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2022022ReportAmazonAdvertisingnchmarks%%TheAgeofAmazonAdvertisingAnunparalleledsurgeinbrandsadvertisingonthistrendwilllikelycontinuetogrowasmoreandmorebrandscontinuetoadoptAmazonAdvertisingintotheirmarketingstrategies.Reachinga$41.75billionadrevenuetotalasofearly2022,Amazon’sever-expandingsuiteofadvertisingandmediaofferingsmeansbrandsandtheirtechnologypartnersmuststayontopofthelatesttrendsinordertopinpointandleveragenewopportunitiesforgrowth.1createdanunprecedentedcompetitivelandscapewithbrandslookingforstrategicwaystoincreasengtheemergingpotentialofWalmartConnectandothere-commerceadplatforms.BasedonasurveyofmorethanBasedonasurveyofmorethan1,000U.S.brands,ouradvertisingexpertsunpackthetoptrendsthatareshapingtheadvertisingandmedialandscapewithinretailande-commerce,revealinginsightsandbespoketraditionaldigitalchannelsandembracingpoint-of-purchaseplatformslikeAmazon,brandscannolongerignoretheseplatforms’powerfulabilitytoreachandconnectwithconsumersacrosseverystageoftheirshoppingjourney.aSpendAcrossChannelsAmazonGooglePaidsocialDisplay/programmaticeMarketer2022?FEEDVISOR?FEEDVISOR??FEEDVISOR?FEEDVISOR3TableofContentsBRANDSONAMAZON4WHATSAHEAD13ThissurveywascommissionedbyFeedvisorandconductedbyZogbyAnalytics,anationallyandinternationallyrespectedopinionresearchfirm,onbehalfofFeedvisor.ItwasdistributedonlinefromJan.24,2022,toMarch4,2022,amonganationalsampleof1,000+retailbusinessdecision-makers.Resultsfromthefullsurveyarebasedonaconfidenceintervalof95%andhaveamarginoferrorofplusorminus3.1percentagepoints.Allnumbershavebeenroundedtothenearestpercent.453%ofbrandsadvertisingonAmazonseeanaveragereturnof7x’sormorecustomerservice,anddeepunderstandingofitsthere.Forthepasttenyears,Amazon’sadvertisingbusinesshasquietlygrowntobecomeoneofthemostsought-afteradvertisingopportunitiesbybrands,generatinganunprecedented$31.2billioninadvertisingrevenueinthelastyear.1ThisisthefirsttimethatAmazonhasreportedits’advertisingnueanditisalreadyoneofthefastestgrowingover-year.Inaddition,Amazonisprojectedtodrive77.7%ofallU.S.retailmediadigitaladspendthisAmazon’ssuccessisevidentnotonlyinarecord-breakingrevenuestreambutinpublicopinionwithAdvertising,up8%fromlastyear.toAdvertiseforReturns28%ofbrandsseethehighestmediaspendreturnfromAmazonediaSpend28%28%28%28%25%6%Display/programmaticOtherdigitalchannelsThiscomesasnosurprisesinceAmazonismorethanequippedtohandlethechallengeofreachingconsumersinrelevantplaces,evidencedbytheirnewadoptionsforadvertisersbothonandofftheirplatform.eMarketer,2021?FEEDVISOR?FEEDVISORzonadvertisingresultstothenextlevel?FEEDVISORthepowerofFeedvisor360.Learnmoreat/platformInfact,brandsnowinvestonaverage36%oftheiradvertisingspendonAmazoneachmonthwithofbrandsinvestingkamonthonAmazonAdvertising.Additionally,topbracketspendingonAmazonAdvertisinghasincreasedoverthepastyearwithoneinfivebrands(20%)nowspendingWhileadvertisingonAmazonishappeningallyear-round,43%ofbrandsconsistentlyadvertisethroughouttheyear.Brandsdecidingagainsttonahigherreturnazon$0-20K$21-40K$41-60K$61-80K$81-100K$100K+202020212022AcquiringNewCustomersisthePrimaryGoalforAdvertisingonAcquiringnewcustomersisthemostpopulargoal1234512345AcquiringnewcustomersbrandawarenesslesGainingmarketshareProtectbrandfromconquestingandhaveafullfunnelviewBrandschooseAmazontoacquirenewcustomersbecauseofitspopularityamongconsumers.Currently,92%ofconsumerssaytheyaremorelikelytobuyproductsfromAmazonthananyothere-commercesitewhile56%ofconsumerssaytheyvisitAmazondailyoratleastafewtimesaweek.3reasonsVastproductassortmentwithnear-limitlessinventoryfueledbyAmazon’sfulfillmentservice.Optimizedcheckoutwiththeirsingle-clickcheckoutprocessesandofferingsubscriptionsforhouseholdproducts.Unmatchedmembershipbenefitsincludingfreeexpeditedshipping,videostreaming,musicstreaming,eBookdownloads,andfreetrialsofotherAmazonservicestonameafew.AmazonhascreatedaconvenientandefficientshoppingexperiencethatisdifficulttomatchwithmorebrandsrecognizingthepowerofhavinganAmazonpresenceeMarketer,2021FeedvisorProprietaryResearch,2021?FEEDVISOREverExpandingAmazonAdvertisingArm44%ofbrandsnowuseAmazonvideoadsaspartoftheirstrategiesAmazoncontinuestoaddtoitsadvertisingsuiteandhasrecentlyintroducedvideoadstotheirever-92%oftheglobalpopulationwatchesdigitalvideoswithmostfittingintotheentertainmentbucket.(up16%inthelastyear)2givingampleopportunityforvisibility,itmakessensethatvideoadshavesurpassedallotheradtypesforthefirsttimeeverwith44%ofbrandsnowusingAmazonvideoadsaspartoftheirstrategies,andnearlyhalf(49%)planningoninvestinginvideoadsinthefuture.Videoadspendisalsoslatedtoaccountformorethanhalfofprogrammaticdisplayadspendingin2022forthefirsttimeintheU.S.withconnectedTVdrivingthisgrowth.3 44%VideoAds 41%Customadvertisingsolutions 40%AmazonDSPDisplayAds 39%SponsoredProducts 38%SponsoredDisplay 33%SponsoredBrands 24%AudioAds*Respondentscouldselectallthatapply.DataReportal1Limelight,2021eMarketer,2021?FEEDVISOR?FEEDVISOROtheradvertisingoptionsOtheradvertisingoptionsAmazonhasaddedorexpandedinthelastyearandahalfincludecustomadvertisingsolutionsandenhancedaudioads,bothcustomadvertisingsolutionsand24%usingaudiowith57%ofbrandsplanningtoinvestinthistypeofadvertisingmovingforward.40%ofbrandsuseAmazonDSPadsintheircampaignslutionsUsingAmazon’sCustomAdvertisingservice,brandscanbuildcampaignsthatengageconsumersthroughouttheentiremarketingfunnel,buildingbrandawareness,consider-ation,andconversion-whetherornottheycurrentlysellonAmazon.Someexamplesofcampaignsinclude:mentsCustomizeddestinationpagesOn-boxadvertisingMulti-channelcampaignsthatincludein-storedisplaysinAmazonstoresBrandsstillrecognizethepivotalroleAmazonDSPordemand-sideplatformadsplayincustomerjourneyswith40%usingthemintheircurrentcampaignsand51%planningoninvestinginDSPinthefuture.SponsoredProductsandDisplayadsarenolongerthetopadsofchoice,but39%ofbrandsstillusethemandsincebotharepartofAmazon’sCustomAdvertisingSolutionsoffering,theyarebeingusedmoreoftenthancapturedhere.?FEEDVISOROptimizeyouradvertisingwithFeedvisor?FEEDVISORat/platform44%ofBrandsThinkSponsoredProductsAdsDriveGreatestReturnsSponsoredProductsAdsremainacoreelementofAmazon’sadvertisingofferingandakeydriverofdiscoverabilityandgrowthontheplatform.ThisisdueinparttoAmazon’salgorithmsandimmensecustomerdata.Sponsoredcontenttraditionallyperformsbetterthannon-sponsoredsinceitcantargetcustomerswithspecificinterests,drivingexposureandconversions.AsoneofthemanyadvertisementoptionsAmazonofferstothosewhodonotcurrentlysellontheirplatform,brandsareseeingthevalueassociatedwithAmazonDSPwith40%sayingtheyseeingthegreatestreturnswiththisadtype.44%SponsoredProducts32%SponsoredBrands36%SponsoredDisplay40%AudioAds39%VideoAds39%Customadvertising?FEEDVISORBusinessInsider1?FEEDVISORStatista,2022eMarketer2021ROI,brandsoverwhelminglychosemobileat68%,chasingchannelofchoicewithretailm-commercesaleshitting$359.32billioninanincreaseof.2%over2020.1By2025,retailm-commercesalesshouldmorethandoubletoreach$728.28billionandaccountfor44.2%ofretaile-commercesalesintheU.S.marketershaveuppedtheirinvestmentsinthedigitaladformat,andmobileadspendin2021overyear.2ThistrendisexpectedtocontinueinthedeoDigitalDigitalAdFormatsWithHighestROI68%Desktop28%Connected22%ative22%Audio45%eo55%MobileTheTheDigitalFormattoWatchAudioadsareemergingasaviabledigitalformatwith11%ofbrandsseeingareturnoninvestmentand12%ofbrandsplanningoninvestingmoreinthisdigitalformatfor2022.TheaudioplatformswiththemostlistenersarecurrentlySpotifyandPandora,withAmazonandApplecatchingup.AmazonispredictedtosurpassPandorainlistenersbytheendof2022.3AmazonAdMeasurementToolsDriveImpactandMaximizePerformanceApple’sJohnSculleysaid“nogreatmarketingdecisionshaveeverbeenmadebyqualitativedata”.Tomeasureimpactandeffectiveness,quantitativedataornumbers,arethemostbeneficial.Itwouldappearbrandsagreeasmanyusesometoolforreportingandtrackingtheiradvertisingeffectiveness,withatleast37%usingAmazon’slatestanalyticssolution,AmazonMarketingCloud(AMC).LaunchedinOctober2021,theAMCisaholisticmeasurementandanalyticssolutioncurrentlyinbetaforeligibleadvertisers.Thegoalistohelpbrandsgainagreaterunderstandingofhowtheirmarketingperformsacrossmediachannelssuchassearch,display,video,andaudio.Thisinnovationcouldnothavecomeatabettertimesincetheeliminationofthird-partycookiesandshiftsinmobileidentifierswillmaketargetingtherightaudienceincreasinglydifficultwithagreaterneedforsuccessfulandinsightfulreportingandtrackingofcampaigns.impactandperformance?GoogleAnalytics4GoogleAnalyticsnnAdConsolesAmazonAmazonMarketingCloudrAmazonAttributionAmazonAttributionOtherAmazoninnovationsbrandsthinkproveeffectivefortrackingimpactandperformancendAmazonAttribution(34%),bothquicklyscalingincrediblyclosetopopularadvertisingperformancetoolslikeerTohelpdrivesalesandtraffictotheirproductlistingsandoptimizetheiradcampaignstoreachtherightaudiences,brandsmustleveragedeepAmazonexpertiseandsophisticatedtechnologyplatforms.?FEEDVISOR?FEEDVISORFORMANCEThePowerofImpressionsssionswithsayingthisisthemetricthatmattersmost.Brandarequicklybecomingthebiggestdecidingfactorsforconsumers’willingnesstomakeapurchase.Consumershaveanaturalinclinationtopurchasefrom“familiar”names,sothemorefasterthey’llrecognizeitasapotentialsolutiontoaproblem.Weexpectbrandawarenesstocontinuetogrowasmorebrandsconsiderthisafocalpointoftheirbrandingstrategies,especiallyonplatformsoutsideoftheirowne-commercewebsite.OtherAdvertisingMetricsClick-throughrate(41%)andreturnonadspendsfollowedcloselybycostperclick(39%),advertisingionrateCostperacquisitionalsoroseby2%showingthatbrandsarelookingtomatchtheiradperformancewiththeirbudgetasadvertisingcostsriseincertainchannelsandadtypes.AdMetricsBrandsFindImportantWhat’sAheadforAmazonAdvertisersditsfull-funnelofferingsareinvaluabletoolsforadaptingtothe“always-on”styleofretailingcommonwithconsumerstoday.PartofAmazon’sallureliesintheircustomerdatacollectionandanalysis,whichisconsideredtherichestsourceofuserdatacollectedbyanycompany.WhilethisdatahaspositionedAmazonasthenumberoneretailmedianetwork,gainingareputationforthemostaccurateandcustomizedsolutionsforbrandswishingtotargetspecificcustomers,it’salsogivenAmazoninsiderdatatofueltheirownenterprise.zebutalsotheincreasedcompetitionwithAmazonitself.For1pbrandsunabletocontroltheirpricing,roachtosellingasapbrandaswellispickingupsteam.Inthemonthsandyearsahead,thegrowingimportanceofadvertisingpairedwithrichdatatoinformexperienceswillbethedeterminingfactorinwhoconsumerschoosetopurchasefrom.BrandsonAmazonneedtoconsideraholisticapproachtogfull-funneladvertisingwiththefullviewoftheirbusinessoperationsincludingpricing,content,andinventorydata,successwillbeeasiertoobtain.Ontheconsumeradvertisingside,wecanexpectexperimentationwithdynamiccontentandmediainfluencerslivestreamingproductreviewsorshortvideos,tobecomethenewnorm.Infact,short-videoappsarealreadyfuelinggrowthinChina,wheree-commerceaccountsfor3.2%ofthecountry’sGDP,thisiscomparedto2.7%intheUS.1AccordingtoeMarketer,closeto75%ofUSmarketerswilltapinfluencersforcampaignsthisginfluenceoftheseewexperiencesNomatterwhattrendsarise,brandsshouldensuretheiradvertisingstrategiesarecontinuouslyfine-tunedandoptimized,withthebestpathtosuccessthroughanexperiencedpartnerwithaccesstorichdataincludingthecombinationo
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