Once Amazon enters the Swedish market, advertisers should keep track of Amazon Advertising, which the e-commerce giant has collected all its advertising offers under.
In a recent study, Emarketer notes that in 2018 Amazon managed to reach the position of the third-largest digital advertising platform in the United States, following Google and Facebook. In addition, Emarketer expects Amazon’s market share to double by 2020, as the e-commerce giant will account for 7% of the digital advertising money in the US.
Amazon is expected to launch its platform in Sweden shortly, which will make tough demands on Swedish eCommerce. In last week’s insight, Gemma Spence, Global Head of eCommerce at PHD, went through how to get ready for the giant’s entrance.
Once the platform is launched, it’s a good idea for advertisers to keep track of Amazon Advertising, the new brand under which the eCommerce giant gathered Amazon Media Group, Amazon Marketing Services and the Amazon Advertising Platform.
The purpose of the consolidation is to make it easier for advertisers to navigate between Amazon’s ad formats and manage campaigns on the platform. For advertisers, Amazon Advertising provides the ability to stand out among the close to 500 million products that Amazon users have to choose from.
Robin Leijonhuvfud, Digital Transformation Officer at PHD Sweden, says Amazon should be considered a media house rather than an advertising platform, as they follow the consumer throughout the buying journey. According to her, advertisers in 2019 should build a strategic plan for presence on Amazon, and in 2020 one should be in place.
“Amazon has so many surfaces to advertise on, and now that all advertising offers are gathered under the same roof, the way in becomes a little easier,” Leijonhuvfud says. “As an advertiser, you need to find your place in the ecosystem, and decide whether to just bet on the purchase part or also advertise in other parts. Then you need to think all the way up to the product, and not just focus on the ad.”
Under Amazon Advertising, you will find Sponsored, Display, and video ad formats. In addition, under the Stores format, brands can build their very own website on Amazon. Amazon also has the Amazon DSP programmatic platform.
“When Amazon first launches, there is a great chance for organic growth just by being there,” Leijonhuvfud continues, “but as soon as they have solved the logistics, they will grow very quickly and then it becomes important to use these ad formats. As a Swedish company, my advice is to look at how players in the same category from other countries have resolved their campaigns on the platform.”
What are the benefits of Amazon as an advertising platform?
“The advantage is that you can buy everything in the same application,” says Leijonhuvfud. “It is similar to Facebook in that it now has Facebook Marketplace, but Amazon stretches further and also has the delivery. Everything is connected from the beginning, creating a great deal of accessibility.”
How big will interest in Amazon Advertising be with the Swedish Advertisers?
“It depends a lot on how fast Amazon decides to launch all its different features,” answers Leijonhuvfud. “When Facebook launched Instagram, they initially slowly proceeded as they rolled out the advertising opportunities, then it suddenly went extremely fast. We do not get any information about Amazon around how they think – the only thing they say is that we should prepare our customers.”