Why Amazon’s ads will overtake Facebook & Google Ads

According to recent quarterly filings from Amazon, revenue from advertising is growing like crazy. The reason why may seem obvious but there are a few underlying micro-economic reasons why Amazon’s advertising revenue will grow to outpace that of Facebook and Google.

Amazon ads continue to eat up more page real estate.

The biggest reason is the fact that Amazon’s ads directly affect the organic rankings on their website. What sets Amazon apart from other platforms is the ability to influence your organic rankings and exposure on the site with PPC ads. This means, the more you pay, the better optimized your ads, the better your product will rank. The two huge ranking factors AMS (Amazon Marketing Services) affects are Best Sellers Rank and conversion rates. The strategy for new products on Amazon is to break even or possibly lose money in order to improve your rankings. You can also try getting those precious first few reviews this way but we recommend running ads after getting a review so you can have a better converting product listing. As Amazon grows its market reach, more and more people will be competing for ads which makes bids higher and thus more revenue for Amazon.

The next, least obvious reason is the diversification of Amazon’s products. Their are advertising opportunities in their app store, prime video, Pantry/Fresh, and even the potential for advertising with delivery. Let’s say you want to rank your product or content higher on these platforms, Amazon has the potential to commoditize rankings and exposure similar to their marketplace ads. This happens on competitor app stores currently so it’s a matter of time before it happens with Amazon.

Amazon is still a pretty U.S. centric marketplace but it’s expanding internationally at a rapid clip. They are attacking the European market with force and soliciting sellers to publish their products abroad. It’s enticing since current sellers are likely looking for new revenue streams as competition on Amazon.com gets stiffer. Look for Amazon to focus going further abroad in Asia as they are already creeping into Australia and South America.

Chinese investment into Amazon is unlike any other platform… more than Google and Amazon by my calculations. I ran some numbers (see chart) and it looks like Chinese marketing spend on Amazon is the third highest among all U.S. platforms ($2.5 Billion; AdAge). I’d like to caution that when dealing with Chinese statistics, it’s difficult to know you’re getting accurate numbers but anecdotally, I see the most interest in Amazon from Chinese corporations. AdAge also says Facebook is the highest digital marketing spend US marketing spend. Surprisingly, Google comes in 2nd with $3.8 Billion (according to DigitalInAsia.com) in advertising spend from China.

All in all, I wouldn’t be surprised to see Amazon get bigger and bigger. They are uniquely positioned to get more advertising revenue as well as be at the forefront of the autonomous vehicle revolution. If you’re already advertising on Amazon, look for it to get harder and harder to find great ROI. This stage in the advertising life cycle isn’t as mature and difficult as Google Adwords but I would give it another year or two before it’s equivalent. Make hay while the sun shines, Amazon advertiser!

Tags: in SEO
Related Posts

Amazon Seller Central vs Vendor Central or Hybrid Selling Model – Which is Better? Pros & Cons

September 21, 2020

September 21, 2020

Table of Contents- Amazon Vendor Central vs Seller Central- About Carina Mcleod- Amazon seller, vendor, or hybrid?- What is an Amazon vendor?- How to tell if a product is sold be a Vendor Central account- Reasons to become a

Helium 10 PPC Ad Manager Guide / Tutorial

October 19, 2020

October 19, 2020 1

CLICK FOR 10% OFF HELIUM 10 Table of Contents:- Helium 10 Keyword Research for Amazon FBA- How To Launch Amazon PPC Campaigns- Helium 10 MAGNET And CEREBRO Keyword Research Tutorial- Creating A PPC Campaign Within Amazon- Helium 10 Ad

How To Make Your Amazon Private Label Product Stand Out – Differentiate With Gembah Co-Founder

August 20, 2020

August 20, 2020

Interview with Amazon Seller Insights Zack Leonard- Co Founder of Gembah Click Here for 50% off your first month of ZonGuru! Jon Tilley: Hey guys, it's Jon Tilley to the here from ZonGuru based here in Los Angeles and

Amazon Optimization Consultant

May 6, 2013

May 6, 2013 2

People who sell goods on Amazon oftentimes find themselves wondering how to make their product stand out. This is because an increasing number of products are being sold on Amazon every year, making the competition and clutter also increased.

ZonGuru vs Helium 10 – Amazon FBA Product Research Tools Comparison 2020

August 23, 2020

August 23, 2020

IntroductionAbout ZonGuruHelium 10 Black Box product research toolZonGuru Niche Finder product research toolDoes ZonGuru show review velocity?Nich Score metrics breakdownHelium 10 Magnet keyword research toolZonGuru Keywords on Fire keyword research toolDifference between ZonGuru and Helium 10 keyword research resultsHelium

Helium 10 Review

March 25, 2020

March 25, 2020 1

Click Here for 10% Off Helium 10! Table of Contents IntroductionWhat is Helium 10?Review of Helium 10 ToolsBlack Box - Helium 10's Product Research ToolXRayMagnet 2.0 Keyword Research ToolCerebroHelium 10 ProsHelium 1o Cons Introduction People are making millions of

Create the BEST Amazon Listing with Sam Page from Amazon SEO Experts

October 28, 2020

October 28, 2020

This post is transcribed from the following video: https://youtu.be/ZwRFnXQuVEE Dustin Kane: Hello everyone and welcome to episode 23 of Two Amazon sellers and a microphone. Today, Chris and I have a very special guest Sam page from Amazon SEO

Jungle Scout Review – Is It Worth the Money?

March 31, 2020

March 31, 2020 1

Can Jungle Scout be helpful? Yes, but there are some dirty little secrets about Jungle Scout you should know before you buy, including why you don't need it and how you can get all the features Jungle Scout gives

ManageByStats Review 2021 – Amazon Marketing Tool

November 23, 2020

November 23, 2020

A great feature used for Amazon sellers is ManageByStats. Personally, I believe this to be the Google Analytics of Amazon. We can get data regarding our business that can help us increase sales and is essential for a successful

The Best Tools / Apps for Amazon FBA 2020

February 13, 2020

February 13, 2020 2

Options for maximizing your FBA experience For any e-commerce entrepreneur, selling on Amazon can be crucial to hitting your sales goals. The beauty of FBA (Fulfilled by Amazon) is incomparable convenience such as discounted shipping rates, quick delivery, returns

Seller Bench Review -Amazon Owes You Money

April 16, 2020

April 16, 2020

This is a transcript from this video on YouTube. What’s up, guys? Ryan here. Today, I wanted to make a video talking about an Amazon FBA Reimbursement Recovery Service called Seller Bench which I really love. I saw an

FeedbackWhiz Review – Automated Amazon Review Requests & Follow-up Emails

September 2, 2020

September 2, 2020

Try Out FeedbackWhiz - Click Here! IntroductionWhy are follow-up emails important?How to send proper follow-up emailsHow many times can you ask for a review on Amazon?Can you send an email requesting a review and later use the review request

Sellics Review 2020 – Amazon FBA Tools

April 3, 2020

April 3, 2020 2

Discount on Sellics - Click Here Today I'm reviewing Sellics and I'm just going to give you guys a bit of an overview. In the dashboard you've got the sales and profit, so it just gives you this sort

WordCamp Seattle

October 23, 2019

October 23, 2019 1

Hey WordCamp Seattle! Thanks for attending my session, SEO Is Evolving Away From Google. I hope you found the information valuable. You can download my slide deck below and if you have any questions, don't hesitate to email me

Rank Better in Amazon

May 6, 2013

May 6, 2013 1

There is a common misconception among Internet users that getting started with Amazon is a daunting task. The truth is that getting a high ranking for a particular product is much easier in Amazon than getting a good ranking

  • I’m not sure where you’re getting your info, but good topic. I must spend some time studying more or figuring out more. Thank you for great info I was searching for this information for my mission.|

  • Have you ever considered writing an ebook or guest authoring on other sites? I have a blog based upon on the same ideas you discuss and would really like to have you share some stories/information. I know my viewers would appreciate your work. If you’re even remotely interested, feel free to send me an e mail.|

  • Hello, yup this article is in fact good and I have learned lot of things from it on the topic of blogging. thanks.|

Leave a Reply

Your email address will not be published. Required fields are marked *