18/01/23 // Uncategorized
How Amazon is becoming a prominent force in advertising
Written by: Simon
Whilst Amazon are a well-known and established global brand in driving e-commerce sales and cloud computing services, they’re also the third largest digital advertising company behind Google and Facebook, hitting $31 billion in ad revenue in 2021.
This does pose a potential threat to big game players like Facebook and Google, but the only challenge Amazon face currently is getting users spending more time on their platform. This is essentially the be all or end all as the higher the dwell time, the more reason advertisers must showcase their brand on Amazons platform.
With the right approach and utilising the advertising platform as part of the wider digital marketing strategy, Amazon advertising will not only increase your profits but showcase your brand to a broader audience, accelerating your growth in the process. We’re going to shed more light on the platform while sharing some essential tips and advice.
Amazon Ads – Data compliance
As with all social advertising platforms, there are data compliance rules and regulations that advertisers must follow. Data privacy is important given the seriousness of a personal data breach in the e commerce space. As stated by the retail giants themselves, “Amazon’s advertising services are designed to protect user privacy and keep personal intricate details anonymous.
Amazons advertising systems include the following protections:
- Privacy – Designed to protect user privacy. Amazon ads does not keep data for longer than required.
- Notice – Amazon provides information about interest-based ads, including the type of information used to display those ads.
- Choice – Users can opt out of receiving interest bad ad preferences.
- Security and data management – Amazon ads have a physical, electronic, and procedural safeguards for the collection, storage, transfer, and processing of data.
- Third parties – To deliver interest-based ads, Amazon works with publishers, advertisers, agencies and ad network providers that demonstrate their commitment to comply with applicable law.
What are the benefits of advertising on Amazon?
From where they first started, it’s fair to say that Amazon have now become a fearful force in the world of advertising for social media giants like meta and Snapchat. The platform itself does also bring its own benefits alongside providing products and services for consumers around the globe. A few of the benefits stated below:
Visibility on Amazon search results
It’s easy to imagine just how many searches take place on the platform, with there being over at least 150 million Amazon prime customers. Targeting the right key terms for your products will increase your search visibility significantly, earning a large quantity of extra sales in the process.
Small businesses can gain an edge over big stores
As a small business, you have as much chance of earning a sale or winning a customer as a big brand or business operating on the platform, allowing to work on a level playing field.
Reaching an audience that is already in a buying mindset
Advertising on Amazon puts you in front of an audience that is already at the bottom of the funnel. A lot of strategy around Facebook marketing for example is driving awareness and utilising its large reaching platform. Amazon ads could work well alongside this to reach potential customers who are already at the buying stage of their purchasing journey.
Most of the Amazon consumers have a direct intent when visiting the platform and overall, are ready to buy. If your sponsored ad appears for the right search term, you’re very likely to land a sale.
Amazon, being relatively new to the advertising world has taken the industry by storm. Already having established their credentials in the industry, it’s looking certain that advertisers will look to take up the opportunity to showcase their ads on the platform. It’s a platform which will be included into the mix of many plans, to reach an overall holistic goal in driving a sale and hitting a wider audience.
The big question is whether consumers will cut back on spend as the year progresses and where they will invest in their efforts into. It will be an increasingly important platform coming into 2023.
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