Executive Summary

Brands are moving more media budget to Amazon as a competitor the duopoly. Neglecting Amazon’s Advertising services would be handicapping the ability to increase sales volume. Amazon knows their power and are creating new video ad inventory for brands.

Marketshare of Ad Revenue

There’s currently a two company show in digital advertising; Google and Facebook. Both platforms have huge reach with consumers not only in the United States but across the world. If you want to find your consumers in their purchase journey you’d be a fool in 2019 not to be running ppc advertising on both platforms.

The Rising Dragon

Amazon is the rising dragon in the duopoly (Google and Facebook) equation ready to take more and more advertisers dollars for access to their user base. According to eMarketer, in 2019 advertisers will spend roughly $11 billion dollars advertising on Amazon which is money well spent.

Still a Small Fish in The Large Digital Ad Pond

Digital ad spend in 2019 is intended to rise up to $129 billion dollars, which is a 19% increase from last year, and account for over half of all media budgets across traditional and digital.

Amazon is still only accounting for 8.5% of all digital media ad spend in 2019 but the noise around their services is loud. They’re a small fish, but a big disruptor to the status quo bringing new and innovative ad inventory to their platforms.

Ad Load Can Be Worrisome

For anyone who shops on Amazon, you know how many ads you’ll see on your shopping experience. The top half of any page will be loaded with Sponsored Products and Headline Ads which are from their Amazon Advertising services.

Addition of Video Ads Could Overwhelm

Word is Amazon has been testing running 30 seconds spots on their mobile shopping app based on search queries, much like Google Search and Shopping ads. However, business analysts and advertisers-alike are worried this additional ad load will burn users out. At the same time, this potential new placement with consumers who are in a purchase mindset is extremely enticing.

Not Just For Brand Marketers

Video ads on Amazon don’t have to be just be for brand awareness utilizing 30 seconds to tell a story just like television spots. Targeting search queries is the perfect recipe for direct response, performance marketers. Amazon’s highly engaged audience combined with intent equals short videos highlighting cost, benefit video ads.

Fit In The Media Mix

Amazon Advertising, more than ever, needs to be included into the media mix for all consumer goods brands that sell on Amazon. If any brand is not taking into consideration Amazon Advertising for their mix is losing potential sales every day.

Amazon is bringing innovative inventory to their advertising product forefront with more to come. Amazon Music is the fastest growing music streaming platform; more than Spotify and Apple Music. Don’t be surprised in 2020 if we’re discussing audio inventory as part of their offerings.