Dive Brief:
- Almost three-quarters (73%) of daily or near daily online shoppers have clicked on an Amazon product ad while browsing the web, and 83% purchased the product and 60% said the ads were helpful. When browsing Amazon specifically, 76% of daily Amazon shoppers have clicked on a product ad, according to Feedvisor's "2019 Amazon Behavior Report."
- Nearly 90% of all consumers and 96% of Prime members are more likely to purchase from Amazon than other e-commerce sites. Sixty-six percent of consumers start their product searches on Amazon, and 74% go to Amazon when they're ready to buy a specific product.
- Of the consumers who shop on Amazon daily, all of them (100%) at least sometimes visit Amazon to search for products from specific brands, but 41% "strongly agree" that they're satisfied with the number of brands they know on Amazon. Sixty-one percent of consumers are aware Amazon has its own brands, and 60% have purchased from one of its brands. Among daily Amazon shoppers, 63% are likely to get a voice assistant device in the future.
Dive Insight:
The Feedvisor study sheds light on the central role that Amazon plays in most consumers shopping journeys, as 66% start their product searches on the platform and 74% go to Amazon to make a purchase. The finding that 73% of frequent online shoppers have clicked on an Amazon ad and 83% have purchased the product is significant and shows that brands can see high ROI from their Amazon investments. Orders on Amazon generated by ads increased 54% in 2018 from 16.3% in 2017 to 25.1% in 2018, according to a Quartile study. Marketers are already shifting more of their digital ad budgets to Amazon, attracted by the ability to interact with consumers at various points in their shopping and purchase journey and the access to troves of consumer data.
Along with being more likely to shop on Amazon than other sites, consumers also see Amazon as trustworthy. Nearly half of consumers said they trust Amazon most among the companies handling their personal data, ranking it above Google, Apple and bank, hotel and airline brands, according to SmarterHQ research. The platform was strongly favored by Gen Zers and milliennials, who trust the company more than two times more than banks.
For Q4 2018, Amazon reported a 95% year-over-year increase to $3.4 billion for its "other" category, which mostly includes ad sales. As the company grows its ad business, Amazon has introduced new ad offerings for brands. Amazon recently launched a new set of metrics, called new-to-brand, with the goal of helping identify strategies that drive new customer acquisition and growth. The new metrics measure whether ad-attributed purchases were made by existing customers or those purchasing the product on the platform for the first time.
