Share:
POST
TWEET
SHARE
SHARE
EMAIL

Amazon Advertising drives sales growth outside of Amazon

By Sasha Fedorenko July 5, 2019 - 2:19 pm

Amazon Advertising is driving sales growth outside of Amazon, impacting brick-and-mortar stores ROI, says new The New Omnichannel: Clicks, Bricks and Everything in Between by Analytic Partners.

The analysis says Amazon display ads generate 70-90% of the sales influx across sellers’ physical stores. Advertising on Amazon creates a ripple effect outside of the platform, generating omnichannel conversions. That is, if a seller has both an Amazon storefront and physical store, the majority of sales from display ads will bring sales to their bricks-and-mortar store.

When it comes to Amazon search, sellers who use Amazon advertising see a 10-60% sales growth off-Amazon. The report attributes the phenomenon to the increasing use of Amazon as a comparison site. This sees shoppers researching a product, price comparing it with similar options and then visiting the sellers’ websites to make a purchase.

Understanding the relative ROI impact of various advertising service features is crucial as more money is spent on them. There is no ‘silver bullet’ for how to allocate Amazon spend, as levels are very dependent on business priorities and competitive actions. Merchants need to take a test and learn. That is, continuously review and update their advertising strategy.

Amazon are always changing, costs are constantly in flux, and what works today may not be the same tomorrow, which makes it important to understand not only what works but why it works. Understanding the impact and relative cost to establish ROI is crucial as more money is being spent on these new tactics.

Have your say

View our Comment Policy

Featured in this article from the Tamebay Guide – companies that can help you grow and manage your business.

Amazon

Amazon started as online book store and has grown to be the worlds largest online retailer.

See More Companies >

Recent Comments

3 hours ago
Alan Paterson: @ dav, well at least you acknowledge I am right and everyone else is wrong....
3 hours ago
Alan Paterson: @ jim, I think Dav got dropped on his head when he was young. is...
5 hours ago
Seamus Breslin: A massive congrats to Brad and Rob, and all the team at Rarewaves—from all the...
7 hours ago
jim: soDAV whats your agenda, what do you wish for, what would you have happen ebay to...