Online shopping and e-commerce have become synonymous with industry giant Amazon. The company has worked hard to successfully position itself to be the leader in online retail. While the company has dominated the e-commerce industry for many years, it has also found success through its advertising capabilities.
We surveyed our team of Amazon experts to find out rising trends and their predictions for what’s in store for Amazon and other online marketplaces in 2022.
1. Attribution modeling becomes a larger focus
Andy Thompson, Director of Marketplace Services, predicts that multi-touch attribution modeling for Amazon media will be on the rise. He explains that this will help marketers better understand all the touchpoints a customer has with a brand before making a purchase on Amazon and give credit to the different touchpoints.
With the potential deprecation of the 3rd-party cookies, and app-based tracking challenges coming, 1st-party data will be king in digital media. Andy says, “Amazon’s closed loop in the product journey process creates a great alternative to take methods and models from old digital channels and apply them back into Amazon.” As Amazon expands its capabilities to provide more insights into the customer journey, more marketers will turn to Amazon’s solutions for attribution modeling.
2. Video fills the screen on Amazon
Video content is everywhere and for good reason: video receives 21.2% more interactions than a traditional image. For marketers, the importance of video will also extend to Amazon in 2022.
Ryan Wright, Marketplace Strategist, tells us, “Sponsored brand video will expand its footprint and become the ubiquitous advertising type on Amazon in 2022.” He explains that dynamic advertising hasn’t been a big part of Amazon’s advertising portfolio until recently. The rise of dynamic advertising on other platforms will be mirrored on Amazon, and it’s a chance to showcase creativity. He adds, “We’ve seen some great results on these ad types and continue to push them for all of our clients to use as soon as possible.”
3. Supply chain issues linger
Many brands faced supply chain challenges this year, and this is expected to continue in 2022. Because of this, inventory availability will continue to impact Amazon and other major e-commerce platforms. Brands are already preparing for what challenges may lie ahead and are looking for ways to successfully navigate these supply chain problems.
Where many brands struggle to adapt, Jamil Bhuiyan, Associate Account Coordinator, is finding opportunities. He explains, “As supply chain issues plague every industry, keeping inventory available and staying on top of opportunities to conquer when competitors fall flat from lack of supply will be a huge market factor for pricing and taking advantage of others’ missing opportunities.” He recommends using supply chain issues as a conservative strategy but also considers it an opportunity for big growth in competitor spaces. As you look for new ways to capture more market share in 2022, make sure to keep Amazon’s expanding advertising capabilities and SEO for Amazon top of mind.
4. Expansion of VR, AR, & mixed reality tech
Amazon and other online marketers will look for new ways to improve customer experiences and experiment with cutting-edge technology. With the growing popularity of Virtual Reality (VR) and other mixed reality technology, retailers might have more opportunities to get creative with improving the customer’s shopping experience while showcasing their products or service.
Jack Garcia, Account Manager, tells us what he’s looking forward to seeing in future applications of this technology. “I would love to see the expansion of VR, AR, or other mixed reality technology integrations. I saw an article about a major cosmetics brand letting people ‘virtually dye their hair.’ This concept has been floating around for a long time, and I was just waiting for it to become integrated with mainstream marketplaces.”
That time is here. It’s estimated that the global mixed reality market will reach 300 billion U.S. dollars by 2024, nearly ten times the current global market value. Given this booming popularity, we expect to see some major applications coming this year.
One of these applications involves a concept called “mass customization.” Jack refers to how Nike lets users customize shoes online as an example of this. The integration of mixed reality technology goes hand-in-hand with mass customization.
While technology companies and major social media platforms are investing heavily into the development and usage of mixed reality technology, Amazon and other online marketplaces may push the industry forward. Online retailers have the ability to leverage this technology to create a seamless shopping experience—one that begins with the discovery of a brand’s product and concludes with the purchase of that product—all without requiring the customer to leave the online storefront. If Amazon offers a streamlined way for sellers to use these technologies, we could quickly see mass adoption of mixed reality technology for advertisers.
5. Amazon shows its cards
“Amazon will begin to release more data and insights into brands and agencies than ever before,” Andy tells us. As a result, he sees Amazon pivoting away from the secrecy they’ve traditionally used towards their data. This shift will reward sellers already using Amazon Advertising and widen the competitive gap between brands just starting to advertise.
Andy continues, “Amazon will unleash a new wave of growth for brands already on the platform which will leave brands that are waiting to get on Amazon further and further behind.” Since new arrivals to the online storefront will have less 1st-party data to inform their campaigns than existing advertisers, they already have a disadvantage. Brands should find strategic partners to consult with so they can leverage their partners’ historical knowledge, or they risk wasting ad spend.
Use these tactics to succeed on Amazon and other online storefronts in 2022
Keeping these trends top of mind will give you a competitive edge at the onset of the new year. Get in touch with our team of Amazon experts to learn how we can help you stay ahead of your competitors in 2022 and beyond.