Sponsored Brand Video: The Most Underused Ad Format on Amazon (and How to Win With It)

I. Introduction - Why Most Brands Overlook Sponsored Brand Video

If you’re not running Sponsored Brand Video ads on Amazon, your competitors probably thank you every single day. Because while most brands are fighting in overcrowded Sponsored Product placements - paying higher CPCs for lower returns - a small group of advertisers is quietly winning the visibility game with short, scroll-stopping videos. Sponsored Brand Video (SBV) is Amazon’s most underused yet most effective ad format.

It’s the only placement that auto-plays in the middle of search results, instantly capturing shopper attention and driving them directly to your product detail page.And the numbers don’t lie: according to Amazon Ads’ internal study (Pauwels et al., 2023), brands that launched SBV campaigns saw a +25% higher click-through rate and +10% higher year-over-year sales growth compared to those using only static Sponsored Ads. Despite this, fewer than 20% of advertisers use SBV - mostly because they assume it’s complicated, expensive, or “only for big brands.”

But in reality, even a simple, authentic video can outperform static ads when crafted around the right message and targeting. In this article, we’ll break down why SBV works, how to use it effectively, and how Galaxy helps brands turn this overlooked ad type into a core profit driver. From campaign setup to creative strategy, we’ll show you how to build videos that don’t just look good - they sell.

II. What Exactly Is Sponsored Brand Video (SBV)?

Sponsored Brand Video (SBV) is a video ad format on Amazon that plays directly within search results, designed to help shoppers discover - and remember - your brand. Unlike static Sponsored Product ads that blend in among dozens of listings, SBV occupies a dedicated horizontal slot mid-page on both desktop and mobile. The video auto-plays silently as shoppers scroll, instantly drawing attention in a feed full of still images. One click takes them straight to your product detail page.

Here’s what makes SBV unique in Amazon’s ad ecosystem:

1. Placement & Visibility
   SBV ads appear mid-search, on product detail pages, and occasionally at the top of search results (depending on targeting). They auto-play, meaning they capture motion and attention before a shopper even reads your title.
2. Pay-Per-Click (CPC) Model
   Just like Sponsored Products, you pay only when someone clicks. But because far fewer advertisers compete for these placements, CPCs are often 20–40% lower than standard search ads.
3. Creative Format
   Each ad includes:
   
   • A 6–45-second video (ideal length: 15–25s)
   • Your product image, title, ratings, and price
   • A direct link to your Product Detail Page (PDP): No fancy production studio is needed - many high-performing SBVs are filmed with simple lifestyle shots, minimal text, and authentic storytelling.
4. Brand Registry Requirement
   You’ll need to be enrolled in Amazon Brand Registry to run SBV campaigns, ensuring the ad links to your official brand ASINs.
5. Funnel Positioning
   SBV sits firmly in the mid-funnel - where customers are aware of the category but haven’t decided which brand to trust. The motion, sound, and visual cues help bridge that decision gap faster than any static image ever could.

In short: Sponsored Brand Video turns search intent into brand connection - and brand connection into conversion.

III. Why SBV Is the Most Underused but Profitable Ad Format

If Sponsored Products are the workhorse of Amazon advertising, then Sponsored Brand Video is the quiet powerhouse - a format that delivers exceptional performance with surprisingly low competition.

Most brands overlook SBV for one of three reasons:

• They assume video production is too expensive.
• They underestimate how fast shoppers scroll past static ads.
• Or they simply don’t know where SBV fits in the funnel.

That’s exactly why it remains one of Amazon’s biggest untapped opportunities.

1. Lower Competition = Lower CPC

Because few advertisers invest in SBV, the auction pressure is dramatically lighter. According to internal Amazon Ads benchmark data (Amazon Advertising, A Guide to Sponsored Brands Video, 2021), only around 15–20% of eligible advertisers use SBV campaigns. This limited adoption leads to CPCs often 20–40% lower than traditional Sponsored Products or Sponsored Brands static ads - meaning you can dominate premium placements at a lower cost. For brands operating with tight margins, that difference translates into higher profit-per-click and a more efficient ad mix overall.

2. Higher Engagement = Higher Conversion

Multiple studies confirm SBV’s superior engagement metrics. A large-scale causal analysis by Amazon Ads researchers (Koen Pauwels et al., 2023, Journal of Advertising Research) found that brands using SBV achieved:

• +25% higher click-through rate (CTR) compared to static Sponsored Brand ads
• +10% higher year-over-year sales growth
• Consumers were 17.7× more likely to click on SBV than static images when videos played for more than five seconds
  

Another Amazon Ads report (Shah, 2021, “Sponsored Brands Video Helps Increase Sales and Click-Through Rates”) confirmed that combining SBV with other ad types boosted sales performance across categories from grocery to consumer electronics. The reason is simple: motion captures attention. A short, well-crafted video builds trust, conveys product benefits instantly, and gives shoppers a reason to click - all within seconds.

3. Perfect for Mid-Funnel Impact

Sponsored Brand Video sits in the consideration stage of the Amazon journey. It doesn’t just drive clicks - it shifts perception. When customers search for “keto snack,” “organic coffee,” or “vitamin C serum,” a brand that shows real movement, context, and benefit stands out far above the rest. SBV bridges the gap between awareness and conversion - turning curiosity into purchase intent. Amazon’s own Full-Funnel Effectiveness Study (Pauwels & Shah, 2022) found that mid-funnel ad formats like SBV deliver stronger “brand consideration lift” than lower-funnel ads alone, especially when layered with Sponsored Products.

4. Builds Brand Equity (Not Just Sales)

Unlike performance-only ads, SBV reinforces brand identity every time it appears. Your logo, color palette, and messaging show up directly within the shopping experience - turning product discovery into brand recognition. For small to mid-size brands, this is a rare chance to build awareness at scale without the traditional brand-campaign budget. Amazon describes SBV as “a bridge between brand storytelling and conversion” (Amazon Advertising, 2021).

5. Long-Term ROI That Compounds

SBV doesn’t just work short-term - it compounds over time. The same 2023 Amazon Ads study found that brands running SBV for a full year saw 10%+ higher YoY sales growth and sustained CTR advantages across every marketplace analyzed (US, UK, EU, and APAC). In short: SBV isn’t just an ad - it’s your brand’s conversation starter, and one of the most cost-efficient ways to dominate Amazon search real estate.

IV. How to Win With Sponsored Brand Video

Running SBV isn’t about having a cinematic video - it’s about knowing how to match message, audience, and intent. At Galaxy Agency, we’ve seen brands turn simple 15-second clips into their most profitable ad format by following four disciplined steps:

1. Start With the Right Product

Not every SKU is SBV-ready. You want products that already have:

• Solid conversion data (CVR > 15%)
• At least 15–20 reviews
• 4.0+ star rating
• Clear visual value proposition (you can show, not just tell)

SBV works best for “Hero SKUs” - products that represent your brand’s story.  If you’re a coffee brand, highlight your freshly roasted beans and aroma. If you’re in supplements, spotlight purity, texture, or real-life use.

Rule of thumb: If a customer can understand your product’s value just by watching it for 3 seconds, it’s SBV-ready.

2. Craft the Message That Converts

A high-performing SBV follows a simple 3-phase storytelling structure:

0–3s: Hook Attention - Example: Show movement, bold claim, or problem moment (“Tired of weak coffee?”)

3–15s: Show Proof - Example: Demonstrate product in action, quick benefit overlay

15–30s: Invite Action - Example: End with logo, product close-up, and CTA (“Brew better mornings - available on Amazon”)

Avoid stock footage. Authenticity beats polish. According to Amazon’s internal data (Amazon Advertising Creative Best Practices, 2023), user-generated or natural-light videos drive up to 32% higher CTR than studio-style edits. The goal isn’t to impress - it’s to connect.

3. Optimize for Amazon Search Intent

Treat your video campaign like a search ad, not a TV spot. SBV targeting is keyword-based - so your script, captions, and thumbnail should mirror customer search intent.

Examples:

• Searching “keto snack”? → Emphasize low carb, high protein, real ingredients.
• Searching “gift for dad”? → Lead with lifestyle emotion and occasion use.

Use exact match for high-intent terms and broad match to discover new ones. At Galaxy Agency, we group SBV keywords into funnels:

a. Upper Funnel - “healthy snacks”, “organic coffee” - Awareness & reach

b. Mid Funnel - “keto protein bar”, “medium roast beans” - Consideration

c. Bottom Funnel - “buy jalapeño bar”, “Exhale coffee subscription” - Conversion

4. Measure, Iterate, and Scale

SBV performance compounds when you test and learn fast. Key metrics to track:

• CTR (Click-Through Rate) → Benchmark: 0.6–1.5%
• CVR (Conversion Rate) → Benchmark: 10–20%
• ROAS (Return on Ad Spend) → Benchmark: 3–5× (depending on category)

Split-test 3 versions of your video, changing only the hook (first 3 seconds). Amazon’s own study (Pauwels et al., 2023) found that even muted videos saw a 17.7× CTR uplift once viewed for more than 5 seconds - so optimizing that initial hook matters more than your camera gear.

Once a winning creative hits steady ROAS, expand it with:

• New keyword clusters
• Product variants
• Market extensions (UK ~> DE ~> EU ~> US)

Pro Tip: Combine SBV with Sponsored Product ads in the same keyword cluster. Amazon’s internal research (Shah, 2021) shows that combining SBV + SP drives +21% incremental sales lift compared to running SP alone.

Case Insight: Exhale Coffee

For Exhale Coffee, Galaxy Agency used SBV to highlight its freshly roasted organic beans and science-backed antioxidant content.
Within 30 days:

• CTR improved +42%
• ROAS increased +35%
• Ad spend efficiency improved despite lower CPC than SP

The takeaway? SBV doesn’t just scale traffic - it filters quality traffic that’s already engaged.

V. Common Mistakes Brands Make With SBV

Here are the most common mistakes brands make (and how to avoid them):

1. Leading With Branding, Not the Product

The biggest pitfall is treating SBV like a TV commercial - long intro, cinematic shots, elegant logo reveal… and no product until the 10-second mark. Amazon shoppers don’t have time for that. They scroll fast, and attention peaks in the first three seconds.

Fix:

• Start with the product immediately.
• Show it in motion, in context, or solving a problem.
• If your logo appears first, you’ve already lost your audience.

Benchmark: 0–3 seconds decide 70% of your CTR (Amazon Advertising Creative Guidelines, 2023).

2. No Clear Hook in the First Three Seconds

The opening frames must stop the scroll. Many videos fail because they start flat - static packshot, no sound movement, no reason to care. Fix: Use dynamic cues - pour, stir, open, slice, apply - and add a short overlay that connects to shopper intent.
Examples:

• “Tired of weak coffee?”
• “Gut health without the bloat.”
• “Protein you can actually chew.”

A good hook tells the shopper: “This is for you.”

3. Weak Connection Between Keyword and Creative

Many SBV campaigns reuse the same video for every keyword cluster. That’s a missed opportunity.  If a shopper searched “keto snack,” a “high-protein” message might resonate. If they searched for “healthy snack for kids,” that same message will flop.

Fix:

• Align message with search intent.
• Build at least two video variations per core theme (e.g., “energy” vs “family”).
• Use different ad groups to isolate performance by keyword cluster.

4. Running SBV Too Early (No Reviews or Rating Below 4.0)

Even great videos can’t fix a weak PDP. SBV amplifies visibility - and if what shoppers see after the click doesn’t build trust, conversion collapses.

Fix:

• Launch SBV only after your hero SKU has 15–20 reviews and a 4.0+ star rating.
• Audit your PDP: price, images, A+ content, reviews - all must support the video’s promise.
  
  

5. Over-Produced, Under-Performing

Brands often think “higher production = higher results.” On Amazon, that logic flips. High-budget commercials look out of place among organic listings, while authentic, real-life videos often outperform.

Fix:

• Focus on clarity, not complexity.
• Natural light, clean framing, simple overlay text.
• Authentic motion > cinematic transitions.

According to Amazon’s Creative Insights Report (2023), UGC-style videos drive 32% higher CTR than studio-produced ones.

6. Forgetting to Test and Iterate

SBV isn’t a “set-and-forget” format. Brands often upload one video, leave it running for months, and never test hooks, lengths, or captions.

Fix:

• Always A/B test at least 2–3 creative versions.
• Track CTR by creative to identify the best-performing hook.
• Refresh videos every 60–90 days to maintain engagement.

Data from Pauwels et al. (2023) shows that CTR begins to plateau after ~90 days without creative refresh - even for high-performing SBV campaigns.

7. Ignoring Mobile Optimization

Over 70% of SBV impressions happen on mobile. Many videos are designed desktop-first, leading to tiny text, unreadable captions, and cropped visuals.

Fix:

• Design for mobile first.
• Use bold text, centered framing, and clear focal points.
• Test playback on multiple screen sizes before uploading.

8. Poor Bidding Strategy

A powerful creative can still fail with the wrong bid logic. Some advertisers bid aggressively on low-intent keywords, burning budget before data accumulates.

Fix:

• Start with a controlled keyword set from your SP reports.
• Use exact match for proven keywords; expand later.
• Monitor CTR vs CPC weekly - the best videos often earn cheaper clicks over time as Amazon’s algorithm rewards engagement.
  

VI. Conclusion - The Window of Opportunity

Sponsored Brand Video is no longer a “nice-to-have” It’s quietly becoming the most efficient, scalable, and brand-safe ad format on Amazon - and yet, fewer than one in five advertisers use it consistently. That gap is the opportunity. As Sponsored Products become more competitive and CPCs rise, SBV offers something rare:

• Lower competition, lower CPCs
• Higher CTR and stronger brand recall
• A bridge between performance and storytelling

For now, it’s still early. The brands that master SBV today will own tomorrow’s mid-funnel visibility - when the rest of the market finally catches up. The next phase of Amazon growth won’t come from shouting louder - it will come from showing better. And SBV is how brands will be seen, understood, and chosen. At Galaxy, we help brands turn underused formats like Sponsored Brand Video into reliable profit engines - combining creative strategy, keyword science, and financial discipline to grow with intent. If you’d like to see what SBV could do for your brand, book a strategy call or leave your email, and we’ll send you a short audit showing where video can unlock incremental revenue.