Amazon is set to equal Facebook as a means of influencing consumer behaviour, and challenge Google in delivering customer understanding, writes NewBase’s global head of digital products.
Continued from Part One Here
Consumers already consider Amazon’s recommendations to be helpful, appropriate and natural. Done well, this will be a natural evolution and it offers the chance for brands to be weaned off the habitual retargeting of the same audience, which when repeated too often – as well we all know from experience – can be irritating and off-putting. It also helps to alleviate the dependence many brands have developed on Facebook when it comes to finding new consumers.
Amazon’s new self-serve platform, Advertiser Audiences, was rolled out earlier this summer, and is proving transformative in how brands seek out new audiences. Advertisers are able to anonymously match a list of their customers with Amazon shoppers and find “lookalike” targets that may be interested in, say, a specific type of shoe, but had not yet shown any intention of shopping for that item.
Beyond all this ad tech, Amazon also recognised that there was a gap in its brand offer, until recently some brands were reluctant to appear on the site as they did not have enough control over the experience, so it has just launched brand stores.
Amazon’s strength is plain to see, with hundreds of millions of active customers, and as it’s a buying environment, this is what will drive brands to invest with Amazon. However, Amazon won’t be the best home for all ad dollars; it’s not geared towards creating a brand, marketers with highly limited adspend will be better off using other tactics to establish and build a brand.
Over the next five years Amazon will be a significant advertising player – even more so if it launches its own phone; a real game-changer for accessing customer data and usage habits – and will probably come to equal Facebook in terms of both its targeting ability and as a platform to influence consumer behaviour. However, it’s not a zero sum game; it’s likely to be new spend that targets Amazon rather than moved from Google or Facebook.
For marketers, this rising opportunity can only be a good thing. Google and Facebook will remain vitally important components of most digital media strategies, and their influence in the industry will remain great. However, with Amazon emerging as a third force, the dependency on those two players will be diminished – allowing brands to develop more sophisticated and more influential marketing campaigns.
Andy Vogel is global head of digital products at NewBase
Read more at http://www.campaignlive.co.uk/article/why-brands-will-welcome-amazons-challenge-google-facebook/1442001#UJBRFSZSZsMCdlPW.99