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Sending free samples: Amazon’s new advertising strategy

Amazon is not only one of the largest and most important e-commerce stores around the world. This firm begins to position itself as a strong player in the field of advertising, a place that now seeks to consolidate through the delivery of free sample to its users.

As reported by Axios, this direct marketing action has been launched in the United States for several months, where customers of the company led by Jeff Bezos have received “tastings” at the door of their home of various products such as dog food, home care products, detergent, beauty products and coffee, among others.

In this way, brands that have advertising relationships with Amazon could take advantage of the infrastructure and scope of the latter to connect with their customers through a technique that has proven to be effective even in the digital era.

Data delivered by Dympanel News The performance of direct marketing actions can be measured at a 50 percent higher average cost per household and an increase in the purchase rate of 44 percent. It is also believed that product penetration is 15 percent higher and loyalty grows up to 20 percent.

Amazon: the third major competitor in the field of digital advertising?

This type of offline actions will serve as a great reinforcement for the actions that the platform has already undertaken in the digital field, from which the penetration of said company can be measured as a third great player that is already beginning to gain ground at the expense of Google and Facebook.

Some numbers are clear about it. Only for this year it is estimated that the digital advertising market will have a value higher than 311 billion dollars worldwide, according to data published by Statista.

This field is dominated, so far, by Google and Facebook and according to data from Visual Capitalist, between both hoard a 57.6 percent of the entire market share.

In this sense, a report delivered by Cowen indicates that the company of Jeff Bezos will monopolize, during 2020, the 12 percent of the total cost in digital publicity, which indicates that the income for this concept of the firm will double when passing of 4 thousand 600 million to more than 9 billion dollars.

Although it would still be far from Google and Facebook, Amazon is already the third largest digital publisher and, if its rapid growth is combined with losses (although modest) of the two large ones, the gaps could be reduced considerably.

Published inE-commerce

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