Amazon Advertising: Top 10 Trends You Need to Know in 2021 and Beyond

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The year 2020 has changed the way humans live. It has also changed the way humans do business. The world shifted towards online shopping, and platforms like Amazon Advertising found new and innovative strategies to increase and promote their business.

According to Marketing Dive, “Amazon advertising revenue grew 64% to $8 billion in just the last quarter of 2020.” Another report suggests that many brands have seen great profits through Amazon this previous year.

In this blog, you will get to know the ways to optimize your brand’s advertising strategy in order to create huge revenues. Following are the 10 trends that you must know in order to grow your business through Amazon.

1) Renowned Brands Are Shifting Towards Amazon Advertising

The year 2020 saw many brands moving towards Amazon Advertising. This was so because the world faced a pandemic and people changed their ways of shopping by moving towards online shopping. According to a report, an increase of 21% has been observed as 88% of brands used the Amazon Advertising platform in 2020. Moreover, 41% of brands have admitted that they have used Amazon Advertising as their new strategy to increase their revenue in order to cope up with the pandemic. Furthermore, Amazon is increasing its advertising techniques, so more brands will move towards it in 2021.

2) Brands Get Lucrative Returns

A colossal number of brands have been moving towards Amazon Advertising because of it of its huge revenues. A survey of 1,000 brands shows that 51% of brands saw a return of seven times or more on their Amazon Advertising initiatives, up from 47% of last year. Furthermore, 39% of brands saw revenue of more than four times to seven times. More and more brands are moving towards Amazon Advertising. You must make sure that you adopt the correct business strategies to take benefit of this platform.

3) Rigorous Competition Ignites Ad Spending

Amazon Advertising has become a huge platform as many brands are taking its services to promote their business and, in turn, are getting huge profits. Feedvisor report found out that 59% of brands are spending $60,000 monthly on Amazon Advertising, which has increased from 38% of last year. Moreover, 35% of brands spend between $61,000 and $80,000 per month. Because of high competition in the business world, people are spending as much as they can to generate revenues as much as they can. Amazon got $13 billion in e-commerce channel and revenue last year, so it is clear that monthly advertising spending is expected to increase this year.

4) Amazon Has Diverse Options to Choose From

Many brands have found success in their business by switching towards Amazon Advertising. They claim that without this platform, their brand would not have reached the heights where it is today.

According to a report, of all the brands that advertise on Amazon, 21% are 1P, 19% are 3P brands, while hybrid brands are 60%. Amazon Advertising platform is giving all kinds of brands the ability to grow their business. Along with that, it is also helping the brands to be known better in the masses.

5) Pay-to-Play Advertising Model Brings Immense Value

Many brands are interested in investing in the pay-to-play model of Amazon Advertising as it generates great revenues. A total of 64% of brands have said that Amazon customer acquisition cost is higher than that on other platforms, up from 55% last year. Moreover, 27% of users said that Amazon’s customer acquisition cost is the same as other platforms, while 10% claimed that it is the same as other platforms. While the cost per customer acquisition is higher on Amazon, still 100% of brands said that they feel there is some value in Amazon Advertising, up from 98% last year.

Related: What to Sell on Amazon

6) Amazon’s Full-Funnel Transformation

Amazon is a powerful platform that allows the customers to notice the products of buyers. It is a full-funnel platform that reaches people at any stage in their purchasing journey.

The latest report has stated that brands see the value of advertising in many different ways. 68% of brands claimed that they used this platform to drive brand awareness among people. 65% said that they use advertising to gather new customers, while 60% said that they use it to enhance their sales and create more profits. The services that Amazon Advertising is offering can be used in a variety of ways from top to bottom of the funnel.

7) The Elevated Usage Amazon Demand Side Platform

As far as 2020 is concerned, due to covid-19, many people started using Amazon DSP as a source of increasing their advertising technique. A total of 26% of more brands started using Amazon DSP as compared to the last year. 51% of brands on Amazon cited Amazon DSP as creating the greatest return on ad spend. You must expect the brands to use the Amazon DSP in the future as Amazon is expanding its offerings in this arena.

8) The Return on Ad Spend is Higher

Brands have found all the ad types of Amazon really useful. But the Amazon-sponsored product ads have seen an exponential rise in sales as surveyed in a new report. 56% of brands claim that sponsored products generate huge RoAS. Sponsored brands come at the second position while Sponsored display comes at third. As this is a great technique to increase the business, brands must move towards sponsored product ads.

9) Higher Return on Investment Through Mobile Ads

Mobiles are used by billions of people, and mobile ads are a great way to promote businesses. 63% of brands have said that mobile ads drive more ROI, followed by desktop and video. The revenues from mobile ads are expected to increase in the near future.

10) Brands are Advertising More Strategically

Due to high competition, brands are advertising more strategically. 30% of brands on Amazon advertise strategically and consistently throughout the year. Advertising in this way generates great revenues.

Related: How to Sell on Amazon

Wrapping Up!

These are some top trends of Amazon advertising that will bring higher revenues and lucrative benefits for brands. If you, too, are planning to start your Amazon business, you should take into account these trends to get the most out of it.

 

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