Since Amazon was founded, it has grown to become something much greater. Many factors have contributed to its growth and change. Advancements in technology, strategic decisions, and the number of brands that now sell on the channel all have been major factors. Here we explain different aspects of Amazon’s evolution to the future.
According to Statista, Amazon’s advertising revenues will surpass $19 billion by 2021. This statistic proves the value brands are finding in Amazon Advertising (search) or Amazon DSP (programmatic).
Both advertising options offered by Amazon are available to brands with both large and small budgets. Search and programmatic advertising help brands accomplish different things and can be extremely valuable when used together. As Amazon’s advertising segment continues to grow and mature, we expect to see it become a necessity for brands to compete on the channel.
Amazon has become a priority for many retailers and brands. As a result, countless agencies have opened offering an array of services designed to help and deliver results. The marketplace giant has taken notice and realizes how challenging it can be for brands to find a reputable strategic partner. To make this easier and ensure retailers and brands find success on the channel, Amazon Advertising released a Find-a-Partner Directory in August.
Marketplace Strategy was named an official Amazon Advertising Partner with its inclusion in this directory. This initiative is an indicator of Amazon’s evolution. It's also a reminder of how brands need to leverage it with a different mindset. For example, it’s important to think about Amazon as more than a channel to sell products. It’s really a tool with layers of opportunity.
There are clear examples of how Amazon has transitioned and brands have adjusted. But consumers have a heavy hand in Amazon’s evolution too.
Changes in consumer behavior arguably have spearheaded Amazon's evolution. For example, nearly half of online shoppers in the U.S. begin their online product searches on Amazon. Consumers have also extended their path to purchase to include extensive product and price comparison. With that said, brands have to ensure shoppers find their products on a fully optimized page.
Product detail pages need to include titles, optimized copy, and a well-diversified product library. All need to communicate exactly what the shopper needs to know to make a purchase decision.
The truth is, to compete in today’s e-commerce landscape, brands need to use Amazon and Amazon Advertising to its full potential. To do so, it requires specific knowledge and the ability to execute on strategy. If your brand could use the support of a strategic partner, schedule a free consultation. As always, we’re here to answer any questions.
Image Credit: amazon.advertising.com