Published Date : Nov 21, 2017
With its expanding pool of consumers and online shoppers, India offers a lucrative landscape for ecommerce marketplaces. To capitalize on the prevailing opportunities, the ecommerce giants are readily willing to invest in advertising. This is also intended at gaining momentum, consequently catapulting their business at the market’s fore. A recent case in point is the investment strategy adopted by Amazon to boost its advertising business in India. It has a dedicated team in Bengaluru responsible to brainstorm innovations and create products attractive products for advertising.
Amazon Increasingly Invests in Advertising Business in India
Amazon over the last few years has witnessed a significant spike in the number of Indian sellers. An increasing number of India-focused and India-first features are therefore launched to woo more sellers into advertising on the ecommerce marketplace. These activities by Amazon are backed by a strong team focused specifically on advertising business in India. Having gained significantly from these strategies, Amazon is gearing to roll out a few of its India-focused features globally. For instance, Amazon has enabled prepayment in India where sellers can allocate funds for advertising upfront. This helped the company mitigate bottlenecks often faced while collecting payments later.
In fact, Amazon is also trying to enable brands that are not selling products with it to still advertising, to reap benefits of Amazon’s brand building offerings. For this Amazon will enable that the brand is available on the platform via third-party sellers. The campaign Amazon has run for Samsung is a viable case on point. As per reports, the product is already set for a global roll out.
Given the scenario, experts are of the opinion that a marketplace model is now emerging at a strong pace within Amazon. Furthermore, they also have faith in significance that advertising holds. According to reports, Amazon currently has nearly 2.5% of the US display advertising market. Also, self-service advertising products by Amazon are not available across 10 countries.