Amazon ads are not getting cheaper. Average cost per click has increased by 15–25%, and some competitive niches now see CPCs cross $2–$4 per click regularly. At the same time, more brands are bidding on the same keywords, and Amazon keeps adding new ad placements that compete for the same budget.
Because of this, sellers are wasting money faster than ever. Not because ads do not work, but because spend is not focused. If you’re confused whether to focus your spend on branded or non-branded ads, here’s a guide to help you out.
What Are Amazon Branded Ads?
Branded ads target searches that include your brand. This can be your exact brand name, your brand plus a product type, or a common misspelling of your brand. These shoppers already know you.
Branded ads protect your traffic. Without them, competitors can bid on your brand name and show up above your listing. This happens more often than sellers think.
Branded keywords typically have lower CPC and face less competition. These searches come from shoppers who are further down the sales funnel, who already:
- Recognize your brand.
- Visited your listing or Storefront before.
- Interacted with your content.
- Want to make a purchase.
What Are Non-Branded Ads?
Non-branded ads target general keywords that describe the product. These include category terms, feature terms, size-related terms, and problem-based searches.
Non-branded ads help you grow. They introduce your product to buyers who have never heard of your brand before. They cost more than non-branded ads.
Non-branded keywords reach a much larger audience, but most of these shoppers are not ready to buy right away. They are still exploring options and comparing products.
These top-of-funnel shoppers usually:
- Do not recognize your brand yet
- Have not visited your listing or Storefront before
- Want to research before deciding
- Are comparing you against similar brands and products
Is Branded Ad Bidding Important?
For a long time, sellers believed branded keyword ads did not matter. The idea was that if someone searched your brand name, they would buy anyway, even without seeing an ad.
That is not true. Here’s why branded ad bidding is important:
It Protects Your Brand from Competitors
Amazon allows competitors to bid on your brand name, and this happens all the time. When that happens, their product can show above yours, even when the shopper searched for your brand. Branded ads help you keep control of traffic that already belongs to you.
It Takes Up More Space on the Search Page
Most shoppers focus on what they see first. When your branded ad appears at the top and your product also ranks organically, your brand shows up twice on the same page. This makes your brand look more established and reduces the chance that shoppers click on a competitor instead.
It Controls What Shoppers See First
Branded ads let you decide what you want to highlight. You can push a best seller, promote a bundle, feature a new launch, or send traffic to your Storefront. Non-branded ads do not give you this level of control.
You Get Better Conversions at Lower Cost
Branded keywords usually convert better and cost less per click. These shoppers already know your brand and are closer to buying. Because of that, branded ads often deliver a stronger return compared to non-branded keywords.
Should You Bid on Non-Branded Keywords?
Many shoppers start with a generic search, compare a few products, and then come back later to search for a specific brand. That first generic search often introduces them to your product. So yes, it is important to bid on non-branded keywords.
That said, non-branded ads are more expensive and less predictable than branded ads. You should not bid blindly. The best approach is to start with high-intent non-branded keywords. These include searches that clearly describe the product and its main use. Once those perform well, you can slowly expand into broader terms.
Summary
Branded ads and non-branded ads serve different purposes. Branded ads protect demand that already exists. Non-branded ads help you reach new buyers and grow. The best strategy is to use both of them together.
Need help building that balance? Enso Brands is an Amazon store management agency that helps Amazon sellers structure campaigns the right way. Contact us today for more information about our services.
FAQs
Can competitors bid on my brand name on Amazon?
Yes. Amazon allows sellers to bid on competitor brand names as keywords. This is why running branded ads is important. Without them, competitors can appear above your listing even when a shopper searches for your brand.
Should branded and non-branded keywords be in the same campaign?
No. Branded and non-branded keywords should always be separated. They serve different purposes, have different costs, and need different bids. Mixing them makes performance harder to track and optimize.
How often should I review branded and non-branded campaigns?
You should review both at least once a week. Non-branded campaigns usually need more frequent checks because costs and search terms change faster.
