Amazon announced its latest revenues last week, reporting nearly $8 billion in "Other revenue" for Q2 2021, including advertising revenue, up 87% over the same period in 2020. From Q1 2021 to Q2 2021, Amazon's advertising revenue increased by almost $1 billion dollars, according to AdExchanger.
Amazon is not the only online retailer growing. In the last year, retail e-commerce has soared to new heights as a record number of consumers shopped online. One byproduct of the growing importance of e-commerce in consumer shopping habits is that retail site audiences are massive, accumulating billions of page views as they browse and search for what they want to buy.
Those audiences have helped e-commerce channel ad spending, led by Amazon Ads, begin to break Google and Facebook’s duopoly on digital advertising spend. According to eMarketer, retail media ad spending is forecast to hit $24 billion US dollars in 2021, an increase of 27.8% over last year.
In this post, we’ll explore the key factors contributing to the retail media ad boom and provide three ways that Quartile can help your business succeed even as some of the biggest advertisers in the world turn their attention to retail media.
Key Factors Bolstering Retail Media
- The sheer number of online buyers: According to Statista, 2.14 billion people will buy online in 2021. That’s more than a quarter of the world’s total population.
- Retailers are increasingly becoming tech enabled and open to other businesses selling via their platforms. Amazon catering to marketplace sellers is the obvious example, but other retailers are following suit. During Walmart’s Q2 earnings call, Walmart CTO Suresh Kumar said “Our unmatched omni-customer expertise can accelerate other companies' digital transformations,” which presumably includes media and advertising capabilities.
- Retail media dodges the third-party cookie apocalypse and gives online access to first-party data conversion data from real buyers. With the right tools, this powerful data allows online sellers to optimize their campaigns and improve return on ad spend much faster than traditional and other forms of digital media.
- With the right targeting, retail media is a win for all parties across the board: retailers, advertisers, and yes, buyers. Retailers developer another revenue source to further technology investments, advertisers get their products in front of in-market buyers, and buyers can find the products they need quickly.
How Can Quartile Help?
Quartile realized early on that the next big opportunity in advertising was going to be helping brands and sellers grow their share of voice and sales on these emerging platforms. Now, with mountains of data to inform our machine learning algorithms and years of experience fine tuning our system to work best for clients, Quartile is poised to help our clients achieve even more success. Here are three ways our system is helping sellers like you optimize your retail media ads, including on Amazon, Google, Instacart, Shopify, and more.
The Quartile PPC Platform
Developed as a new way to manage e-commerce media campaigns from the ground up, the Quartile PPC Platform is relentlessly focused on increasing sales and return on ad spend. Quartile combines powerful AI and machine learning algorithms to discover new opportunities to get in front of their customers, from one-to-one campaigns for every product to hourly optimizations. According to a TechValidate survey of Quartile users, 76% reported requiring a AI technology to manage their PPC campaigns automatically and 59% said their campaigns were too large to manage manually. (Source: TechValidate) Quartile helps our clients manage Amazon PPC and other retail media ads including but not limited to sponsored product ads, display & video ads, headline search ads, and more.
An Experienced Customer Success Team
While the platform is powered by cutting edge technology, Quartile clients all receive a dedicated customer success manager to ensure that the technology is working for their unique situation. This includes at least bi-weekly check ins on how your campaigns are performing including reporting and strategy sessions.
The Quartile platform just works, and frees up campaign managers and agencies for more strategic work, according to our users. More than a third of clients with $50,000 in monthly sales report increasing Amazon revenue by more than 25% since implementing Quartile, while 68% report increasing sales by at least 10%. (Source: TechValidate) And these results are fast – 64% said that they saw results in less than three months, with some reporting results in less than a week! (Source: TechValidate)
Want to find out how Quartile can supercharge your Amazon and retail e-commerce sales?