Typically brand studies, lift tests and other more scientific measurement strategies for brand marketing spend are not easily accomplished on Amazon, but data available through Amazon Retail Analytics Premium and some third party data providers can help provide a better data set for triangulating the efficacy of investment in Amazon advertising ‘beyond ROAS’.
Amazon is less likely to impact smaller social-media firms such as Snap Inc. SNAP, +0.50% or Twitter Inc. TWTR, +0.34% EMarketer expects Snap to rise to 2.2% ad market share in the U.S. by 2020, and Twitter to rise to 0.9%, but neither are expected to lose share to Amazon because media buyers typically look to the two platforms for very specific reasons.
Amazon’s new offering could position the company as a threat to Google and companies like Criteo SA, which generated $2.3 billion in revenue last year with its retargeting offering that lets companies track and serve ads to consumers that have shown interest about a product in the past.
While Amazon doesn’t specifically break down its advertising revenue, the company’s CFO Brian Olsavsky calling the ad business a multi-billion dollar program and the majority of its other revenue makes it clear that ad sales are growing quickly.