While Google has dominated search marketing for many years, Amazon has set its sights on Google’s ad revenue with the rapid growth of Amazon Marketing Services.
Amazon Marketing Services has grown substantially over the last year, and media buyers are currently reporting that the e-Commerce powerhouse has made improvements to their AMS platform over the last six months.
Many brands are still having the conversation with Amazon on how exactly to leverage their advertising products to their advantage, but advertisers are essentially sold on the performance of its search ad products. With a foot in the door, Amazon is pushing advertisers to spend more on Amazon Marketing Services.
Search advertising seems to be the big reason why brands are planning to increase ad investment in Amazon Marketing Services. Why? Fifty-five percent of product searches in the U.S. take place on Amazon.
With three ad formats to choose from, there are options for brands to pick from to meet their needs. Marketers have the option to throw money into sponsored product ads that feature a “sponsored” label in the search results, headline search ads that show up as the first sponsored result beneath the search bar, and product display ads that could appear in the right-hand rail on a category page or on a product detail page below the “Add to Cart” button.
Current Ad Spend Trends
Ad spend on sponsored product ads and headline search ads gained quarter-over-quarter increases of 64 percent and 75 percent from October to December, 2017, according to Merkle’s annual marketing report. Compared to the 37 percent on Google Shopping, Amazon is certainly giving Google a run for its ad revenue!
Could it be that it took a while for many brands to fully understand (and trust) Amazon Marketing Services? With a higher return on ad spend, it may just be that advertisers are ready to put their money on Amazon.
Sponsored Product Ads
The primary focus of most advertisers at the moment seems to be sponsored product ads. This format alone accounted for 85 percent of all Amazon Marketing Services ad spend, with headline search ads and product display ads trailing behind with 11 percent and 4 percent, respectively.
Interested in exploring your company’s Amazon sponsored product ad potential? Have a chat with Sellpoints, our Amazon e-Commerce marketing company.