How marketers can gain the most from Amazon advertising
A recent survey conducted by Bain & Company in association with Flipkart projected that India’s online consumer base would reach 350 million in the next 5 years. The report also reported that online penetration in e-retail industries is growing approximately 36 per cent every year. It is predicted that the most in-demand product categories will be fashion and footwear, general merchandise, electronics, and furniture, in that order. It is worth noting that similar findings were produced by a RedSeer report in 2019.
Intentwise is India’s first Amazon Advertising optimisation platform tech company, helping brands accelerate their growth on Amazon/ eCommerce. Amazon is the fastest-growing advertising channel in the US, with revenues of over $10 billion in 2019. As an AI-based technology platform, Intentwise is helping hundreds of brands worldwide optimize their Amazon advertising spend.
In conversation with Adgully, Raghu Kashyap, CTO & Co-founder, Intentwise, Speaks about how advertisers can gain the most from Amazon advertising.
Why is Amazon important in the e-commerce space? And what strategies should advertisers use for Amazon advertising?
Amazon is by far the biggest name in e-commerce today. Just look at the numbers. Research shows that most product searches start on Amazon. What’s more, according to eMarketer, Amazon made over $250 billion in US retail sales in 2018, which is nearly 50 per cent of all online retail spend in the country. Close to 200 million people visit Amazon every year and has 150 million+ Prime members. It has over 2.5 million active sellers on its marketplace and is continuing to expand geographically and category wise. Presence on Amazon is crucial for success for most brands today.
What should be the strategies for Amazon ads?
Amazon advertising is an essential component of driving growth. It is evolving rapidly and growing in terms of competitiveness and complexity. Brands require long term strategic focus to succeed with Amazon ads. As an advertiser, if you are in your early stages with Amazon, experiment rapidly, get expert guidance, and understand how you can make it work for your business.
If you are further along, invest in building internal expertise, develop an operating discipline for managing Amazon advertising. Investing in the right technology and data stack is essential. Having a continuous learning mindset, failing fast, and adopting what works is paramount.
How will Amazon advertising grow over the next few years?
Amazon’s ad revenue in 2019 was $14 billion, which is up about 40 per cent from 2018. COVID-19 has accelerated e-commerce. Combine that with Amazon introducing new ad formats for both endemic and non-endemic advertisers, and you have a recipe for massive growth. Also, note that advertising is growing in other marketplaces: Walmart, Wayfair, Target, etc.
How does Amazon rate against Facebook and Google when it comes to advertising?
Amazon recently moved to the third spot, right behind Google and Facebook, in terms of digital advertising revenue. Google’s ad revenue was $135 billion, and Facebook was around $65 billion in 2019. Amazon came in at $14 billion. So, clearly Amazon has a long way to go to catch up, but the gap is closing steadily. Moreover, traffic on Amazon has the highest purchase intent compared to the other two. From an ad format perspective, it’s a lot closer to Google in that search advertising is an essential component. Amazon is investing heavily in display advertising, just like Google did with Google Display Network (GDN). Many advertisers today invest in Facebook ads to drive traffic to their products on Amazon. Amazon is introducing attribution tools to help advertisers measure the impacts of ad spend outside of Amazon. We expect this interplay between ad channels to continue.
How can technology tools help brands win on Amazon?
The complexity of Amazon ads is continuing to grow, and so is the importance of the channel for brands. As a brand, you have to stay competitive on Amazon, and technology is a critical piece of that strategy. Technology plays a role in two ways: One, aggregating, analysing, and extracting insights from data. Two, simplifying day-to-day execution with automation.
How has Intentwise positioned itself to help brands/sellers and agencies?
Our goal is to simplify the lives of advertisers and help them compete effectively on Amazon. We have invested heavily in building a technology platform that simplifies the optimisation of Amazon advertising. Advertisers working with us have seen both improved advertising returns and savings on time and effort.
How is Intentwise different from many of the tool providers out there in the market and how has it positioned itself to help brands/ sellers and agencies?
If you ask our customers the same question today, they would say that Intentwise is the simplest platform to use and yet is extremely powerful. It is that balance we have struck that makes us different. At the core of our platform is a robust Machine Learning (ML) based recommendation engine that is continuously surfacing advertisers’ opportunities to act. We layer that with an extremely simple, intuitive user experience.
How can agencies take advantage of Intentwise’s technology platform to help grow their customers?
Agencies are an essential part of the advertising ecosystem. Agency needs tend to be unique. We help agencies through their entire customer lifecycle. We have capabilities that help agencies when they are prospecting for new clients. We also help them in delivering consistently high-quality results to their existing customers. Agencies can conduct content audits, share-of-voice audits, and advertising audits using our platform. The automation capabilities in our platform help agencies manage multiple accounts efficiently and at scale. We have made data accessibility a priority as well. Agencies can integrate advertising data into their internal BI tools such as Google Studio, Tableau or others via our public API. Agencies can access advertising performance data from anywhere anytime using our mobile apps.
What is Intentwise’s vision? Why is Intentwise bullish about India?
Our vision is to provide an intelligent e-commerce optimisation platform for brands and agencies in India. We want to help brands optimise their presence across all of the marketplaces. Over time we don’t just want to focus on advertising. We intend to enable all aspects of e-commerce.
E-commerce’s growth in India is there for us all to see. COVID-19 has accelerated this trend. In addition, we are going to see several Indian brands become global brands. We want to be the enablers of that growth.