Every now and then, something comes along and alters the status quo. For transport – the engine. For medicine – penicillin. And for retail? Amazon.
We won’t be the last to discuss the Amazon effect. With the holiday rush in full swing though, it’s worth highlighting again. Increasingly in the ad world, the distribution behemoth is carving out more and more territory.
In contrast to Google, Amazon’s paid ads offer less competition. During the festive season especially, its reputation as a “go-to” platform enhances the pull for advertisers, who see it as a reliable vehicle for busy product searches.
Amazon’s Ad Ecosystem
Fundamental to Amazon’s success is the platform’s own ad formats. Advertisers can now choose from a wide ecosystem: Product Display Ads (which appear on related product pages), Headline Search Ads (which appear above the search results) and Sponsored Product Ads (which appear below the search results).
The third of these options gets the lion’s share. Analysts estimate that Sponsored Product Ads get about 82 percent of the company’s ad budget.
Users now find sponsored ads placed strategically within organic listings. As a result, Amazon offers almost infinite space with which to promote them.
And its popularity continues to grow. In 2016, the company saw its North American sales increased by 25.2 percent. Although less popular than Google AdWords, retailers (especially for multiple brands) take an increased risk if they don’t consider the burgeoning platform as part of their strategy.
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