Why Your Company Needs an Amazon Creative Agency

They say that the proof of the pudding is in the eating – and when it comes to online sales, there is only one Gorilla in the Sandpit that will allow companies to feast on new leads and supercharge their sales funnel – and that is Amazon. Whereas online advertising used to be heavily skewed towards Facebook and Google, there has been a steady migration of ad spend towards Amazon. A recent survey of companies with ad budgets over $50m per annum shows that although Google accounts for 21% of that spend and Facebook attracts 19%, Amazon is up to 14% – and most of the marketing executives at those companies plan on drastically increasing their Amazon spend in the coming months.

So why do companies need the services of an Amazon Creative Agency – aside from improving the quality of their ad offerings?

 

The fact that Amazon allows for direct sales has also improved the quality of the available metrics to marketing departments. Amazon is the place that consumers go to purchase products. Once a consumer is on Amazon, they are pre-qualified to buy – it’s just a case of migrating them over to its product or service offering. Contrast this to the consumer who visits Facebook or uses the Google search engine. Often, they are looking for further information – that buying decision has not yet been made. This means that Amazon delivers that superior return on ad spend – and its fellow traveler, ROI (return on investment).

 

This has apparent effects on how the effectiveness of ad spend is measured. Clickthrough rates from Google and Facebook show only part of the story. Once the consumer leaves those portals, things become a lot opaquer. With Amazon advertising, there is a clear path that the person who clicks on an ad follows – and the Amazon analytics reveals it. It is remarkably easy to see conversions. Actions are transparent – the consumer will either purchase from the company that has placed the ad or migrate to a competitor – and this allows for quick and effective fine-tuning of the ad offering.

 

An Amazon Creative Agency is key to leveraging the power of Amazon analytics. It was not so long ago that Amazon received overwhelming amounts of criticism about just how much data they were sharing with those who were placing advertising with the company. However, that is changing. Today Amazon offers ‘Brand Analytics’ in Seller Central. This allows for companies (or more often, the consultants who service their account) to delve deeply into keyword analysis and just why conversions are happening. The information is free – but interpreting it -and taking action to ensure that the advertising activity is optimized takes a human resources skill set that many companies do not have – and may not be able to afford (especially in the case of small and medium-sized businesses) – hence the increasing popularity of outsourcing Amazon advertising activity to a creative agency.

 

It is also worth noting that Amazon has an active core of buyers who are immensely loyal to the platform. They know that they will receive exceptional service, special offers and have their goods delivered quickly and efficiently – and if there is a problem, Amazon will more often than not sort it out. These buyers will not consider using another platform – and are thus not available to companies that rely on other platforms to advertise.

 

Retaining the services of an Amazon creative agency makes sense. They have the skills to provide a company with a competitive edge in the effectiveness of their advertising offering – and they can fine-tune advertising. Hence, it develops a superior return on investment.