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AMAZON INTELLIGENCE: MARKETING PLAYBOOK

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Executive Summary Key Questions


As consumer attention and spending have shifted online, so have advertising budgets: 2018 • What are the inherent differences between the key ad units offered on
is widely predicted to be the year that digital marketing spend will overtake offline marketing Amazon, especially search (Headline Search Ads and Sponsored Products)
spend for the first time.1 Although still relatively small compared to Facebook and Google, and display (Product Display Ads and Generic Display Ads) ad products?
Amazon’s piece of the digital ad pie is growing: the site’s ad revenues in the US hit $1.65 • How should brands best optimize Headline Search Ads and Sponsored
billion in 2017 and are growing faster than every other ad publisher’s, with an expected Products, and how do strategies differ depending on where brands are
growth of 48.2 percent in 2018. targeting the consumer along the funnel?
The engine driving this growth is Amazon’s ability to link consideration to purchase further • How has Amazon used its media vehicles to increase the visibility of its
down the funnel than traditional search engines. More consumers now initiate product private labels?
research on Amazon than on Google, with 56 percent of consumers using Amazon as the
starting point for product research.2 With the anticipated onslaught of new spending coming Key Recommendations
from both competitor brands and large advertising companies, stakes are rising for brands to
• Each Ad Product Plays a Distinct Role: When determining how to allocate
deploy on Amazon. Winning brands are those that combine universal, known best practices
spending on Amazon media, brands need to define specific objectives for
with test and learn tactics to succeed on the platform and stand out in their product category.
the ad buy. Amazon’s various media products can help organizations meet
1. “Digital Ad Spend To Surpass Traditional In 2018,” Laurie Sullivan, Media Post, January 12, 2018. different objectives along the conversion funnel.
2. “Amazon’s push to grow its ad business, in 4 charts,” Seb Joseph, Digiday, December 12, 2017. • Headline Search Ads Drive Switching & Brand Awareness: Headline
Search Ads are typically served against a more relevant set of results. They
Marketing Playbook: Number of Categories, Share of Sponsored Product can promote switching behavior and generate broader brand awareness by
Impressions in Top-Three, and Number of ASINs driving to multi-product landing pages.
Q3–Q4 2017, n=197,956 Sponsored Products by 107 Brands ■ Indie/Private Label ■ Traditional Number of ASINs • Sponsored Products Boost Hero Products & New Launches: Brands
must ensure that relevant keyword bids are aligned with priority products
as opposed to vast product portfolios to stimulate the Amazon flywheel
BUTTONED DOWN
100% effect (boosting clicks, sales, and organic visibility). Additionally, clearly
PERCENT OF SPONSORED PRODUCTS IN TOP 3

GOODTHREADS
ADIDAS demarcate campaigns across different product types to boost Sponsored
80% CHARMIN Product placement.
WRANGLER OLAY
60% SEVENTH GENERATION Evan Neufeld | Vice President, Intelligence
PROACTIV
Cooper Smith | Director of Research, Amazon Intelligence
40% RUBBERMAID
DOVE
LYSOL Oweise Khazi | Associate Director, Amazon Intelligence
GILLETTE PHILLIPS
20% Lakshmi Kalluri | Research Associate, Amazon Intelligence

KIMBERLY-CLARK PROFESSIONAL AIR WICK Elena Akulova | Senior Designer


0%
0 3 6 9 12 15 18 21 24 Gartner L2 research is based on data-driven analysis. Our findings, rankings and
NUMBER OF CATEGORIES
Source: Gartner L2 Amazon Intelligence: Marketing Playbook, April 2018. recommendations are objective, unbiased, and independent of membership.

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