Advertising on Amazon strengthens business outside

Advertising on Amazon has a 20 percent higher return on investment for sellers than ordinary forms of marketing. Such ads also have an impact on sales outside of Amazon in half of the cases. That's according to a study by consulting firm Analytic Partners. According to the analysts, marketers must pursue an "omnichannel" strategy that incorporates both online and traditional advertising simultaneously.


"Consumers have never before lived in such a highly connected world. This has led to the trend of 'omnishopping'. Here, customers search for or experience a product in one channel, eventually converting to another. That's why the interplay between marketing online and offline is becoming increasingly complex. Amazon embodies this complexity. It is not only a strong sales platform, but also an important channel for advertising," says Analytic Partners.

For the study, the company examined the marketing spend of more than 700 brands from 45 different countries. Amazon advertising has proven to be particularly rewarding for brands. This advantage has lasted constantly through the entire Corona pandemic. According to the analysts, this means that the effect is permanent and not due to the new e-commerce boom.


Customers on different channels

Ads on Amazon also have a positive impact on sales in other channels. 48 percent of ads seen on the e-commerce giant's site boost sales outside it. This effect is less strong when sellers pay for a good place in Amazon search results. In 29 percent of cases, this improves sales on channels other than Amazon.

According to the study, providers must take advantage of these effects and understand that modern consumers are always on the move on different channels. Marketing needs to be done in a much more comprehensive way. Every ad can entice customers to buy in other areas, which is why retailers need to track their journey through different touch points. (pte)

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