Rising CPCs paired with news headlines regarding supply chain shortages have created unexpected challenges for brands.

In 2021, Amazon CPCs among all ad types including Sponsored Ads, Sponsored Products, Sponsored Brands, and Sponsored Display increased, and it is expected they will continue to do so in the future.

The upshot here is the value of advertising on Amazon is also increasing. Especially for those brands who are able to understand the interplay between paid and earned media opportunities. 

“The dynamic between paid and earned media – that’s precisely what we’ve been obsessing over and doing for our brand clients,” Pat Petriello, Director of Amazon Strategy, at Tinuiti says.

2022 will be a continuation of a new trend where the products that win market share are not necessarily the most recognized or highest quality products, but those which are consistently and reliably available year round. Inventory struggles continue to shake up the Amazon Marketplace as vendors struggle to stock inventory ahead of surging demand. 

“In 2021, roughly half of consumers bought from a different brand than their usual choice due to product unavailability, which means the market is ripe for operationally sound brands to chip away at marketshare,” Dylan Verburgt, Strategist, Marketplaces at Tinuiti says.

So, what can brands do to minimize loss in market share from out-of-stock products and combat rising costs? 

“Double down on advertising designed to build brand awareness and preference. When everyone else is pulling out of the market, you can gain a higher share of voice by making bold moves. Additionally, brands that can level up the products they do have in stock through advertising can mitigate any loss in revenue,” Verburgt says.

Although we can’t be sure what to expect in the new year, we asked our leading industry experts what trends they predict will shape the Amazon Marketplace in the near future. Take a look at their responses* below.

*Note: All predictions and responses listed have not been confirmed, denied, or provided by Amazon.com. 
 

Amazon Advertising Predictions for 2022

 

Amazon as a Brand-building and Demand Generation Platform

 
“While Amazon has been making strides over the past few years to be a one-stop-shop for building a brand, creating awareness, and ultimately converting customers—a lot of brands still continue to view the marketplace as purely a demand capture play. However, Amazon has continued to invest in their brand store products including customers’ ability to ‘follow’ brands, the expansion of Amazon Posts, and the ability to retarget store viewers and purchasers in order to engage with customers at all stages of the funnel.”

– Jordan Gisch, Sr. Strategist, Marketplaces, Tinuiti

 

 

“Amazon has made a concerted effort to enable brand building on their platform. You can build a brand store, engage customers with posts, you can even use email now to launch new products. You can automate fulfillment through FBA and you can even leverage the likes of Google and Facebook to drive traffic back to Amazon (and they actually give you 10% of your revenue back). But the most important reason to launch a store on Amazon is your access to the best converting customers in the world. This doesn’t mean building a D2C site isn’t important. What it means is the cost to benefit analysis is moving more in Amazon’s favor.”

– Katen Johal, SVP, Business Development, Tinuiti

 

 

“As Amazon expands more brand building tools via self service, more brands are going to want to understand how these strategic activations are influencing the overall lift of a brand. The days of running awareness on Amazon (DSP, OTT etc.) and hoping it’s impacting your bottom line are fading. A good example  is the availability of Brand lift metrics in OTT at the end of 2021 and more insights and nimble queries in Amazon Marketing Cloud to help advertisers understand the consumer path for a brand from the top of the funnel.”

– Aaron Gooden, Associate Director, Marketplaces, Tinuiti

 

The Rise of Amazon Posts and Influencer Marketing

 
“Simply put, Posts are Amazon’s version of Instagram. What’s improved about Posts and what can make them even more valuable moving forward is that they can now be scheduled to support product launches, brand campaigns, and other social initiatives. So, instead of saying I have to set up a post and launch right now – you can build posts and set them to run in the future.”

–  Pat Petriello, Director of Amazon Strategy, Tinuiti

 

 

“Amazon Posts and Attribution were successful betas in 2021. With influencer marketing growing, I predict that Amazon will lean in heavily here and potentially adopt their own influencers targeting Amazon exclusive lifestyle products. I also predict that ‘Amazon Live’ will grow and stream similar to Twitch (which Amazon now owns) to become a ‘QVC’ of the modern internet age. Amazon will also encourage users to ‘follow’ brands and mimic social media interactions in this way.”

Ryan Yamamoto, Team Strategist, Marketplaces, Tinuiti

 

 

Amazon likely to invest in Stores capabilities

 
“Amazon will likely continue to invest in brand building and Stores. Amazon spent a lot of money and time in 2021 investing in building new opportunities for customers to interact with their favorite brands. Amazon released the Manage My Customer Engagement beta which allowed brands to directly connect with brand followers through email. If you’re not yet actively updating your Stores or utilizing Posts, now is the best time. Amazon will release more products, likely paid, that direct traffic to brand Stores in 2022.”

Courtney Macfarlane: Strategist, Search, Tinuiti

 

 

“I predict Amazon will continue to increase capabilities and drivers to Stores to get closer to the Shopify experience. With the recent ability to retarget Store visitors through the DSP, I’m betting we’ll see Amazon release products that drive more traffic through the Store.”

– Tony Heuer, Strategist, Programmatic, Tinuiti

 

 

Video surfaces as a massive opportunity to boost product and brand awareness

 
“With the increase of TikTok and other UGC platforms, consumers are becoming more reliant on video as a showcase for a product. Social media has transformed the business world by creating a type of consumer experience centered around seeing how a product engages with its environment. So, leveraging video creatives is a great way to show the consumer how a brand’s product works in real-time.”

– Kyra Alpiner, Marketplace Insight Specialist, Marketplace Support, Tinuiti

 

 

When Tinuiti partnered with Honest Company, the goal was to increase the company’s visibility in non-branded search terms. The Honest team created custom videos, each highlighting a different product (versus a generic brand video). You can view the entire case study here.

You can optimize keywords and audiences forever. But if you’re showing that audience low-performing creative and detail pages, you’re missing half of the equation. Honest Beauty’s ability to produce product level video assets and adapt those assets for our Amazon audience made for a great customer experience that was reflected in the brand’s performance.”

– Evan Walsh, Sr. Programmatic Analyst, Tinuiti

 

 

Streaming TV opportunities will expand into 2022

 
“Streaming TV opportunities will expand into 2022, especially with the release of Amazon-branded TVs. This will increase the number of available ad placements and hopefully help close the gap with attribution, allowing data to all live on the same platform. With integrations into Alexa, this also increases the potential for expanding into audio streaming advertising, allowing for a more integrated full-funnel advertising approach.”

– Karen Hopkins: Strategist, Programmatic, Tinuiti

 

 

“OTT is one of the best channels for initial consideration. It’s highly impactful, and having it being targeted through programmatic buying allows you to hit your consumer at the right time. Right place, right time is the story of programmatic and OTT takes this to the consumer’s TV.”

– Joseph Elmquist, Marketplace Programmatic Analyst at Tinuiti

 

 

Increased test, learn and adoption of voice-activated advertising

 
“About one in four adults in the US now own a smart speaker. According to reports, Voice Shopping is estimated to hit $40+ billion across the U.S. and U.K.by 2022. We are going to see expanded capabilities around targeting and reach matched with increased adoption by advertisers. As Amazon continues to expand its brand building toolkit, advertisers will need to continue to keep the customer (and their journey) front of mind.”

– Nancy McLaughlin, Sr Director Marketplaces, Tinuiti

 

nancy lee mclaughlin tinuiti

 

Amazon Fresh expands advertising tactics and tools

 
“With the expansion of Amazon Fresh into new zip codes/marketplaces, higher adoption rates of online grocery shopping, and additional brick and mortar locations opening, we anticipate the Fresh/grocery advertising space to continue to evolve with capabilities and tactics. Amazon has hinted that Sponsored Brand campaigns could be coming to the Fresh platform to bring more parity between Sponsored Search capabilities across .com/fresh.”

– Jordan Gisch, Sr. Strategist, Marketplaces, Tinuiti

 

 

Cryptocurrency and Amazon team up

 
“The country of Venezuela, Tesla, AMC Theatres and The Dallas Mavericks. What do they all have in common? They’ve all accepted a form of cryptocurrency in the past year. As Cryptocurrency becomes more popular and adoption continues to increase, Amazon will look to allow purchases on the platform with Cryptocurrency or maybe even create one of their own for use on their site.”

– Christian Lopez, Team Strategist, Marketplaces, Tinuiti

Want to see more predictions from our team? Be sure to download the upcoming 2022 Amazon Advertising Guide. Got a prediction to share? Contact us here!

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