Study Reveals – 42% of Amazon Ad Spend Goes to Brand Awareness

Brief

  • In the third quarter of 2019, Ad spend through Amazon's DSP went up 30% compared to Q2's 27% increase. Brands leveraged the ability to target on Amazon web properties according to a report from Tinuiti. 32% of ad spend through Amazon's DSP went to properties not owned by Amazon, in Q3.
  • The cost of ads went up as CPM increased 15% from Q2's 5%. 2019's Tinuiti Amazon Ads Benchmark report showed that ad spend on sponsored products went up 30% in the U.S and 50% for international campaigns. Revenue from those products increased 30% while clicks went up 18% and CPC, 10%.
  • 42% of ad spend was allocated to brand awareness, an increase from Q1's 26%. Most of the Amazon DSP ad spend is dedicated to purchase-focused campaigns.

Insight

The report displays Amazon's continued momentum as an ad platform that drives awareness and sales. 32% of Amazon DSP spend is allocated to sites not controlled by the company, and this shows how advertisers can use the platform to reach online customers like they would use Facebook or Google. The increase in brand awareness spend points to brands beginning to accept Amazon advertising.

According to the report, Amazon is competing against Facebook and Google for a share of the digital ads market. Earlier in the year, the company acquired DCO solution and Sizmek's ad server, as part of a move to better serve online ad campaigns on the back end. Amazon is expected to take a bigger spend share for search ads even if Google still dominates the market.

The eCommerce giant is looking for other ways to improve its blossoming ad business. During Q2, the company published a report and debuted a website to help small businesses to sell their products in Amazon's stores.

The company recently ranked number three on Interbrand's 'world most valuable brands' listing and saw a 24% increase on the list. This ranking shows how important the company has become to consumers, and marketers need to pay attention to this as they try to drive engagement.

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