Amazon Advertising a.k.a. AMS is Disrupting the Digital Landscape

The Digital Advertising agency is one of the biggest industries of the Digital Era. The Digital Giants currently ruling the space are Facebook and Google Adwords. There are many other contemporaries in the market like Bing, Instagram, SnapChat and others but these two currently have the majority of the market share.

But, Amazon’s move into the Digital Advertising has disrupted the whole industry! Right from Jan 2018, it has managed to cover 3.5% of the total market share and is estimated to cover 10% of the total Digital Advertising market by the end of 2020. While these figures might seem ambitious to many, the activities of the Amazon like the new Head Quarters in Manhattan and their hiring spree is a proof that Amazon is making a move into the digital advertising at a lightning fast pace.

And before we let you know as to what is new and how Amazon AMS is effective for the consumer brands, let us first try and understand why Amazon is favoured by the brands and are spending a fortune of money in Advertising on Amazon. Some are spending more than they are spending on Google and Facebook!

The reasons are pretty obvious! Amazon has captured a gigantic share of 43% of the total e-commerce share of the US and more than 50% of online product searches are done on Amazon! While Google and Facebook are the platforms majorly used for reviewing and researching of a product, Amazon is far more down the purchase funnel and searches on Amazon are more likely when the consumer already has made up his mind to make the purchase.

Even, the advertisers have agreed that Amazon has yielded them potential 2 digit conversion rates compared to the single digit conversion rates of the Facebook and Google. So, below are the types of Advertisements that a customer can run on Amazon.

Amazon Marketing Services: Sponsored Ads

Marketers has two options, they can either go for Sponsored Ads, where they will be the part of the search results of a product. The cost of the Ads will be based on Pay Per Click (PPC) model just like Google Adwords but the conversion rate is much higher. And unlike Google, the Ads on Amazon are even placed amidst the organic results and not just on top or bottom making it obvious for customers.

Amazon Marketing Services: Display Ads

The other option is Amazon’s Display Ads. This is something new by Amazon and they have started rendering spaces to Space to publish their Display Ads on Amazon Web properties, on device like Kindle and in the near future, also might add Alexa to the list! Just like Sponsored Ads, these Display Ads also work on the PPC model and once a customer clicks on the link, they will be redirected to the product detail page or a customised page designed for the customer to help them make the purchase. But, this feature is only available for the big brands whose products are listed on Amazon and has a minimum spend of $100. But, eventually, the Display Ads will be rolled out for others too. Just like Google Adwords, marketers will have to bid for their keywords and then win the space with the highest bid.

So, while the marketers struggle with loss making investments on Google Adwords because of their low conversion rates, this new horse in the race is a better bet for consumer brands who wants to target customers who are more sure about making the actual purchase.

With such amazing developments and with many such future roll outs, Amazon surely promises to be a strong contender of the Digital Advertising industry. And if you need professional help to setup a campaign for your products on Amazon or need creative geniuses to design irresistible display ads, just drop us a mail and let the Digital Marketing experts help you gain that edge over the competition.