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Amazon’s Path To Profitability Through Search Engine Marketing

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downloadABOUT AMAZON

Amazon.com which is also referred as Amazon is an American cloud computing and electronic commerce company with its headquarters in Seattle, Washington. In the United States it is one of the largest internet based retailer.Amazon was founded by Jeff Bezos in 1994. In July 5,1994 the company was incorporated by Jeff Bezos as Cadabra, a year later he changed the name to Amazon. The company in 1995 went online as amazon.com. He planned to make his store the biggest store in the world so he selected the name as amazon which is one of the biggest river in the world. Amazon first started as an online bookstore later on it diversified to CD’s, DVD’s, video and  MP3 downloading and streaming, video games, apparel,food,toys,furnitures and consumer electronics like Kindle,fire tablets,etc. Amazon also has separate retail websites in United Kingdom,United States,France,Canada,Germany,Spain,Italy,India,china,Mexico and many other countries.It surpassed Wal-Mart in 2015 by market capitalization in United States as one of the most valuable retailer.

BUSINESS OBJECTIVES

Amazon’s business objective is to become the best place where customers can buy,discover and find any product or service which is available online.

The other objectives are

  • Enhance its brand and customer base.
  • To be one of the most preferred online shopping site in the United States and all over the world.
  • Focus on long-term growth.
  • Value low prices and fast delivery of goods.
  • Best pricing objective to earn consumer trust and not focus on short-term profits.

APPROACH

The marketing strategy of Amazon is designed in such a way that it strengthens the brand name ,drives traffic to the website and most importantly it builds customer loyalty. Amazon has very effectively used search engine marketing which has led to profits. Amazon is one of google’s biggest customer and is very successful in gaining SERP impressions. In February 2012 it received SERP impressions for more than 2,30,000 keywords on AdWords and it has increased constantly in the last few years.

Amazon uses various ad formats for advertising through AdWords. Amazon uses text ads which has words only and three lines of text with a headline,URL and description line, once a user clicks on the URL the page opens.

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They use the product listing ads which has a text as well as image of the product with the price. So once a  user views the product there are higher chances that the user would buy the product as they have already seen the product without even going to the website.Untitled

Image ads are an effective way to advertise products available online. Image ads are static and has no animation in it.It can be created on AdWords and the websites can be chosen where you want to advertise.Amazon uses image ads for advertising where a destination URL is present to the site.

image ad

Amazon also uses text plus image ads which includes an image,body text, ad title and a destination URL.These ads appear on website other than  Amazon.It is a very effective way to advertise your product as it has a text as well as image.

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In addition to the text,product listing, image , image plus text ads amazon uses video ads as well which is either a  skip ad that are shown when a video streaming is going on or an in display ad which is a combination of video and text together.These ads are more engaging as it has a video with text. These approaches used by amazon proves that it has an excellent business model and has utilized search engine marketing very effectively for advertising.Smart search engine marketing keeps the campaigns of amazon fresh and it also adds a major part of revenue for AdWords.

RESULTS

Amazon is one of the most valuable retailer and one of the most famous website for online purchase of products. The results after effective search engine marketing is pretty clear.

  • Search Engine Marketing has helped Amazon grow their business in an extremely competitive market place.
  • Promotion of the products effectively through AdWords using various ad formats has helped it gain more clicks which in turn has added to its profits.
  • Search Engine Marketing has also helped amazon engage with more people through various Ad formats like video ads, image ads,etc.
  • The quality score of amazon ads are good which gets it to the top paid search results.
  • The good pricing objective has built customer trust which has enhanced the brand and the customer base.

LEARNINGS

Search Engine Marketing is an effective way to grow your business.

  • It helps in increasing the visibility of a website.
  • It is a very effective way to promote your product and services online through various search engines like google,Bing,etc.
  • Promotion of the products effectively through AdWords using various ad formats like video ads,image ads,text ads,image plus text ads helps in engaging with more people.
  • It helps in maintaining targeted and consistent online traffic to your website.
  • When your online business comes under the top search engine results  it enhances the brand image.
  • Appropriate keywords must be selected for your business as more than the bid amount getting a good quality score is important which helps in increasing the Ad Rank.
  • Since search engine marketing is an online process it helps in connecting with the audience and is helpful for small companies with low budgets to gain visibility online.
  • Performance of your ad can be measured and this form of marketing is very flexible.
  • It helps in increasing brand awareness and is very easy to implement.

Hence, we see Search Engine Marketing is the perfect tool through which you can increase relevance and reach of your business online.If a business has not incorporated search engine marketing for the marketing campaigns then it is definitely lagging behind.

Image Credits: 

www.turnerduckworth.com

advertising.amazon.com

www.kevinlee.net

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