The Rundown: Amazon Steps Up Courtesy in Branded Advertising Dollars at Unboxed
As it continues to seek money from brand advertisers, Amazon will try to act more like a social network while continuing to think like a market.
The e-commerce giant today announced a series of new additions to its advertising ecosystem at Unboxed, the company’s third annual advertising conference. Many of the changes appear to be explicitly intended to help advertisers who focus on brand awareness or consideration, rather than just sales.
The key details:
- The company launched Brand Metrics, a âself-service measurement solutionâ that allows advertisers to track how many people are considering their brand and how they stack up against their competition. It also launched a brand lift tool that allows marketers to create studies within Amazon DSP and then send them to a panel of Amazon buyers who have subscribed.
- Amazon is also expanding the availability of its cloud marketing to all of its DSP customers. These customers now have the option of uploading pseudonymized datasets to query along with Amazon’s ad campaign data, using custom queries, or choosing from a library of queries that Amazon provides to DSP users.
- The Unboxed ad included several ad formats that could help performance marketers as well, including more interactive ads. For example, customers who hear an advertisement on Amazon Music through any Alexa-enabled device can request the assistant software to send them more information about the advertised product; Customers who see an ad on IMDBtv through Fire TV can now ask Amazon to send them more information.
- Advertisers can now also purchase sponsored display ads from Twitch live broadcasts.
Look for signs of trust
Most of the changes Amazon has made appear to be designed to increase customer engagement with ads and brands.
In addition to the new advertising products, Amazon’s announcement also included a new promotion for its “follow” button, which Amazon began testing about six months ago in the United States. may also have offers for subscribers presented to them on the Amazon homepage. Amazon said there are 20 million tracking relationships in place within its ecosystem; in 2019, more than 2 million brands were selling on Amazon, according to Marketplace Pulse.
While Amazon will need more people to start following brands, this potentially resolves issues that many types of advertisers have long had with Amazon as a marketplace. âWhat Amazon does really well is lower the cost of acquiring customers, but their lifetime value is excruciating,â said Ryan Flannagan, CEO of Nuanced Media, a performance-driven media agency. âPlaying with that stuff could improve that. “
If the subscriber features and the number of subscribers become more visible within Amazon over time, this should help customers and advertisers start to think differently about brands within the platform.
âThey overlap with these branding metrics because they also want another indicator of credibility,â Flannagan said. “At present, [shopping on] Amazon is a pricing game. If it becomes a branded game, that changes things.
The storefront of the future
Adding the follow button also opens the door for merchants and brands to start treating their storefronts differently. “This will allow them to treat Amazon stores like their websites,” said Peter Vasilakos, director of digital markets at Assembly. âThey opt for a social approach.
Amazon’s social media uptake sends it back in the direction that big tech platforms are going, albeit in the opposite direction, with Facebook, Instagram, and Pinterest all adding more native commerce opportunities, and big retailers, including Walmart, are looking to do more to grow their advertising ecosystems. âEverything turns into a market,â Vasilakos said.