Amazon fuels growth with new ad formats

Retail media, advertising on e-commerce sites, is a fast-growing market that largely benefits Amazon. Advertising has become an important source of revenue for the group, which is facing the slowdown in the growth of e-commerce. In the third quarter of 2022, Amazon reported advertising revenue up 25% year-on-year to $9.5 billion, as the advertising market suffers from lower spending due to the crisis, and while that the group’s total turnover increased by 15% over one year. That’s more than the $8.9 billion in revenue from its Prime subscriptions.

New video formats

In this context, Amazon announced on October 26 the launch of new advertising formats. The site will focus on video ads, deemed the most effective in triggering purchases. Three new solutions will make their appearance: the programming of video campaigns targeted in context or by audience, a tool for creating free beta advertising videos based on ready-to-use customizable templates, and a directory of creation offers advertising videos. Video advertisements, in an online sales context, make it possible, for example, to stage demonstrations, unboxings or customer testimonials.

Our goal is to make it as easy as possible to create and distribute video content and bring the power of video advertising to more brands, regardless of size or level of resources.”explains St├ęphane Grenier, general manager of Amazon Ads France, in a press release.

Several solutions currently available in the United States

Other announcements concern the optimization of campaign performance. Amazon Ads will launch in November in ten countries, including France, a new recommendation tool (keywords, suggested bids, etc.) for sponsored product campaigns.

Amazon is also extending access to its advertising space outside its site. In the United States, advertisers who do not sell on Amazon, such as restaurants or sports clubs, will be able to advertise on Twitch. Advertisers will also be able to use the media buying management console to buy space in Amazon Fresh supermarkets.

Finally, a service allowing brands to offer coupons to customers who click on their ads and purchase the featured product will soon be available in the US in closed beta. This kind of call to action is already in use on Twitch.

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