COVID-19 has accelerated adoption of Amazon Advertising, with 41 per cent of brands saying the platform was among the new strategies they had deployed during the pandemic, according to Feedvisor, the artificial intelligence (AI)-powered optimisation and intelligence platform for brands and large sellers on Amazon, which recently revealed its third annual brand survey.

Currently, 88 per cent of brands use Amazon’s advertising platform, up 21 per cent from last year. Over three-quarters (78%) are currently selling on the platform, up from 55% last year.

The survey analysed over 1,000 US brands and their unique relationships with Amazon and e-marketplaces.

Twenty six per cent more brands are leveraging Amazon Demand-Side Platform (DSP) compared with last year, indicating brands’ growing awareness of the platform’s critical role in upper- and lower-funnel campaigns to reach shoppers on and off Amazon, the company said in a press release.

Additionally, brands are increasing their investment in Amazon Advertising; 59 per cent spend over $60,000 monthly compared with 38 per cent who did so last year.

Half of brands see at least a seven-fold return on Amazon Advertising.

As such, 57 per cent of brands on Amazon leverage additional e-marketplaces aside from Amazon to build brand awareness, up from 50 per cent last year, followed by driving sales (52 per cent) and product liquidation (43 per cent).

Channel diversity is the key for brand preservation. Nearly three-quarters of brands are currently advertising on Walmart, with 48 per cent spending at least $60,000 monthly. In addition, 87 per cent of brands plan to increase their advertising spend on Walmart in 2021, with 68 per cent planning to increase their spend by up to 50 per cent.

Fifty-three per cent of brands believe e-marketplaces are their greatest source of opportunity in 2021, up from 43 per cent last year.

Emerging marketplaces such as Google, Target, Instacart and Kroger are earning a growing share of brands’ e-commerce presence; 27 per cent of brands said they would consider expanding to Google Shopping and 21 per cent said they would consider expanding to Kroger.

Fibre2Fashion News Desk (DS)

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