Amazon Advancing AWS, Ads, Search Businesses

Amazon this year will make up 7.5% of the overall global digital advertising market worldwide -- growing to 9.2% by 2025, per the forecast from Insider Intelligence.

Advertisers are finding they “can basically have a really nice attribution loop in terms of spending money with Amazon and being able to track the sales tied to it,” Jeremy Goldman, Insider Intelligence analyst of the Marketing, Retail, and Tech, said during a podcast.

“Google, Alphabet, whatever, is already on the decline in that regard. And Meta is going to basically peak this year and next and then drop ever so slightly by 2025,” Goldman added.

The growth driver seems to be within consumer goods. Brands are finding they have a “nice attribution loop in terms of spending money with Amazon” with the ability to track and tie in sales.

Goldman said Amazon has money to “throw at the problem” of measurement to prove that ads work. People will begin to pay attention, and soon the average person will be aware that Amazon's advertising business is a huge part of their bottom line, he said, because its advertising system works.

Amazon isn’t providing measurement solely on its own. The company is partnering with others like brand-lift measurement company DISQ to offer cross-channel, post-ad exposure measurement of brand metrics and digital purchase journeys.

Through the partnership with DISQ the Amazon demand-side platform (DSP) enables advertisers to programmatically buy and display ads on Amazon-owned sites and apps, as well as third-party sites and apps, through real-time bidding.

Clients target ads to specific audiences based on their demographics, interests, and behaviors, and choose specific placements across Amazon’s network including product pages, apps, and websites.

And Amazon’s ad business will only continue to grow. By 2025, Google will claim 25% of the U.S. digital advertising pie, while Meta will hold 18%, and Amazon will hold 15%, according to Insider Intelligence data.

Search functions across the marketplace, despite the slew of ads, works by returning from queries what the consumer needs.

Zak Stambor, senior analyst of retail and ecommerce at Insider Intelligence, recently wrote that site search from most retailers does not work. Shoppers do not find what they are looking for. Stambor points out that three in 10 shoppers say it takes at least three minutes for them to locate the item they need when using the search function on retail websites, and three in 10 call their experience with site search “quick.”

“Roughly three quarters of consumers are more likely to buy the item they're searching for if a retailer makes it easy to find,” Stambor said. “So, a bad site, search is really the equivalent of an unkempt store. If you can't find what you're looking for, you're not likely to stick around and make a purchase, you're likely to go somewhere else and you might not return ever again.”

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