I’ve been impressed with the expansion of Amazon’s advertising platform this year, with over 300 million users and more than 50% of consumers utilizing Amazon for product searches.

For instance, we’ve seen a sharp rise in the amount of inquiries from companies looking for our assistance with their Amazon advertising account.

Impressive expansion

Amazon accounted for 43% of all US online retail sales in 2016 and it is anticipated that by 2020, Amazon would account for 50% of all US ecommerce sales.

Since many trends that start in the US eventually spread to the UK, marketers and ecommerce companies should be paying careful attention to Amazon and considering where they stand in terms of their Amazon strategy.

Although the shop is currently a little participant in the advertising market compared to Google and Facebook, Google is aware of this given the retailer’s explosive expansion.

Eric Schmidt, the chairman of Google, “PPC Services” claimed that Amazon, not Bing, is the company’s main search rival in 2014. According to a recent report, 80% of advertisers intended to raise their Amazon advertising spending in 2019.

While 55% of marketers stated that they would increase their advertising budget, 30% stated that they would increase their search budget in order to cover the higher cost of Amazon commercials.

Market on Amazon

Market on Amazon

How Amazon differs from the competition

To put things into perspective, Google Ads has been the top PPC advertising platform ever since it was introduced back in October 2000, and I don’t see any reason why that will change in the next years.

However, as CPCs rise over time, Google Ads competition gets tougher every year. In light of the progressive rise in Facebook CPCs that I’ve also witnessed, it makes sense for advertisers to explore for alternative traffic sources while maintaining their Google Ads campaigns.

Google Ads are less competitive than other ad networks like Snapchat, Reddit, Quora, and BingAds (to mention a few). They are consequently sources of less expensive traffic, but they are all missing one essential component: volume.

For many marketers, they can only act as a supplement to Google Ads and not as a replacement because they are unable to offer the same degree of volume that platforms like Google Ads and Facebook can. Additionally, they cannot serve as the primary platform where advertisers focus the majority of their attention.

Additionally, I’ve noticed that the traffic quality isn’t always very good for some of the platforms mentioned. This might not be a problem for Amazon in a few years, though, with over 300 million users and a forecasted 50 percent of all purchases coming from Amazon by 2020.

Social network advertising platforms like Facebook and Instagram have their role in digital marketing, but when a platform gains trust and attracts a sizable user base so that users can make purchases directly from the platform, this becomes an intriguing area for advertisers to test out.

Next Steps

There are two main platforms on which advertisers can place ads on Amazon. Your “PPC Services”  advertising objectives and spending plan will determine which choice you go with.

Amazon’s programmatic advertising platform (AAP), which is the primary choice, is available.

This is excellent for anyone looking to increase brand recognition, but because AAP’s minimum monthly spend is £15,000, it is only appropriate for businesses with a medium to high advertising budget.

The second choice, Amazon Marketing Services (AMS), is the best choice for eCommerce companies with a smaller budget and those who currently sell on Amazon.

Get in contact with us to find out how we can assist if you’re interested in conducting AAP or AMS advertising.

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