It’s an important story in particular because it’s an under-told story. But even more so, it’s important because it opens up a much larger conversation.
This is not simply a Google vs Amazon, or even a duopoly vs Amazon discussion.
Sure, substantial product search marketing dollars have migrated from Google to Amazon, with projections for even more. However, brand marketers are not the only ones taking advantage of search advertising on Amazon. Who else is leveraging Amazon in a new and big way?
Sales and account teams.
Sales and account teams deploy ad spend via trade or shopper marketing to improve the shopper experience to increase sales of their products, typically in brick and mortar retail environments.
As consumer shopping habits have shifted online, trade and shopper marketing has followed. So while brand managers view Amazon Advertising as way to get their products and branding in front of more consumers, the sales teams see Amazon as a digital retail shelf, and recognize the role that search advertising plays in the placement of their products on these “shelves.”
Most importantly, this represents an entirely separate bucket of funds than your traditional brand dollars.
For trade and shopper marketers, being able to optimize showing the right products to the right people is invaluable. This is the part of the pie that has largely been overlooked in conversations about Amazon’s product search marketing business. No one has talked about them because, put simply, these dollars typically go from brands directly to retailers.
Few people have a real tight grasp on just how large global trade and shopper marketing spend is – hundreds of billions of dollars spent annually – and just how much of that is shifting toward the Amazon digital marketing retail shelf.
So, it’s not just dollars flowing from Google to Amazon. There’s a wave of dollars flowing from retailers to Amazon. It’s this combination of budget sources that positions Amazon advertising so well to continue to grow in the way that we’ve seen in the last year.
And it’s worth noting vis-a-vis the Google vs Amazon narrative Michelle and others perpetuate – these retailer global trade shopper marketing dollars are budgets Google has never and will never be considered for.
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