Log into the Amazon. Amazon attracts large advertising budgets
In particular, brands are investing more in advertising on Amazon, but this market is still far from overtaking Google and Facebook.
Contextologists around the world need to prepare for the development of advertising offices Amazon! Yes, few in Russia know about Amazon, but the company itself is in no hurry to settle in our country. However, for international business it is not so important. After all, there are no borders for purchases, and the fact that inquiries in Russian “like buying goods from Amazon” are increasingly talking about the prospects of this largest online store.
Consumer product advertising budgets are gradually shifting from Google to Amazon as consumers skip the search engines and start shopping directly on the e-commerce platform.
Large ad buyers spend more on Amazon search. London-based WPP PLC, the world's largest advertising agency, allocated $ 300 million to its search advertising clients in Amazon in 2018, compared with about $ 100–150 million in 2017, according to a MarketWatch report on Thursday.
According to the report, the Omnicom Group has cut its customers' budgets for contextual advertising with Google in order to invest in Amazon search advertising. Amazon accounted for 20–30% of its clients' search expenses last year.
It is worth noting that, although both agencies spend part of their customers' budgets on Amazon, this amount is still less than how much they allocate for Google advertising. It is estimated that last year, WPP spent more than $ 3 billion on Google advertising worldwide.
Why is it important. There are several factors contributing to increased investment in Amazon advertising: user behavior, platform capabilities.
An analysis by research firm Jumpshot showed that in 2015, 54% of searches were owned by Google, and 46% by Amazon. Last year, these numbers changed, and Amazon began to attract 54% of product searches. Amazon has also increased investment in its advertising platform, resources and formats.
International expansion. Amazon is expanding its promotional offers worldwide. On Friday, he officially launched Amazon Advertising in Australia after a trading platform was launched there in December 2017.
Last year, Amazon eclipsed Oath (Verizon Media) and Microsoft to become the third largest supplier of digital advertising in the United States. Despite this, Amazon still accounts for only 4.1% of domestic spending on digital advertising, which is significantly different from the total share of Google and Facebook - 57.7%.