Amazon is a Search Advertising Powerhouse

Amazon is known for siring the dominance in the e-commerce market, and other segments that have helped, including Amazon web service, but they’re now becoming the advertising giant as well.

More than $10 billion in advertising revenue was generated from this, and it’s a global powerhouse in the different ad products and systems. The accelerating growth of the ad business does pose a threat to other digital advertising places, and this internet giant is about to push pas to the number three spot in terms of advertising.  It has been shown that Amazon has an increased share of online ad spend, and about 54% of product searches happen on Amazon, and it’s increased a lot in the last 18 months, with product searches and clicks being seen via the sponsored ad and that rose.  2/3 of the clicks are on the first page, which has caused pressure to happen on these sponsored ads to put them up against the private amazon labels.  In another example, Amazon is testing a pilot program that allows for advertisers to search the queries and retarget the ads across the web using the side platform. it’ll be the first time Amazon’s search data will be used outside their own platform to get the shopper’s intent and to figure out more personalized ads.

It has certain advantages in that everyone goes to it, mostly because they do their online shopping there. Google also doesn’t have the data intelligence that Amazon has in terms of the products that are bought, and the transactions and shopper journeys look like before they get the product, and what products were added before they checked out.

Based on this, Amazon put together a better sales pitch for shoppers whenever they go onto internet campaigns. The added intelligence can also get rid of customer frustration especially since it eliminates wasted ad spends.

Adtech is failing because people are being sick of having ad targeting that doesn’t work.  Many times, people don’t like how Facebook targets their ads, but with Amazon, they’re smarter about it.

amazon’s business plan focuses on the company that wants to become everything, it draws marketers to it, since they will spend money with it, and they’ll get people who like the service. For example, Whole Foods and Amazon actually now make correlations between the offline and the online shopping that happens, and it also has insights to video and music preferences and 100 million plus prime people. 

Amazon is really the go-to e-commerce player fro most major shopping events, whether it be Cyber Monday or even Mother’s day, and there is also Prime Day too.  Amazon is also a step ahead of the others in terms of the purchase data, and it’s been able to allocate dollars and assign credit from each sale to the marketing touchpoints that a customer had prior to this. The metric is used by companies to optimize the campaigns and allocate their future and spend based on the performance too.