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UNLOCKING AMAZON ADVERTISING: STRATEGIES FOR SUCCESS

Heidi McIvor-Allen - Owner of McIvor Marketing LLC

BY HEIDI MCIVOR ALLEN

Amazon has seamlessly integrated itself into the daily lives of many households, offering convenience to consumers. However, it has also entered a lucrative market that can significantly benefit businesses: advertising. Utilizing its extensive data collection from numerous touchpoints, Amazon strategically targets consumers with tailored advertisements, providing businesses with unique opportunities to effectively reach their target audience.
“When you change one thing, you have the ability to change EVERYTHING.”

HOW AMAZON GATHERS DATA

Amazon employs various methods to gather data about its users, including monitoring their search queries, browsing activity, and purchase history on Amazon.com. Additionally, Amazon analyzes user behavior on its streaming platforms such as FreeVee and Prime Video, along with data from IMDb.com, the renowned movie and TV database owned by Amazon. Furthermore, Amazon collects data from devices like Fire Tablets, Alexa, and Amazon Music, consolidating information from these sources to build comprehensive user profiles. These examples illustrate how Amazon acquires first-party data directly from its users, leveraging its diverse range of owned platforms and services.

LOCAL ADVERTISERS INVESTING IN AMAZON ADS

In 2022, only about 3% of local advertisers were investing in Amazon advertising. However, by January 2023, there was a significant surge, with a 22% increase in average spending on Amazon’s ad platform. Meanwhile, spending on Facebook saw a decline of 7%, and Google experienced a drop of 19%.

Although Amazon’s advertising platform primarily caters to national advertisers, there’s a growing opportunity for local businesses to capitalize on its potential. As national ad spaces become saturated, Amazon will likely shift its focus towards accommodating more local advertisers. This presents a prime opportunity for local businesses to distinguish themselves from competitors. Consider the impact of local ads interspersed among national brands during events like the Super Bowl™. Such ads stand out and leave a lasting impression on viewers. Imagine the impact of your local ad featured alongside renowned national brands through Amazon; it holds significant sway with consumers. Now is the time to seize this opportunity and elevate your brand visibility.

AMAZON TAKING OVER THE ADVERTISING MARKET

When discussing digital advertising giants, Facebook and Google are often at the forefront, and rightfully so. Projections suggest Google will account for 25% of U.S. net digital ad revenue in 2024, with Facebook following at 20%, and Amazon at 14%. These percentages represent significant shares in the multi-billion-dollar industry. Despite being a relatively recent entrant, Amazon launched its DSP in 2012, compared to Google and Facebook, which introduced versions of their DSPs in the early 2000s. Despite this shorter timeframe, Amazon has managed to carve out a substantial portion of the advertising market.

HOW AMAZON USES THE DATA IT COLLECTS

Amazon gathers extensive data about its users, presenting advertisers with a goldmine of advertising opportunities. This data enables advertisers to target individuals not only while they are on Amazon.com but also when they are off the platform. Consider the typical consumer behavior on Amazon.com: they visit the site, browse, add items to their cart, and then depart. Throughout this process, data is continually collected. Leveraging this data, advertisers can target the same individuals when they are not actively browsing Amazon.com but are engaged with Amazon-owned properties like FreeVee, Twitch, and IMDB.com, as well as numerous other websites and apps within Amazon’s network of publishers. As consumers increasingly spend time on these platforms, advertisers can effectively reach them with ads while they consume content.

AMAZON HAS VARIOUS TARGETING STRATEGIES

Amazon possesses distinctive avenues for engaging users both on and off their platform through diverse targeting tactics:

BEHAVIORAL TARGETING

Displaying targeted display, video, or OTT advertisements to individual consumers according to their Amazon purchase history, searches, and browsing activities, spanning across Amazon.com (display ads exclusively), Amazon-owned properties, and Amazon publishers.


This data is collected from:

  • User searches on Amazon
  • User interactions with products on Amazon
  • User interests and purchase intent (utilizing 3rd party and Amazon data)
  • User streaming behavior on Amazon Prime Video
  • User online activities reflecting demographic and economic characteristics

PRODUCT TARGETING

We build an audience comprising individuals who have searched, browsed, or bought particular products on Amazon. We then display targeted ads—be it display, video, or OTT—across Amazon.com (limited to display ads), Amazon-owned platforms, and Amazon publishers.


This targeting approach is more refined than behavioral targeting as it focuses on specific products available on Amazon.


This audience is created from individuals who have:

  • Searched for keywords related to those products on Amazon.
  • Viewed those products on Amazon.
  • Purchased those products on Amazon.
  • Share characteristics with those who have purchased or viewed those products on Amazon.

CUSTOM AUDIENCE MATCHING/LOOKALIKE AUDIENCE TARGETING

We utilize a list of customer emails or addresses, align them with Amazon users, and display targeted ads—display, video, or OTT—across Amazon.com (restricted to display ads), Amazon-owned platforms, and Amazon publishers.

RETARGETING

The last targeting approach that complements the ones mentioned earlier is retargeting. With this method, we track users after they exit a website and persistently display tailored ads—whether display, video, or OTT—across Amazon.com (limited to display ads), Amazon-owned platforms, and Amazon publishers.

AMAZON PUBLISHERS

Amazon publishers comprise a selection of 100 websites and apps with a direct partnership with Amazon. These ads can be displayed across desktops, mobile devices, and connected TV devices. Some notable publishers include:

  • Pluto TV Fire TV
  • TubiTV Fire TV
  • Twitch CTV
  • IMDbTV
  • Discovery Plus Prime Video Channel
  • Amazon Video News
  • Philo Fire TV
  • Sling Fire TV
  • History Fire TV
  • Fubo TV Fire TV
  • Lifetime Fire TV
  • Investigation Discovery Fire TV
  • NBCU_1
  • Discovery +
  • Fox News Fire TV
  • Food Network Fire TV
  • NBCU_4
  • A&E Fire TV
  • THE CW Fire TV
  • HGTV Fire TV
  • HBO Max Fire TV
  • Fubo TV Roku
  • Discovery Fire TV
  • FilmRise Roku TV
  • Paramount Channel Fire TV
  • CBS News Fire TV
  • Travel Channel Fire TV
  • Adult Swim Fire TV
  • VH1 Fire TV
  • TBS Fire TV
  • Hallmark Channel Everywhere Fire TV
  • NFL OTT
  • Discovery Life Fire TV
  • Travel Channel Android TV

HOW MCIVOR MARKETING CAN HELP YOU RUN SUCCESSFUL AMAZON ADS

At McIvor Marketing, we specialize in helping our clients navigate the complex world of Amazon Ads with precision and expertise. Our team is equipped with the latest tools and strategies to create targeted campaigns that drive results. Whether you’re looking to increase sales, boost brand visibility, or expand your market reach on Amazon, we tailor our approach to meet your specific goals. From keyword research and ad creation to campaign optimization and performance tracking, we provide comprehensive support every step of the way. With our dedicated team by your side, you can trust that your Amazon Ads will be expertly managed to maximize your ROI and propel your business forward in the competitive e-commerce landscape.

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