It is a fact. Google and Facebook, two of the world’s largest companies, have been leading the global digital advertising market for years. A fundamental part of the Internet universe that is expected to generate more than 76 billion dollars in 2019. The figures do not seem so far-fetched when reviewing a study prepared by eMarketer where they stated that only in 2018 they accounted for 61% of this entire market. A big piece of the cake that they are not willing to share. However, the two giants have seen their territory threatened with the entry of a new player: Amazon.

This third competitor could undoubtedly become a serious threat to the duopoly in the coming years. In fact, estimates so far speak of digital advertising revenue of up to $ 11.33 billion this 2019. And is that the giant of online sales is called to be a tough competition for the search engine and the social network.

Seeing how the digital advertising landscape is changing, the question many ask ourselves is: what have advertisers seen on Amazon to consider it the optimal advertising platform?

From Amazing, an agency specialized in Amazon, we have observed several factors that answer this question, although the clearest is the knowledge that the online sales platform has of its consumers through their experiences, not only when buying a product on the Internet, but on how they look for and decide their next buyers. This is thanks to the fact that it has become the most influential online catalog in the world.

And this is shown by the figures from the State of Amazon 2016 study, 55% of Internet users already search directly for their product on the marketplace instead of on Google. But that’s not all, since about 3 out of 10 buyers search for your product on Google to end up buying it on Amazon. For this reason, brands must manage well the image that their products project there.

How to reach the customer?

This goal tends to be a real challenge for most brands, especially first timers at Amazon as they face lot of challenges in terms of a ban of Amazon suspended accounts and reinstatement. For example, each product has hundreds of elements that must be completed and optimized on its detail pages, such as titles, descriptions, specifications, technical sheet, keywords, graphic and explanatory content, photographs, videos…

Also, if the product does not generate enough web traffic, it will not be discovered by users. So how can you reach buyer searches if you don’t initially have web traffic? There is no other way apart from doing promotions, advertising and offers.

All these tasks are much easier if we treat each product on Amazon as a “micro-business” that must be managed in a personalized way with its own digital marketing plan.

This involves addressing the following points:

  • Product calendar on Amazon:selection, prioritization and adequacy of products to sell on Amazon.
  • Product Listing Management:product catalog management, Assets implementation, A + Content and Brand Store.
  • Amazon Advertising –Sponsored Products, Sponsored Brands, Product Display, Display, and Video Ads.
  • Retail Marketing:development and execution of marketing actions in Amazon such as “flash” offers, special Amazon events such as “Prime Day”or “Black Friday ” and review management.

As we mentioned before, to propose an adequate digital strategy in Amazon, you have to understand the principle on which Amazon’s success is based is that the customer experience comes first.

In this sense, the success of the seller on Amazon depends on the evaluation that the A9 algorithm makes of their products. This valuation is measured by two factors: Relevance and Performance, which play a fundamental role in the way Amazon classifies its products.

The first of them, Relevance, is what makes a product is considered a good option when a user searches for its suitability and probability of purchase. Relevancy items include: title, brand, bullets, images, description, and service module keywords. On the other hand, there is Performance, that is, everything that Amazon considers about the activity and potential of a seller. Performance indicators include: sales speed, sales history, inventory and fulfillment, price, conversion rate, seller score, and product reviews.

Both are critical, as they are the key to a successful digital marketing strategy at Amazon. Success breeds success at Amazon, and that success is rewarded.

If a seller provides compelling product detail pages, you will get more conversions and sales. When a salesperson starts selling more than one product, that product will have a higher sales ranking. When that product is ranked higher, it ranks better. With better positioning, a product performs better in advertising campaigns and sells more.

How does advertising on Amazon work?

Normally, advertising on Amazon is mainly differentiated between two types of ads; those displayed on Amazon and those displayed on websites other than Amazon.

Amazon’s portfolio of advertising products continues to evolve with a wide variety of ad typologies, for different types of objectives and also for different types of advertisers ; both those that sell products within Amazon, and for those brands that offer services outside of Amazon. In fact, to make life easier for its customers, Amazon has integrated its entire advertising offering under a single brand, called Amazon Advertising .

Within the portfolio of advertising products in Amazon Advertising, advertisers can find a wide variety of formats at their disposal. Next to the sponsored products are Display or Product Display ads and Video Ads. All this with measurement solutions offered by Amazon Advertising to help companies understand the impact of their advertising and consumer behavior.

For all this, the secret of Amazon’s success in digital advertising is largely due to the possibility of targeting by purchasing behavior that Amazon offers to the wide variety of ad formats available. With this we can manage the entire product life cycle and build long-term relationships with users, reaching the right audience at the right time with a relevant message.

Thanks to all these measurement tools we can plan and optimize digital marketing strategies on Amazon to achieve extraordinary results.