For businesses operating in the e-commerce space, planning the paid advertising spend for the coming months and years has roughly involved the same few platforms. The majority of the budget will be pushed towards Google, Facebook & Instagram. Twitter, LinkedIn, Pinterest and Bing might be considered, but not with any serious amount of budget.
Fast forward to 2019, and there is a not so small platform that is commanding a massive shift in the deployment of paid advertising dollars and pounds. We’re of course talking about Amazon and their advertising platform that is not only growing at an incredible rate but is outperforming most other ad platforms.
The Amazon advertising platform certainly isn’t the new kid on the block. We’ve been working on Amazon ad campaigns for clients for the past 18 months and the platform has been around since 2014. During this time it has developed and evolved to become a must-have tool if retailers are to succeed on Amazon.
During a recent three-month period we created and deployed campaigns on the Amazon and Google ad networks. With comparable spends, we saw a £4 return for every pound spent on Google and a return of £18 on Amazon. You could ask the question, why are you not investing the majority of your budget into Amazon? And while that is a good question (and one I’ve debated a fair few times), it just wouldn’t make sense to (TL;DR a multi-channel/platform approach to digital marketing always wins).
In a recent article, Geek Wire reports that Amazons ad market share is projected to rise to 8.8%. While this is still behind the top two of Google & Facebook, it certainly represents the most-significant increase. The real report that we need to see are these figures broken down by e-commerce brands and where their advertising pounds & dollars are being spent. There is a strong chance that this market share increase would be more substantial in that sector.
As Amazon continues to grow it’s presence outside of its core offering (think, live sports, drone deliveries, voice products, and TV & movies) their customer numbers are going to continue to grow beyond its current active worldwide figure of 300MM. The UK market alone represents 40MM of that figure per month. More Amazon customers = more ad clicks.