The advertising options open to vendors through Amazon Advertising (formerly Amazon Marketing Services or AMS) are very similar to those open to sellers.
Here’s a breakdown:
Sponsored Product Ads are the same for vendors and sellers
Sponsored Brands (formerly Headline Search Ads) are the same for vendors and sellers
Product Display Ads are only available to vendors
Bear in mind that sellers have to be enrolled in Brand Registry to use Sponsored Brands, whereas vendors do not.
Vendors can also pay Amazon to be featured in one of their emails, or on the category page that is most relevant to their product. These are expensive options and typically only used by the largest brands.
It may seem unfair that vendors are expected to sell to Amazon at wholesale prices, then pay for advertising themselves. Advertising is optional, but it can provide a big boost to sales, particularly for new products, and provide a positive return overall.
In conventional brick-and-mortar retail it’s not unusual for suppliers to pay retailers for prime shelf positions and other marketing in stores. Amazon Advertising for vendors is an online equivalent to that.