Advancements from Amazon
Amazon has revolutionized the world of buying and selling. From providing products (and convenient perks) to customers who are registered with Amazon Prime to technological breakthroughs of delivering said products via drone technology, Amazon is always advancing, and the most recent advancements were additions and changes to its ad platform. A couple of years ago, Amazon’s place in digital advertising was strong. Today, it is beyond strong.
Amazon’s DSP API
In an article for AdAge, Garrett Sloane detailed Amazon's latest advancements, which were implemented only one week ago. The good news is that they are intended to make online transactions easier for brands that have an e-commerce presence. (And what brands today don’t have an e-commerce presence?) One major advancement was the release of what is known as a “demand-side platform application programming interface” (or DSP API for short), which is a new component within Amazon Advertising to assist in running programmatic ad campaigns (e.g., display, video, audio), both on and off Amazon.com. Outside publishers that are covered by this DSP API can have their ad campaigns connected to Amazon.com and the rest of the Internet, thus giving them greater visibility. How can Amazon manage to accomplish all of this? With help from its partner program, of course.
Pumping Up the Amazon Partner Program
Amazon relies on select partners to assist with specific managerial and technical services, and these were another part of the latest advancements. The section of the Amazon website that prominently displays the names of these partners will provide an easier, more seamless user experience to customers and merchants. With an easier user experience, these partners will in turn have greater visibility. To accentuate this, Amazon is also instituting what may be called a “proof positive policy” for these partner agencies: They must prove they are experts in their respective fields and can deliver on their promised capabilities. Every component of Amazon is stepping up its game. Today, it is especially necessary.
Amazon’s Changes Correspond to the Changes in the World Today
While Amazon continues to make great strides in the retail world, these latest additions and changes have been influenced (as has everything else) by the COVID-19 pandemic. As this crisis continues throughout the world, many consumers who might have made occasional online purchases last year are exclusively shopping via e-commerce this year. Mr. Sloane cites findings from eMarketer, which predicts e-commerce advertising to grow 40 percent by the end of the year. And ad revenue on Amazon is also growing 40 percent, year-over-year, and may command 76 percent of e-commerce ad revenue by the end of 2020. For anyone who thought e-commerce was to be the wave of the future – the future is now.
Competition on Amazon is Fierce
Colleen Aubrey, Amazon’s VP of Performance Advertising, pointed out in the AdAge article that if the retail basics for a merchant are not strong, no amount of advertising is going to make an impact. This is especially true on as far-reaching a site as Amazon, where browsing, buying, and selling among thousands of customers and merchants can become very complicated in a very short time. The services provided by Amazon and members of its partner program have the marketing tools and resources to streamline and enable a more efficient process for merchants seeking to establish or enhance their e-commerce presence. (Just think: A few years ago, as Ms. Aubrey observed, there was little-to-no concern or emphasis on e-commerce marketing. How times change!)
Other Amazon Innovations
Complementing the DSP API and upgrades to its partner program, Amazon has also begun investing resources into live video shopping and a feature named “Posts,” which will merge shopping and social media to let customers view and learn about specific brands and products. Along with already established Amazon features such as Sponsored Products and Sponsored Brands, the goal is to bring a more immediate and engaging user experience to customers who visit the platform. And with the current increase of activity in online shopping (due in no small measure to the COVID-19 pandemic), more customers will be checking in to Amazon for the remainder of the year.
The EGC Group offers Amazon Marketing Services and Seller Management to help clients gain visibility (not to mention sales) through data-driven and return-on-investment-focused campaigns, which you can learn more about here. Contact us today so that we can make your presence on Amazon known.