Sponsored Products

Sponsored Products, within the context of retail platforms like Amazon or Walmart, refer to products that are advertised on the platform and appear in search results or on product pages. These advertisements are designed to increase visibility and generate more clicks and conversions for the advertised products. Sponsored Products campaigns provide sellers and brands with an opportunity to promote their products to a targeted audience, boost their discoverability, and drive sales.

Examples of applications

Examples of applications of Sponsored Products include:

  1. Search Results Placement: When users search for specific products or keywords on a retail platform, Sponsored Products appear alongside the organic search results. These ads are strategically placed to gain maximum visibility and attract the attention of potential customers who are actively searching for relevant products.
  2. Product Detail Pages: Sponsored Products can also appear on the product detail pages of related or complementary items. For example, if a customer is viewing a particular product, they may see sponsored listings of similar or complementary products, increasing the chances of cross-selling and upselling.
  3. Targeted Audience Segments: Advertisers have the option to target specific audience segments based on factors such as demographics, interests, and shopping behaviour. This allows them to reach their ideal customers and present their products to a highly relevant audience, increasing the likelihood of engagement and conversion.


Benefits of Sponsored Products include:

  1. Increased Visibility and Discoverability: Sponsored Products provide sellers and brands with a higher level of visibility on retail platforms. By appearing prominently in search results or on product pages, these ads attract the attention of potential customers, making it easier for them to discover and consider the advertised products.
  2. Enhanced Sales and Conversions: The primary goal of Sponsored Products is to drive sales and conversions. By increasing the visibility of products and reaching a targeted audience, these ads can generate more clicks, product views, and ultimately, sales. Sponsored Products campaigns enable sellers and brands to capitalise on the platform’s customer traffic and convert it into revenue.
  3. Targeted Advertising: Sponsored Products allow for precise targeting, ensuring that ads are shown to users who are most likely to be interested in the advertised products. This targeted approach increases the relevance and effectiveness of the advertisements, leading to higher engagement and conversion rates.
  4. Cost-Effective Advertising: Sponsored Products campaigns operate on a pay-per-click (PPC) model, meaning that advertisers only pay when users click on their ads. This cost-effective pricing structure allows advertisers to closely monitor and control their advertising budget, ensuring that they are investing in ads that deliver measurable results.
  5. Performance Tracking and Optimisation: Retail platforms provide comprehensive analytics and reporting tools to track the performance of Sponsored Products campaigns. Advertisers can access data on impressions, clicks, conversions, and other key metrics, allowing them to evaluate the effectiveness of their campaigns and make data-driven optimisation decisions to improve performance.
  6. Competitive Advantage: By utilising Sponsored Products, sellers and brands can gain a competitive edge in a crowded marketplace. These ads can help smaller or lesser-known brands compete with larger competitors by increasing their visibility and positioning their products alongside established brands in search results and on product pages.

In summary, Sponsored Products are paid advertisements that appear on retail platforms, such as Amazon or Walmart, in search results or on product pages. They offer benefits such as increased visibility and discoverability, enhanced sales and conversions, targeted advertising, cost-effectiveness, performance tracking and optimisation, and a competitive advantage. By leveraging Sponsored Products, sellers and brands can effectively promote their products, reach their target audience, and drive sales on retail platforms.

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