Amazon may have been just an online bookstore at first. Later it became a giant of electronic commerce. Later, it became a direct seller of its own products, drawing on the vast amount of consumer data it had. And now it has established itself as an increasingly attractive ad space for businesses of all types and sizes.Brands are spending more and more money on advertising on Amazon. The latest financial data of the company prove it.The “other” division, in which Amazon fits its advertising business, has grown by 44% in the last quarter. Amazon thus closed the quarter with revenues of 3.6 billion dollars in that area, millions that come mainly from advertisements. In the subsequent investor conference, they already made it clear that they are working to make the advertising even more relevant.
Their results data help shape El Salvador Phone Number List where the advertising market is going on Amazon, but so do independent analyst studies on that question. The last of them, the Tinuiti Amazon Ads Benchmark Report Q3 2019 , has analyzed the spending patterns but also the behavior of advertisers on the platform. Based on data from US advertisers (the ecommerce giant’s most mature market for online advertising), they have established what brands are increasingly spending their advertising budgets on on Amazon.From the outset, yes, the study already makes it clear that Amazon is becoming a stronger player in the advertising market and that it competes in a more direct way with Facebook and Google for the dollars of advertisers.
Sales and brand recognition Therefore, it is not only that they spend more money on ads in the ecommerce giant but also they do it with certain objectives in mind. Thus, the main objective of brands when it comes to Amazon is to make consumers buy.Most of the spending is made in campaigns oriented to the purchase, they explain in the conclusions of the study. Companies want to be the option that the customer consumes, which increasingly implies campaigning to be the best positioned in the search results on the platform.It is not the only goal companies have with advertising on Amazon: the platform is increasingly seen as a stage to help strengthen brand identity. The percentage of spending spent on brand awareness campaigns increased by 42% in the third quarter. In the first, its growth had been 26%.
Brands are also spending more money to position themselves with sponsored products (30% growth in the US, but 50% in those campaigns with an international objective).Advertising on Amazon, more expensive They are not the only conclusions of the study. They have also analyzed the price associated with advertising on Amazon and the data makes it clear that advertising on the e-commerce platform is increasingly expensive. The cost of ads during the third quarter has increased. CPM grew 15%, surpassing the 5% growth that had been registered in the second quarter.Revenue linked to sponsored products was up 30%, while cost per click was up 10%.