Amazon is progressively increasing on promoting contributions over its biological system, including Amazon Ads. It will continue to invest in expanding its ad business on its e-commerce platform. This year, it is expected to have a collective sale of $6.1 billion through advertisements itself. Here’s why Amazon ads seem to be rising:
- The biggest reason is the fact that Amazon advertising directly affects the organic rankings on their website.
- What separates Amazon from different platforms is the ability to impact your natural rankings and introduction on the site with PPC promotions. This implies that the more you pay, the better upgraded your advertisements, the better your product will rank.
- Amazon Marketing Services affects best seller rank and conversion rates.
- The following, least apparent reason is the enhancement of Amazon’s products. There are advertising opportunities in their app store, prime video, pantry/fresh, and even the potential for promoting with the conveyance.
One of the reasons why Amazon is able to generate more sales is because a search on Amazon is more genuine and potential than, say on Facebook or Google. A disadvantage that may affect Amazon ads reach is that it is 100% internalized. This means that the reach can potentially decrease, as compared to Google or Facebook, who have a larger demographic audience.
But the same point is turned into an advantage, as because of the internalization, Amazon is sending more traffic to their own website, and not away from it. Amazon also does not capture the data of its users, unlike Google and especially Facebook, who has been in the limelight for privacy mishaps.
With over 5 million sellers on Amazon, 2 million are established business seller accounts. It is only natural that these sellers would want to promote and advertise their products, especially on the platform that they are selling them on. While the future of advertisements still lies uncertain, we can say for sure that Amazon is going to give its rival two a very tough competition.