In today’s blog post, we will be going through the four biggest Amazon trends to keep an eye on this year and to implement and see if it makes sense for your company or brand.
As more sellers get into Amazon’s advertising platform, they expect to see more tight competition for placements. That means a higher cost-per-click (CPC).
But yours may be higher or lower depending on how competitive your industry and products are.
Amazon will likely come up with genuine ways to manage the growing demand for advertisers with more inventory, but they can only go so far. Customers are already bothered by the number of sponsored ads in search results, so they can’t increase those and still refer to a customer-centric company.
Regardless of increasing costs, you can focus on the ad format that best aligns with your advertising goal:
Last year, Amazon launched Sponsored Display, allowing advertisers to promote products both on and off of the Amazon. As we all know, display advertising click-through rates tend to be less than 1%. If you’re simply throwing products onto websites and apps, you probably won’t see much ROI.
The place where Sponsored Display ads have the biggest potential is with retargeting. Now if you look at a product on Amazon, it can follow you as you navigate websites and use apps, which is tremendous for sellers.
Nowadays, you can set up a Sponsored Display campaign in just a few minutes, making it an easy option for sellers without much advertising experience or a lot of inventory they want to advertise. Nonetheless, a major inconvenience is the lack of customization for audience targeting, but the company will likely make the proper improvements to that on the go.
Sponsored Display is currently available for professional sellers who are already in the Amazon Brand Registry, vendors, as well as for agencies with clients who sell products in eligible categories on Amazon.
It’s no longer a secret, that video marketing is effective: 68% of consumers would rather learn about a new product via video than through any other platform, so it was only a matter of time before Amazon rolled out video ads
Much like Google, Amazon used to be a platform where the right keywords would guarantee you a high search ranking. Not anymore. Amazon recently increased its inventory for sponsored products.
This is what you get at the top of search results when you search for “gourmet gift baskets”:
The featured section at the top of the screen is all sponsored, as are the first three results — which means that there’s only one product above the fold that isn’t a paid placement.
And if you scroll all the way down to the bottom, there’s another completely sponsored row of products there, too:
Whether this is good for the customer or not is debatable, but it’s certainly good for Amazon. People call Amazon a retail and e-commerce company, but they don’t actually make the majority of their money from online sales. With rock-bottom prices and free shipping, shopping isn’t where the company makes its money — AWS (Amazon Web Services), advertising and third-party seller services are.
It makes sense that Amazon would try to offset their losses from being the cheapest, fastest place to shop with advertising dollars.
If Amazon sellers aren’t running sponsored ads, there’s a good chance that their products aren’t going to be seen.
If you liked this post, simply make sure you do not miss the upcoming ones!
Also, feel free to leave a comment on the comments section below if you have any questions.