Amazon and Digital Advertising: the estimated share of the industry will be over 10% by 2020 | Omnishopper
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Amazon and Digital Advertising: the estimated share of the industry will be over 10% by 2020

We all knew Amazon as an online sales giant, but it is also shaking things up and taking steps toward disrupting the digital advertising industry in the next years.


Amazon already captures 43% of e-commerce sales in the US and accounts for almost 50% of all online product searches. It is now capitalizing on its existing strength as a search engine & fulfillment provider by selling advertising space to brands who want to catch consumers at the transactional end of the purchase lifecycle.


Amazon’s Advertising division has a new 360,000 square feet HQ in Manhattan and the company has hired 2.000 people for its advertising, Amazon Fashion, and Amazon Web Service teams. In January 2018 they released a long-awaited feature to generate date-range reports on its AMS platform. While Amazon’s self-serve ad technology is still far behind the feature set of the incumbents, it is continually releasing features to catch up and gain share.

Leaders, Marketers, and advertising professionals of consumer products brands has to acknowledge that Amazon has now become an important mean to reach customer and to do this profitably and directly at the time the customer is actually making a purchase decision - not just discovering or researching.

So better for consumer product brands to start their Amazon PPC strategies right now!


The more experience and time these campaigns have, the better they perform and the more data there is to interrogate.

Over 50% of all product searches start on Amazon, and many consumers choose Amazon as their first website to scan for any purchase.


Amazon offers advertisers cheap, and efficient Ad spend. In many instances, consumer product brands find their Return On Advertising Spend (ROAS) to be lower than on other paid search channels like Google and Facebook, thus they have started shifting significant advertising budget to Amazon due to the strong double-digit conversion rates.


Amazon is at the transactional end of the consumer purchase funnel. Once a customer knows what they want to buy, Amazon helps consumers to validate their decision through product detail content and user reviews.


Amazon further removes friction from the purchasing stage through their inbuilt fulfillment offer: free and fast shipping and easy returns. By saving people effort and time and essentially guaranteeing a good experience, Amazon’s creates a fast path to purchase for brands.


Are you looking for faster sales? Get in contact with our Amazon Team.


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