Today, Amazon announced a highly-desired feature that CPG and Grocery brands have been waiting years for—the ability to run Sponsored Products advertising on Amazon Fresh.
Our CEO, Trevor George, spoke with Business Insider earlier today and said AmazonFresh could be a big opportunity for CPG brands to work their way into Amazon’s advertising program.
“This could be a very profitable endeavor for brands that realize this now. Because AmazonFresh is a new area for ads, the cost per click will initially be low.”—Trevor George
What is Amazon Fresh?
According to Forbes, online grocery sales are to reach $100 Billion in 2025, and Amazon is the current and future leader. “With Amazon’s early lead in online grocery and it’s momentum growing thanks to the Whole Foods acquisition, Prime Pantry, Amazon Fresh, and it’s already loyal legions of Prime customers, Amazon is already way out in front in the online grocery battle”.
We already know that Advertising on Amazon is essential to the success of your brand, but until today, Amazon Fresh sellers haven’t had this option. Brands who start advertising on Amazon fresh now will benefit from:
- Increased discoverability. Reach relevant shoppers by promoting your Amazon Fresh products across Amazon search results and product detail pages, including AmazonFresh searches.
- Reaching the right customers. Your ads will only show to customers who are eligible to purchase your products.
- Increased loyalty. Create long-term value by reaching new shoppers and encouraging repeat shopping habits.
As Amazon continues to release new tools and capabilities to its advertising platform, the cost to advertise will continue increasing. Our Director of Amazon, Ryan Burgess, advises brands who sell on Amazon Fresh to start advertising now before it’s too expensive:
“The grocery category, in particular, has a lot of competition from big name-brands who will drive up CPC’s and make advertising less profitable for smaller sellers. The advantage smaller brands have over their larger counterparts is the ability to get started now before it becomes too costly.”—Ryan Burgess
If you are looking to increase profitability while keeping your costs down, you need to use Search Term Isolation as your main Amazon Advertising Strategy. Search Term Isolation is a complex advertising strategy that automatically harvests converting search terms and negates non-converting search terms that are wasting your money. After you are fully search term isolated, you should also check out our take on the top three ways to lower your ACoS while increasing your revenue.