Amazon keeps giving advertisers more reasons to choose its advertising platform, Amazon Advertising.
We recently blogged about the fact that Amazon and Facebook are steadily chipping away at Google’s online advertising marketshare. As eMarketer reported, Amazon’s share of the online advertising market increased from 7.8 percent in 2019 to 10 percent in 2020. Amazon just reminded us why Amazon Advertising will keep growing: product innovations.
We’ve already talked about how Amazon keeps launching ad units such as Sponsored Products and Sponsored Brands that make it possible for businesses to place ads on Amazon, which functions as a powerful search engine for people looking to purchase things. As reported in Advertising Age, Amazon is rolling out new products that extend beyond the Amazon site:
- Amazon will expand advertising opportunities on Fire TV, which competes with devices such as Apple TV and Roku to stream content on connected TVs for millions of viewers. Fire TV is more than a device. It’s a way for advertisers to reach people as they browse and discover new entertainment. One new ad unit, Sponsored Content Rows, is designed for businesses to promote content such as new shows and movies in the form of a row (or carousel) of sponsored content while people browse for shows on their connected TVs (akin to sponsored search results in a Google search engine results page).
- Amazon also expanded the places where it will show display ads across the Amazon network, including Fire TV, Prime, IMDb TV and Twitch. “We’re making it easier by introducing sponsorship opportunities paired with high-quality content from Prime Video, IMDb TV, Twitch, and third-party content,” Amazon said. This is an important development because it shows that Amazon is expanding its advertising reach beyond the core Amazon site. Many consumers are not aware that Amazon’s network of brands includes sites such as IMDb and Twitch – but indeed they’re part of Amazon’s empire. Amazon is figuring out more ways for advertisers to monetize those popular sites. (Twitch ranks 32 among the world’s 50 most popular websites, with Amazon ranking 13.)
This news comes on the heels of a huge week for Amazon. On April 29, The company announced quarterly earnings that exceeded analysts’ expectations. Although Amazon does not disclose revenue results for Amazon Advertising, it’s estimated that Amazon Advertising realizing revenue growth of 77 percent year over year to achieve $6.9 billion in the first quarter alone.
Earlier in 2021, Amazon scored a huge advertising coup when Amazon Prime Video became the first streaming service to secure an exclusive NFL national broadcast package, which will begin in 2022. The agreement will open up more advertising revenue streams as Amazon monetizes the value of the audience that relies on Amazon Prime Video.
It’s important that advertisers keep their options open by capitalizing on the power of platforms such as Amazon that are harnessing the value of their first-party data to create ad units. (We’re seeing the emergence of more similar platforms such as the Macy’s Media Network.) True Interactive works with brands to capitalize on these offerings such as Amazon Advertising and Walmart Connect, along with our longstanding work with advertising partners such as Google, Facebook, and Microsoft. To succeed on these networks, contact us. We can help!