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Amazon is Trialling Third-Party Ads Across its Channels, Including Alexa

Amazon is Trialling Third-Party Ads Across its Channels, Including Alexa

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The e-commerce giant is looking to widen its portfolio in the ad space.

E-commerce retailer Amazon is looking to move its ads beyond its own websites and products as it continues to expand its product portfolio.

According to a report from CNBC, Amazon is working with third-party advertising companies, including mobile ad firm Kargo, to test sponsored ads across multiple channels, including its search and video products and best-selling Echo device.

Amazon has reportedly been in talks with companies such as Proctor & Gamble and Clorox in promoting products with Echo’s voice search technology Alexa.

Responding to the news, Jon Buss, managing director UK and Northern Europe of Yext said it's "inevitable advertisers would want to get in on the action" but warned on the delivery of ads as Alexa is a personal program.

"Whatever model Amazon chooses, a brand has to be relevant and contextual and truly understand how voice changes the way consumers engage with their brand," he added.

"The core to doing this is making sure you have control of all of the public information related to your products and services so that the information consumers hear from Alexa is correct, relevant and contextual every time.”

Voice search revolution

Voice search has gradually integrated into consumer engagement over the past 12 months with voice assistants Alexa, Google Assistant and Siri supporting consumers when researching products online.

For advertisers, voice search has become a critical component when it comes to decision making so it is imperative for retailers to understand consumer expectations and behaviours regarding voice search in order to deliver an effective advertising experience.

“Not only does it capture our attention, but personal, relevant and timely voice conversations can be a quicker and far more effective business solution than traditional communication,” wrote Sam Madden, commercial director at marketing tech firm Wiraya, last year.

Amazon dominating search

Amazon continues to grow both as an advertising and search engine platform, increasingly posing a challenge to tech giants Google and Facebook.

Research last year from marketing tech firm Kenshoo found that nearly three quarters (72%) of people visit Amazon at some stage before making a product purchase, indicating that the majority use the e-retailer as a reliable source to research products.

Nathan Grimm, director of marketing at Seattle-based media agency Indigitous commented that Amazon’s shares in search will continue to grow further.

“They have built a sizeable lead in selection and service over their competitors and continue to grow their market power,” he said.

“As retail stores continue to struggle and close down, even more business will shift to Amazon. Their share of search is very much a function of them being a preferred channel for purchasing products. Until someone else upsets their model, it will grow.”

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Mustafa Mirreh

Mustafa Mirreh

Supporting the editorial team in PerformanceIN, Mustafa brings you the latest day-to-day news updates from the world of performance marketing, while also doing social media promotion, live reporting, blogging and interviewing with key industry players and stakeholders.

Based in Bristol, Mustafa graduate with a marketing degree before delving into the world of music journalism through self-starting an online blog and collaborating with other publications. Now he has joined the PI team and has set his sights on succeeding in digital marketing.

Read more from Mustafa

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