Amazon’s Customer Acquisition Metrics — Pros and Cons

Amazon’s Customer Acquisition Metrics — Pros and Cons

Brief Insights for Marketers to Assess Pros and Cons of the Newly Launched Amazon Customer Acquisition Metrics

Recently, Amazon launched extensive metrics for marketers to gauge the number of new customers that purchased products due to advertisement campaigns. Amazon has included video, display and sponsored brands ads in their ‘new-to-brand’ customer metrics. Here are few pointers for marketers jotting down the pros and cons.

Pros

Amazon is now ranked third, only behind Facebook and Google when it comes to its advertising platform. The ad revenue generation of Amazon was pitched at $4.61 billion in 2018. Amazon wants marketers to see the booming potential (backed by numbers) of its platform. Strategically, Amazon is also trying to further grow their ad sales, however, marketers are simultaneously gaining too. This is both in the B2C as well as the B2B landscape. Hence, by rolling out initiatives like new customer acquisition metrics it wants marketers to perceive the power of its platform.

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Not just the sales, Amazon also wants marketers to believe that the platform can be leveraged for demand generation and brand awareness. Brands such as Proctor and Gamble will be interested because:

  • P&G spends around $800 million in digital advertising
  • The company has released an official statement confirming that they will be focusing on search, social media and e-commerce to further bolster its brand

Most brands can benefit if Amazon is right in improving their brand value on the platform.

Cons

The metrics are available for –

  • Sponsored brands ads
  • Programmatic video and display ads purchased through Amazon DSP only
  • 12 months only

Also Read: Interview with Ben Haynes, Founding Partner, Director of Technology, Directus

Sponsored brands ads are expensive and marketers usually prefer sponsored products ads. Also, the time frame is a limitation for marketers trying to sell high-priced items. Amazon is not launching any retargeting tools to target audiences showing similar buying traits.

More than half of marketers already have budgets up to $40,000 with some of them shifting to 60% of their total allocation for Amazon.

These were our insights. Tell us what you think at news@martechseries.com

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