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Amazon Display Ads Are Increasing Non-Amazon Sales

What Amazon Display Ad Studies Reveal About the Impact of Digital Marketing

Amazon has come a long away from its humble beginnings as a simple website to sell books. Now an industry leading e-commerce platform dominating internet retail, it provides an opportunity for businesses to expand the reach of their traditional stores. More recently, however, it has been found that Amazon display ads are also helping to drive non-Amazon sales. Let’s dive into this new phenomenon and discuss how your business can benefit from it.

What’s a display ad?

A display ad is essentially a way for a business to follow their customers and potential customers around the internet as they conduct searches. Don’t worry, it’s completely legal and not at all creepy. The way it works is that a business will pay to have their ads displayed across various search engine result pages and websites in the form of text or graphics. This builds brand awareness and helps businesses stay at the front of their customer’s minds. Of course, like most things in the realm of digital marketing, this is all in an effort to increase customer conversion and sales.

The spill-over effect

Okay, so, yes, e-commerce does pose a threat to physical retail, but research has introduced a new phenomenon known as the spillover effect between channels in an omnichannel environment which actually helps traditional retail. According to this new finding, customers who are influenced by a campaign in one channel often times end up making their purchase in another. It makes sense if you think about it. People are constantly on the move and when they find the need for something, what device do they always have readily available? Their smartphones. Companies that have a strong mobile ad campaign are already in position, anticipating these sudden needs. From there they can drive more customers into their stores by first influencing them to do so online.

Display ads on Amazon

According to Mary Meeker’s 2018 Internet Trends Report, almost half of consumers turn to Amazon first to find new products. With Amazon accounting for nearly half of all online retail revenue, it’s easy to see how the spillover effect is applicable to Amazon and their display ads. Amazon isn’t just a place for businesses to sell their products, it’s now a hub for their digital marketing efforts as well. This phenomenon holds testament to the power of display ads for your business.

How can I use this to my advantage?

People gravitate towards brands they recognize and therefore feel more comfortable with. Your business can become one of those brands even just by registering in your target audience’s subconscious little by little. Something as simple as running eye-catching display ads across the internet could be the difference between a loss of sales and exponential revenue growth.

Looking to create the perfect display ad campaign for your business? Kraus Marketing has everything you need from experienced graphic designers and digital strategists to web designers and copywriters to help your business reach new heights. Contact us today for more info!