In addition, Amazon advertising enables precise targeting and the use of relevant keywords to present ads to exactly those users who are most likely to be interested in the advertised products. This can lead to increased conversion rates and improved return on investment (ROI). In an increasingly competitive online sales environment, advertising on Amazon has become an indispensable tool to help companies increase sales and establish a strong presence on one of the largest e-commerce platforms in the world.
In addition, advertising plays a crucial role in Amazon's own business performance. Advertising revenue is now a third major pillar of Amazon's business, alongside e-commerce and cloud computing. If Amazon's advertising revenues increase in the coming years as they have in the past, Google and Amazon would hold almost equal shares of one fifth of the US advertising market.
We took this development as an opportunity to examine how companies are exploiting their advertising potential on the basis of current developments. Our focus was on the current hit movie "Barbie. At its launch, the search volume on Amazon for keywords such as "Barbie movie" literally exploded: The volume rose from the low hundreds to over 6000.
"One might assume that the world's second-largest toy manufacturer would recognize the momentum of the movie as an opportunity and use Amazon's marketing options to increase sales of dolls and other toys. With regard to the ads placed, however, it now appears that Mattel is completely missing the opportunity on Amazon. On the advertising side, there is no strong, pervasive advertising presence in terms of own branding," explains Stefan Gutheil, founder and CEO of ICONIC SALES, in detail.
"The fact that Lego and other suppliers are prominently placed for keywords such as Barbie is due to the fact that Mattel remains almost inactive here, thereby allowing competitors in the toy segment or the same age group to profit. And this from a lack of and insufficiently strong own-brand protection. A similar advertising picture (and in some cases even weaker) can also be seen in other marketplaces such as in the USA: There is little to no apparent advertising presence on search terms such as Barbie, Barbie doll, Barbie movie, Barbie Margot Robbie," explains Amazon expert Gutheil.