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.
