Michael Kahle’s Post

#Amazon #PrimeDay #AmazonAds Because so much of Amazon's revenue is from platform advertising (and as it has become more important to their business over time) one could infer that 1) Amazon has grown their seller and customer audiences enough. The next stage of their revenue/profitability growth will not come from expanding distribution or sales markets - instead from advertising and data (selling ultra high margin services on existing fixed cost infrastructure) 2) With end customer satisfaction as absolute priority, merchant complaints about various warehousing problems, copyright infringement, customer refund abuse (refund shopping), review farming, etc. can be ignored but the false discount phenomenon that hurts customers and benefits sellers needs to be addressed 3) Amazon not fixing the various problems discussed in their seller community is actually good for business. Resellers of knockoff products, low quality private label products, China sellers, etc. have just as much (or more) incentive to engage in advertising spend as "name brand" or "legitimate sellers." Name brand sellers must also advertise to compete with merchants that directly knock off their products and sell side by side on the same sales platform. Because of other issues like review farming and Amazon Basics competition, over time merchants will become increasingly reliant on advertising to gain 1st page above the fold srp visibility 4) Amazon probably makes more money/more profit on Prime Day advertising than the various seller fees https://lnkd.in/d_pSBmb2 https://lnkd.in/dVi77n_T. https://lnkd.in/dj6T6Euw https://lnkd.in/d7sgSq-z

Ever wondered how giants like Amazon keep breaking their own records? Well, the secret's out, and it's all about their ad services! In the final stretch of 2023, Amazon didn't just walk; they sprinted, bringing in a whopping $14.65 billion from their advertising services alone. This 27% leap from the previous year isn't just impressive; it's a beacon of hope for the digital advertising industry, which had its fair share of hurdles earlier in the year. But Amazon's not stopping to catch its breath. With projections for net sales hitting between $138.0 billion to $143.5 billion in the first quarter of 2024, they're setting the pace for what's shaping up to be an exhilarating race in digital marketing. Amazon's CEO, Andy Jassy, credits this success to a record-breaking holiday season, innovations in AWS, and a relentless focus on making customers' lives easier. It's a powerful reminder of the potential within digital advertising and a call to action for marketers everywhere to rethink, reengage, and possibly, reinvent. For a deeper dive into Amazon's record-breaking quarter and what it means for the future of digital advertising, check out the full article here: [Amazon’s ad services revenue rises 27%, bringing in more than $14 billion in Q4](https://lnkd.in/ejgR-bRE) Happy Friday! Casey Jones #DigitalMarketing #Amazon #Advertising #ECommerce

🚀 #Amazon's ascent in the digital advertising space is undeniable. According to recent testimony in the U.S. Justice Department's case against Google, Amazon's #retail #advertising #revenues have now #surpassed #Google's. 🔎 This highlights a significant shift in the industry, where Amazon's ad business has #grown fourfold in just five years, #transitioning from a sales channel to a dominant pay-to-play retail platform. While Google and Meta still lead in overall digital advertising, Amazon’s influence in retail advertising is becoming increasingly formidable. 💼 As Amazon continues to #expand, it’s clear that the platform is not just a marketplace but a #powerful #advertising #network that leverages shopper data to target ads both on and off its site. This rapid growth underscores Amazon's evolving role in the digital ecosystem, signaling a #future where brands must navigate a complex landscape of advertising channels to reach their audiences effectively. 💹 We've long recognized the #power and #effectiveness of campaigns within Amazon's advertising network. If you're #interested in understanding how to leverage this platform to #drive your brand's #success, don't hesitate to contact us. We're here to #help you navigate and capitalize on the #opportunities Amazon offers. https://lnkd.in/dwcTr9Hi #AmazonExperts #AmazonAgency #PrimeVideo #Twitch #AmazonTV #AmazonEcosystem #WeAreAmazing #AdvertisingStrategy #RetailMedia #OpportunityAmazon #CPM #DSP #SponsoredAds #SellAmazon #Branding #Awareness

🚀 #Amazon's ascent in the digital advertising space is undeniable. According to recent testimony in the U.S. Justice Department's case against Google, Amazon's #retail #advertising #revenues have now #surpassed #Google's. 🔎 This highlights a significant shift in the industry, where Amazon's ad business has #grown fourfold in just five years, #transitioning from a sales channel to a dominant pay-to-play retail platform. While Google and Meta still lead in overall digital advertising, Amazon’s influence in retail advertising is becoming increasingly formidable. 💼 As Amazon continues to #expand, it’s clear that the platform is not just a marketplace but a #powerful #advertising #network that leverages shopper data to target ads both on and off its site. This rapid growth underscores Amazon's evolving role in the digital ecosystem, signaling a #future where brands must navigate a complex landscape of advertising channels to reach their audiences effectively. 💹 We've long recognized the #power and #effectiveness of campaigns within Amazon's advertising network. If you're #interested in understanding how to leverage this platform to #drive your brand's #success, don't hesitate to contact us. We're here to #help you navigate and capitalize on the #opportunities Amazon offers. https://lnkd.in/dwcTr9Hi #AmazonExperts #AmazonAgency #PrimeVideo #Twitch #AmazonTV #AmazonEcosystem #WeAreAmazing #AdvertisingStrategy #RetailMedia #OpportunityAmazon #CPM #DSP #SponsoredAds #SellAmazon #Branding #Awareness

Advertising plays a crucial role in supporting the growth of Amazon sellers. Here are 5 key metrics to evaluate the impact of your ad investments: 1️⃣ Ad Spend: The total amount invested in Amazon advertising. Gain insights into how ad spend aligns with your objectives. 2️⃣ Return on Ad Spend (RoAS): Measure the revenue generated from your advertising investment. A high RoAS means you earn more than you spend, while a low RoAS means you're losing money on advertising. 3️⃣ Ad Conversion Rate: Assess campaign effectiveness and optimize ad elements to drive sales. 4️⃣ Cost Per Click (CPC): Understand the relationship between ad costs and the number of clicks received. 5️⃣ Total Advertising Cost of Sale (TACoS): TACoS reveals the efficiency of your ad spend across channels, showing how much it costs to turn a click into a customer, impacting profit per sale. A good TACoS is lower, meaning you acquire customers cheaply, while a bad TACoS indicates expensive customer acquisition, squeezing profitability. By monitoring these metrics, you can make data-driven decisions to maximize the impact of your advertising efforts. #AmazonFBA #AmazonFBASeller #FBA #DataAnalytics #amazonadvertising

🚀 #Amazon's ascent in the digital advertising space is undeniable. According to recent testimony in the U.S. Justice Department's case against Google, Amazon's #retail #advertising #revenues have now #surpassed #Google's. 🔎 This highlights a significant shift in the industry, where Amazon's ad business has #grown fourfold in just five years, #transitioning from a sales channel to a dominant pay-to-play retail platform. While Google and Meta still lead in overall digital advertising, Amazon’s influence in retail advertising is becoming increasingly formidable. 💼 As Amazon continues to #expand, it’s clear that the platform is not just a marketplace but a #powerful #advertising #network that leverages shopper data to target ads both on and off its site. This rapid growth underscores Amazon's evolving role in the digital ecosystem, signaling a #future where brands must navigate a complex landscape of advertising channels to reach their audiences effectively. 💹 We've long recognized the #power and #effectiveness of campaigns within Amazon's advertising network. If you're #interested in understanding how to leverage this platform to #drive your brand's #success, don't hesitate to contact us. We're here to #help you navigate and capitalize on the #opportunities Amazon offers. https://lnkd.in/dwcTr9Hi #AmazonExperts #AmazonAgency #PrimeVideo #Twitch #AmazonTV #AmazonEcosystem #WeAreAmazing #AdvertisingStrategy #RetailMedia #OpportunityAmazon #CPM #DSP #SponsoredAds #SellAmazon #Branding #Awareness

💡 Unlock Amazon's Advertising Power with Buy with Prime! Excited about leveraging Amazon data for advertising? Here’s what you need to know: Amazon Display Ads for Buy with Prime: Recently launched, this feature allows merchants to schedule display ad campaigns using Amazon's unique shopping signals. Drive traffic to your own website with these powerful tools. 🛍️ Extensive Display Network: Remarketing to shoppers interested in your products or similar categories is now possible across sites beyond Amazon.This expansive network helps capture more potential customers. 🌐 Proven Success Stories: Brands like BareMinerals have seen a 60% increase in shopper conversion and a 40% increase in sales per visitor using Buy with Prime. Another success, ZOA Energy, saw a 29% increase in average order value. 📈 🌟 Utilize these promotional features to maximize your advertising efforts and enhance your eCommerce success! 👉https://buff.ly/4cmPBrn #eCommerce #BuyWithPrime #AmazonAdvertising #DisplayAds #MarketingStrategy #BellaVix

Caution... Insane Numbers Below! 📈 Amazon's Advertising Services: Unbelievable Growth! In the latest earnings report, Amazon's Advertising Services segment showcased remarkable performance: 💰 $12.8 billion in Q2 alone, up by $2 billion year over year. 📈 10% increase in net sales and doubling profitability to $13.5 billion. 🌍 Over the past twelve months, Amazon Ads has raked in $50 billion, more than the GDP of entire countries like Iceland, Armenia, and Jordan! This is JUST from ads! As CEO Andy Jassy highlighted: 🎥 “We’re at the very beginning of what’s possible in our video advertising.” 📊 The majority of ad revenue is currently driven by sponsored product listings. 🔄 The future is promising as Amazon aims to directly connect business outcomes to traditionally awareness-focused advertising through advanced measurement and ad tech. But this isn't good for everyone... 📈 Increased Competition and Costs: Higher advertising costs and potential ad saturation, reducing effectiveness. 🔄 Dependence on Amazon: Over-reliance can limit control and stability, with restricted access to campaign data. 💸 Impact on Profit Margins: Higher costs and increased competition can squeeze profit margins and trigger price wars. 🔒 Data and Privacy Concerns: Limited data access and privacy issues with targeted ads. 📉 Potential for Market Saturation: Brand dilution and decreased consumer trust due to ad overexposure. 🎯 Strategic Shifts: Focus on ad revenue may divert resources from other marketing channels, impacting overall marketing strategy and shopping experience. Brands must strategize to mitigate these risks for sustainable growth. #Amazon #Advertising #Growth #Innovation #EarningsReport #Business

If you advertise on Amazon, here are two numbers from Amazon's earnings release today that should get your heart rate going: 27% and 9% 27% is the year-over-year growth in Amazon's Q4 advertising revenue. 9% is the year-over-year growth in Amazon's Q4 online store sales. How should we interpret Amazon's advertising growth outpacing online store sales growth by a measure of 3 to 1? Well, online store sales are a good proxy for online store traffic. There's actually plenty of reason to believe that Amazon is learning to be more efficient at selling, so sales growth is likely outpacing online store traffic growth...but we can ignore that for now and take 9% as a "high" proxy for traffic growth. So, how does the growth of advertising revenue greatly outpace traffic? There are basically two ways: 1) Create more advertising real estate (supply) 2) Increased advertiser demand (in the form of higher CPCs and CPMs) It's fair to say that Amazon has increased supply through streaming offerings like Thursday Night Football and hit Amazon MGM Studios shows, but these don't account for an additional +$3B in ad revenue. Meaning, we are seeing the squeeze as Amazon adds more sponsored placements to search results and product pages and advertisers compete for these placements at unprecedented bids. Yet with the changes to Meta ads, Amazon is still one of the best places for consumer-product brands to advertise. And targeting keeps getting better with rapid changes in AMC data and sponsored ad reports. So, the bottom line is...you'd better have a robust strategy and nimble execution for your Amazon advertising... ...'cause it ain't getting any easier. #amazon #earningsreport #advertising #ecommerce

💡 Unlock Amazon's Advertising Power with Buy with Prime! Excited about leveraging Amazon data for advertising? Here’s what you need to know: Amazon Display Ads for Buy with Prime: Recently launched, this feature allows merchants to schedule display ad campaigns using Amazon's unique shopping signals. Drive traffic to your own website with these powerful tools. 🛍️ Extensive Display Network: Remarketing to shoppers interested in your products or similar categories is now possible across sites beyond Amazon.This expansive network helps capture more potential customers. 🌐 Proven Success Stories: Brands like BareMinerals have seen a 60% increase in shopper conversion and a 40% increase in sales per visitor using Buy with Prime. Another success, ZOA Energy, saw a 29% increase in average order value. 📈 🌟 Utilize these promotional features to maximize your advertising efforts and enhance your eCommerce success! 👉https://buff.ly/4cmPBrn #eCommerce #BuyWithPrime #AmazonAdvertising #DisplayAds #MarketingStrategy #BellaVix