Amazon Ads Explained

It looks as though shopping giant Amazon is set to launch video advertising spots, in a bid to get a slice of the digital advertising pie, that is currently dominated by Google and Facebook. Here’s the lowdown on what we know so far.

What Are Amazon Video Ads?

Since the beginning of the year, Amazon is been beta testing ads on Apple’s iOS software for mobile in the US and will follow suit with a wider rollout. No need to add ‘if successful’ to the end of that sentence. There is no doubt that this new way of product advertising for them will have a significant impact on market share.

Why Are Video Ads Important?

Amazon is currently the third largest ad platform behind Google and Facebook, although Amazon is ahead of Google in terms of product related searches. It generates 50% of all online sales in the US but aims to grow this. In a bid to increase its advertising revenue, it aims to capitalise on its position in the market, effectively creating ads that will have a stronger appeal.

How Will Amazon Video Ads Work?

Currently Amazon’s ad spots for products consists of images, logos and descriptive text, in a billboard style display. The new ads will appear more as tv commercials, with video content of products to make them more real and relatable. Video watching has become a standard way of consuming content and product marketers cannot ignore this. Whereas once, Amazon did not want to interrupt users’ shopping experience with ads, it now understands the power of this medium and is willing to test this on beta.

Who Are Video Ads Good For?

Amazon video ads are targeted towards users wanting product information on the go. They will therefore have a high appeal to marketers looking to raise the profile of their products across mobile platforms. With higher user engagement for video, this will push conversions up and generate more revenue. Ads will also have a higher relevance in the SERPs, giving them a stronger SEO position position should users search for products on Google.

How Much Will Amazon Video Ads Cost?

These ad spots won’t come cheap. If you want to raise your game by including video ads of your products on shopping powerhouse Amazon, US advertisers will need to be prepared to have a budget of $35,000, structured at 5c per view. The question is, as this space becomes more competitive, will these prices be driven higher? We watch with bated breath,

Need some advice on your content marketing? Whitefish Marketing is an established Kent based digital agency with expertise in helping businesses to grow their online presence, offering a range of online marketing services from SEO, PPCwebsite development and social media management. Give our friendly team a call on 01303 720 288.

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