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Why Retailers Advertise On Amazon [CHART]

Chart: Why Retailers Advertise On Amazon

Without a viable substitute for premium TV advertising inventory, marketers still compete with their pocketbooks for this scarce real estate.

TV advertising’s charmed existence has also been predicated on an astounding lack of post-campaign measurement and accountability.

Meanwhile, digital advertising has become even more performance-driven over time, cementing its early reputation as the “most measurable medium.”

Take the duopoly, for example: Google search started the post-campaign aftercare trend, and Facebook picked up the mantle on display advertising. A recent survey from the CMO Club drove home the importance of media-specific ROIs for platforms like Google and Facebook among US CMOs today.

But recently, we’re seeing the winds blow in the direction of Amazon, now a strong No. 3 player that will generate $11.3 billion in digital ad revenues this year—good for 8.8% of the market. The biggest reason? Measurability.

According to a survey of US retail marketers conducted by Nanigans and Advertiser Perceptions, the top reason cited for advertising on Amazon was strong performance and ROI.

Other top factors included the size and quality of the audience, and that Amazon’s users are ready to buy. A qualified audience at scale linked to sales performance is an understandably intoxicating combination for marketers.

But Amazon has no intention of resting on its laurels as it continues to make a dent in the digital ad market; make no mistake, the digital behemoth now has its sights set on TV. Read the rest at eMarketer.