The world of commerce is undergoing a significant shift, and Amazon is at the forefront of this change. While its retail and cloud computing segments remain crucial, the company’s advertising arm is emerging as its fastest-growing revenue generator.

In this post, we’ll delve into the impact that Amazon advertising can have on your business, as well as some of the ways we’ve been understanding the platform in 2024.

Boost Amazon Sales

The State of Amazon Advertising in 2024

At the tail end of 2023, the retail giant revealed that its estimated total revenue from Amazon advertising would be right around the $39.45 billion USD mark. This is a big deal because it makes Amazon a very competent competitor to the biggest ad revenue driver already out there — Google.

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Amazon’s advertising revenue has consistently outpaced its core businesses, which showcases its immense potential. This rapid growth tells us that Amazon’s advertising platform taps into its vast user base and intricate data insights to deliver targeted advertising solutions.

So how should sellers grow their own revenue through Amazon advertising? Excellent question. Let’s take a look.

Beyond Search Ads: Reaching Customers Everywhere They Are

Sure, search ads are a great way to get noticed when people are actively searching for something, but Amazon’s advertising toolbox goes way beyond that. It’s like having a whole army of options to reach potential customers, no matter where they are online.

Take a look at how Amazon Ads reach customers where they are.

1) Catchy Ads on Websites and Apps

Imagine people browsing their favorite websites or scrolling through apps, and bam! They see a master-crafted ad for your product. That’s the power of display ads. You can choose to have your ads appear on:

• Popular websites via retargeting: Get your product in front of a large audience by retargeting Amazon ads on websites that people already visit regularly.

• Mobile apps: Catch people’s attention while they’re on the go by showing your ads in relevant mobile apps.


• Targeted based on interests: Instead of showing your ads to everyone, you can target them to people who are interested in things similar to your product. This way, you know you’re reaching the right audience.

2) Engaging Videos that Grab Attention

Everyone loves a good video. Amazon’s video ads let you take advantage of this by:

• Reaching viewers on Amazon Prime Video and other streaming platforms: Show your video ads to people who are already relaxed and engaged with their favorite shows. Amazon gives sellers very robust targeting options to deliver ads to viewers of shows that match their target demographic.


• Going beyond Amazon: Expand your reach by placing your video ads on popular websites and apps outside of Amazon.


• Creating cool video content: There are different types of video ads you can create, like product demos, explainer videos or even short brand stories. The key is to make them interesting and engaging so people actually want to watch them.

3) Sneaking Your Products into Movies and Shows

This might sound crazy, but Amazon actually lets you place your products in the movies and shows they produce! It’s like product placement on steroids. Here’s how it works:

• Get remembered by viewers: People might not even realize they’re seeing your product, but it will be there in the background, reminding them of your brand.


• Reach specific audiences: Choose shows that your target audience is likely to watch, so you know you’re getting in front of the right people.


• Create a natural connection: By having your product appear in a relevant scene, it can create a positive association with the show and make people more interested in your brand.

When you use different advertising options together, you will inevitably create a well-rounded strategy that reaches people wherever they are online.

Key Takeaway: Remember, the best approach depends on your specific goals and target audience, so mix and match these methods to find what works best for you.

A Holding Company with Diverse Revenue Streams

While some argue that Amazon’s advertising dominance signifies a shift towards becoming solely an ad platform, it’s crucial to recognize the company’s multifaceted nature. Amazon remains a holding company encompassing various successful ventures, including its core retail business, the cloud computing giant AWS, and its burgeoning advertising segment.

The Future of Advertising

As Amazon’s advertising arm continues to flourish, several key trends are likely to emerge:

• Increased personalization: Leveraging AI and sophisticated data analysis, Amazon will personalize ad experiences to a greater degree, ensuring higher relevance and engagement for consumers.


• Expansion of ad formats: Expect to see further innovation in ad formats, potentially including interactive elements and immersive experiences that seamlessly blend into the shopping journey.


• Evolving regulations: As the advertising landscape evolves, regulations and consumer privacy concerns will continue to be central considerations, shaping the future of advertising practices.

Implications for Sellers on Amazon

Like most media platforms, Amazon is constantly evolving, and it’s important for sellers to adapt their strategies to stay ahead of the curve. Here are some of the most practical tips we have been following for our own clients to help you thrive on Amazon:

• Don’t shy away from advertising: While getting your products to rank organically is still important, don’t underestimate the power of Amazon advertising. It’s like giving your products a megaphone to reach a much wider audience and boost their visibility. Think of it as an investment that can potentially drive more sales and grow your business.


• Make your listings shine: Just like attracting customers in a physical store, having well-presented products is crucial online too. Optimize your listings with <a href="https://www.singlegrain.com/amazon/amaz