The Amazon Adtech Stack & Service Providers are Coming
The news has been covering Amazon’s remarkable growth in the digital advertising arena lately. In fact, according to AdExchanger, it’s ad business is growing faster than both Google and Facebook. Currently, Amazon accounts for 2.5% of the US advertising market. The only adtech company growing revenue faster is Snapchat.
Scott Galloway, marketing professor at New York University, says that, “One in eight kids in his class goes to work for Amazon,” according to Digiday. They are hiring aggressively from top marketing schools around the country. He also shared in that same article that he predicts their advertising revenue will increase 42% versus the year prior.
Amazon certainly deserves much of the credit for their tremendous foray into native advertising. However, there’s one trend that has helped it grow, and as this trend continues it will create further acceleration for Amazon’s ad revenue growth.
There a small, but budding, industry of adtech and service providers cropping up around Amazon’s organic and native advertising offers. Look for this to grow sharply in the near term. Here are just a few I’m aware of:
Viral Launch – This software tracks all of the products and their categories on Amazon. It gives users complete market intelligence (organic and paid) inside the closed system of the ecommerce giant.
Kantar Media – This solution tracks and provides intelligence for paid search ads on Amazon. It allows users to monitor both their ads and competitors.
Sellics – It’s an Amazon PPC management software that tracks, analyzes and optimizes for performance. They have custom software for both sellers and vendors.
Teikametrics – Boasts software that optimizes sponsored product campaigns on Amazon. It uses machine learning and automation to adjust prices to maximize profit.
Amazon Service Providers
a9 Marketing – These guys are a full-service Amazon listing and optimization agency. From creating content and photography to managing ad campaigns and order fulfillment, they do it all.
CPC Strategy – This agency manages all technical aspects of Amazon PPC – strategy, execution, optimization and reporting. They also have their own software for sellers called CAPx Amazon.
Amplio Digital – They optimize and manage Amazon organic and paid listings for sellers and vendors who want to increase sales and improve margins. There’s also an advocacy program that helps sellers earn more reviews.
Amazon has one very distinct advantage over Google and Facebook today – its closed ecosystem is still very much trusted. Both Facebook and Google have become worrisome places to advertise for some because of fake news and bots.
I’m sure there’s other service providers and adtech vendors that I’m unaware of, but nonetheless, with Amazon’s growth trajectory pointed up and to the right, more and more vendors will come out of the woodwork. It’s a very competitive market place and each one of the vendors mentioned above lowers the barrier to entry for sellers and large vendors.
Keep an eye out on this space.