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How Amazon Is Making Advertising It’s Next Big Thing?

If you were looking for Prime Day offers on Amazon, you were bound to come across a lot of advertisements. This is because Amazon has a wealth of data on consumer purchasing behaviors, making it a useful resource for advertisers. Amazon remembers when you last purchased toothpaste on the site and which brand you prefer. Advertisers can use this data to try to persuade you to buy their brand of toothpaste just as you're about to run out. Amazon advertising services are out of the world which you can hardly overlook.

Other advertisers can use Amazon to target advertising, even if their products aren't necessarily available on Amazon, such as insurance or a car. These advertisers can utilize Amazon's huge consumer data to determine who might be interested in their products or services, and then use Amazon's ad products to reach out to those individuals, both on Amazon's properties and through a network of third-party sites.

Amazon has grown to become the one of the largest digital ad platforms in the United States and a growing competitor to challenge Google and Facebook's digital ad duopoly. Earlier this year, eMarketer predicted that Amazon will take 8.8% of digital ad spend in the United States in 2019, up from 6.8% in 2018, and that Google would decrease from 38.2 percent to 37.2 percent, according to Amazon PPC Manager. Meanwhile, Facebook is anticipated to account for 22.1 percent of digital ad spending in 2019, up from 21.8 percent in 2018. In the first quarter, Amazon's net revenues in the "other" category, which mostly comprises of advertising sales, were $2.72 billion.

Amazon also offers "display advertisements," which are image ads that appear when you're shopping on Amazon or reading an article on a third-party website. Video commercials are also available, which are self-explanatory. They can be found in video material on Amazon sites (including IMDb) and Amazon devices such as the Fire TV. Display and video advertising don't have to be for Amazon products, and they can show on Amazon as well as third-party websites and apps.

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