4 advertising trends in 2021 & what it means for Amazon


January 6, 2021

As this year comes to an end, Molzi has begun to look at the advertising trends we predict to see in 2021 and contemplate how we think it will affect Amazon advertising. 2020’s global pandemic may have affected the success of advertising efforts however, this year Amazon made almost $20 billion in ad revenues. A part of this huge growth is Amazon’s ability to be at the forefront of advertising strategy, making their advertising platform more relevant and targeted, along with releasing new products and tools for Amazon advertisers.

What does Amazon’s advertising expansion mean for brands? If you want to stay competitive, regardless of your product category, an effective Amazon advertising plan needs to align with your overall sales strategy. Don’t rely on your Amazon advertising strategies of years past to help your brand grow sales in 2020. Instead, look ahead to new trends and upcoming features to grow market share and sales!

Trend #1 – A larger focus on Programmatic advertising

The most important advertising trend of 2021 that our advertising experts expect to see in 2021 is the increase of programmatic advertising. Between Google Ads continuing to limit access to search query data and the blocking of 3P cookies from multiple popular search browsers, it is evident that advertisers are becoming ever more reliant on 1st party data to ensure successful advertising strategies.

As a company that holds a lot of data about their consumer shopping habits, Molzi predicts that Amazon’s DSP service will become even more popular. Advertisers looking to promote their products will be encouraged to use Amazon’s programmatic advertising platform as its AI algorithm will discover the best demographics to target and automate the best ad placement based on your targeting parameters. This can all be done without advertisers knowing the data which they used to have access to. Moreover, managing programmatic platforms through AI allows for much more targeted and numerous campaigns across the entire marketing funnel.

Trend #2 – More personalised advertising

Another trend that our advertising experts expect to see in 2021 is the increase of personalised advertising across the entire conversion funnel. Gone are the days where advertisers could target a keyword and expect to see huge success. Instead, advertising is increasingly becoming more data focused, consumers are used to seeing semi-bespoke ads which, when compared to generic adverts, are much more engaging.

With the amount of data that Amazon holds about its consumers, Molzi expects to see Amazon’s ad console begin to utilise more personalised ads on the marketplace just as we have come to expect from Sponsored Display ads this year. PPC keywords will most likely always have a place on the marketplace, however as Amazon continues to build a databank around each specific consumer, it is likely that Amazon will create more ad types and advanced targeting strategies. Moreover, Sponsored Brand and Sponsored Display offerings will most likely be improved further with bespoke personalisation in 2021. Brands that gain early access to these new ad betas should utilise them as soon as possible to get a running start on the competition.

Trend #3 – Video advertising will continue to remain popular

Although not new, this advertising format is likely to remain very popular due to its versatility in 2021. Brands are learning to use video in new ways to communicate with their customers which tend to have higher engagement rates over static ads. With the introduction of platforms such as TikTok and Instagram Reels, advertisers are expected to create simple, engaging, short-form video ads in 2021.

Amazon has already dabbled into using video on their marketplace, with the introduction of Sponsored Brand Videos in 2020 first on mobile and now on desktop. However, Molzi predicts to see them expand their video advertising options on the Amazon Advertising console to provide the most direct, engaging and fast shopping possible on the marketplace to improve conversion further.

Trend #4 – Mobile advertising will become more imperative

As always mobile advertising is guaranteed to be one of the main trends of 2021 but even more so due to the Covid-19 pandemic this year. People have already spent even more time connected to their smart phones and mobile devices than ever, and advertisers are aware of this. The ‘story’ ad format became popular this year with Facebook, WhatsApp and most recently by LinkedIn and YouTube utilising it on their platforms and advertisers have already begun using this new feature to promote their brands.

Molzi expects Amazon to also utilise new features on their mobile app in 2021 to further engage with mobile shoppers. One possible suggestion is that the ‘story’ ad format could be provided by Amazon to brands for promoting their brand story or USPs targeted towards shoppers who have opted to follow the brand on the marketplace. This would improve customer retention and even conversion.

Bridget

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