Some advertisers are doubling their Amazon spends at the expense of Meta and Google. Here’s what’s driving the change.
By Lauren Johnson | 2024-03-12
Amazon’s expanding advertising-tech ambitions are impacting the revenues of Google and Meta, as advertisers find value in using Amazon’s data to reach new audiences. Amazon is investing in privacy-focused technology, such as a data clean room, to enhance its ad business.
Over the past few months, Amazon has introduced new features to its demand-side platform, allowing advertisers to manage campaigns more efficiently and vet creative content. Advertisers are increasingly turning to Amazon’s DSP for targeted programmatic ads, including Prime Video placements.
Patrick Miller of Flywheel Digital notes that Amazon’s shopper data provides a competitive edge over The Trade Desk and Google. Additionally, Amazon is promoting its data clean room to help advertisers target audiences based on first-party data.
Mark Power of Podean states that Amazon’s new features are drawing ad budgets away from Meta and Google, with some brands doubling their Amazon spend. Brands are now allocating 12-15% of their Amazon sales towards advertising, with a focus on Amazon’s adtech formats.
Amazon aims to attract big brand budgets by showcasing the effectiveness of its adtech products in growing brand awareness and driving sales. With access to shopper data, Amazon can help brands acquire new customers more effectively than Meta and Google.
Envision Horizon’s Laura Meyer highlights the importance of seeking new advertising channels to maximize returns. Amazon’s advanced ad tools and knowledgeable sales reps are helping advertisers achieve their brand awareness goals.
Overall, Amazon’s push to expand its ad business is gaining momentum, with advertisers increasingly turning to the platform for effective advertising solutions.