Why does so much D2C advertising drive consumers to Amazon?
When a DTC marketer spends money on TV, audio, social or any other channel, why does Amazon receive a huge piece of that pie?
The answer is simple. 60% of consumers start their product research on Amazon. A large portion of consumers search various channels in search of the right product, and many eventually turn to Amazon due to its reliability. It is important to build a trustworthy relationship with your consumers, which is something Amazon has been successful at. Many brands also turn to Amazon advertising, although not happy about giving away a larger share of their profits.
If a consumer sees an ad anywhere, they are more likely to check Amazon before checking your website or calling your phone number. Whether we like it or not, that is what the consumer feels most comfortable with. Thus, many brands are actually driving directly to Amazon. And when brands do that, Amazon rewards them with discounted fees and retargeting.
As digital advertising continues to increase, regardless of where the ads are viewed, consumer preferences become more understood. As customers are getting more selective with their purchases, marketing products on a platform like Amazon that almost guarantees recognition, loyalty, and sales not only seems like the right idea but a necessity. As marketers, we must understand that regardless of what we want, we must be where the consumers are.
No matter where you advertise, Amazon has remained consistent as a tool to provide a substantial lift for advertisers and brands. They continued to provide new opportunities and sales for smaller brands and businesses and can be a successful partner. If you can’t beat them, join them.