02 May Amazon’s Continuing Their Move Into Digital Advertising
Where do you go when you need a last minute present? Probably Amazon. What do you think of when it comes to online advertising? Probably Facebook or Google. It all makes sense to us, right? Well, Amazon wants to change that..
Amazon’s Foray Into Digital Advertising
Amazon is continuing their digital takeover with the launch of what appears to be their own retargeting product, according to MarketingLand. And according to Bloomberg, the online retailer is also in the process of launching a display advertising product.
It’s currently unclear if these ads will follow users to third-party websites, or if the plan is to sell PLA’s (Product Listing Ads) in an auction rather than placing the ads “for free.” Realistically, Amazon wants to make money from this platform, therefore they aren’t going to give this to their sellers for free. It’s going to give sellers more reach to Amazon users, but it’s going to cost them money.
Two Giants Going Head to Head
With this move, Amazon is taking on the giant that is Google. Just like Google’s remarketing and display advertising options, Amazon’s tool will allow sellers to purchase advertising spots that will follow Internet users around the web, encouraging them to return to Amazon to complete a product purchase. Similar to when any online advertising platform releases a new tool, only select merchants will be invited to test these ads.
For reference, Amazon generated $1.7 billion dollars in ad revenue in 2017, whereas Alphabet Inc. (Google’s parent company) raked in $95 billion from all types of ads. Facebook generated $40 billion in ads throughout 2017. However, Amazon’s ad business grew 60 percent in 2017.
Currently on Amazon, merchants are able to place other types of ads, such as sponsored product spots in Amazon Search Results (which you’ve likely seen when scrolling through the clothes section).
Why is This a Big Deal?
Amazon’s entry into the market shows that the retail mammoth is getting more serious about it’s small, albeit growing, ad business. Emarketer Inc. estimates that digital advertising (ads on websites and mobile devices) will account for half of all ad spending within the United States by 2021. This will capture a greater spend than on television, radio newspapers and billboards combined.
What You Should Takeaway From This
If you or your client sells merchandise on Amazon, this may be the future of how they advertise on the platform. At present, unless you’re one of the invited merchants, you’ll just have to watch and see if you’re followed by your recently searched Amazon products across the web. Until then, continue advertising the way you are, but prepared to switch funds to Amazon if that’s where you sell product.
Get Digital Advertising Help from the Experts
At Hubbard Interactive, we have a team of experts that can help you expand your digital presence. Whether that’s through online display advertising or social media, our team can help you elevate your brand to the next level. Learn more about our services and reach out to us today!