Amazon’s Amazing Pull in Digital Advertising
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Amazon is everywhere. The online retail giant has been a hot topic in the current news with its decision to withdraw plans to set up headquarters in Long Island City, NY, sparking controversy that’s still going on. And then there is this newsworthy item: Amazon’s place in the advertising arena, where wins are increasing – big time.
Several months ago, the already impressive fortunes of this megabrand were predicted to expand only further, thanks to its increased capabilities in digital advertising. Today, the word “expand” should be replaced with “explode,” because Amazon’s fortunes and following are spreading faster and wider than imagined.
Amazon’s ascending popularity.
Hard to believe, but Amazon’s track to unparalleled success is faster than originally expected. One noteworthy observation is how so many brands – which once spent the bulk of their ad dollars on Google and Facebook – are this year shifting significant amounts to Amazon. These figures, as detailed by CNBC, are as follows. In 2019:
- Amazon is predicted to increase in U.S. digital ad from 6.8-percent to 8.8-percent.
- Google may lose market share, going from 38.2-percent to 37.2-percent.
- Facebook will gain slightly, going from 21.8-percent to 22.1-percent.
Why this migration to Amazon?
In a recent article for Forbes, Kiri Masters noted three strong trends which have influenced brands to reallocate sizeable sums of ad dollars to Amazon:
- Since shoppers visit Amazon with the goal of making a purchase, not to simply learn about a product, the direct sales capability built into the site’s operation affords brands a clearer picture of their return-on-investment. Browsing and purchase history are there to see.
- Amazon is increasing efforts to share data (e.g., ad placement, keyword volume, impression share) with brands that advertise on the platform. In short, Amazon is becoming comparatively more transparent – that top-of-mind concern of today.
- Money talks, and more well-to-do customers are electing to shop via Amazon, making this site the next-to-ideal online store where high-quality brands can be seen and (hopefully) gain leads and sales.
Brands need to know about Private Label Products.
There a possible proverbial dark lining to the silver cloud of advertising on Amazon. A caveat Ms. Masters points out is Amazon’s Private Label Products feature. A shopper will search for a specific brand’s product, and the Private Label Products pop-up will offer a similar item at a lower price. Yes, Amazon is in essence competing with other brands. So, businesses that are considering the leap to Amazon should be mindful of the risk factor of potentially losing a customer, even to the very platform it is selling on.
The attraction to advertising on Amazon is brand awareness, visibility, and more sales. This year, more brands want to be recognized on this iconic store’s page. More brands means more competition. If you are considering ad placement on Amazon or have questions about how to make your brand’s presence on this store even stronger, contact EGC to learn more about our Amazon Marketing Services.