Measurable and High-performing ROI
Brands have been flocking to Amazon due to the overall efficacy of the advertising platform. The reason Amazon outperforms other platforms like Google and Facebook is due to context. Unlike Facebook, where few people go to purchase products, or Google, where consumers primarily research before buying, Amazon is a place consumers go to research AND purchase. More than half of all product searches start on Amazon, not Google. Since consumers are further down the sales funnel, ad dollars are well-spent. While some brands like Nike and Ikea have left Amazon (for now), Amazon’s ownership of 5% of the [U.S.] retail market means most brands can’t afford NOT to be present in some fashion.
Influence and nature
I think brands are flocking to Amazon advertising because of its influence and its nature. What I want to say is that Amazon already changed how we do business. Retailers cannot afford to avoid marketing their products on Amazon, and this becomes scarier when we know that this conglomerate was able to run so many businesses out of business.
It’s so powerful that it influences the price of the product, leaving sellers with little to no influence over it. And when I say retailers are flocking to Amazon due to its nature, they are going there because customers are already there to buy, as opposed to first discovering them via social networks or Google.
Affordable and trusted
Brands flock to Amazon Advertising for the same reasons they opt for Facebook Advertising. First, it’s affordable. The cost-per-click is generally significantly lower than the CPC for your traditional PPC campaign on Google.
Second, Amazon is a large search engine. Millions of active users are on the site at any given time, which means a significant amount of brand exposure for those opting to advertise on the platform.
Lastly, Amazon is a reputable brand that users trust. Many users are put-off by advertisements on websites simply because they don’t have much trust in the site they are visiting. Using Amazon Advertising, you are telling users that your brand has been vetted by this reputable corporation.
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