Technology

Retail media: Amazon is fueling its growth with new ad formats

Retail media, advertising on e-commerce sites is a fast growing market that greatly benefits Amazon. Advertising has become an important source of income for the group, which is facing a slowdown in e-commerce growth. In the third quarter of 2022, Amazon reported ad revenue growth of 25% year-on-year to $9.5 billion as the advertising market suffers from declining costs due to the crisis and the group’s overall turnover increased 15% year-on-year. . That’s more than the $8.9 billion in Prime revenue.

New video formats

In this regard, Amazon announced on October 26 the launch of new advertising formats. The site will focus on video ads, which are considered the most effective in incentivizing purchases. Three new solutions will emerge: context- or audience-targeted video campaign programming, a tool to create free beta promotional videos based on ready-to-use customizable templates, and a catalog of promotional video proposals. Video advertising in the context of online sales allows, for example, demonstrations, unboxings or customer testimonials.

Our goal is to make it as easy as possible to create and distribute video content, and to bring the power of video advertising to more brands, regardless of size or resource level.”explains Stephane Grenier, General Manager of Amazon Ads France, in a press release.

Several solutions are currently available in the US

Other announcements are about optimizing campaign performance. Amazon Ads will launch in November in ten countries, including France, a new recommendation tool (keywords, suggested bids, etc.) for sponsored product campaigns.

Amazon is also expanding access to its ad space outside of its site. In the United States, advertisers who don’t sell on Amazon, such as restaurants or sports clubs, will be able to advertise on Twitch. Advertisers will also be able to use the media purchase management console to purchase space in Amazon Fresh supermarkets.

Finally, a service that allows brands to offer coupons to customers who click on their ads and buy a featured product will soon be available in closed beta in the US. This type of call to action is already in use on Twitch.

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