The Pros and Cons Of Advertising on Amazon

Advertising

When you think of online shopping, Amazon Advertising is up there with who you first think of and where you go to get what you need fast. Whilst Google is unmatched when it comes to B2B, in recent years, for B2C purchases, Amazon is proving it’s the place to be.

A survey conducted way back when in 2016 of two thousand consumers found that 55% of people started their online shopping searches straight on Amazon, skipping Google altogether. So if you are an eCommerce brand or a digital marketing agency, you can’t ignore Amazon.

In this article, we are going to break down the pros and cons of advertising through Amazon.

Pro: Its size for Advertising!

Amazon is huge, and as it stands currently, 51.5% of all online purchases are made on Amazon. So the potential for you to reach your target audience is immense, so as mentioned, as a B2C marketer, you can’t afford to not sell on Amazon.

Not only is there a big audience, but the audience itself is of a high quality, as if you are a user searching on Amazon for a product, you are further along the sales funnel than someone searching on Google. This means that they are of a buying mindset, your job as the marketer is now easier as you are advertising to someone willing to purchase.

At the same time, however, this is one of the cons of advertising on Amazon. As whilst the consumer population is large and vast, all of your biggest competitors are also there and then some.

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All vendors are competing for the same audience. The way the site is formulated will show several options or variations of the same products, so you must ensure you emphasise your social awareness, customer reviews and ratings to stand out from the competition.

Pro: The Focus Is On The Quality Of The Product

When advertising on Amazon as a new E-Commerce vendor with not a big following, Amazon ignores your status and Domain authority, unlike Google. As a smaller independent business, this allows a level playing field for you to compete with well-established sellers.

As a bonus, the more sales and positive feedback a product gets, the higher it ranks organically, so brands often find that they can spend less on Amazon advertising in the long run as their product speaks for itself.

The reviews of the product are the defining factor for the customer’s sales journey, as they have already come to amazon with the intention of buying, they are now comparing which product will perform best.

Therefore, the reviews on Amazon play a key role in a customers’ decision; reviews are sometimes overlooked when advertising on Google, meaning that high-quality products go unnoticed but not with Amazon.

Pro: The Scope Of Its Audience

One of the ultimate pros of advertising on Amazon is its scope. Being an internationally trusted brand, Amazon gives businesses the chance to expand their offerings into different markets globally. It allows your business to find new potential buyers anywhere in the world looking to buy from a UK based seller.

Con: The Competition

As mentioned, whilst the vast size of the audience is a good thing, once you decide to advertise on Amazon, you need to ensure that each ad is fully optimised at all levels to ensure that you maximise the opportunity of its large customer base. This is essential to standing out from your competitors; otherwise, your ads could just get lost.

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Con: Rising Costs of Advertising

One of the most significant negative points about advertising on Amazon is the rising cost of advertising.

Amazon is seemingly continuing to grow at a fast rate as in some stats published in a recent report: Sponsored products CPCs are rising 25-50% year-over-year depending on the vertical, while traffic is growing 30% year-over-year. This means that it is increasingly competitive and expensive to advertise on Amazon if you don’t get in early.

If still unsure whether Amazon is right for your business or need assistance with how to best advertise on Amazon and everything relating to setting up your ads on Amazon.

Reach out to us to a digital marketing agency. They will be happy to help and have industry experts who can best advise you on all your digital marketing needs.

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