Advertising on Amazon is one of the hottest topics in performance marketing. New estimates from eMarketer predict that Amazon’s advertising business will capture 8.8 percent of U.S. digital ad spending in 2019 while Google’s share will drop by 1 point. In addition, Amazon’s ad business will grow by 50 percent to more than $11 billion in 2019. A recently published New York Times article offers some insight as to why.
The article, “Amazon Knows What You Buy. And It’s Building a Big Ad Business From it,” reports that Amazon is expanding its ad business across the entire Web.
Amazon Succeeds with Ad Products
As I blogged recently, Amazon has developed a number of effective tools that build more visibility for businesses that sell products on Amazon. For instance, Amazon’s Sponsored Products tool promotes products to shoppers actively searching with related keywords or viewing similar products on Amazon. According to the New York Times, Amazon is now helping businesses tap into Amazon’s customer usage data to serve up targeted ads outside Amazon, too. As the article reports:
When a chain of physical therapy centers wanted new patients, it aimed online ads at people near its offices who had bought knee braces recently on Amazon.
When a financial services provider wanted to promote its retirement advisory business, it directed ads to people in their 40s and 50s who had recently ordered a personal finance book from Amazon.
And when a major credit card company wanted new customers, it targeted people who used cards from other banks on the retail site.
The advertisers found those people by using Amazon’s advertising services, which leverage what the company knows better than anyone: consumers’ online buying habits.
In 2014, Google's former CEO, Eric Schmidt, said Amazon was Google’s biggest competitor. He said, “Many people think our main competition is Bing or Yahoo. But, really, our biggest search competitor is Amazon. People don't think of Amazon as search, but if you are looking for something to buy, you are more often than not looking for it on Amazon.”
Amazon on the Rise
He certainly wasn't wrong. Today more people do their product searches on Amazon than they do on Google. And, Amazon has learned how to monetize that search traffic on and off Amazon.
At Investis Digital, our team of performance marketing specialists help businesses maximize the value of their paid media across digital, including on Amazon, Facebook, Google. Read my blog post, “How to Use Amazon Product Advertising,” for more insight on Amazon Advertising – and contact us to build your brand and convert customers through paid media.