Ad Agencies Moving Rapidly Toward Amazon Service Offering in 2018January 8th, 2018
Google and Facebook dominate the digital advertising market. Google is expected to make around $40 billion next year off of U.S. advertising, while Facebook should
reach just over half of that at $22 billion. Advertisers and advertising agencies are constantly looking for a third contender for their ad budgets.
Many agencies are investing in personnel and starting to shift a portion of their budgets to Amazon. It’s a bet, but one that is starting to pay off for the early
adopters. Versus Facebook and Google, Amazon owns the entire path to purchase. Amazon has been subtly executing its ad business to share products, boost sales and
drive website traffic across its platform – which covers a wide range of websites, apps and devices.
Some of the world’s largest ad holding firms are shifting their investments toward advertising on the e-commerce giant’s platform, according to a December 2017
article in The Wall Street Journal. WPP CEO Martin Sorrell told the newspaper that the company is expected to spend $200 million on Amazon ad products and services
It’s a decision made with good reason. The advertising avenues on Amazon include search results and banner ads that until recently had been only used for non-
Amazon products. The reach of Amazon Ad Services should appeal to any agency’s clients. Whether your product is competing with the product sold or is
complimentary to the offering, Amazon provides an advertiser with a moment of impact where the consumer is ready to purchase. Facebook provides targeting and
Google provides search, but Amazon is routed on the centerline of the path to purchase.
In addition to the Amazon shopping site, the company can deliver ads through Amazon Prime Video, Amazon Prime Music and Kindle Fire. Soon to be announced,
are ads coming over the Amazon Echo. With more and more pressure on advertising ROI, the Amazon ad platform will be able to link from broad based awareness efforts
all the way down to the sale. The viability of Amazon as a real challenger to the duopoly of Facebook and Google is legitimate. Ad agencies should take advantage of this duopoly alternative as online consumerism is only growing. This may turn out to be the most effective way to boost brand awareness and track online efforts all the way down to the purchase.