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How will Amazon Ad Network Affect Digital Marketers

Amazon's Ad Network

Amazon is bolstering its ad network on the Internet with renewed vigor in order to give the industry veterans like Google a run for their money. Amazon recently manifested its serious intent to be a big player in the online advertising arena with the takeover of Twitch, a video game live-streaming site for almost a billion dollars! Learn more here about why Amazon paid such a hefty price for Twitch.

The Amazon ad network is not just a list but it is much more than that. Amazon has a massive database of consumer shopping patterns on the Internet and marketers can use this to their advantage for targeting ads to the specific consumer group in order to make the maximum impact. Retargeting is a marketing idea that really caught the fancy of marketers in 2014. But the problem with retargeting is that you need to get the consumer to visit the appropriate site before you can remarket to him/her.

The novel idea here is to pre-target the consumer by using massive Amazon algorithms which predict consumer buying and activity patterns and gives you important metrics on who might be open to evaluating your product. Now Amazon here has an edge over Google, since Amazon is basically a consumer-oriented company and hence they have better leverage over consumer buying behavior. It's the next wave of advertising which digital marketers are waiting with bated breath that is not just about people searching for products but introducing people to products.

The amount of data that Amazon has is staggering. Currently it uses this to its advantage to improve conversion rates on its site. "Conversions are our key metric" - is a quote from Amazon's 2013 annual report. Now this speaks volumes about the amount of data that digital marketers can lay their hands on in order to achieve better conversion rates, as well. Marketers can take comfort in the fact that hitherto unheard levels of targeting can be achieved just by partnering with Amazon. Consumer data is the holy grail of marketers and currently Amazon is sitting on a mother lode of such data on the Internet. Thus Amazon with its deep pockets can change the game for good, forever.

Team Position²

Position2 is an innovative digital marketing agency that accelerates demand through integrated Content Marketing, Paid Acquisition, and Marketing Technology solutions. Our demand acceleration solutions map the buyer's journey across multiple touch points such as search, social, mobile, media, and email. These integrated campaigns are powered by cutting-edge content creation, digital advertising, web design/development, marketing automation, and analytics. We serve hundreds of clients ranging from VC funded startups to Fortune 500 multinational firms. Our 200-member team is based in Silicon Valley and Bangalore and consists of marketing gurus, engineers, data scientists, writers, and designers. Founded in 2006, Position2 is backed by Accel Partners.