1) Definition: Amazon's advertising solution for use both on and off Amazon
2) History of Amazon Advertising
2012 - Amazon Advertising launched
2014 - Basic features introduced and adopted by sellers
2017 - Advanced ad products were introduced, such as Amazon display ads, video ads, and sponsored products
2019 - The platform matured, becoming essential for brands
3) Importance of Amazon Advertising
Digital advertising is growing, and Amazon Advertising is growing alongside it while increasing its market share
Consumer goods brands are the ideal fit for Amazon Advertising, though it offers significant opportunities for other businesses as well
Because Amazon ads appear at the top of search results, they have a critical impact on sales
As of 2020, approximately 30% of a brand's total revenue was generated through Amazon Advertising
2. Types of Amazon Ads
1) Sponsored Products
Ads that promote individual products - product ads that appear in search results, distinct from organic rankings
2) Sponsored Brands
Ads that promote your brand
Can include logos, taglines, slogans, custom content, and products
Displayed at the top of search results
3) Sponsored Video
Video ads displayed in the middle or at the bottom of search results
Currently a highly effective advertising format
4) Sponsored Display
Ads displayed both on and off Amazon
Amazon maintains its own ad networks
5) Amazon DSP (Demand Side Platform)
Amazon's programmatic ad buying
Requires a minimum level of ad spend to leverage the platform's benefits
Includes both on-Amazon and off-Amazon placements (Fire TV, etc.)
6) Audio Ads
Audio ads delivered via Alexa
7) Storefronts (free)
A concept of an in-house store within Amazon
A shop where you can showcase your brand
8) Posts (free & beta)
A new type of Amazon advertising
Ads similar to Facebook posts (including images, text, and products)
Displayed within Amazon
9) Amazon Live Video (free)
Advertising that allows you to go live within Amazon
STRATEGY
Advertising options 1, 2, 3, 7, 8, and 9 are suitable for brands
Advertising options 4, 5, and 6 may be effective for specific businesses
3. Current State and Future of Amazon Advertising
1) Current State of Amazon Advertising
Amazon's current advertising state is comparable to where Google was about 6 years ago
The interface and platform are quite rudimentary
Competition for advertising within Amazon is quite intense
Many brands advertise at a loss to gain rankings
Most ad spend is currently going toward Sponsored Products and Sponsored Brands
2) The Future of Amazon Advertising
(1) Key Future Keywords
More control - more options to choose from, such as who sees the ads, when they see them, how campaigns are segmented, ad platforms, and placement locations
More creativity - while selecting products used to be enough, the future will require more creativity, so creative elements like visual content and catchy phrases will become important
More interaction - there will be more ways for sellers and buyers to interact (e.g., real-time chat between sellers and buyers on Amazon Live)
More traffic - traffic is expected to increase further in the future
(2) The Future of Amazon Advertising
Creativity will become more important
More discovery-oriented options will emerge, such as Live and Posts
Video will become increasingly important
Posts and creative ad copy will become more critical
More opportunities will arise for businesses beyond just consumer goods
The platform will become more sophisticated and granular for advertisers
Amazon advertising is expected to see exponential growth
(3) Amazon Advertising in 2024
Will become a useful collection of outlets for businesses, not just brands
Display networks will grow exponentially
Programmatic ad buying will become more sophisticated and granular
More remarketing options will become available across the web
