What You Ought to Know About Amazon Advertising Before Everyone Else | Ep. #580

In episode #580, Eric and Neil discuss what you must know about Amazon advertising before anyone else. Tune in to hear how you can leverage Amazon Advertising for your business.


  • [00:27] Today’s Topic: What You Ought to Know About Amazon Advertising Before Everyone Else
  • [00:35] Eric read a report that stated Amazon did $60 Billion in ad revenue and grew by possibly 60%.
  • [01:12] Neil believes the stats are that Amazon ad revenue could reach $4.5 billion in 2018.
  • [01:29] Eric and Neil suggest you start getting into the Amazon ad revenue game.
  • [02:01] If you are doing America-based advertising, it’s time to pay attention.
  • [02:09] Amazon Echo presents an advertising opportunity.
  • [02:30] The profit margins on advertising are huge.
  • [02:44] In another five to ten years, they may have wiped out brick and mortar retailers.
  • [03:02] There are a lot more areas of advertising when you consider options with Amazon.
  • [03:30] Make sure you jump on board, play with the advertising, and fine tune!
  • [03:45] With the purchase of Whole Foods and the opening of the Amazon Go store in Seattle, they are taking over retail.
  • [03:52] Eric and Neil saw a report that said Amazon is considering taking on FedEx.
  • [04:25] It’s a new channel, whoever leverages it first will benefit the most.
  • [04:55] That’s all for today!
  • [05:01] Go to Singlegrain.com/Giveway for a special marketing tool giveaway!

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The post What You Ought to Know About Amazon Advertising Before Everyone Else | Ep. #580 appeared first on Marketing School Podcast.

Full Transcript of The Episode

Speaker 1: Get ready for your daily dose of marketing strategies and tactics from entrepreneurs with the guile and experience to help you find success in any marketing capacity. You're listening to Marketing School with your instructors Neil Patel and Eric Siu.

Eric Siu: Welcome to another episode of Marketing School. I'm Eric Siu.

Neil Patel: And I'm Neil Patel.

Eric Siu: And today, we're going to talk about what you ought to know about Amazon advertising before everyone else. So I actually looked at a report recently. I'm sure Neil you did too. And I think Amazon did sixty billion in advertising revenue and they grew by a lot in the last year. Maybe they grew by 60%. You're looking at me crazy.

Neil Patel: Yeah, I have no idea what the revenue numbers are from advertising but, yeah, they're huge. I don't know if they're sixty billion but they are huge.

Eric Siu: Yeah. You guys should look it up. But let's face it, at least in America, I was looking at a report yesterday for people that buy, Amazon's getting bigger and bigger in terms of what you're looking for. And I know my behavior certainly changed from looking on Google. I actually just go directly to Amazon now to look for products. So in America, it's getting bigger.

Neil Patel: Okay, Amazon ad revenue could reach 4.5 billion in 2018, a 61% increase ...

Eric Siu: Ah.

Neil Patel: ... from 2.8 billion in 2017.

Eric Siu: Yup. So it's getting bigger and bigger. It's time to pay attention to Amazon advertising. So, what we're suggesting is to at least start getting in the game. And look, 4.5 is not that big right now in comparison to a Facebook or a Google. How much revenue do they both do?

Neil Patel: Google does over 90 billion a year in revenue. Facebook revenue is around 40 billion a year.

Eric Siu: Got it. Great. So now's the time. We talked about under-priced attention. Amazon is there, it's getting bigger and bigger. In the U.S. it's starting to take off. And in Latin America or Germany, for example, or these other countries it is lagging a little behind. But, if it's taking off in America first and if you're doing American based advertising, it's time to pay attention. And, at the same time too, think about it. Amazon's Alexa or Echo devices, they are sitting everywhere and, if you don't think that's going to be an advertising opportunity, you are mistaken.

Neil Patel: Yeah, and when it comes to Amazon, if you notice, they're putting more areas on Amazon that could be used for advertising. Once they do that, and they've even said they're going to get into the advertising game, that's when you're going to see the revenue drastically increase. And the profit margins on advertising are huge. Just look at Google and Facebook. They make so much money on ads, why can't Amazon as well? It's one of the most popular websites, e-commerce is huge. I don't even think Amazon is at its peak. You give it another five, ten years and it'll be a much different company. They're going to wipe out most traditional and brick and mortar retailers.
And then the advertising within that space is going to be much more valuable than what it is now. And there's just a question, just like Google did or Facebook did, how many other places can they integrate at? And, if you're an Amazon user, you'll see that there's a lot more areas. It could be three, four, or five times more. If they're going to grow to 4.5 billion and they start five-exing, let's say over the next few years they five-ex their growth, maybe over the next ten years, that ends up being 40 plus billion dollars. And then, if they release four or five areas more to advertise, again, that could easily multiply their ad revenue. I think we're just seeing the entry of it. Make sure you jump on board and start fine tuning everything, and start playing with the advertising because, if you're in e-commerce, you're going to have no choice but to also spend money there just like you do right now with Google AdWords and Facebook ads.

Eric Siu: Yeah. Think about it this way. So Amazon buying whole foods and now they just released, I believe, it's the Amazon Go store in Seattle. They are taking over retail and I think earlier this week we saw reports that Amazon is going to take FedEx head on. So they're going to be everywhere. They're integrating with everything. So you're not just going to see advertising in the traditional sense online but we just talked about the voice advertising too. You're going to be bidding for that number one slot. So, if you're listening to Marketing School for example, you might get a marketing tool ad. So think about it that way. It's going to be more complex. And look, Amazon's been playing the long term game for a very long time. As long as [inaudible 00:04:21] can be had, you can expect that they are coming to eat everybody's lunch. Neil, anything else?

Neil Patel: No, that's pretty much it. It's a new channel. Whoever leverages it first is going to be better off. Expect the cost to go up drastically over time. You're not going to see [overt? inaudible 00:04:36] companies advertise on Amazon and stop advertising on Google or Facebook but instead they're going to use all of them. If advertising is profitable, there's no reason for you not use them all out there. And just get in there and start doing it before others cause then you'll be better off. And, when other people are paying two, three dollars a click, you're going to end up paying the same amount but your conversation rates will be higher.
That's pretty much it for today's episode. Come back tomorrow to listen to another episode of Marketing School. And, of course, if you want our daily marketing giveaway, go to singlegrain.com/giveaway.

Speaker 1: This session of Marketing School has come to a close. Be sure to subscribe for more daily marketing strategies and tactics to help you find the success you've always dreamed of. And don't forget to rate and review so we can continue to bring you the best daily content possible. We'll see you in class tomorrow, right here on Marketing School.

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