/ Amazon Set to Become a Huge Advertising Leader in 2018

Amazon Set to Become a Huge Advertising Leader in 2018

As we all know, Amazon is a market leader when it comes to the distribution of goods and services. Just as the logo suggests, they offer everything from A to Z whether it’s books, lawnmowers, calendars, computers, musical instruments, or video games. Despite Facebook, Google, and even Apple having a shaky 2017 thanks to fake news, tax issues, and more, Amazon just doesn’t seem to let up and one report claimed the site had 44% of all e-commerce sales over the twelve months.

Thanks to increased income and large profits, Amazon seems to be spreading its wings too. Firstly, we saw e-readers and the ‘Echo’ and now we’re seeing their presence in advertising. With Facebook and Google earning $100 billion in this field alone last year, we can’t blame Amazon for entering the market. However, the progress has been slow so far with large brands being shunned and Amazon reps being hard to reach. Luckily, attitudes are quickly changing at Amazon and, of all the departments at the company, the advertising team seems to be growing the fastest. With the addition of a new Manhattan office, offering 2,000 employees, it’s fair to say they’re about to explode onto the advertising scene.

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Ultimately, there are four areas in which Amazon is ready to explore and compete with the biggest players in the market;

The Website Itself - Firstly, Amazon is much further down the purchasing funnel than Google because the latter is where people first search for products or services. For Amazon, they have customers right at the very end of the funnel. For all the brands that currently use Amazon as their selling platform, there’s no better way to access customers than when they’re ready to buy. Over the years, Amazon has gathered a plethora of information regarding millions of consumers and businesses want access to this.

Amazon Web Services - Secondly, Amazon actually hosts thousands of websites through their Web Services department. With large amounts of traffic coming through Netflix and the like, many innovations have been required to handle the numbers. Therefore, Amazon has great relationships with businesses and it wouldn't be hard to use these relationships for an ad platform.

Amazon Echo - Next up, the Amazon Echo (and Echo Dot) are the best-selling voice-activated speakers on the market. As a leader, Alexa is set to grow into the room available in the industry and this includes purchasing. So far, not many companies have been able to advertise using the Echo devices but experts believe this is about to change. Just recently, an experiment saw companies advertise to users based on what they’ve previously bought using Alexa. Additionally, there are already some sponsorships for Alexa because asking for a toothpaste will see the name ‘Colgate’ mentioned. In the year ahead, this might just expand.

Amazon Prime Video - Finally, Amazon Prime now has millions of customers thanks to the wealth of films and TV shows available in the library. To this point, they’ve followed in the footsteps of Netflix and avoided advertising but rumors suggest a free version of the platform is about to be launched with advertising.

Although Facebook and Google seem to have a duopoly in the market, Amazon is set to do its best to break this apart and these four areas will be the main focus for the company moving forward. With access to large amounts of data, it looks as though Amazon will be the first real test to Facebook and Google’s control.

Currently, there are some smaller companies threatening but they seem to run into the same problems time and time again. Firstly, they don’t have the budget to compete with the biggest names in the niche. Secondly, they don’t have access to enough information so they’re having to work harder and harder just to maintain a respectable level. Thirdly, they’re entering the niche with a name that isn't well-known and this is an immediate black mark against the brand. If we compare this with Amazon, they tick all three boxes because they have a large budget, access to data, and one of the most well-known brand names in the world!

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