A new report from Feedvisor of more than 1,000 U.S. brands shows an increased uptake of Amazon advertising amongst the cohort: 73% of respondents now advertise on Amazon, up from 57% last year. It also confirmed why Amazon is more widely considered a challenger to the incumbent digital advertising platforms, Google and Facebook, particularly for brands selling physical products. Here are three reasons why brands are flocking to Amazon’s advertising platform.
1. Amazon drives greater ROI than Google and Facebook
A majority of brands selling on Amazon (59%) said that the platform generates their highest return on media spend, followed by Google (22%) and paid social (17%). As a result, brands are spending more on Amazon advertising. The report found a 33% increase in the number of brands spending at least $40,000 per month on the platform.
The respondents to this survey were leaders from U.S. retail brands with at least 10 employees (55% had over 500 employees) and more than $10 million in annual revenue. Roughly half of respondents represented brands with over $500 million in annual revenue, making this a sample indicative of mid- to large sized brands who are generally actively advertising across many channels.
2. Amazon drives at least a 7X return for most brands
Nearly half (47%) of brands see at least a 7x return on their Amazon advertising spend (ROAS). Since Amazon’s overall advertising platform is comprised of several different solutions—from self-serve pay-per-click ads to sophisticated media buys—its important to also recognize that this is likely a blended estimate for most respondents who are using several ad types.
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