By 2022, Amazon’s share of US digital ad spending is predicted to be almost 13%. Its rapid growth is helping Amazon to chip away at online advertising’s dominant player, Google. For marketers, it is the difference in reaching the person searching for “athlete’s foot cream” rather than “why does my foot hurt?”. Here’s our perspective on why Amazon is an integral part of commerce strategy:
66% of US consumers start their product search journey on Amazon, according to Feedvisor. Google is the number one search engine, but lags behind when it comes to product shopping (according to eMarketer).
Advertisers favor Amazon because marketing dollars are trackable and measurable, as a transaction happens directly within the platform.
Amazon provides cross-funnel, integrated advertising solutions, giving marketers the ability to influence consumers purchase decisions at every stage of her journey.
Unlike Google, where advertiser’s quality scores will tank in the attempt to bid on competitor terms, Amazon’s search result page could show competitor (sponsored) products in the first position.
Brands take advantage of Amazon’s rich audience data to increase the return on ad spend by customizing their targeting strategy and prioritizing high-intent shoppers. Amazon’s audience insights tool unlocks insights into buyer purchase behaviors, which marketers could use to scale the program while still hitting the efficiency goals.
By 2022, online videos will make up more than 82% of all consumer internet traffic (according to Cisco), and Amazon is not behind. The commerce giant introduced a new thumb-stopping advertising format in 2020 and brands already see strong results from it.
Optimizing product pages and advertising on Amazon (and Walmart: the retailer opened up its self-service advertising platform in 2020) may feel overwhelming, but we’re here to help. Our team of platform-certified experts will help define the right online marketplace strategy for businesses of all sizes, whether it’s launching a new product, penetrating a category or lifting sales. Contact us to get a read on Amazon advertising benchmarks.