New research says Amazon.com is rising above the fray with a two-tiered branding and holiday-themed direct-marketing advertising strategy.
Occupying the top online advertiser spot for eight of the past nine weeks, Amazon.com is the number one online advertiser thus far this holiday season, according to a report by AdRelevance. Aiming to capitalize on the brand recognition it has built this year, Amazon is focusing on direct marketing, with 70% of its top ten online ads touting free shipping.
“While most of the market continues to focus on the dark clouds of ‘all things online advertising’, AdRelevance data suggest that a growing list of enterprising companies are mastering the medium in stealth mode,” said Charles Buchwalter, vice president of media research for AdRelevance.
Key findings from the latest AdRelevance Holiday 2000 Snapshot Report, which tracks and analyzes Amazon’s holiday-related online advertising from October 2000 through November 2000, include:
• in addition to tilting its strategy away from branding and toward direct marketing during the holiday period, Amazon had four million impressions per direct marketing ad versus 750 thousand impressions per branding ad.
• even though Amazon curtailed online ad impressions in the few weeks before December last year, it is showing no signs of abating this year, even as Christmas nears. Last year at this time, WingspanBank.com was the top advertiser, while Amazon ranked fifth.
• Amazon’s share of voice on the top five sites it advertises on increased to 20% this year, versus an average of five per cent on its top five sites last season (GO, Altavista, MSN, Yahoo! and AOL.com) – suggesting that it is making a concerted effort to dominate on carefully selected sites.
• Amazon is now the number one advertiser on four of the top five sites it advertises on: MSN, AOL.com, Netscape and Juno.
Buchwalter added, “With each passing week, it appears that Amazon is distancing itself from the pack by operating on all cylinders and employing a unique two-tiered branding and direct-marketing online advertising strategy. If its recent online ad campaigns pay off, Amazon will be well on its way to achieving single-company eTail dominance – and their current strategies will serve as the standard for how to win big in the online world.”
A complete version of this AdRelevance Snapshot Report, titled ‘One Year Later, Amazon Still Sets the Standard’, can be viewed at intelligence.adrelevance.com and includes ad metric charts as well as analytic insights on the findings.
A Jupiter Media Metrix company, AdRelevance's intelligent agent technology continuously scours the commercial web, collecting advertisements from more than half a million URLs. With data on hundreds of thousands of ads, representing more than 15,000 advertisers, the service provides advertisers, agencies, media companies and financial analysts with information that tells them where, when and how competitors and potential clients are advertising on the Internet.