An Inside Look at Amazon’s Emerging Advertising Strategy | Spin Creative
An Inside Look at Amazon’s Emerging Advertising Strategy
Sep 2017 25

Amazon is taking the next step in ramping up its advertising pitch to ad agencies and to brands directly. The company’s self-serve programmatic advertising options have increased so that agencies are now allowed to purchase ads by themselves through Amazon Media Group. Other AMG offerings have been extended to third-party sellers.

Amazon has also put a lot of effort into expanding its sales team. The growth rate for the ad sales team is actually currently faster than the headcount growth in any of the other Amazon business unites, which average a 42 percent annual growth already. This is an extremely fast rate of growth, especially in software engineers and sales teams who primarily support advertising and Amazon Web Services.

One of the primary reasons the sales team is growing so fast is that Amazon is constantly working on brand new advertising innovations for businesses to play with. The most recent service introduced by Amazon is its Advertiser Audiences platform, a type of self-serve offering in which brands upload their CRM lists to make the audience matching process easier. It helps brands reach out to existing customers, as well as new customers that are “lookalikes” to those existing customers.

Creating an Advertiser Audiences customer list segment is a relatively simple process:

  1. You build up a list of at least 20,000 email addresses, and save it as a .txt file.
  2. You submit the list to Advertiser Audiences to hash (your browser will hash the file before you upload) OR you can hash the list yourself using SHA-256.
  3. Your hashed file is then matched with lists of hashed Amazon customer email addresses.
  4. Your matched records become your Advertiser Audiences segment, and your unmatched records are removed.

The early evidence that has arisen out of this service is that lookalike customers are four times more likely to make a purchase than other customers, indicating Advertiser Audiences will be a crucial tool for advertisers on Amazon moving forward.

Other results from the early testing included five to 10 percent cost savings for businesses focusing on new customers, a doubled click-through rate, a four to eight times greater purchase rate and a 100 to 700 percent ROAS lift over campaign averages.

To learn more about Advertiser Audiences and the various advertising opportunities that exist on Amazon, contact us today at Spin Creative.

 

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