Any time Amazon releases a new ad form, it’s met with excitement and skepticism as to how it will convert, what it will cost, and where it will be placed.
By now, you’ve probably heard of the beta release of Sponsored Brand Videos on Amazon. While it’s only been released to select brands via email invitation, it’s important to understand the basics of this new form of advertising.
Blue Wheel was able to begin testing out Sponsored Brand Videos with a few of our clients earlier this year, and for the first time ever, we’re sharing these results and our best practices with you.
Overview of Sponsored Brand Videos
In October 2019, Amazon began issuing invites for Sponsored Brand Videos, a new form of advertising. The feature is currently still in beta testing with a limited number of sellers, although Amazon is regularly inviting more and more brands to participate.
These ads appear only on the Amazon mobile app on iOS and Android. (Retail Dive reported that 45% of Amazon customers only shop on the mobile app.)
Despite the name, the videos actually advertise a single product, not the brand. Videos must be between 6 and 45 seconds long, and they automatically play but are muted until the video is clicked.
Blue Wheel ran Sponsored Brand Videos for three of our clients. When the ads first started running at the beginning of November, there were some minor bugs—ads would not deliver at all or would suddenly stop delivering. These issues seem to have been resolved, and ads seem to be running steadily.
Both of our clients have repurposed 30-second videos they had already created to be used in these ads. Their ads have consistently appeared on page 1, albeit at the very bottom of the page. However, we’ve seen incredible returns on these ads at a low ACoS.
Speaking of ACoS—we’ve seen brands advertising on page one at a lower ACoS than they would have for a similarly placed sponsored product or brand ad. Because very few brands are able to compete on these ads, the threshold for entry is extremely low and the average cost per click is significantly lower than expected for page 1 placement.
One of our clients saw a 10% increase in ad sales after launching Sponsored Brand Video. This client relies heavily on branded conversions but has strict ACoS targets that prevent them from competing on their non-branded keywords. However, they were able to expand their non-branded reach through Sponsored Brand Videos at a low ACoS. And, despite being non-branded, they still saw a 10% increase in sales.
Additionally, because there is a lack of competition in the ad auction while this unit remains in beta, CPC’s are often hitting the floor limit with Sponsored Brand video. For one client, we were bidding $2.50 and consistently only paying $0.90 per click, rather than the usual variable CPC—on another, $2.50 and $0.81, respectively. This low threshold for page one placement was unheard of for these clients’ chosen keywords.
What This Means for Your Brand
As it stands, these ads are still only eligible for select brands as the feature is still in beta testing, although Amazon recently opened it up to dozens of other brands. Reach out to your Amazon rep and see if you qualify for eligibility.
If you’re able to take part in the beta testing, get in now. The bid floor, low competition, and affordable ACoS make this an affordable option for many brands, especially if you already have short videos—instruction videos, social ads, etc.—to repurpose. You’ll get nice low CPCs, and you’re probably going to show up on page one.
Sponsored Brand Videos are also a great way to begin expanding your non-branded presence on Amazon. If you have a competitive keyword that you’re unable to bid on because of the high ACoS, you can gain page one placement for a chosen keyword at a fraction of the cost of a page one Sponsored Product Ad. It could be valuable to incorporate Sponsored Brand Video Ads into your larger Search Term Isolation strategy.
Once eligibility opens up to everyone, these benefits will dissipate as brands flood this new ad space, but for now it’s a very unique proposition to participate this early in the game. Take advantage of it while you have the chance, and then utilize your newfound non-brand exposure.
Need help navigating the world of Amazon advertising? Drop us a line to learn more about how Blue Wheel can increase your Amazon sales at a low ACoS.