In response to more investment in an advertising offering, many brands are moving beyond just experimenting with Amazon advertising, and towards shifting budget from incumbents Facebook and Google. Two new studies released in recent weeks explain why Amazon’s advertising offering has become so compelling. This underscores the main reason these brands are finding Amazon advertising compelling: a clear Return On Investment (ROI). Feedvisor, which surveyed over 500 brands for its "Brands & Amazon" report, also found that a large percentage of respondents viewed Amazon as a driver of net new business. Out of Feedvisor’s cohort of 500 brands, 44% have over half their sales coming from Amazon, a concentration of sales that triggers concerns around Amazon being both an advertising channel and a competitor.

Source: Forbes February 20, 2019 20:01 UTC