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Toucan
Amazon Sponsored Ads

Advertising that compounds, not just spends.

Sponsored Products, Sponsored Brands, Sponsored Display and Sponsored TV, run as one funnel, not four line items competing for the same budget.

A Toucan advertising manager reviewing Amazon campaign performance
The basics

What Amazon Sponsored Ads actually covers

Sponsored Ads are the self-service advertising formats you bid on inside Amazon itself: Sponsored Products (the ads in search results and on product pages), Sponsored Brands (banner, video and Brand Store placements carrying your logo and range), Sponsored Display (retargeting on and off Amazon) and Sponsored TV (streaming placements bought from the same console). Each does a different job, and each is a separate auction.

Sponsored Ads are demand capture by nature: with the partial exception of Sponsored TV, they reach people who have already typed something into Amazon. Programmatic display, video and audio across Amazon's own inventory and the open internet sit in Amazon DSP, which we run as its own service. The two halves are planned together and this page covers the first: the DSP page covers the second.

The problem most brands run into is that the sponsored formats get managed as four separate line items rather than one funnel. Sponsored Products ends up bidding against Sponsored Brands for the same search term, retargeting fires at people who already bought, and budget concentrates on branded keywords that would have converted anyway. Spend goes up, incremental revenue doesn't.

Amazon is also a conversion-rate-driven platform, not just an auction. A listing that converts well earns cheaper clicks and better organic rank, which means advertising performance and listing quality are the same problem. That's why we never treat media buying as separable from content and account health.

What we cover

Four formats, four different jobs.

All four run in the Sponsored Ads console, all four are bid separately, and all four are worth having. What changes between them is where in the funnel they earn their budget.

Sponsored Products

Keyword- and ASIN-targeted ads for a single product, in search results and on competitor detail pages. The workhorse of almost every account: highest intent, closest to the buy button, and where the majority of spend belongs.

  • Search results
  • Product detail pages
  • Keyword and ASIN targeting

Sponsored Brands

Banner and video placements at the top of search that carry your logo and a range of products, landing on your Brand Store or a collection page. Used for discovery, for range awareness, and to hold the space above your own listings.

  • Top of search
  • Video creative
  • Brand Store landing

Sponsored Display

Audience and remarketing placements on Amazon detail pages and across third-party sites and apps, driven by views, purchases and category behaviour. It reaches off Amazon without needing DSP access, which makes it the sensible first step beyond search.

  • On-Amazon retargeting
  • Off-Amazon display
  • Views and purchase remarketing

Sponsored TV

Self-service streaming TV ads across Prime Video, Twitch, Fire TV and Amazon's streaming partners, bought from the Sponsored Ads console with no spend minimum. Amazon is currently folding this into its wider Streaming TV naming, so you may see it under either label; it is the same inventory either way.

  • Prime Video
  • Twitch
  • Fire TV
  • No spend minimum
How we help

We find the spend that isn't working before we ask for more

Most accounts we take on have 20-40% of spend concentrated on terms that would convert organically. We reallocate that into genuine incremental demand before recommending a budget increase.

We manage to your margin, not to ACOS

A 15% ACOS target is meaningless without knowing your contribution margin per SKU. We build bidding rules around what each product can actually afford to spend.

We benchmark you against your category, not an average

Knowing your ROAS is 4.2 tells you nothing on its own. We measure performance against real data from your specific category, so you know whether 'good' is genuinely good.

You get a team in the account weekly, not a monthly report

Our advertising managers work inside the platform daily and review accounts weekly against performance data, rather than reviewing someone else's dashboard once a quarter.

The scope

What's included

Full-funnel campaign structure

Discovery, conversion and retargeting campaigns built to work together across all four formats, not cannibalise each other's spend.

Bid and budget automation

Rules-based and algorithmic bidding tuned to your margin targets, not just top-line ACOS.

Category benchmarking

Your performance measured against real category data, so you know if 'good' is actually good.

Creative testing

Structured A/B testing on Sponsored Brands creative, video assets and store pages, not one-and-done launches.

New-to-brand tracking

Reporting built around incremental growth, not just attributed sales.

Weekly optimisation cadence

Accounts reviewed and adjusted weekly against performance data, not a quarterly check-in.

A Toucan strategist working across Amazon advertising reports
Why it matters

How Amazon Sponsored Ads fits into a Toucan account

Amazon Sponsored Ads rarely works in isolation. It's one part of a connected system that includes account management, advertising, measurement and creative. Our team runs it alongside the rest of your account, not as a siloed hand-off.

That's the difference between a media-buying vendor and an agency that's accountable for the commercial outcome.

Our process
01

Audit the account

We map every campaign against category benchmarks to find where spend is cannibalising itself or chasing the wrong keywords.

02

Rebuild the funnel

Sponsored Products, Sponsored Brands, Sponsored Display and Sponsored TV get restructured to work as one sequence (discovery, conversion, retargeting), not four line items bidding against each other.

03

Optimise weekly

Bids and budgets are reviewed against your margin targets every week, with new-to-brand and category data driving the call, not a quarterly glance at ACOS.

FAQ

Amazon Sponsored Ads: your questions answered

What is a good ACOS on Amazon?

There is no universal good ACOS: the only number that matters is the one your product's contribution margin can afford. A 30% ACOS is healthy on a high-margin supplement and ruinous on a low-margin grocery line. Set the target per SKU from margin, then judge it against your category rather than a benchmark pulled from a different one.

What's the difference between ACOS and TACOS?

ACOS (advertising cost of sale) measures ad spend against the revenue those ads are credited with. TACOS (total advertising cost of sale) measures the same spend against your total Amazon revenue, organic included. TACOS is the more honest number: if advertising is genuinely building demand, ACOS can hold steady while TACOS falls, because organic sales are growing underneath it.

What's the difference between Sponsored Products, Sponsored Brands, Sponsored Display and Sponsored TV?

Sponsored Products are keyword- and ASIN-targeted ads for a single product in search results and on product pages. Sponsored Brands are banner and video placements carrying your logo and a range, used for discovery. Sponsored Display targets and retargets shoppers on and off Amazon based on browsing and purchase behaviour. Sponsored TV puts streaming placements on Prime Video, Twitch and Fire TV from the same console, with no spend minimum. They do different jobs in the funnel and should be budgeted as one sequence, not four.

What's the difference between Amazon Sponsored Ads and Amazon DSP?

Sponsored Ads are the self-service formats inside Amazon, bought on an auction and aimed largely at shoppers who have already searched. Amazon DSP is the programmatic platform: display, video, streaming TV and audio across Amazon's own inventory and the open internet, targeted on shopping behaviour rather than a search term. Sponsored Ads capture demand, DSP creates it, and most accounts should get the first working before adding the second.

How much should I spend on Amazon Ads?

Work backwards from margin and stock rather than from a percentage rule. Before adding budget, check how much current spend sits on branded terms that would convert anyway: in most accounts we audit, 20-40% of spend is concentrated there. Reallocating that into genuine incremental demand usually buys more growth than a bigger budget does.

Should I bid on my own brand name on Amazon?

Usually yes, but at a controlled budget. Defending your branded terms keeps competitors out of the placement above your listing, and it's cheap. It also flatters your ACOS, so it should be reported separately: if branded search is a large share of ad-attributed revenue, the account can look efficient while doing very little to grow the brand.

Can Amazon Ads work if my listings aren't optimised?

Not for long. Amazon prices clicks partly on how well a listing converts, so a weak listing pays more per click and earns worse organic rank at the same time. Advertising into it raises spend without compounding. Fixing images, bullets and A+ Content first makes the same budget go measurably further.

Let's find the revenue Amazon Sponsored Ads isn't capturing yet.