Amazon Ads: An Unexplored Goldmine For Ecommerce Advertising

by | 27 Jun 2022 | Sales & Marketing, Small Business Stories

Amazon Ads: An Unexplored Goldmine For Ecommerce Advertising
Most of the marketers today are familiar with the names of Facebook and Google when it comes to digital ads. While most companies are still leveraging these two towards their paid social media efforts, there is yet another surprise entrant in the domain of advertising. It’s Amazon!

Renowned for venturing into multiple verticals like eCommerce, cloud services and garnering a large customer base, Jeff Bezos’s Amazon is turning from an online store into a powerhouse of advertisement. Statistics suggest that Amazon made roughly $21.5 billion from advertising in the past year. Since more than 50 percent of the product searches originate from Amazon customers have started looking for products directly on the platform making Google worried. With more than 10 percent of the ad market just in the US, Amazon has turned into the third largest advertising giant after Google’s 29 percent and Facebook’s 25 percent market share. While marketers cut their ad spending due to the pandemic, eCommerce advertising boomed, helping Amazon pick up the lead. With unprecedented growth in the domain mostly due to the immense data, the eCommerce giant is already competing with Facebook and Google for ad budgets. If you’re wondering what advertising means for Amazon’s future, here is everything you need to know.

Why is Amazon Advertising on the Rise?
Whether merchants are looking forward to increasing their brand awareness, driving sales, or making their products, services, etc., more prominent in the customer’s eyes, Amazon advertisement is already growing and leveraging upon the data of its 2.14 billion users.

While the benefits for merchants across all domains are immense, here are 3 reasons that bring about the rise of Amazon advertisements.

More Users Searching Queries on Homepage
There have seen several behavioral changes observed in the buyers in the past few years. Online purchasers who are definite to make a purchase, search products directly on the homepage now. Half of these are users residing in urban regions of India.Amazon’s advertising is exceedingly growing, eating into the profits of Facebook and Google with 23 percent of the online shoppers heading first to Amazon for product inspirations when they don’t have anything in mind.

Deep Understanding of Customers
Amazon has more than 300 million active customers on its platform who shop products from multiple sellers using several modes of payments. This gives Amazon a lot of data about how buyers discover, browse and purchase products online. With Amazon advertising, merchants have this tremendous opportunity to reach out to buyers at every stage of their journey. Be it through sponsored ads, brands, or sponsored displays. The platform has a plethora of options for everyone’s needs.

Amazon Insists on Conversions
Amazon’s model of advertising is unique. On the one hand, it is primarily attached to the position where the sale occurs, while on the other, the platform wants the buyer to make the sales. That’s why there is a rise in the number of advertisers on the platform, realizing its potential and interested in hyper-segmented personalized advertising. Moreover, with its purchase-specific intent, it is leading the way in advertising. Amazon doesn’t want to know about your friends or your memorable events or anything non-commercial. It wants to know what you purchase and when and uses this targeted information to provide you with what you’re looking for in the market.

Growing Ad Revenue and Future
Amazon’s ad revenue is growing at an unprecedented rate reaching an astonishing $10 billion by 2020. It is also expected to quadruple by the year 2023. Amazon is gradually becoming a leading advertiser not only in the USA but the entire world. Expected to be one of the most prominent changemakers in the tech industry, the market giant’s advertisement business is already beginning to eat into the shares of Google and Facebook. At the same time, it is leveraging one of the company’s most essential gems, Amazon Web Services. The best part is that Amazon is doing all of this and continuing to cross milestones, all by utilizing Google’s pay-per-click strategy.

Holding an upper hand over its rivals in many ways, Amazon is all set to create more outstanding experiences for its eCommerce users through the means of advertising. If you’re headed to the eCommerce platform lately and searched for deals, more specifically ‘Prime Day,’ since nearing India, you must have seen a ton of ads appear on your results page. That’s because Amazon knows a lot more about you than you probably remember.

Be it your search history, last-bought products, your cart of monthly supplies, or the frequency of your orders, Amazon’s intelligent algorithms are familiar with the customer’s behavior like nothing you’ve ever seen. If it were any other advertiser, they would’ve used this information to target the audience and offer them valuable products. And until now, all that these advertisers have been doing is targeting Amazon for ads, even if it means selling products that buyers cannot purchase directly on Amazon.

However, with Amazon ads outshining in the domain, advertisers on the eCommerce giant can use this data to forecast their demands, position their products and reach out to people extensively. So, even if you’re purchasing on a network of third-party websites, chances are you will find relevant advertisements there.

In the time to come, Amazon’s growing interest in advertising can mean a considerable advantage for the company, one of the apparent reasons being its large customer base. From customer behaviors to demand forecasting and payment information, they have the A to Z of information one needs. It’s like an advertiser’s gold mine. Moreover, with superior conversion rates compared to platforms like Google and Facebook, the eCommerce company has another massive benefit.

The idea that people come to Amazon to make a purchase is convincing enough and the driving factor behind conversions. On other platforms, the advertisements are more of an intrusive experience to the user than being trustworthy.

Amazon is also integrating Sizmek’s ad servers and dynamic creative units, meaning a greater degree of personalization for its users. Using this tool, the customers on the platform will see more tailored ads specific to their needs and behavior rather than that of the entire shopping community. Moreover, these will be enhanced with regular monitoring of their placement and effectiveness. Overall, buyers will find the products they’re looking for more quickly and find a heightened shopping experience.

Start you Amazon Ads with the help of Savage & Palmer‘s Digital Marketing Service.


With the increasing opportunities and exhaustive database, Amazon will be the next big thing in digital advertising. While it is already catching up, buyers find several functionalities better than the traditional Facebook and Google channels. The only need is to make the usability more streamlined, post which Amazon will all set to eclipse others in the advertising scene.

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