This overlooked Amazon business is growing faster than its retail, cloud computing and Prime – Financial Post

We still expect solid, if not strong growth, by traditional standards for Google in both 2020 and 2021 but increasingly Amazon is eating into that growth.

Amazon is becoming more and more a pay-to-play platform. Unless you're willing to invest in their advertising platforms, it's much more difficult to compete

Mitchell Bailey, Kaspien

Amazon offers advertisers data that is irresistible: a closed loop that shows them how effective every dollar they spend is, and more than two decades of insight on the actual buying habits of consumers, rather than just their web-browsing habits.

I can understand better the value of $1 spent on Amazon because I can literally see the transaction, said Eric Heller, who runs the Amazon Center of Excellence at WPP, the worlds largest ad agency, which advises on how best to use Amazons platform.

Heller noted several studies had shown that people were increasingly searching for things to buy directly on Amazon, rather than on Google. For marketers, Heller said, it was the difference in reaching the person searching for athletes foot cream rather than why does my foot hurt?

The vast majority of Amazons advertising revenue is driven by this behaviour, with advertisers bidding to gain prominent spots as sponsored listings at the top of product search results, capturing the attention of the more than 200 million unique visitors to Amazon sites every month.

According to JungleScout, which provides management software to third-party sellers, the most coveted searches, such as noise-cancelling headphones, can sometimes be sold for in excess of US$7 per click a fee paid regardless of whether or not the customer goes on to buy the product.

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This overlooked Amazon business is growing faster than its retail, cloud computing and Prime - Financial Post