As digital advertising continues to grow, having a budget behind ad management becomes more and more mandatory. Amazon Advertising is no exception. Trailing Google and Facebook at approximately $6 billion in ad spend revenue in 2018, Amazon has quickly become the 3rd largest player in the digital ad space.

As ads occupy prime real estate throughout the Amazon marketplace, advertising is the new necessity.

Amazon has stuffed its search results pages with ads. In some, if not most categories, products featured above the fold (anything you see before scrolling) are sponsored products. Before any organic search results are even visible on the page, consumers are being bombarded with advertised products. Sponsored ads are taking over this prime real estate in search results, but that’s not the only obstacle brands are facing when ranking. Any Amazon private label brand is also ranking higher than organically indexed listings. 

Let’s put this into perspective: Only 19% of shoppers click beyond the first page results, leaving 81% of purchasing happening on page 1. Out of this 81% of purchasing, 75% are from listings that are ranked in top 1-5 rankings. Not to mention, about 35% of Amazon shoppers are clicking on the very first product featured on a search page. That means that the majority of Amazon shoppers are making purchases from sponsored ads or Amazon private label products across most categories.

No matter how much work and effort you put into your listings, if you don’t have ad dollars ready to back your products on Amazon, visibility to buyers will decrease.

“Only 19% of shoppers click beyond the first page results, leaving 81% of purchasing happening on page 1. Out of this 81% of purchasing, 75% are from listings that are ranked in top 1-5 rankings.“

It's about more than just the direct sale on Amazon.

eCommerce impacts upward of 60% of brick-and-mortar buying decisions in many product categories, which makes having a brand presence within the digital marketing world a major priority.

With that being said, Amazon is growing and developing into a marketplace that’s about more than just the direct sale. Rather than focusing on the narrower bottom-of-the-funnel marketing, brands have the opportunity to reach a wider variety of consumers on Amazon, even if they aren’t selling there.

A great example of the shift to top-of-funnel marketing is automakers advertising on Amazon. Automakers know they need to advertise where potential car buyers are shopping. Given that Amazon’s platform has approximately 80 million Prime subscribers and 300 million users in America alone, Amazon plays an influential role within the digital landscape.

While Amazon is maintaining their focus on consumers, their continuation to innovate for their users opens up additional advertising opportunities for brands.

“At Amazon, we are constantly thinking about innovating on behalf of our customers. This is true even for products that are not sold on Amazon.“

If you don't, someone else will.

Where consumers go, vendors will follow. The openness of the Amazon platform enables a number of vendors to sell on their marketplace. From direct competitors to 3rd party sellers, consumers are met with an overwhelming number of brands, products and sellers to consider when making a purchase.

57% of brands selling on Amazon pay for Amazon advertising. Of those, 97% said they see value in the ad spend.

As we now know, advertising on Amazon is a crucial part of ranking in search results. If the first two points weren’t enough to convince you that you need ad dollars behind your products on Amazon, let this serve as a final warning on the reality of it all. If you aren’t advertising your brand and products on Amazon, someone else will. Whether it’s your #1 competitor or a 3rd party seller selling your products, if you aren’t investing in Amazon Advertising, you will ultimately lose in visibility and reaching your customers as well as driving sales to new ones.

Convinced yet? You should be. As we see in the points above, Amazon Advertising is creating opportunities for brands to drive sales and visibility on their platform. But it doesn’t end there.  Amazon strives to disrupt not only the landscape of online retail, but also have an active impact on how people shop off their marketplace.

Need help navigating the complex intricacies of Amazon’s ever-changing landscape? Let’s chat! OmniiX empowers brands to thrive on eRetailer platforms with knowledge, actionable insights and tools to even an unfair playing field.