In one of the latest analyzes of the advertising market in the United States and the distribution of advertising spend, analysts noted a trend. The duopoly was giving way to the tripolio : Amazon was getting stronger and stronger in the internet advertising market and was assuming a greater weight.
He was taking a bigger and bigger piece of the pie. The numbers helped to see it. Half of the entire US advertising market (taking into account all the investment) went to those Google (the big winner), Facebook and Amazon.
To this, you would have to add your own ad numbers on Amazon to see this change in trend and that is what a recent study has done. From the outset, the number of ads has skyrocketed.
AdExchanger accounts allow us to conclude that practically half of what you see are ads (it is important to note that they work by analyzing Amazon.com). In the last three years, they point out, based on data from the Amazon Brand Index of the Momentum Commerce agency, the ads The Amazon Product Sponsored have gone from less than 20% of the major product search results to become 40%.
The top results are the top 10 products the consumer sees. Using any search to see what happens on Amazon.com shows a certain parallel. Looking for towels with a logged account, the first thing you see is a sponsored space of a brand, then a “featured product of our brands” accompanied by three sponsored results and then four results that seem organic.
Returning to the data from AdExchanger , agencies are beginning to point out that now, even for the most powerful brands, it is more difficult to position itself, if it is not paid, among the outstanding results.
“An organically strong brand used to be enough to show up at the top of the page for relevant searches,” explains Scott Kennedy, director of e-commerce and digital marketing for a sports equestrian brand. “Now it is possible, even probable, that for a competitive search term, the first organic product is far below,” he adds.
Advertising has doubled
Amazon has broadly doubled the average number of sponsored products it shows in search results. Even so, not everything is the same. Some categories are still below 20% (in the .com version it happens with frozen food) and others are already above 60%. The industry does not believe that things are going to change and they believe that this will be the future trend.
There will be more and more ads and the categories that currently have lighter loads will grow more and more. This will not happen only at Amazon.com, but it will be a general trend wherever Amazon operates.
Where the ads disappear among the featured products is because, they explain in the analysis of AdExchanger , some brand has found a way to do it. If you search Adidas, there are almost no sponsored products in the top 10 products. They don’t because Adidas pays to have a showcase and their products sneak in there organically.
An Amazon problem?An internet problem
The interesting thing – and the worrying thing for marketers – is that the situation is not unique to Amazon, but it is beginning to become the dominant trend in what product results it touches and in what ecommerce corresponds. As they point out in the analysis of the American medium, it is a painful trend for brands, but one that is general to the internet.
In Google, for example, the figures that the industry gives to AdExchanger say that in the first 10 products that appear in searches related to purchases, 90% are paid. In the US, Walmart and Target still have a lower advertising load (at Walmart they are between 10 and 15%), but time after time because they are also boosting their advertising business. After all, and this is a global trend, everyone wants to sell advertising .