Amazon advertising is becoming a revolutionary marketing machine.
In 2017, Amazon brought in approximately $2.8 billion dollars. But in 2019, that number is expected to double to more than $6.6 billion.
The estimated boost in profits is due to the explosion of the Amazon Advertising Platform.
Here are 16 things you should know now about the amazing benefits that Amazon has to offer—and how to grow new leads, expand your customer base and boost profits using this mega-retailer’s revolutionary advertising platform.

#1: Amazon Advertising is threatening Google and advertising

Amazon advertising is so powerful that it’s upsetting profits from Google and Facebook advertising. In fact, every time the mega-retailer moves up another percentage point in U.S. retail (worth about $5 trillion), Google and Facebook lose around $50 billion worth of data that they rely on for profits.

#2: More than half of all households in the United States use Amazon Prime.

Amazon Prime is a special paid subscription service that offers free two-day delivery for all subscribers, plus free streaming services. With 64% of all U.S. households signed up for this powerful service, Amazon has access to powerful data collection.
Plus, Amazon is now offering free same-day, next-day delivery to an expanding number of cities and towns…meaning that membership will continue to rise into the next year.

#3: Amazon has powerful access to highly valuable transactional data.

Amazon has access to data that shows not just what people want, but how they like to purchase products. And, like Google and Facebook, this mega-retailer has a vast advertising network, so that Amazon ads follow prospects across multiple advertising exchanges on the internet.


#4: Amazon advertising is available to businesses who sell products on Amazon …. and to businesses who don’t sell anything at all on Amazon.

Even if you don’t sell anything at all on Amazon, you can still use their powerful marketing strategies to advertise your product or service to their customer base, using Amazon-generated transactional data.

 #5: You can use your data base to create a custom list for Amazon and Amazon prime customers.

One of the most strategic ways to target your best prospects on Amazon is to upload your existing customer or prospect file to the site. Using your own custom list will allow you to serve ads to both Amazon Prime customers and regular Amazon customers.

#6: Amazon retargeting is a powerful strategy for targeting your best prospects.

The first step to effectively targeting – and retargeting – prospects on Amazon with ads is to use a special pixel on your own homepage. This pixel allows you to identify those customers who are visiting your own homepage and shopping on Amazon…so that you can see where “audience overlap” occurs on both sites.
So when they go to Amazon—they see your offer.

#7: Amazon advertising offers Lookalike audiences.

Just like Facebook and other platforms, you can build a look-a-like audience on Amazon using information from the pixel on your own site to expand your reach and increase conversion.
Better yet, you can take your custom list to make an Amazon look-a-like audience.
Amazon will generate a look-a-like audience to generate new leads or customers. They use transactional data of Amazon to reach new prospects or customers that look and behave just like your best customers and prospects.
What makes this better than Google or Facebook and other similar platforms is that it doesn’t rely on algorithms. It’s transactional data…transactional data is what we use for direct mail data modeling. It’s the best look-a-like data possible. This is just as good.

#8: Amazon allows you to target prospects based on lifestyle.

Amazon will provide you with powerful data that allows you to examine the search patterns, browsing habits, and purchase behaviors of specific prospects, and serve them ads.
For example, you can identify segments of prospects based on their general lifestyle interests…if you are selling a multivitamin, you’ll want to take a look at the buying habits of customers who are interested in health and wellness.

#9: Or….target customers who have recently searched for a specific product.

In-market targeting segments allow you to identify and reach customers who have searched for a product in a specific category over the past 30 days.

#10: Lastly, you can target prospects based on demographics.

Amazon will also allow you to target audience segments based on demographics. For example, you can target leads based on gender, age, income, and even number of children. Targeting by demographic is just one more way to gain new leads and prospects by serving targeted ads.
If it’s the case that you do sell a product on Amazon, keep reading….

#11: Strategic Amazon search ranking is key to success.

When your customers search for a product on the internet, half of all those searches begin on Amazon. So, it’s important that your products are high-ranking on this mega-retailer…that your product shows up on page 1, not page 10…or 100.
Setting the right price is critical to ranking well on Amazon, as is data analysis. We can help you with the tools to analyze traffic on sales on their site.
Amazon has a special algorithm for assessing customer reviews, so you are unable to control this factor too much. However, you can encourage customers to review your products with a follow-up campaign. Ask them for a review after the order has shipped, and again a couple weeks after the product has arrived.

#12: You can also increase your ranking by improving relevance.

More than half of all consumers who are looking for a specific product will start their search on Amazon. Most products that rank on top on Amazon are less expensive and higher volume…but a successful search-ranking strategy on Amazon advertising is a game-changer.
Amazon performs similarly to Google in that it will not respond to keyword-stuffing or poor usage of keywords.
Instead, use keywords wisely in your brand name, product listing title, product description, in the URL, nodes (identified in product category relationships), and line of the product, which is an additional opportunity to categorize the product. You can also keywords in descriptions of color, material, size/dimensions, and quantity, if relevant.
The keyword character limit is 250. Amazon also recommends the following:
Do not include keywords that are descriptive of the product
Do not include brand names (even your name) or other product identifiers
Do not repeat content that is present in other attributes (like title or bullet points)
Do not repeat keywords
Use keywords that are synonyms, hypernyms, or spelling variations of content in visible attributes
Lastly, make sure to optimize your product images. Images should be high-resolution, zoomable, and taken from a variety of angles. Include product label closeup images; if applicable, photos of the product being used; product shots that show a point of reference, like a hand; and any additional images that might be helpful, like charts or even text.
Using this feature, you’ll be able to powerfully target both existing customers and gain new leads.

#13: Sponsored product ads can help double or even triple profits.

If you’re selling products on Amazon, you can run ads for specific products as “sponsored products” ads, helping to drive up sales on Amazon.
Sponsored product ads are keyword-targeted, cost-per-click ads that can appear on the right side or the bottom of search results on Amazon, or on product detail pages. You can optimize the ad as it runs by viewing clicks or sales, giving you the ability to maximize the success and performance of your campaign, while decreasing spend.
Keep in mind, however, that Amazon does keep a percentage of the profits sold by sponsored listings. For example, Jijamas is a high-end women’s pajama company that uses sponsored ads on Amazon. For every item sold, Jijama’s must pay a total of 35% to list, ship and advertise the item on Amazon.
But with 65% of the company’s sales coming in from Amazon, the cut in profits is worth it.

#14: Headline search ads will help get you on the first page of search results.

Another profitable option for marketers who are selling products on Amazon are headline search ads.
Headline search ads are keyword targeted cost-per-click search ads that can appear at the top of the first page of search results on Amazon.
Target headline search ads using keywords. Amazon recommends you use 30-40 short, clear keywords.

 #15: Product display ads are another advertising option for products on Amazon.

Product display ads are cost-per-click ads that help drive sales and traffic to your products’ detail page on Amazon.
Unlike sponsored product ads and headline search ads, product display ads are not keyword-targeted.

#16: It’s critical to measure more than just sales on Amazon.

Because Amazon owns both the advertising and the retailer channels, it’s able to give marketers like you incredible insight into customer behavior and habits…so that you can improve your overall marketing strategy and boost profits.
Don’t just measure your sales. Measure customer awareness, customer loyalty, advocacy through reviews, and the purchasing habits of customers to assess how well your ads on Amazon are performing.
In fact, 96% of ad effectiveness signals will go unnoticed if you only measure final sales of your product.
Using these powerful strategies, you can powerfully expand your leads and clients and increase your profits on Amazon.
Incidentally, I now have most of my clients testing for Amazon, and you should too while you have a competitive advantage.
If you would like to discuss your strategy for Amazon, give me a call at (310)212-5727, or email Caleb at
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