Read time 5 min

Amazon Unwrapped featuring Youval Peltier from Nectar

• Amazon Advertising Reality: How has Amazon structured its ad platform and what does this mean for brands?

  • Amazon's created a platform that maximizes their revenue by putting as much advertising real estate as possible. "It used to be one ad and then it was two and three and four, and now the whole first half is pretty much all ads. That's the reality you're working with."

• Agency vs In-House: What gaps exist in most agencies' approaches to Amazon advertising?

  • "Agencies are very reticent to invest in tools and platforms. That was my big frustration always. They come in unprepared without the right tools, and they overplay the tools that they do have. The biggest problem is they'll tend to use a campaign management platform that fully optimizes on ads-related data, not your overall business."

• Brand Building on Amazon: What's the ultimate goal of advertising on Amazon?

  • "The ultimate goal of advertising is to establish brand preference and purchase intent. If you can do that well, you almost don't need to be spending on ads on Amazon because people will be so driven to want to buy your brand and products. The hack is going bottom funnel, but in today's hyper-competitive environment, that's not enough."

• DSP Reality Check: What role should DSP play in a brand's Amazon strategy?

  • "DSP is just a tool ultimately, and you have to diagnose what's going on with the brand and what the brand's objective is. Most brands are trying to attract new-to-brand customers, and the question is: can DSP do this effectively or is there a different medium that would do this more efficiently? There's nothing like a well-executed influencer campaign that goes deep into the product."

• Sales Channel vs. Acquisition Channel: How is Amazon's role evolving?

  • "It depends how you weaponize Amazon for you as a brand. If you can't be profitable selling in a channel, what's the point of selling your products there? I don't think Amazon is going to seriously retain the ability to drive traffic to a DTC site from Amazon. They've been really careful about that."

• AI Applications: What are the current realistic use cases for AI on Amazon?

  • "The role of AI today is increasing operational efficiency and lowering costs. Basic stuff like content development and copywriting is where you can be a lot more efficient now. AI for campaign management is very dangerous - it's only as good as the data you feed it and has no way to measure incrementality. I've been hearing the term AI for 10 years now and I'm very wary."

• This year, click through rate is what's leading. Having a primary image that gets those clicks is worth it.

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