Amazon has earned their powerhouse title over the years since starting their business in 1997 selling books. With growth of 39% year over year in net sales, a 12x jump in earnings per share (EPS), and over 100m Prime subscribers globally in Q2 2018, it’s impossible to ignore their influence over customers’ journey in the e-commerce space.
This month, Amazon’s team revealed some big changes by reintroducing their advertising brand. Competing with Facebook and Google platforms, Amazon is combining several applications in their advertising suite into the simple brand of Amazon Advertising. What was once Amazon Media Group (AMG), Amazon Marketing Services (AMS), and Amazon Advertising Platform (AAP) will now all become one simplified tool for brands to utilize.
Senior Vice President of Amazon Advertising, Paul Kotas, elaborates more on their new and improved platform:
“We’ve unified our product offerings under the name ‘Amazon Advertising.’ This is another step towards our goal of providing advertising solutions that are simple and intuitive for the hundreds of thousands of advertisers who use our products to help grow their business.”
How Amazon Is Positioning To Be Competitive
Above all, Amazon has the competitive advantage of knowing that customers are going to their site first for product search and discovery. With Amazon being the most used and trusted tool, it must be thought of as a search engine in itself rather than just an e-commerce site. According to RedDoor, many brands and companies are creating specific marketing teams to manage their positioning on Amazon’s site in addition to agencies creating large scale so brands can establish themselves on Amazon.
Amazon has differentiated themselves in the following areas:
- Real-Time Optimization: The tool that sets them apart the most from Google and Facebook is real-time optimization. While it may take time to see improvements in your organic search ranking on either of those platforms, Amazon is optimizing your product page in real-time.
- Direct: Everything in Amazon’s space is within the Amazon ecosystem. A potential buyer never leaves the network with Amazon’s inbound links which is a huge difference in how they advertise versus other competitors like Google and Facebook.
- Incentive: Amazon makes money on what you sell, where Google is more concerned on click-through rates to any landing page you have. The bias of each platform is very important to keep in mind while reviewing what is performing best.
- Customer Service: Customer satisfaction is another thing that individualizes Amazon’s advertising space due to the fact that reviews and ratings are crucial to Amazon’s listings.
Amazon advertising has grown so much, yet is still young in its development. Amazon’s team will be working to make tools more efficient and effective for all brands, companies, and customers using this platform.
More From Onimod Global
For more information regarding digital marketing expertise, trends and insights, visit the Onimod Global Website. We provide weekly news updates on the latest in the world of digital marketing. Enjoy!