Why Using Online Shopping Behavioral Data Is the Best Way To Target Ads And How Amazon Can Better Serve Marketers
Amazon Advertising has been getting a lot of attention recently with the Wall Street Journal calling them the “Sleeping Giant”, and the main contender to break into the digital advertising duopoly for ad spend with Google and Facebook because it has the “world’s best data on what we buy.”
Why? It’s explicit shopping and purchasing data! For marketers, this truly is the “world’s best data” type of consumer data. Major retailers, like Amazon, bringing their data to the ad market is a game changer.
Since advertising’s single purpose is to sell products, the shopping data that can get us closest to a consumer’s brand interactions and actual purchase is the best possible data to have. Amazon Advertising filled the gap of full path-to-purchase data by creating the dominant online retailer, but there are some areas where Amazon Advertising can improve and where clients can pressure Amazon in order to be more beneficial to them.
More Transparency Into Audience Segments:
Amazon allows access to their first party audience segments through the Amazon Advertising Platform; however, they are first and foremost, a retailer. Compare the audience insights Amazon will provide you as a marketer into the segment you are purchasing with audience insights provided by a programmatic company with direct access to retailer data like ownerIQ, and you can see the level of insight is far different.
This obviously doesn’t mean Amazon doesn’t have access to the data, just that they won’t provide what they don’t HAVE to provide. Digital marketers should feel free to push back on Amazon to provide more insights such as what else in the shopping cart at the time of purchase or what other products and brands your customers are interacting with on Amazon prior to purchase.
Beware The Private Label:
In May 2015, Amazon announced it would white label its own products to sell on its website including batteries. One year later, Amazon owned a third of the total battery sales on Amazon.com (which also owns 94% of the total US sales of online batteries) according to TechCrunch.
By having your brand on Amazon, they are able to collect data every day on the buyers of your brand. This makes it easy for them to launch a private label to compete with your brand all the while having used the 1st party data of your customers to understand buying patterns. One option many of our customers have used is to make their 1st party website data into a marketplace for select big box and independent retailers to access in order to advertise and drive incremental sales.
Make sure Amazon is working for you!
Amazon Isn’t The Only Online Shopper Data Available:
At ownerIQ, we believe, like Amazon, shopping data will be the future of the marketing data economy. Which is why we have partnered with some of the largest retailers in the world to help them compete with Amazon by making better use of their data and monetize it. We also help marketers gain better audiences and more transparency into those audiences using shopper data.
Digital marketers everywhere need to pay attention to Amazon Advertising and the value it provides with shopping data, but it is important to not be too dependent on one source of shopping data.
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