Amazon Introduces Mobile Video Ads – The Buyer’s Journey 23

Amazon is bringing a subtle change to their mobile app: video ads! We discuss the e-commerce companies slow roll-out and what this signals going forward.

The Consideration Stage

The Consideration Stage is the second stage of The Buyer’s Journey and involves two main components: researching a brand’s product and choosing where to buy that product. This then leads customer’s into the Purchase phase.

Amazon’s Mobile Video Ad Play

As Search Engine Land’s Greg Sterling reports, Amazon will be slowly rolling out video ads on it’s mobile app. The ads will be placed at the top of search results, the same spot that current static ads are placed.

A screenshot of the Amazon mobile app showcasing where a static ad is currently placed.

An example of where static ads are placed within Amazon mobile search results.

According to a Bloomberg report, Amazon will require an ad budget of $35,000 ad budget for the ads. Apparently, the ads will be 5 cents per view for 60 days, according to one Bloomberg source. Another source, however, claims that rates can be variable.

For reference, Sterling points out that Amazon doesn’t directly report ad revenue in earnings reports. The e-commerce company instead groups that into an “other” category. According to Sterling, “[i]n Q4 2018, Amazon reported $3.4 billion in ‘other’ revenues, which means its advertising business exceeded $10 billion in 2018.”

Why It Matters in the Consideration Stage

When someone is making a search, they already know what their problem is or what product they want. Just as Google has been changing it’s algorithm to allow bigger thumbnail images in SERPS, so too is Amazon changing their visual element. The goal here is to catch the attention of individuals in the consideration stage. Video is a powerful tool in which to do that. That’s why Facebook videos consistently perform better than static ads, and the popularity of YouTube ads continues to grow.

At the end of the day, Amazon is the third largest ad platform around. It’s main competitors: Facebook and Google. With more people beginning product searches on Amazon than Google, it’s clear Amazon is spreading it’s influence. Frankly, it was only a matter of time before Amazon moved to video ads.

Check out our next episode tomorrow where we’ll discuss a news article covering the Purchase stage of The Buyer’s Journey.

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