The world of ecommerce is constantly evolving, and Amazon — already the third-largest digital ad publisher — is making significant efforts to expand its advertising solutions to encompass a broader range of businesses.
Non-endemic retail media advertising is a prime example of this expansion, offering fresh opportunities for brands that don’t sell physical products on Amazon, such as banks, insurance, auto, and services companies.
In this article, we will delve into the advantages of this innovative approach and provide practical guidance for non-endemic brands looking to leverage Amazon’s extensive advertising ecosystem.
The emergence of non-endemic retail media advertising
During its 2022 Unboxed conference, Amazon unveiled its plan to offer a new advertising option for non-endemics on Amazon Ads — and now it’s here. This has been something that Amazon had been teasing for some time:
Amazon sellers are classified as “endemic advertisers,” meaning they use Amazon ads to push their retail products on Amazon. But non-endemics, or advertisers not necessarily selling a material product on Amazon, are coming.
Amazon’s demand-side platform (DSP) allows advertisers to programmatically buy display, video, and audio ads on and off Amazon using the platform’s first-party data. In addition, non-endemic advertisers can advertise products and services related to Amazon searches or purchase history.
For example, a customer who searches for hearing aids might also be served ads for local hearing centers through Amazon’s DSP platform. While these advertisers will likely not compete for Sponsored Products or Sponsored Brands ads, they ultimately help drive Amazon Ads inflation by driving up costs for Amazon DSP and Display ads, which might also make competition for the remaining ad types more competitive.
Examples of non-endemic advertising campaigns
- Restaurants. Online grocery or cookbook shoppers may be convinced to order dinner instead of making it themselves.
- Travel. Amazon bathing suits and swimming gear shoppers might be interested in a beach vacation or cruise.
- Auto. People buying tools to fix cars might want to hear about a new local auto lease deal.
- Insurance and financial. Certain purchases may signal significant life changes (having a new baby, buying a house, etc.), generally prime times to engage them for these services.
Advantages of non-endemic retail media advertising
Amazon’s robust first-party data. Amazon’s extensive knowledge of our intended purchases surpasses any other company’s. By directing ads to users at different stages of the buying journey, non-endemic brands can engage a highly receptive audience.
Think outside the box. How can your brand connect with Amazon users based on their buy/browse/search behavior? What shopping behavior indicates that a person may be in-market for your category? Non-endemic advertisers must think creatively to develop the right product pairings.
Informed decision-making. Non-endemic brands can use Amazon’s DSP (ADSP) with the Amazon Marketing Cloud. For example, Skai connects these two tools to enable brands to combine their sales data with Amazon DSP impression data, revealing which ads contributed to customers’ progress. Consequently, brands can make more informed ad buys and reporting decisions.
Reach audiences on premium sites. Amazon properties are exclusive supply sources available in Amazon DSP. These properties include Amazon retail site/app and IMDb site/app, which includes Freevee (fka IMDb TV) in some locales. Advertisers cannot access these inventory sources from any other DSP. Marketers can also access third-party inventory and audiences via Amazon DSP — as well as through Skai’s platform.
Practical advice for non-endemic brands
The first thing that non-endemic brands should do is reevaluate their perception of Amazon Ads. They must realize that it is no longer solely a platform for consumer product brands. Amazon’s unparalleled insights into our intended and actual purchases can reveal signals about us at scale that match the audience targeting goals of non-endemic brands.
Here are some critical steps to get started:
Understand the basics. Begin by learning the fundamentals of Amazon Ads, including its features, targeting capabilities, and various ad formats. This will help you make informed decisions when crafting your Amazon advertising strategy.
Explore targeting options. Amazon Ads offers many targeting options, such as behavioral, contextual, and demographic targeting. Take the time to research and understand these options to reach your desired audience effectively.
Experiment with ad formats. Amazon Ads also provides various ad creative options, including display ads, video ads, and custom creatives. Familiarize yourself with each format and determine the most suitable for your brand’s message and target audience.
Leverage data. Utilize the data provided by Amazon’s DSP to create more precise and effective ad campaigns. Amazon’s vast database of customer insights can help you tailor your ads to resonate with your target audience.
Start small to test and learn. Equip your hunches with a little budget to get some feedback. Advance the ideas that show a good response and prune away the ones that don’t. Ultimately, get in there as soon as possible and start building your expertise before your competitors figure it out.
Make the most of the non-endemic advertising opportunity
In summary, non-endemic retail media advertising presents a unique opportunity for brands not selling on Amazon to take advantage of Amazon Ads. With the ability to target a diverse audience and combine sales data with impression data, non-endemic brands can engage a highly receptive audience more likely to convert.
And to make your program work from Day 1, consider how a technology partner can help you accelerate your insights, program, and performance.
As part of Skai’s omnichannel marketing platform, our Retail Media solution empowers brands to plan, execute, and measure digital campaigns that meet consumers when and where they shop. Built with best-in-class automation and optimization capabilities, our unified platform allows you to manage campaigns on 70+ retailers, including Amazon, Walmart, Target, and Instacart, all in one place.
Client results include:
- 461% increase in Amazon Ads ROAS and 57% increase in page traffic for Bondi Sands
- 92% increase in share of voice on Amazon for a Fortune 500 CPG brand
- 72% increase in revenue for VTech
- 1,390% year-over-year sales growth for Kamado Joe
Why not schedule a quick demo to see everything Skai has to offer?