Posted June 5, 2013 7:59 am by with 3 comments

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Amazon is the world’s shopping place. You can buy most anything and feel like you are not getting scammed in any way so the online world (consumers that is) sees Amazon as one of the good guys. Maybe even THE good guy.

As a result it looks like marketers are seeing the benefit of advertising on Amazon. That is evidenced by their continued ad revenue growth. eMarketer predicts that the growth will continue as it rapidly approaches the $1 billion per year mark (eMarketer predicts that the US market alone (which last year was the source of about 74% of the company’s ad revenue) will get to about $1.1 billion in 2015).

Amazon Net Ad Revenue 2011-2013

So what is the source of all this ad revenue?

eMarketer estimates the bulk of Amazon’s ad revenues come from ads placed in or near search results that appear when a person searches Amazon for a product. The company also earns substantial revenues from display ads served on Amazon-owned sites and through its ad network.

We spend a lot of time talking about Google AdWords and advertising on social media outlets but wouldn’t it make sense (for the right products, of course) to be advertising where people are most certainly buying?

Amazon has already developed its targeting technology, along with creating its own demand-side platform (DSP) to improve targeting of Amazon buyers on other web properties and devices like Kindles—something that may help position them as a more attractive site for both brand and direct response advertisers.

With ad dollars being more and more precious and advertisers demanding more and more accountability for attribution to the bottom line, it seems Amazon is a smart choice for the right advertisers. What do you think?

  • Erica F

    Amazon can be a good choice for advertisers looking to place contextually-relevant ads alongside similar Amazon products, but currently amazon is only allowing advertisers to place Product Ads in certain categories. Notably, categories such as Apparel & Footwear have been closed to new advertisers for years.

    From Amz: Open
    categories are: Baby, Computers, Electronics, Health and Beauty,
    Home, Home Improvement, Musical Instruments, Office, Pet
    Supplies, Sports, Toys

  • Heaven Jelo

    Interesting post.. I totally agree what Erica said here.. Thanks for sharing..


  • I think its the best choice as many marketers are benefited by advertising on amazon. Amazon has huge traffic and if we advertise in it their are chances for redirecting those traffic towards our site.