here this is expansion money, not your core.

Step 4: Creative That Actually Gets Clicked

Most Sponsored Brands creatives underperform because they’re lazy.

Here’s what Amazon and top-performing accounts consistently emphasize:

• High resolution images (minimum quality standards, no clutter).
  
• Legible text, even on mobile
  
• A headline that says something besides “Shop [Brand]”
  

Headline formulas that work

You don’t need to overcomplicate it. Use:

1. Benefit + Brand
   

“Hydration that actually tastes good – [Brand]”

2. Outcome + Use Case
   

“Sleep deeper tonight – natural gummies by [Brand]”

3. Social Proof / Authority (if allowed)
   

“Trusted by thousands of athletes – [Brand] hydration”

4. Bundle / Offer
   

“Build your nightly routine – save with [Brand] bundles”

Avoid:

• Pure keyword stuffing
  
• Generic nothing-headlines like “Welcome to [Brand]”
  

Your headline is your hook. Treat it that way.

Product selection logic

For Product Collection:

• Anchor with a hero SKU (your top seller in that subcategory)
  
• Add:
  
  • A complementary SKU
    
  • A higher-margin or bundle option
    

Example for a sleep brand:

• Slot 1: Best-selling sleep gummy
  
• Slot 2: Strong upsell (sleep + stress formula)
  
• Slot 3: Higher-margin bundle (30-day pack or stack)
  

Don’t throw in random, low-converting SKUs just because they exist.

Sponsored Brands Video quick best practices

From Amazon’s own video guidance and partner recommendations:

• Hook in 2 seconds – movement, a bold statement, or zoom-in
  
• Show the product early (no cinematic teaser for 10 seconds)
  
• Use clear, readable text overlays (mobile-friendly)
  
• Keep it 15–30 seconds and loopable
  
• Show:
  
  • Product in use
    
  • Key benefit callouts
    
  • Pack + lifestyle
    

You’re not making a TV commercial you’re trying to stop thumbs mid-scroll.

Step 5: Bids, Budgets, and Benchmarks

Sponsored Brands CPC has been trending up, with some datasets showing ~10–15% Y/Y increases around 2024, and event periods like Prime Day pushing CPC spikes even higher.

So in 2026, you should:

• Expect to test your way into the right CPC levels
  
• Set different expectations for:
  
  • Branded SB ACoS (lower; efficiency)
    
  • Non-branded SB ACoS (higher; awareness/consideration)
    

Directional starting points (adjust for your margins):

• Branded SB: Target ACoS well below your break-even (often 5–20%)
  
• Non-branded SB: Accept 20–35%+ ACoS if you see:
  
  • Strong CTR
    
  • Decent conversion
    
  • Contribution to organic growth / TACoS improvement over time

Budget-wise:

• Don’t starve SB with $5/day and then conclude “it doesn’t work”
  
• Give each serious SB campaign:
  
  • Enough daily budget to get statistically meaningful clicks
    
  • Especially for video where impressions may be lower but impact is high
    

6. How to Optimize Sponsored Brands Over the First 90 Days

Here’s a simple, realistic plan you can follow (or hand to your team) for a brand doing at least mid five-figures or six figures a month in revenue.

Days 1–14: Launch & Data Collection

• Launch:
  
  • 1–2 branded Product Collection campaigns
    
  • 2–3 non-branded Product Collection campaigns (per major line)
    
  • 1 Sponsored Brands Video for your top hero SKU
    
• Focus:
  
  • Let them collect impressions and clicks
    
  • Watch for:
    
    • Totally irrelevant search terms
      
    • Extremely out-of-range CPCs
      

Light clean-up only; don’t rebuild yet.

Days 15–30: First Optimization Pass

Every week:

• Pull SB search term/reporting views
  
• Add negatives for:
  
  • Irrelevant queries
    
  • High-click, zero-order terms
    
• Identify:
  
  • Top 10–20 converting terms for SB
    
  • Lowest CTR creatives / headlines
    

Make surgical tweaks:

• Rotate in stronger headlines
  
• Adjust product mix if one SKU is dragging conversion down
  
• Raise bids slightly where:
  
  • CTR is strong
    
  • Conversion rate is decent
    
  • ACoS is under your target band
    

Days 31–60: Scaling What Works

Now you should know:

• Which branded SB campaigns are stable, efficient performers
  
• Which non-branded targets are worth more budget
  
• Whether video is pulling its weight in your niche
  

Moves:

1. Scale budgets on:
   
   • Branded campaigns with low ACoS
     
   • Non-branded campaigns with:
     
     • Solid CTR
       
     • Reasonable ACoS
       
     • Clear keyword themes
       
2. Clone winners for testing
   
   • Same targeting, different creative
     
   • Same creative, narrower targeting
     
   • Compare performance over 2–3 weeks
     
3. Align with Sponsored Products & Store
   
   • Make sure hero SKUs and messaging are consistent across:
     
     • Sponsored Products
       
     • Sponsored Brands
       
     • Brand Store
       

Days 61–90: Integrate into Your Full-Funnel Strategy

By now, SB should not be an experiment; it should be a pillar in your ad mix.

At 60–90 days:

• Evaluate:
  
  • SB share of total spend
    
  • SB impact on:
    
    • Branded search dominance
      
    • Overall CTR
      
    • Organic ranking on key category terms
      
• Decide:
  
  • Which SB campaigns become always-on (brand defense, evergreen category)
    
  • Which remain seasonal or experimental (events, new launches, promos)
    

The goal by Day 90:

Sponsored Brands isn’t a “nice extra” – it’s a predictable lever with clear roles: defend brand, win consideration, and grow basket size.

7. Common Sponsored Brands Pitfalls to Avoid in 2026

Quick list you can sanity-check against your account:

• Using one generic SB campaign for everything
  
• Running SB with only branded keywords, then calling it “bad” for scale
  
• Treating SB Video as an afterthought instead of a primary creative test
  
• Sending Store traffic to a messy or unfinished Brand Store
  
• Judging SB purely on last-click ROAS, ignoring:
  
  • Impact on branded search volume
    
  • Organic rank shifts
    
  • TACoS trends
    

SB is mid-funnel by design. If you treat it like Sponsored Products, you’ll misjudge it.

Want a Sponsored Brands Launch & Scale Plan Built Around Your Brand?

Still treating Sponsored Brands like a logo placement instead of a growth channel?

Most Amazon brands we audit are under-leveraging Sponsored Brands, either they’re only bidding on their own name, or they’re running one generic ad with weak creative and calling it a day.

At PPC Labs, we build a Sponsored Brands Launch & Scale Plan that plugs directly into your existing PPC strategy:

• We audit your current SB setup (or build from scratch if you’re not running any)
  
• We map clear roles for Product Collection, Store Spotlight, and Video in your funnel
  
• We set realistic CTR, CPC, and ACoS targets for 2026 based on your margins and category
  
• We give you a 90-day roadmap to turn Sponsored Brands into a reliable awareness + consideration engine
  

If you’re already spending on Amazon ads and want more than just bottom-of-funnel clicks, book a free Sponsored Brands Strategy Session and we’ll show you exactly where the upside is hiding in your account.