Source: Digiday
Few Retailers Advertising with Amazon
A survey of retail executives by Digiday on how they approach marketing on Amazon finds that only 20% advertise on the platform and that will increase to only 27% in 2018. Among those who do advertise, none say they are spending more than 50% of their marketing budget on Amazon and none so far have purchased an ad on Amazon Spark, which uses influencers to help sell brands. Part of the reason for retailers avoiding advertising on Amazon is that they do not want to sell their products directly on the platform, Digiday reports. That in particular holds true for fashion brand chains who do not want to sell their products where they get intermingled with lower end merchandise. In fact, none of Amazon’s different types of ad formats sparked much interest among a majority of retailers.
WHY THIS MATTERS: Amazon is trying to make digital ad inroads to steal away dollars from digital giants Facebook and Google. But right now, it seems like the biggest fans are brands looking for mass sales of lower end products, like consumer packaged goods companies. GroupM, which handles media buying for companies like Unilever, noted that its clients’ spending on Amazon’s search ads was up 10-to-15 times in 2017 from the previous year.
Few Retailers Advertising with Amazon
A survey of retail executives by Digiday on how they approach marketing on Amazon finds that only 20% advertise on the platform and that will increase to only 27% in 2018. Among those who do advertise, none say they are spending more than 50% of their marketing budget on Amazon and none so far have purchased an ad on Amazon Spark, which uses influencers to help sell brands. Part of the reason for retailers avoiding advertising on Amazon is that they do not want to sell their products directly on the platform, Digiday reports. That in particular holds true for fashion brand chains who do not want to sell their products where they get intermingled with lower end merchandise. In fact, none of Amazon’s different types of ad formats sparked much interest among a majority of retailers.
WHY THIS MATTERS: Amazon is trying to make digital ad inroads to steal away dollars from digital giants Facebook and Google. But right now, it seems like the biggest fans are brands looking for mass sales of lower end products, like consumer packaged goods companies. GroupM, which handles media buying for companies like Unilever, noted that its clients’ spending on Amazon’s search ads was up 10-to-15 times in 2017 from the previous year.