Amazon isn’t just a larger-than-life mythic giant from the past. Our modern Amazon is a giant of ecommerce that we have all come to know and love as Amazon.com. Amazon is taking big strides into the world of digital marketing and knows a lot about eCommerce optimization. They are disrupting the digital advertising landscape, which is projected to grow to $355B by 2020.
How specifically are they doing this? Amazon has an existing strength as a search engine & fulfillment provider, and they are capitalizing on this by selling advertising space to brands that want to catch their consumers at the purchasing end of the transactional shopping lifecycle.
Like Google and Facebook, Amazon uses a self-serve ads platform where advertisers and marketers can buy one of the many types of ads (display ads, mobile interstitials, etc.) made available by Amazon’s web site as well as some third-party web sites. This means digital marketing businesses should be increasingly interested in Amazon’s advertising offerings, and try using them for their businesses.
A Giant in Real-Time Digital Marketing Sales
Amazon already captures nearly 50% of e-commerce online sales and transactions in the US, which accounts for almost 50% of all online product searches in general. It is estimated that Amazon’s share of the digital advertising industry will likely be over 10% by 2020. Speaking of giant moves, this opportunity will most certainly be of benefit for larger brands with equally large media budgets, as their big media buys will possibly include Amazon’s other web properties and devices, like the Kindle. Currently, it is really built for very large brands with a reported $100K minimum spend. Now marketing and advertising professionals of consumer brands who currently use digital ads to reach their target customers have another vehicle for profit, reaching consumers directly in the moment when they are actually making a purchase decision!
Just like any other marketing initiative, the goal is to maximize the rate at which buyers convert. If you get a hundred people to your page, obviously not all of them are going to purchase. Facebook is great for the videos, explainers, links to articles, and case studies – to get people to know a little bit more about what the offer is. Google is great at being an entry point for a consumer searching. With Amazon, you open their web site, search for “towels” or “beach towels” and that’s it – you have it. It doesn’t get more direct than that.
We all know where Internet researching gets you, going down the rabbit hole of overwhelming choice and information overload. Rarely are we able to capture a consumer in the moment of purchase to persuade them with our riveting brand information. Thanks to Amazon search and another option for display advertising, the search for more ROI is just an ad campaign away.
Amazon’s Search Engine Algorithm: Look Out Google!
Another cool feature of the Amazon search engine is that they also have their own organic product-ranking algorithm –A9.
A9 is Amazon’s algorithm that is composed of direct and indirect factors, which are used to match users’ search queries to the products they are most likely to purchase. This is significant, because half of the selling battle is making sure your product and brand is easily found. This means statistically:
- 70% of customers never click past the first page of search results
- 35% of shoppers click on the first product featured on any given search page
- The first three items displayed in search results will account for 64% of clicks
- 81% of clicks are on the brands listed on the first page of search results
So, what does it take to show up on the first page of Amazon’s search engine results pages? This is really important in terms of driving sales for your business in addition to launching new products. The key points about the Amazon Search A9 algorithm to remember are:
- Knowing your search intent/customer purchase intent: For the most part, there’s higher purchase intent for customers going to Amazon. Most of them visit the platform to browse, and then buy a product. The SEO on Amazon is targeting specifically to converting into a sale.
- Knowing what metrics define relevance: for Amazon, the metrics define relevancy, as what people purchase after conducting their search. Value is then given to purchase behavior (i.e., conversions and sales velocity).
- One platform click and tracking technology: An advertiser’s biggest complaint on digital spends is tracking, fraud and attribution. It is estimated that the advertising fraud figure in 2018 was approximately $19 billion. Marketers try to justify the discrepancies seen on Google Analytics. Since Amazon lives at the intersection of media and commerce where search, conversion and attribution all take place on one single platform, this leaves out any room for data discrepancy.
How Amazon Search Benefits Your Brand
One of the most appealing facets about Amazon is its ability to be personal. One third or more of consumers statistically want a more “personalized shopping experience.” This has been shown to boost conversions (search to sale), and Amazon most certainly delivers in this way. Actually, when it comes to the Amazon experience, it is all about the personalization touch. It’s a little bit scary sometimes how much they know and how quickly they can respond, right? Over the years of avid Amazon use, their on-site recommendations get better and better. It now seems like just about every product recommended is something that can interest you.
There’s also social proof of how it’s benefits a brand. Lots of it. And it’s right there in the reviews. The importance of positive social feedback and the influence of other peoples’ stories on a purchase is extraordinary. More than two thirds of consumers are more likely to buy a product if its reviews and stories are good. This is why it has become a very first port of call for any online shopping, and even just for product research. Advertising on Amazon will benefit your brand and enhance your sales velocity. Marketing via advertising is the most powerful leverage for increased sales. With advertising on Amazon, you will have various types of paid placements such as:
- Headline search ads – basically all the banner ads you see in product displays and at the top of a SERP
- Product display ads – ads showing up in a number of places; most commonly on the product detail page, right underneath the buy box
- Sponsored products – placements that can be considered one of the most powerful of the three ad options. A larger portion of advertising revenue comes through these
Amazon’s latest figures are strongly indicative that more companies are putting their advertising dollars to work on the platform. Based on the momentum of the trend and the responses from the marketers that have experimented with the platform, it looks like it’s cementing a place in the future of marketing. Amazon searches for your brand are playing an increasingly vital role in the lives of consumers and the companies that operate within the e-commerce space. It would be a big miss to ignore Amazon’s advertising potential and the potential impact it can have on the businesses they represent.
Local Management and Amazon Search
Here’s what you need to know about Amazon search, and how Local management can help you: digital marketers and advertising professionals of consumer products and brands should be initiating their Amazon PPC strategies right now. Statistics show that the more experience and time these campaigns have, the better they will perform, and the more data there is to sustain it.
Brands of products will want to shift their ad spending to Amazon for a variety of reasons; namely because Amazon will quadruple their advertising revenue by 2020, according to industry experts.
Local Management employs experts in the fields of SEO, PPC content writing, web design and development, and much more. Let Local Management help your business grow with tried and true effective digital marketing techniques.
When Local Management is entrusted with your businesses Internet marketing campaign, you can rest assured that quality and customer service are at the forefront of your digital marketing campaigns. Our experienced SEO providers at Local Management are a set of skilled and dedicated staff, who understand the latest and greatest SEO strategies which help a web site rank higher. There are numerous factors and details that go into deciding where a site appears in search results, so it’s best to leave your web site design, creation, and marketing to the SEO experts at Local Management in Boca Raton, FL.
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