Why brands are going wild for Amazon advertising

Brian Finnerty | September 26, 2018

Why brands are going wild for Amazon advertising
It’s pretty clear that Amazon is in a monumental role. The company’s growth is staggering, showing a 39% year over year increase in net sales, a 12x jump in earnings per share (EPS), and over 100m Prime subscribers globally in Q2 2018. There simply isn’t another e-commerce company with the same market presence and influence over the customer journey. The reality is that many people start their purchase journey on Amazon, and brands can’t afford to ignore Amazon’s melting pot of customer demand. The Amazon platform captures a rich store of late-stage buyer intent and conversion data, offering it to advertisers with a high degree of transparency into customer buying signals. With a haul of $2.2bn in advertising revenue in Q2 2018, Amazon is beginning to offer stiff competition to the incumbent digital advertising giants, Facebook and Google. Although Amazon has been offering ads since 2014, real growth began in 2017 “when the eCommerce retailer-built application programming interfaces (APIs) for Amazon Media Group (AMG) and Amazon Marketing Services (AMS), so that marketers could automate campaigns and reporting”.

Spotlight

Digital display advertising continues to become more sophisticated, and spending reached a whopping $26.15 Billion in 2015. This represents a growth of 27% from the previous year. By the time we reach 2019, it would have surpassed the $4o Billion, according to Invespcro.


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