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5 reasons why you should be advertising on Amazon

February 18, 2021 / Reading Time: 4 minutes /
Victoria Doherty

Everyone and their dog has an Amazon Prime account these days, and it’s no wonder why. As one of the most forward-thinking, customer-centric businesses on the planet, Amazon continues to provide cutting edge service to almost 90% of UK consumers alone. It stands to reason, therefore, that the platform has a wealth of data on its customers preferences and shopping habits, purely from their order history. 

What’s more Amazon functions just as much as a search engine these days as it does an eCommerce platform. In fact, a significant number of shoppers go straight to the platform to price check, research, and, when they’re ready, to buy a specific product. This effectively gives advertisers access to influence consumers at all stages of the buying process. But, before we give too much away, let’s look at our 5 reasons that you should be advertising on Amazon.

1. Anyone can advertise, not just Amazon sellers!

It’s widely assumed that only businesses that actually sell on Amazon can advertise their products on the platform, but this couldn’t be further from the truth! Amazon has its own DSP (Demand Side Platform) that allows advertisers to programmatically buy display, video and audio ads both on and off Amazon.  Although this is for larger investments, the DSP platform gives non-Amazon sellers access to the platform’s incredibly diverse data in order to run highly-targeted campaigns across a variety of inventory.

2. Reach and influence a wide range of shoppers.

We briefly touched on this in the introduction, but it really is one of Amazon’s key USPs. The range of advertising formats and placements that the platform offers empower advertisers to reach consumers researching, actively shopping, and even interested in specific products and categories. For example, sponsored product campaigns are the ‘traditional’ high-intent, bottom-of-the-funnel option to reach shoppers actively searching for specific keywords. However, these ads can also be targeted based on specific products, so you can have your ads appear on competitors’ PDPs (Product Detail Pages), for example.

Perhaps even more importantly is understanding that eCommerce searches are absolutely no longer limited to Google. The fact that an estimated 9 out of 10 customers price check on Amazon before buying something online is crucial.

Even if someone doesn’t buy your product on Amazon, advertising on the platform means that you can influence their decision to purchase directly from your website, or via a reseller. 

The key takeaway here is that however and wherever your shoppers go online to do their research, that is where you should be, and if you’re an Amazon seller who also sells via their website and wants to directly influence purchase decisions, relying solely on Google Shopping Ads just won’t cut it anymore.

3. Only pay when someone actually clicks on your ads

Unlike other platforms, Amazon only charges you when someone clicks on your ads, and, importantly, this includes campaigns dedicated to brand awareness that target shoppers further up the funnel, i.e. sponsored display and sponsored brands. 

This is a huge benefit, as it gives you the peace of mind that you only pay when a shopper has actually shown a level of interest in your product, while also allowing you to drive awareness without paying on a CPM basis.

4. Drive growth of your Amazon business

If you are an Amazon seller, you will be aware of the fact that no matter how popular your product(s) are, there is always a ceiling to how many people are actively visiting your PDPs / buying at any given time. You have to generate the interest to increase this traffic. This is particularly true when launching a new product or range, because Amazon’s A9 algorithm isn’t going to rank it highly straight off the bat; it’s a process that works very much the same as the Google algorithm in that it takes into account multiple factors in order to rank products based on content, price, reviews, and many more besides.

With Amazon Advertising, you can start driving traffic to a new product page within a matter of minutes, significantly reducing the time it would take the product to rank high enough in the organic Amazon listings to start generating interest. This effectively means you can push that ‘ceiling’ further and further by advertising at all stages of the buying process to generate awareness of your products that would otherwise take potentially months of organic optimisation work. 

That doesn’t mean, however, that you can run ads and forget your organic listings: paid and organic activity on the Amazon platform are very much in a symbiotic relationship. The more you optimise your listings, the better your paid media performance is likely to be, not least because your PDPs are effectively your storefront, so you need to keep them in good order!

5. Engage shoppers with display and video ads

 Last but most certainly not least is to highlight the variety of ad formats that you can run via Amazon Advertising. 

Display and video ads in particular give advertisers creative control over their campaigns, bringing products and brands to life directly in shopper’s search results when they’re receptive to learning more about products they’re interested in.

This high level of intent combined with thumb-stopping creativity is a win-win situation. The question is, if you’re not taking advantage of it, then why?!

These are just some of the reasons why Amazon Advertising is gaining so much traction and will no doubt continue to experience rapid growth as more and more advertisers reap the benefits of its data and advertising ecosystem.

Interested in Amazon Ads and how they can help you grow your eCommerce business?

Get in touch with our paid media specialists who would be happy to help.

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