Amazon is always being touted as the sleeping giant in the advertising world. More and more marketers are selling products using the e-commerce conglomerate though it is not clear where the company’s ad budgets are going to come from in the long run. Apparently some ad buyers are just now seeing Amazon emerge as ‘the’ ad vehicle which could someday affect or even be bigger than Facebook or even Google. According to the Executive chairman at the ad agency 360i, Bryan Wiener, more commerce based searches are beginning on Amazon. This takes money from the larger aforementioned players.
Apparently, there is a simple explanation as to why this is happening. Clients who did not use advertising in the past are moving to amazon and those who did like 360i are now selling on the platform. It has gotten to the point that if anyone wants a certain level of exposure then buying ads is the only way to go as it has been for Facebook and Google platforms. As such, these smaller firms are trying to quickly build out of the larger Amazon’s expertise when it comes to the ad field.
Likening the Amazon Ad Situation with its Australian Entry
The entry of Amazon into different markets in this regard could challenge the economics of business models which already exist in a number of ways. The usual response for such as entry is for retailers to accelerate the creation of their online ability. Take for example the entry of Amazon into Australia is causing the retailers to do just that. Apparently, Amazon is expected to reach a market share which is better than 5-percent in a number of retail categories within five years of arriving on the scene.
As such, the company is likely to cause a fall in the share prices when it comes to particular groups which either generate an excess rate of profit or where the current cost structure would be too much in profit or cost. As such, this is likely going to reach a tipping point if likened to the global situation as it continues to challenge super firms such as Facebook and Google. Its potential is simply massive. Amazon customers have a big engagement as pertains sporting goods, clothing, children’s toys and electrical and home appliances.
Analytics and method problems for Amazon
However, the company does face an obstacle as its looks at drawing a larger marketing budget. Apparently, for many of the brands the ad spending gets managed by the same groups which handle activities like the signage and in-store product placing. This as opposed to the digital ad buying agents who are responsible for spending on the Google and Facebook advertisements. This presents an issue when doing analytics of amazon ad performance.
At the same time, some ad buyers are also saying the firm is rigid in the manner its ads can be bought and the way the data can or not be used outside of the properties it maintains. Though this is the same complaint which is being issued against its more significant rivals. Similarly, the strength of the company at the present is in getting individuals to buy what they were already interested and not about telling them concerning products they have not encountered before which is what Google and Facebook are all about.