In Digital Marketing, Amazon Continues to Gain
Image Credit: MarketWatch
Several weeks from today, Black Friday will be here, signaling the start of the holiday shopping season. Countless numbers of customers will wake up early, still groggy from the previous day’s Thanksgiving festivities, to venture out to their retail store of choice to get the best deals on whatever they can physically carry back to their cars. Unless of course, they log in to Amazon, which is growing more powerful – if that’s in fact possible.
How can Amazon grow – more?
Yes, Amazon continues its journey to grow as the mega-retailer of all time for shopping via the Internet. (And let’s not neglect to mention its establishment of a brick-and-mortar presence to complement its online capabilities – which is one example of this growth.) For nearly 25 years, Amazon has proven to be convenient, fast, and even cost-effective when it comes to shopping for nearly any item imaginable. It is the “go to” shopping place for many. How can it grow even further? The answer: digital advertising.
Leaders in digital advertising: Google, Facebook – and now Amazon
Amazon is a major power, but alongside Google and Facebook, it is in third place as a digital advertiser. And it is at a distant third place, according to Ginny Marvin of Marketing Land. Which site will take the top spot in this competition? That’s anybody’s guess, but Marvin points out that 80 percent of advertisers on Amazon are poised to increase their budgets next year. So, ad dollars to budgets are increasing fast and the gap between where Amazon stands in contrast to Google and Facebook is closing up – fast.
Going onward and upward
As reported in The Motley Fool, Amazon saw record profits in its third quarter, and a large portion of this increase came from its advertising services. Despite – or thanks to – this impressive increase, Amazon CFO Brian Olsavsky believes there is the potential to improve upon digital advertising services. Ultimately, the goal is to optimize the Amazon shopping experience for both customer and advertiser, where customers will be shown the most relevant products related to their search, and the ad-buying tools on the site will be expanded and improved upon.
Small businesses – sit up and take notice
The conventional train of thought might be that well-known brands with instantly recognizable names, logos, and slogans – not to mention big budgets to spend – would be the only businesses lining up to ride the projected crest of Amazon’s digital expansion. Not so. In another piece for Marketing Land, Amy Gesenhues points out that small-to-midsize businesses are looking to reallocate much of their ad budgets from search, display, and paid social to Amazon. Between the Amazon site itself and “Amazon Stores” pages, among other related assets, these smaller businesses will have more exposure and greater chances of making sales.
The digital advertising landscape continues to evolve, and nothing exemplifies this stronger than how much traction Amazon has gained – and continues to gain. If you are considering featuring your brand on Amazon, contact EGC, and ask about our Amazon Marketing Services.