Amazon has myriad media opportunities ranging from headline search ads to sponsored products, display and video.
AMG’s purview has expanded beyond media sales into a practice called “ecommerce marketing,” the digital equivalent of trade or shopper marketing.
Ecommerce marketing provides prescriptive advice after analyzing a consumer’s path to purchase.
That practice can demonstrate, for instance, whether a retailer has enough inventory to deliver against its forecasted sales, or whether a media investment in search drove business results.
Amazon’s unique data set can show not just conversions, but also total volume of purchases or units sold on Amazon based on an ad exposure – aka product sales per media dollar spent.
That level of granularity is like gold to the trade/shopper marketing sector, which has evolved from in-aisle promotions and coupons and circulars to digital offers based on data from the likes of Amazon, Albertsons, Kroger, Walmart and Target.
Amazon’s advertising technology includes a demand side platform known as the Amazon Advertising Platform, or AAP, which buys web, mobile and video inventory programmatically across Amazon properties and third-party exchanges.
Despite its rep for being clunkier than some of its competitors, AAP has grown quickly and quietly, because its targeting data is unique and tied to a transaction.
That level of intent data is not only enticing to brand manufacturers who sell their products in the Amazon store, but non-endemic advertisers who want to know which categories or products index more highly among their target demo.
In a recent study by Advertiser Perceptions, Amazon’s DSP emerged as a leader, surpassing Google’s DoubleClick Bid Manager as the “most-used DSP” among a sample of 800 buy-side marketers.
“There’s a real trend where Amazon ad tech flies under the radar until it’s dominant,” said Advertiser Perceptions’ chief strategy officer, Kevin Mannion.
Besides media activation, Amazon’s buy-side ad stack also powers audience discovery and creative.
“We can use review information, how many stars a product got, as well as pricing information to easily and quickly create customized or templated creative [with] the most relevant offers,” Saurabh Sharma, Amazon’s director of ad platforms, said in an earlier interview with AdExchanger. “We offer all of that as part of our ad tech stack. And we make all of that available on both managed and self-service access.”
This move gave Amazon more power over auctions, at the expense of Google’s DoubleClick for Publishers. (Amazon also has A9, the elusive unit powering everything from algorithmic search to header bidding, to thank for that.)
Amazon Web Services launched AWS Elemental Media Services in late November to help media owners manage their live and on-demand video content while improving their yield.
Video workflows, until now, have been all but owned by Google’s DoubleClick and Comcast’s FreeWheel, but as Amazon seeks to grab more video dollars, it’s only natural the ecommerce company move closer to monetizing it.
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