We already know that Amazon is the Number One website for people to do product searches: according to a 2018 Jumpshot report, from 2015 to 2018, Amazon overtook Google in this area, with Amazon growing to claim 54 percent of product searches while Google declined from 54 percent to 46 percent. Now we know something more. According to Marketplace Pulse, a majority of Amazon searches—78 percent, in fact—are nonbranded. Instead of pinpointing a specific company like lululemon, say, many customers are making broad searches such as “yoga pants for women” and seeing what comes up.
This data demonstrates the opportunity that exists — indeed, just how wide open the playing field on Amazon is for businesses that sell products there. People are searching with intent on Amazon: they want to buy something. But they haven’t yet decided on what to buy. And here’s where the savvy marketer can make inroads.
Amazon Is Growing as an Ad Platform
The data also underscores just how big Amazon has become as an advertising platform. As we recently blogged, Amazon continues to grow, and is biting into other companies’ share of the spoils. eMarketer’s report that Amazon is projected to capture 8.8 percent of U.S. digital ad spending in 2019 is telling. So was the GeekWire article from January 2019, which discussed record 2018 profits for Amazon, and gave props to advertising for contributing to that success. According to GeekWire, “Fueling its bottom line is Amazon’s growing advertising arm that generates revenue by charging companies to promote their products on Amazon properties.”
Three Ways to Capitalize on Amazon Searches
How can a business take advantage of these developments? That is, what sort of strategy should businesses embrace in order to capitalize on the possibilities Amazon affords?
1 Advertise on Amazon
First of all, make sure you advertise on Amazon and that you know how to do so. Familiarize yourself with the complete listing of Amazon Advertising offerings.
And check out our blog. We’ve published numerous posts to help businesses understand Amazon’s many advertising options, including:
- Sponsored ads, the pay-per-click (PPC) advertising approach that takes a shopper directly to a product page or brand site within Amazon. Sponsored ads are available to sellers, venders, book venders, and Kindle Direct Publishing.
- Video ads, which complement display ads by expanding beyond a single image to tell a compelling story. Video ads can be used to target a certain audience on Amazon as well as Amazon-owned and third-party sites (e.g., Twitch) and devices.
- Display ads, which, like video ads, can be employed to reach people in a specific target audience.
Additionally, be aware that Amazon is constantly refining and improving its advertising offerings and creating new ones. Stay abreast of the changes.
2 Make Sure You Have Good Reviews on Amazon
Reviews carry a lot of weight and can help you. According to an oft-cited 2012 Nielsen release, 70 percent of respondents had some or complete confidence in online reviews of products, whether they knew the reviewer or not. Online reviews also tap into basic human psychology. In a description of Dr. Robert Cialdini’s six principles of persuasion, the Influence at Work website describes consensus as the phenomenon where “people will look to the actions and behaviors of others to determine their own . . . especially when they are uncertain.” Note that in the case of consensus, at least online, more is more. Five hundred positive reviews will impress consumers more than three will, no matter how glowing those three reviews happen to be. Ask customers to review you.
3 Be Aware That Advertising on Amazon Is Not a Slam-Dunk
Amazon has flooded its site with its own private label products. Understand Amazon’s generic product strategy — it’s huge —especially if you are a commodity brand such as a seller of batteries, vents, or paper towels. You’ll have to work hard.
There’s a lot of money to be made on Amazon. If you already have products there, know how to capitalize on Amazon’s tools to attract customers. If you don’t, think about making that happen.
Contact True Interactive
True Interactive knows how to build your business via advertising on Amazon in context of broader online advertising strategies. Want to learn more? True Interactive can help. Contact us.