January 30, 2023
We’ve recently published Amazon’s fast growth outlook compared to retail peers, it maintaining its dominance amongst retail media competitors, and the fact that a third of brands don’t consider Amazon a full funnel advertising opportunity.
We now need to examine how brands are planning to adjust their advertising spend inside of Amazon, meaning how share is shifting between Amazon paid search, display, and DSP options.
We benchmarked 51 consumer brands and agency partners on how they’re adjusting budget allocation in ’23. Benchmark respondents…
- …ranged in size from small (sub-$10mm in annual sales on Amazon) to large ($50mm+ in annuals sales).
- …came from several categories including fast moving consumer goods (FMCG), hardlines and softlines.
- …were categorized as Amazon Outperformers if they were gaining share, accelerating their growth, or generating outsized profitability on Amazon.
The results will help advertisers on Amazon and retail media leaders inside brands understand how their own plans stack up, along with second-order effects on other retail sites.
What does good look like in '23?
Based on the results, brands looking to gain share and grow profitably on the account should…
- Adopt all main ad types as a part of their Amazon strategy and Media strategy
- Prioritize growing Sponsored Brand Video, Display, and DSP spend
- Leverage new analytical tools like AMC and Attribution to continue to inform future optimizations
- Consider applying these shifts to other retail media activations
Let’s dive in for those managing retail media, Amazon Advertising, or running the Amazon account for their business.
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