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Some interesting news broke last week. Amazon reported their Q2 2018
financial figures, reporting revenues of $52.9 billion, and a record $2.35
billion in profits.
Beyond the “Amazon marketing hackers” (of which many exist), that
focus on trying to game Amazon’s algorithm to rank their products
higher in Amazon’s search results, established advertising agencies and
brands have made Amazon a key part of their marketing strategy.
Massive agencies like 360i, Mindshare and many others have Amazon-
specific solutions, responding to clients that have expressed a deep
desire to advertise on the platform.
In fact, some brands have been at it long enough that they’re getting
hungrier. Pernod Ricard has been trying to push Amazon to expand their
offering to include more options for video advertising on the platform.
Amazon does offer video advertising on a few of its services, but not
nearly enough.
It’s Google, not Facebook, That’s Mostly at Risk
If you talk to most marketers, they’ll tell you that they focus on two
broad objectives when thinking about phases of consumer marketing.
The first, is interest and awareness. This is where consumers discover
products and services, and are introduced to new products or companies.
The problem for Google is that Amazon operates in the second phase
as well.
Facebook’s great for that top of the funnel advertising content, the
videos, the explainers, the links to articles and case studies, to get people
to know a little bit more about what you have to offer. Google’s always
been great at being an entry point for consumers searching for “beach
towels in Miami” or “buy sunglasses in Austin”.
For Amazon, you open the website, search for “sunglasses” or “Rayban
sunglasses” and that’s that. It doesn’t get a lot more direct than that, a
behaviour extremely similar to Google.
In Conclusion
Amazon isn’t taking over the online advertising business today. And it
likely won’t take over the online advertising business in the next 4-5
years, either.
Amazon’s latest figures are an indicator that more companies are putting
their advertising dollars at work on the platform, and based on the
increasing trend, and the responses from the advertisers that have
experimented with the platform, it’s cementing its place in their
approach to marketing for the future