According to Feedvisor, out of more than 1000 U.S. Brands, 73% are now advertising on Amazon. This number is up 57% over the previous year. This increase is astounding and something to take notice of, but the reason should be clear – Amazon ads work!
The study indicates that Amazon ads drive a greater ROI than Google and Facebook and are being recognized by more brands as the place to advertise. A majority of brands selling on Amazon (59%) said that the platform generates the highest return on media spend of all platforms, followed by Google (22%) and paid social (17%).
And, as the title of this article suggests, nearly half (47%) of brands advertising on Amazon are seeing at least a 7x return on their Amazon advertising spend (ROAS). Furthermore, with the shift to more integrated omni-channel selling, and better attribution and analytics, it is becoming more obvious that Amazon ads are actually driving offline sales as well.
So the question is – Are you seeing these same results with your Amazon advertising?
Amazon Advertising Solutions are Diverse and Expansive
Amazon’s advertising platform is comprised of several different solutions that range from simple pay-per-click sponsored product ads, to branded video and display ads on Amazon, to sophisticated cost-per-impression display ads that reach across the internet. With all of this diversity, it is important to recognize that the high ROAS numbers referenced above are likely a blend of several ad types.
Amazon advertising is evolving at a rapid pace. They are constantly adding new placements and new tools for controlling your ad performance. The latest estimate places Amazon’s available ad placements at over 40, and they continue to introduce new levers you can pull to affect your ad performance on an increasingly granular level.
High Performance Takes Stealth and Strategy
With all of this complexity, it is important to have a good strategy in place when advertising on Amazon. Knowing all of the placements and tools available is key to a high ROAS. It is also important to understand your market niche within Amazon and to know what your competitors are doing.
This is what we are good at.
KCS Marketing specializes in market research and competitor analysis that exposes opportunities to advertise where others may not be. We are intimately familiar with all of Amazon’s ad placements and tools and we have ways of uncovering lower competition placements and targets that can give you the best opportunity to get the highest ROI on your Amazon advertising dollars.
Feel free to reach out to us if you have questions about your Amazon advertising. We are happy to help!