Why Amazon Ads Are Worth ItJun 29, 2020
“Are Amazon Ads worth it?” We get asked this question a lot. And for good reason. Amazon Advertising can feel like a giant money pit - but only if you don’t know what you’re doing.
So today I’m going to share 3 big reasons that highlight the importance of Amazon Ads and why Amazon Advertising is absolutely worth it in the hope it will motivate you to level up your PPC game.
Amazon is winning at shopping search
A number of consumer surveys have shown that more and more digital shoppers start their searches on Amazon.
Which makes sense when you think about it. Google is entirely focused on providing answers to everything, while Amazon is focused on being the one-stop-shop for everything.
According to a May 2018 survey by Adeptmind, nearly half (46.7%) of US internet users started product searches on Amazon compared with 34.6% who went to Google first.
With Amazon replacing Google as the number one search engine for products, it stands to reason that Amazon Advertising is the number one way to increase traffic to your product. All you need to do is put your products in front of the RIGHT shoppers and get their attention.
Amazon has a ready-made audience of buyers
Amazon is where customers are hanging out. It is the go-to online marketplace with 300M active users and a whopping 2.3 billion visitors a month.
As such, Amazon has made it quicker and easier for this ready-made audience of buyers to get what they want: simple user experience and navigation, variety and selection, price, predictable payment and delivery process.
Not only that, but Amazon can also boast unrivalled levels of customer loyalty thanks to its Prime members who visit the e-commerce site at an astounding rate.
According to a survey by Feedvisor and Walker Sands Communications, 85 per cent of Amazon Prime members visit Amazon at least once a week. Nearly half (46 per cent) make weekly purchases, and 6 per cent make daily purchases.
With an estimated 90 million Prime members in the US, that means there may be more than 5 million Prime members in the US alone making daily purchases on Amazon!
This massive captive demand for products on Amazon makes advertising easy for sellers to attribute a return on investment so they can optimise their campaigns to achieve profitability far easier than on other advertising platforms.
Amazon Advertising boosts your organic rank and sales
As the number of sellers joining the platform increases by the day, getting ranked organically on page one (which is where most of the search traffic is) continues to get more competitive.
So how do you get your product in front of these shoppers? By running Amazon Ads.
Amazon Ads can drive a significant volume of sales and profit by allowing even newer sellers to put their offering in front of buying ready shoppers and compete with the biggest household brands, essentially levelling the playing field.
When you run ads, Amazon shares a "goldmine" of data with you in the form of search term reports. Sellers can use this data to continually optimise their campaigns and product listings to improve relevancy and boost conversions, organic ranking and sales, and ultimately, put more money in your pocket.
While all these surveys and statistics provide ample empirical evidence that Amazon Advertising is worth it, ultimately advertising comes down to mindset.
It’s important to think of PPC as an investment in your business, not as a cost. Advertising is an integral part of any successful business and you need to be willing to invest in your business if you want it to grow.
As Henry Ford once said, “A man who stops advertising to save money is like a man who stops a clock to save time.”
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