7 best Amazon Marketing Trends and Predictions every Seller Should Know
Linda Heidi
7 minutes read
Contents
Just when you think you have Amazon advertising figured out, a new trend or prediction pops out and you’re back at square one. Every Amazon seller has experienced the sinking sensation that they are falling behind the advertising curve despite their best efforts to keep up with Amazon marketing trends and predictions.
It all happens because Amazon’s advertising landscape is extremely dynamic. Rather than twists and turns like on a rollercoaster, you get algorithm updates and policy changes. It’s difficult to keep up, but knowledge is power, and change is inevitable if you want to achieve it.
For this reason, it’s essential to plan for future developments. Having this information is like having a crystal ball that predicts the future of Amazon marketing. You can be a best-selling superstar, or you might be stuck with a ton of unsold inventory if you don’t know what’s hot and what’s not.
Thus, here on this blog, we’ll discuss anything from the value of A/B testing to the impact of influencer marketing. We will provide you with the data you require to make smart choices and maintain a competitive edge. And who knows, maybe we’ll throw in a few dads jokes to keep things interesting.
We’re about to take you on a crazy ride into the world of Amazon advertising trends and predictions, so hold onto your hats, sellers.
What does 2022 say about amazon advertising?
Once upon a time, Amazon Prime was the company’s primary source of income. The data from 2022, however, show a different picture.
Source – Benedict Evans – higher margin of ads than infrastructure
Amazon sold about $40 billion worth of ads last year (2022), outpacing Prime and likely outperforming AWS – Source: Benedict Evans
Source – Benedict Evans – Amazon is the world largest advertiser
In February 2023, Amazon was declared the world’s largest advertiser – Source: Benedict Evans
If Amazon’s advertising revenue continues to soar, surpassing Prime, AWS, and other retail media in 2023, then it’s clear that third-party Amazon sellers are making rapid progress. For maximum success, they are making full use of the Amazon Advertising Platform.
Can you really imagine not making the most of this opportunity?
Let’s talk about Amazon’s trends for 2024.
1-The sweeping trend of video advertising
Videos are a great way to explain your product. Potential customers can learn a lot about a product with the help of videos. In fact, 94 percent of marketers told WYZOwl that using video content has helped users understand a product or service better. Interestingly, utilizing Video ads on amazon can increase CTR by 108%
(i)-Sponsored Brand Video Ads
Boost your conversion rate by a whopping 57.8% with sponsored brand video ads! It’s no wonder TikTok rules the world; people can’t get enough of videos. Videos have the magnetic power to instantly grab customers’ attention and reel them in. Countless times, customers hit ‘purchase’ without even glancing at the product listing.
Surprisingly, though, only 10% of Amazon sellers have jumped on the sponsored brand video ad bandwagon, while the majority are still clinging to sponsored product ads. But hold onto your hats—2024 is set to shake things up!
Prediction
In 2024, sellers who master the art of blending sponsored brand ads, sponsored product ads, and other ad formats will be laughing all the way to the bank. Amazon Insights agrees with this and predicts that those who master the ad combo game will see their return on ad spend (ROAS) go up by 5.5%.
(ii)-In-stream Video Ads for Amazon Live
The video streaming market has reached impressive heights, and recent data confirms that its growth isn’t slowing down anytime soon.
That’s why Amazon streaming video ads are becoming increasingly popular. These engaging ads are full-screen, high-quality, non-skippable video ads featured in TV shows and movies. They appear on Amazon Freeview, live streams on Twitch, live sports like Thursday Night Football, top TV and network broadcaster apps, and the News app on Fire TV.
Keep in mind that over 135 million unique viewers are reached by Amazon Streaming TV advertisements, with a growth rate of 10.5% each month. These stats are just from 2022, and this ad format is quickly gaining popularity.
Prediction
While platforms like Netflix have seen a decline in subscribers, Amazon has experienced a 13% increase in Prime Video streaming subscribers. This significant growth is strong evidence that as more people join Prime Video, the effectiveness of Amazon Streaming Video Ads will continue to rise.”
2-Dynamic creative ad to shape-shift the user preferences
Personalized content is the hot ticket in Amazon’s advertising, since it makes buyers feel like they’ve been given an exclusive invite to the online retailer’s biggest sale of the year. Enhanced personalization and customization are taking ads to new heights, making them as irresistible as a perfectly tailored suit.
This is why dynamic ad creatives are at the forefront of these Amazon advertisement trends. Dynamic advertisements adapt to each user’s tastes and preferences. The content changes on the basis of the user’s demographic and behavioral data, including browsing history, geography, and product interests.
Prediction
In today’s media-saturated culture, dynamic ads will outperform regular static ones. It looks like it will continue to grow, with Amazon sellers using these personalization options to attract customers and boost sales. While there aren’t any specific statistics on the success rate of Amazon dynamic ads, the positive response from users towards ad personalization is a strong indicator of its potential for success.
3-“Ask Alexa” feature pertaining to huge advertisement value for sellers
In September 2022, Amazon unveiled its “Customers ask Alexa” feature, letting a lucky few brands answer common questions from customers on Alexa devices, complete with handy product references and links. By 2024, this amazing feature is expected to roll out to all registered brands on Amazon, making it a real game-changer!
The excitement among Amazon sellers is obvious; they can’t wait to see what effect this new addition will have on their bottom line. “I can’t wait to see how, “Customers ask Alexa” takes off,” says Smith. This is akin to having a crystal ball for consumer inquiries; not only can we better woo them with our responses, but we can also adjust our Amazon product listings and marketing to better suit their demands.
4-Social media integration is taking center stage
Social media has been a huge boon to Amazon’s marketing efforts. Sales on social media have increased dramatically in recent years. Exciting new research indicates that by 2024, the social media market will have grown to an incredible $1.3 trillion, surpassing the $1 trillion mark for the first time.
This kind of explosive expansion is absolutely mind-boggling. The good news is that Amazon Posts, Amazon’s social media, has been a huge success thus far.
(i)-Amazon Post craze: the social media of Amazon
With the relatively new Amazon Posts feature, sellers can create a social media-style feed of interesting content about their products. Its goal is to make people aware of the brand and show off the products in an appealing way. With Amazon Posts, sellers can reach out to potential customers in a natural way through product detail pages, related product feeds, and brand feeds.
There are benefits to advertising on other social media sites, but Amazon Post is especially helpful because it makes shopping more personalized, builds stronger relationships between customers and the company they buy from, and increases brand visibility and sales. After all, Amazon is devoting increasing attention to this area. It will be a big trend in 2024 among Amazon sellers.
(ii)-Influencer marketing to bring a host of benefits to brands
6% of Amazon’s third-party sellers already work with influencers to promote their product listings, and another 1/3 of them want to expand their brand’s reach via social media, influencer marketing, and other off-page Amazon marketing strategies in the near future.
Because of this potentially massive and responsive audience, influencer marketing in 2024 has the potential to be a game-changer for Amazon sellers. By forming partnerships with influencers who are already known and trusted by their audiences, sellers can make their brands more well-known and get more sales.
5-Growing Amazon attribution and analytics capabilities
Amazon takes the top spot when it comes to online purchases. When it comes to buying anything on the Internet, Amazon is clearly the best option. For this reason, attributed sales on Amazon have skyrocketed.
Amazon Attribution is a powerful analytics tool that can help you learn everything there is to know about the performance of your non-Amazon marketing channels. While Amazon advertising is a great way to spread the word about your brand and products to Amazon customers, there are a number of other channels that are just as vital to the buying process.
With Amazon Attribution’s tracking features, sellers may learn more about their customers’ journeys to a certain product page. By focusing on channels that yield the highest return on investment (ROI), customer engagement (CX), and conversions (Cs), sellers can fine-tune their marketing strategies. After all, who wouldn’t want to know how customers are hopping onto their product pages from external sources? Watch out for this trend as it takes the spotlight in 2024!
6-Surging expansion of Amazon DSP (Demand-side platform)
Over the last four years, worldwide programmatic ad spending has doubled, and it’s predicted to increase by over $40 billion by 2024. With the ongoing growth of the online advertising sector, programmatic ads now make up over 89% of all digital display ad spending.
The Amazon DSP program has generated $26 billion for Amazon brands and sellers – Source: Amazon
With the stats painting a promising picture for 2024, Amazon DSP will have emerged as a dominant force in the industry, bringing in new standards for advertising scale, precision targeting, the rise of video ads, and cross-device advertising. It’s important to remember that utilizing Amazon’s DSP in conjunction with an Amazon marketing agency yields the best results.
7-AI powered and machine learning advertising solutions
Amazon is set to revolutionize its advertising platform by integrating state-of-the-art algorithms and data analysis methods, paving the way for machine learning and AI-driven advertising solutions. These groundbreaking innovations will empower Amazon to dissect colossal data sets, spot patterns, and make dependable predictions about ad performance and customer behaviors.
In this way, Amazon advertisers can pinpoint signals to display the perfect ad to the right person at just the right moment, all without needing any personally identifiable information. OpenAI has reached its pinnacle now. In the near future, Amazon’s advertising platform will feature such sophisticated AI.
Growing role of Amazon advertising trend
For businesses and sellers on Amazon, advertising trends are becoming more and more important and influential. With Amazon’s continued growth and dominance in e-commerce, advertising trends in the marketplace are more important than ever for making market strategies, increasing sales, and making sure sellers do well. Thus, following these trends will reduce the failure rate of Amazon FBA sellers.
The use of machine learning and AI-driven solutions, the growth of video advertisements, the integration of social media, and an emphasis on personalization and customization are all part of these developments in the advertising industry. To maximize sales and profits, Amazon businesses should stay abreast of these developments so they may modify their marketing strategies accordingly.
