Amazon wants to own the long game in ad measurement
Amazon says its ads sell more than they get credit for. Agencies want proof.
Amazon believes its advertising generates more revenue than traditionally attributed to it. According to the company's own calculations, approximately 20% of a brand's value on Amazon occurs beyond the standard attribution period, which typically ranges from seven to 30 days post-conversion. This insight was derived from analyzing over 2 million campaigns run on Amazon's ad platforms in June.
The company is leveraging these findings to advocate for the inclusion of a full-year measurement period in ad valuations. Demonstrating value over such an extended timeframe is increasingly becoming a necessity, as Amazon, similar to Google, faces mounting competition from platforms like TikTok, Instagram, and YouTube, which claim credit for sales that contribute to Amazon's revenue, even if the final purchase is made on Amazon's platform.
Lily Tong, a director of measurement at Amazon Ads, elaborated, "What we actually find is that roughly 20% of the sales value for a brand shows up over time and isn't captured in that immediate attribution window because that's just a cutoff date for measurement." She emphasized that this does not imply a lack of value creation by Amazon's advertising efforts.
Written by urgent.news from Digiday's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
