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With Amazon Advertising, Brands Balance Joy and Fear

Written by: Shane O'Neill, Director of Content

New Nanigans research shows that more advertisers are dedicating ad spend to Amazon’s ad platform … and seeing results. However, they’re also expressing concerns about Amazon’s access to their customer data and its role as an ecommerce competitor.

On the positive side, respondents in our survey of 100 advertising decision-makers at retail companies reported that Amazon is outperforming both Google and Facebook/Instagram in key areas, including:

  • Return on ad spend (ROAS) – 39% of respondents saw higher ROAS than Google, and 54% saw improvement over Facebook/Instagram
  • Cost per mille (CPM) – Thirty-two percent of marketers reported lower CPMs than Google, and 38% reported the same about Facebook/Instagram

Additionally, advertisers plan to increase spending with Amazon by 25% on average over the next 12 months, shifting budget from Google and Facebook — or adding incremental budget just for Amazon — to do so.

The Amazon Advertising Catch-22

Yet despite the rosy numbers and enthusiasm for Amazon advertising, survey respondents are apprehensive about Amazon’s unique role as an advertiser, an ad network, and a retail marketplace. Ecommerce advertisers understandably see Amazon as a competitor, and that fear shows up in the survey numbers:

  • Forty percent say they’re worried about Amazon having too much of their data.
  • Almost a third (31%) see Amazon’s retail business as competitive with their own.
  • A majority of marketers (57%) predict Amazon will eventually misuse consumer data as other large digital players have.
  • Nearly half (48%) expect consumers will become increasingly turned off by the advertising experience with Amazon.
  • Nearly three-quarters (75%) of marketers advertising with Amazon would prefer that Amazon link back to their own sites, rather than

For more data and insights about Amazon’s status as an ad platform, download the full version of our comprehensive new online report, “Amazon’s Advertising Ascent: What Retail Marketers Really Think”

The report includes: Amazon ad budget trends; comparisons of key performance metrics between Amazon, Facebook and Google; top marketer concerns, from data privacy to competition; exclusive data about how Amazon advertising drives online sales; and much more.

Get the Report

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