Amazon Prepares for Growth with “Amazon Advertising” Name Change

In a blog post last week, Amazon announced a new name for their fast-growing advertising business. Say goodbye to the acronym mash-up of advertising on Amazon, and say hello to a simple new name: Amazon Advertising.

The unified group now encompasses the varied ways brands can advertise through Amazon. Though you are likely to see Amazon Media Group (AMG), Amazon Marketing Services (AMS), and Amazon Advertising Platform (AAP) floating around for the next few months, these names are on their way out.

What Does this Mean for my Brand?

At this point, the ad products will function the same and the way brands use them will remain the same, too.

There are a couple new names to adjust to, as Amazon switches to more common sense terminology. Amazon is swapping out Headline Search Ads for Sponsored Brands or Sponsored Products (which is the terminology used on the consumer-facing side of the site). Also, the former Amazon Advertising Platform will now become the Amazon DSP (demand-side platform).

Most importantly, the change should prompt brands to keep an eye to the future.

Amazon Advertising is Set for Growth

The move signals Amazon’s focus and intent to grow their advertising business. The initial forays were met with success, and now the company is simplifying and rebranding its ad services to boost their ease of use.

The blog post says, “We’ve worked hard to scale our products and services for our advertisers and agencies, but we also recognize that in the process, we’ve created complexity around our advertising brands and product portfolio. So we’ve been thinking about how we can invent and simplify to provide a better experience for our advertising customers.”

Amazon does not specifically break out its advertising revenue in its financial reports, but there is a category labeled “other” that is largely made up of advertising. This category boasted $2.2 billion in the first quarter. Google and Facebook, which make up more than half of the $88 billion digital ad market, would barely bat an eye at those numbers if it weren’t for the striking growth. These dollars constitute a 130 percent growth over the same period in 2017.

Brands Want to Grow their Reach on Amazon

Looking ahead, you can expect more companies to shift dollars to advertising on Amazon. Catalyst, a search and social media marketing company, conducted a study that found only 15 percent of marketers polled felt they were making the most out of Amazon advertising. Additionally, 63 percent of the companies that already advertised on the site said they planned to increase their budget in the coming year.

This effect will snowball; as more brands advertise through the site, more brands will jump on board to stay competitive.

Amazon has a big advantage over competitors: the company is keyed into consumers’ shopping habits in ways that other companies can only dream about. Though they are currently a small player in the online advertising industry, their growth is dramatic and expectations are high.