Amazon Advertising gets new branding

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Amazon have rebranded all of their advertising platforms to bring them together under the new Amazon Advertising banner. Amazon Advertising will replace Amazon Media Group, Amazon Marketing Services (AMS) and Amazon Advertising Platform (AAP).

This is significant and we’ve been predicting for some time that Advertising is becoming increasingly important to Amazon and it is partly potential revenue from Amazon Advertising that saw the company breach the $1 trillion valuation earlier this week.

Amazon Advertising is aiming to be a one stop shop for ads on and off Amazon. It now includes Sponsored Ads, Display Ads, Video Ads, Stores, Measurement across Amazon and on third-party sites and apps and Amazon Demand-Side Platform (DSP).

Sponsored Ads, Display Ads and Video Ads are established routine ways of attracting customer on Amazon. Stores allow you to create your own website, with its own branded URL, on Amazon. You can use it to showcase your brand story and product portfolio in a curated customer destination. And Measurement has already seen recent developments. These are the Amazon Advertising products of most interest to Amazon merchants.

Where the real interest for investors will be is Amazon DSP which is designed for larger retailers and brands and their marketing agencies. Amazon DSP allows advertisers to programmatically reach their audience both on Amazon sites and apps as well as through Amazon publishing partners and third-party exchanges. It’s this off-Amazon advertising that will compete head on with the likes of Google and Microsoft that will see Amazon Advertising revenues soar. Amazon’s unique advantage is that they have the products for sale along with their service reputation. When a consumers sees an ad on Google they have to research the retailer and determine if they’re happy to purchase – with Amazon DSP consumers will already trust Amazon to deliver and cover their purchase with the Amazon A-Z guarantee.

With DSP, Amazon use both their own and third-party solutions, from manual site reviews to real-time bid evaluation, to uphold quality standards and brand safety. Amazon don’t want the issues Google currently face with brand adverts appearing against dubious video content.

Advertisers can choose to manage their campaigns by working with Amazon’s campaign management services or managing their own ad purchasing.

Amazon Advertising revenues have sky rocketed to a $2 billion plus profit per quarter business. Having already turned $4.225 billion profit in the first half of 2018, it would be reasonable to see $10 to $12 billion profits from Amazon Advertising for the full year.

Amazon Advertising Revenue Q2 2018

One Response

  1. Advertising is where Amazon will make the majority of its profit with margins possibly as high %60.

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