Unpacking the Amazon Ads Opportunity for Fashion

With hundreds of millions of active Amazon customer accounts worldwide, Amazon Ads gives fashion brands the scale and reach to help drive engagement with their brand both in the Amazon store and directly to the brand. About 66 percent of U.S. fashion consumers surveyed by Amazon and data analytics company Kantar in 2020 reported visiting an Amazon store once a week or more, while 51 percent of fashion shoppers said Amazon was “the place to go” to find the latest fashion items from popular brands.

According to the Kantar survey, one in three in-store shoppers explore products online while in a brick-and-mortar store, and 48 percent of respondents use Amazon to look up product information and/or learn more about products.

Amazon Ads provides brands with products, services and insights to contribute to a more effective marketing strategy. This includes helping fashion brands reach new audiences, which could be on Amazon and its products or services, such as Twitch, Amazon Freevee and the ad-supported tier of Amazon Music – yes, another Kantar survey this year of over 1,000 respondents found 88 percent of apparel shoppers reported using at least one Amazon service or device at least once a week. But also outside Amazon, for example through third-party publishers and exchanges, and even directly to brand websites.

The company offers insights and support to help brands in categories including luxury fashion, beauty and entertainment to help them grow their businesses. This includes helping brands create relevant ad experiences that are shown to customers across the path to purchase, and delivering meaningful results to drive awareness and engagement.

Now, BoF sits down with Tanner Elton, VP of US Advertising Sales, to better understand how Amazon Ads can help brands build their businesses, including the type of analytics, expertise and audience reach advertisers can take advantage of.

What are some common misconceptions about Amazon Ads?

When most people think of advertising with Amazon Ads, they think of the Amazon store. It is natural for brands to think that they should have a specific Amazon strategy around how to reach Amazon customers and increase their presence on Amazon.com. But we think holistically about how we can help drive growth for a brand, regardless of where they sell their products – a brand’s physical stores, their own websites or in an Amazon store.

Similarly, brands often think that customers come to Amazon ready to buy, but the truth is that customers use Amazon to discover and explore products—for example, to learn more about product details, or hear from other customers through ratings and reviews.

According to a survey we did with Kantar, 62 percent of clothing shoppers who reported visiting the Amazon store discovered a new brand or product along the way. And to help customers with this discovery process, we’ve built a dynamic end-to-end suite of advertising solutions to help brands connect in meaningful ways with customers throughout the shopping journey – from consideration to purchase.

How can Amazon Ads solutions help support a brand’s broader marketing strategy?

Customers engage with Amazon’s products and services in a variety of ways – from watching Freevee and streaming on Twitch, to listening to Amazon Music and shopping in the Amazon store. Amazon is part of customers’ lives across a range of unique touchpoints, and we work hard to create experiences that help customers engage with Amazon in more relevant and meaningful ways, whether through our sponsored display placements on Amazon, video product placements across of streamed content or audio ads at the ad-supported tier of Amazon Music.

We are able to generate shopping and streaming insights based on billions of signals across these touchpoints – insights that help marketers better understand their audience and how they engage. We then work together to provide customers with relevant experiences that not only help them with product and brand discovery, but to take meaningful action around it if they choose to do so.

By understanding how audiences engage with our sites, we can provide richer experiences with better relevance, which in turn benefits both customers and the brand.

We also offer measurement solutions for both a brand’s marketing activities on and off Amazon. For example, brands can use Amazon Attribution to measure the impact of their non-Amazon ad campaigns—such as search and social ads—on Amazon shopping activities. We also offer media planning tools to help brands predict reach on Amazon Streaming TV ads and more. Our measurement solutions help marketers understand the impact of their ads across the entire media buy, which can improve ad relevance, engagement and inform future strategies.

What kind of insights do you share with advertisers?

We provide brands with insights that help them better optimize their ad spend and deliver more relevant messages to customers.

For example, our research with Kantar found that 83 percent of apparel shoppers reported engaging with streaming TV in the last seven days of 2022. This insight is important as we think about what this journey looks like for apparel shoppers, and how we can help apparel brands optimize their spend to more effectively reach customers with the right message, at the right time, through the channels they engage with.

When we understand how audiences engage with our products and services, we can provide richer experiences with better relevance, which in turn benefits both buyers and the brand. We also want to help brands become smarter and more efficient with their advertising investments, and to provide them with actionable insights to help them optimize their strategies with Amazon Ads.

How do you work with your advertising clients?

We work closely with our advertising clients to help them achieve their goals, including branding, reaching new audiences, and driving conversions inside and outside the Amazon store. We work hard to help brands reach the right audiences at scale, differentiate their brands from their peers, validate their media investments and strike the right balance between branding and performance advertising.

We want to ensure that we develop a high level of industry-specific expertise and are able to deliver relevant insight […] based on the industry there [brands] operate.

We also understand that there are specific nuances to each industry and have teams dedicated to supporting individual verticals, including fashion or grocery, for example. We do this on purpose because we want to ensure that we develop a high level of industry-specific expertise and are able to deliver relevant insights and recommendations to our advertising clients based on the industry in which they operate.

What differentiates the value of Amazon Ads in a competitive industry?

We are customer obsessed. The ways we engage our customers, and introduce ad experiences across our products and services, is always with that lens of customer obsession.

For example, when Amazon introduced customer reviews, we welcomed both positive and negative product reviews because we believed it would provide a better experience for our customers—and frankly, it has. Putting customers first and providing them with a comprehensive set of reviews to make informed purchasing decisions resulted in a better overall shopping experience.

Our advertising customers have exactly the same idea. We want to support brands in finding more effective and meaningful ways to engage with customers, and deliver exceptional brand experiences. This includes understanding what works, and just as importantly, what doesn’t, and optimizing for those experiences.

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