An intensified focus on the B2B sales market saw Amazon Business profits increase tenfold from $1 billion to $10 billion over the course of only two years, with some believing it may soon become one of the company\u2019s most profitable sectors.<\/p>\r\n\r\n\r\n\r\n
![\"Amazon](\"https:\/\/content26.com\/wp-content\/uploads\/amazon-advertising-2020-predictions-1024x577.jpg\")
<\/figure>\r\n<\/div>\r\n\r\n\r\n\r\nBut not everything went Amazon\u2019s way in 2019: The disclosure that independent merchants account for 58% of gross merchandise sales on the site caused their perceived share of the U.S. ecommerce market to be fall by nearly 10%<\/a>. And as for those independent merchants, their claims that Amazon charges them thousands of dollars simply to speak to account managers<\/a> has drawn the attention of both the Federal Trade Commission and international regulators and lawmakers.<\/p>\r\n\r\n\r\n\r\n So, with all of that in mind, I\u2019ll lead off with our biggest, boldest prediction of 2020: Amazon\u2019s billion-dollar Lord of the Rings TV series will be a hot mess. The Tolkien estate has informed Amazon<\/a> that they can\u2019t use any<\/em> of the material covered in the movies, so the show will need to exist within the less-densely described Second Age that takes place thousands of years before the material the general public is familiar with. In creating the content, Amazon must be canonical and consistently \u2018Tolkienian\u2019 without changing any of the boundaries set forth by the author in his appendices and histories. As Jeff Bezos has personally said of Amazon\u2019s marketplace, \u201cThird-party sellers are kicking our first-party butt. Badly.\u201d Similarly, I just don’t trust Amazon\u2019s ability to create quality first-party Tolkienian content.<\/p>\r\n\r\n\r\n\r\n All kidding aside, let\u2019s get to predictions based on what we\u2019re actually knowledgeable about here at content26: Amazon Advertising.<\/p>\r\n\r\n\r\n\r\n As evidenced by the Washington Post article above outlining Amazon\u2019s tenuous relationship with third-party sellers, we predict this is the year the company starts clearly pivoting their focus towards empowering established brands selling on the platform. To do this, Amazon will stop labeling themselves as a \u201csales channel,\u201d but rather a \u201cbrand builder.\u201d The recent focus on branded Amazon Stores<\/a> was the first step towards this shift in rhetoric. Moving forward, we believe that the biggest Amazon Advertising trend in 2020 will be their commitment to this idea by providing tools and products that brands can use to tell their story and extend their value beyond the channel.<\/p>\r\n\r\n\r\n\r\n This could be a particular boon for companies in the B2B market in which Amazon has taken a distinct interest. For manufacturing, industrial, and scientific businesses, sales have long involved analog catalogs and telephone calls, and as a result, many of these brands have a lagging or nonexistent web presence. The ability for these businesses to build their online brand at the ubiquitous ecommerce point of sale could be incredibly enticing.<\/p>\r\n\r\n\r\n\r\n This Amazon Advertising trend is directly related to the first prediction. In Amazon\u2019s view, the way that brands have traditionally looked at Return On Ad Spend (ROAS) is myopic. ROAS may be an important driver, but the long-term return on that investment is the building of a widely identifiable and trusted brand, which pays much greater dividends. We predict that 2020 will see Amazon beginning to stress the idea that focusing too strongly on the immediate return of ad dollars is short-sighted.<\/p>\r\n\r\n\r\n\r\n If brands are truly going to use Amazon\u2019s ad business to build themselves up, Amazon will need to provide those brands with more complete with better data insights. In addition to general additions and improvements to Amazon Store reporting, we predict Amazon will begin to provide much more granular details pertaining to sales information across product categories. They will also begin to let brands tag their search and social media ads so that they can see the impact those channels have on their Amazon sales.<\/p>\r\n\r\n\r\n\r\n Taking a cue from Instragram, Amazon is beta testing a new feature called \u201cPosts<\/a>.\u201d This free-to-use service will \u201chelp shoppers discover new products and see what\u2019s new from brands by browsing feeds of brand-curated content.\u201d<\/p>\r\n\r\n\r\n\r\n Search result pages will also begin to look a little more like Facebook and Instagram feeds, with in-line video ads becoming available as an option for search advertising.<\/p>\r\n\r\n\r\n\r\n With Amazon changing their focus to \u201cbrand building,\u201d brands need to evaluate whether or not their Amazon presence is still merely a sales channel or the potential for something more. Regardless of what they choose, our general advice is the same:<\/p>\r\n\r\n\r\n\r\n Another year has passed, and as we look back on how ecommerce changed in 2019, we can attempt to look…<\/p>\n","protected":false},"author":50,"featured_media":42861,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[789,1461,1462],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\t\n\t\n\t\nAmazon Will Intensify Focus on \u201cBuilding Brands\u201d<\/strong><\/h2>\r\n\r\n\r\n\r\n
The Importance of ROAS Will Be Downplayed<\/strong><\/h2>\r\n\r\n\r\n\r\n
New Reporting Tools Will Be Introduced<\/strong><\/h2>\r\n\r\n\r\n\r\n
The Product Page Will Start to Look a Bit More Social<\/strong><\/h2>\r\n\r\n\r\n\r\n
Tips for the Coming Year<\/h2>\r\n\r\n\r\n\r\n
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