Amazon Advertising: The Ecommerce Giant’s New Advertising Bet
When hearing about PPC, pay per click, SEA, SEM or many other variants, the two big players in the online advertising market come to mind: Google and Facebook. However, there are other Internet advertising platforms with great potential, but one of them stands out among all: Amazon Advertising.
Amazon Advertising is the advertising platform recently created by the e-commerce giant. This is the result of the merger of the different brands with which Amazon operated in the advertising market until now: Amazon Media Group (AMG), Amazon Marketing Services (AMS) and Amazon Advertising Platform (AAP)
“We have unified our product offering under the name ‘Amazon Advertising’. This is another step toward providing advertising solutions that are simple and intuitive for the hundreds of thousands of advertisers who use our products to help grow their businesses,”explains Paul Kotas, vice president of sales for Amazon Advertising.
The growth of advertising on Amazon
Another reason why Amazon has decided to improve its advertising platform is that this branch of business is increasingly important for the company.
In the third quarter of 2018, Amazon posted sales of $ 2.5 billion in the “other” category, where the vast majorities correspond to advertising sales. Every year Amazon increases revenue in this category by 122%.
Even so, it is still far from the leader, which is none other than Alphabet (Google), which reported revenues in the same quarter of 28.950 million dollars, 20% more than the previous year.
What are the advantages of investing in Amazon Advertising?
While Google has information on searches of all kinds and Facebook on user interests, Amazon’s greatest advantage over the two internet giants is that people go to the marketplace almost exclusively to buy, so Amazon has much more information of how users behave when they have a proactive purchasing attitude.
An example of this advantage is that Amazon has access to the actual purchase history of millions of customers.
Another advantage of Amazon to highlight is that the entire advertising and purchase process takes place in the “Amazon environment”, which makes it easier for the user to go through all its phases: The customer does a search, sees an Amazon ad, you click on it and buy the product, all within the same website that you are already so familiar with and that builds confidence after so many successful purchases.
What types of advertising are there on Amazon?
In advertising on Amazon we can find the following advertising products:
Sponsored Ads
Products are three subtypes Sponsored Ad: Sponsored Products, brands sponsored and display ads products
Sponsored Products
These are individual product ads that appear in search results on Amazon or on other product listings.
As advertisers we can choose a manual segmentation, when we want to include keywords that match the user’s search terms; or automatic targeting, so that Amazon can target our ads to customer segments whose search matches our product information.
Sponsored Brands
This type of ad advertises a brand and a collection of different products. Sponsored brands appear at the top of Amazon search results. To segment the ads, keywords and their different matches (broad, phrase and exact) are also used
An important requirement to be able to create a sponsored brand ad is that you have to be registered in the Amazon brand registry.
Product display ads
They are display ads for individual products where targeting by interests or products can be used. These are displayed in different locations on the Amazon website. Its content is generated automatically, although you can choose a title and a logo.
Display ads
These ads are fully personalized banners that are displayed on the Amazon website and throughout the Amazon network (set of websites and apps that make up its advertising network)
In addition, they can be managed by the customer through the Amazon DSP console or with the help of a team of experts.
Video ads
In this format we can include advertising videos and they are shown on the Amazon website and throughout the Amazon network.
On the other hand, this advertising format, like display ads, require a higher budget than sponsored ads.
Amazon DSP
The new Amazon DSP (formerly Amazon Marketing Platform) is the programmatic advertising solution to reach Amazon audiences in different places. Display and video ads serve both on Amazon sites and apps and other third-party websites and ad exchanges.
Stores
This functionality allows you to create a multi-page website, with its own URL, within Amazon. In this we can include the history of the brand and its product catalog, all for free and without the need for programming knowledge.
One of the functions that a store can have is to serve as a landing page for a sponsored brand advertisement or any other marketing action (whether or not it is advertising on Amazon)
In order to create a store you have to be registered in the Amazon trademark registry.
Measuring tools
Amazon has its own data measurement tools to analyze the performance of ads on Amazon and on third-party sites.
These tools work with their own metrics to measure the impact of ads on navigation, brand prestige, and sales. Moreover, those who got banned from Amazon they must hire any professionals who know How To Get Ungated On Amazon.