Gauging The Impact Of Advertising On Amazon

  • 07/13/2019 12:00 AM
  • Source: Forbes
Gauging The Impact Of Advertising On Amazon
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When we make a mental list of media organizations, Amazon probably doesn’t come to mind. But it’s actually the third largest digital advertising company, and analysts expect media revenues to be a significant source of future growth.

For a closer look at Amazon as a media organization, I recently asked Mike Menkes, SVP, Analytic Partners, to help us better understand what’s at stake for marketers.

Paul Talbot: What’s the significance of paid search on Amazon for retailers?

Mike Menkes: Paid search serves as a great mechanism to help drive awareness and reach with in-market shoppers who are ready to convert. Search often influences consumers as they are shopping around and checking prices and reviews.

While the growth and presence of Amazon has been extremely significant for retailers – Amazon has disrupted many retail businesses in so many ways – Amazon’s paid search role is more likely to influence what product is purchased, not necessarily incremental switching across retailers.
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