Whilst Google is known for dominating search marketing, Amazon has started giving the search giant a run for its ad revenue – something that astute marketers will have seen coming for some time now.
According to WPP, 55% of product searches in the US now emanate from Amazon, and advertising has been a key contributor to their strong growth – 60% year on year.
This should come as little surprise; after all, the e-retail giant has not only completely transformed the way we do business, both in terms of selling and shopping as customers, it is now also viewed as a trusted and reliable source for all aspects of the shopping experience.
In fact, it would be fair to say that Amazon put social media into popular consciousness. What started with garnering buyer reviews rapidly turned into genuine consumer engagement with the platform, and, as a consequence its highly active customer reviews columns could almost be described as a consumer-driven social network in its own right.
The launch of Spark last year revealed just how serious Amazon is about becoming a game-changer in social media. As it starts to encourage product discovery with personalised suggestions based on users’ shopping patterns and behaviour, a whole new model is emerging, making Amazon a powerful third player in the duopoly that was once Google and Facebook’s space.
Tapping into Amazon’s social media ecosystem is where smart marketers need to be focusing now, and it requires starting with a good understanding of how advertising within the Amazon website itself works.
The ranking of products within Amazon is based on an algorithm that is influenced by a variety of factors – mainly conversion rate (i.e., how often it sells). Therefore, it is key to drive users to the product page to increase the likelihood of a purchase, which will improve its ranking within Amazon, thus continuing the purchasing cycle.
Let’s drill down to how this could help marketers re-shape, refine and re-energise their social marketing strategies:
Hyper segment audience