Advertising on Amazon

In a recent news article, The Wall Street Journal declared Amazon as a new “Advertising Giant.” Just behind Google and Facebook, Amazon ranks third in the U.S. digital ad market. The company has continued to extend their business into an even larger variety of industries, and their ad business continues to grow as well. Amazon’s ad sales are expected to wildly increase in the next five years, about a $28.4 billion jump in revenue, according to a survey by Cowen & Co.


The Types of Ads You Can Find with Amazon

Ads on
Headline Search Ads – 18 percent of media buyers purchase headline search ads (also known as sponsored brands) which appear above search results and allow advertisers to promote multiple products. These can appear alongside or below search results, on product detail or customer review pages, as well as in Amazon-generated marketing emails.

Sponsored Product Ads – 29 percent buy sponsored product ads. These can also appear in the same places as the headline search ads but are available to be placed on Amazon’s movie and TV database, IMDb as well.

Product Display Ads – And 19 percent of buyers purchase product display ads. These ads target similar products and relevant categories on product details pages and other similar pages.

Traditional Display Ads – They can show up as banners on all pages.


Ads on Amazon Kindle, FireTV, and Amazon Prime
The following types of ads are displayed on Amazon Kindle, an e-reader and tablet device. They are also available on Amazon Prime, an online television and movie streaming service, and FireTV which is a digital media player that delivers streamed video content via the internet to a television.

Traditional Display Ads – 13 percent of ad buyers use these banners as they can be posted on FireTV, Kindle products, and third-party websites.

Video Ads – 21 percent of Amazon ad buyers invest their money in video ads. These can be found on FireTV devices, and depending on the budget, they can appear through Amazon Prime Streaming in live sports telecasts such as NFL “Thursday Night Football.”


Amazon’s Alexa Voice Assistant
One advertising option that is currently being explored is within Amazon’s Alexa products such as the Amazon Echo, a smart speaker. While Amazon says they do not have any plans on incorporating ads into their Echo devices, brands are beginning to use it to gain even more visibility. For example, people can say, “Alexa, tell Budweiser ‘Whassup’” to have a conversation with the actors in the famous 1999 TV commercial for the popular beer brand.

Another area Amazon is exploring to make available for advertising is within the Echo Show, a smart speaker with a built-in screen. However, no developments, if any, are public at this time.


Physical Ads on Shipping Products
Other options include buying ad space on the physical boxes and bags Amazon uses to ship their products. High profile entities such as the “Minions” franchise and the movie “The Greatest Showman” have purchased ad space on these shipping materials.


How does advertising on Amazon benefit your business?

One of the greatest advantages to buying ad space on Amazon is that Amazon has authentic purchase data from its retail site. Amazon can determine which ads to show a specific customer based on his or her purchase history. If Sandra from California buys a lot of newborn baby clothes and diapers, Amazon will provide her with ads for baby toys, crib linens, and other items necessary for newborn babies.

Not only does Amazon have ad services on their website, but they also make available advertising with ads on third-party websites as well. For example, if someone buys a set of luggage on Amazon and goes to another website afterwards, he or she may be presented with an advertisement for an airline or cruise packages.

If you are a retailer, advertisements on Amazon can give your business the boost it needs to get noticed and gain more customers whether they are in a specific area or across the globe.

Interested in learning more about where can Amazon ads take your company? Give us a call at 631-207-1057 ext. 107 to find out how Digital Drive can help you advertise your business on Amazon.

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