This is the summary of an article by Marketing Plan.net. It talks about the history of the multinational firm, business philosophy, pillars of marketing strategy, and pay per click advertising as the company’s marketing campaign black sheep. Here’s the link to the original behavioral targeting article: Marketing Strategies of Amazon.com.
More than 15 years ago, Amazon.com started out as a mere “dot-com” firm. Today, however, it has dramatically grown into a multinational company that dominates the Internet business world. The firm’s huge success is mainly due to its effective marketing techniques, which include the following: affiliate marketing, continuous website development, email marketing, offline advertising, and pay per click advertising.
One of the most successful programs of Amazon.com is affiliate marketing. Through this program, third-party sellers and independent retailers or associates are invited to place links on their sites that direct visitors to Amazon.com or Amazon.com websites. For every visitor that an associate leads to Amazon.com, they are paid a specific fee. If the visitor decides to purchase a product, the associate also receives an extra commission. This strategy is so successful that by the end of 2007, a total of 1.3 million sellers have joined up with the site.
Continuous Website Development
Amazon.com develops and improves their website continuously, spending plenty of time and resources in analyzing user behavior and addressing their concerns. For this reason, many find it user-friendly, simple, and engaging. Based on a study conducted in 2001, Amazon.com topped a list of 20 e-commerce websites in terms of accessibility, speed, and usability.
Email marketing is another technique employed by Amazon.com. Through their permission marketing program, customers allow the company to send them messages about product promotions. This has proven to be an effective approach, since customers are sent messages that are relevant to them. Based on their previous purchases, Amazon.com serves them up with material that they may find interesting.
In its earlier years, Amazon.com spent millions of dollars on offline advertising, which includes billboard and television advertisements. In later times, however, they began to spend less and less on offline marketing, yet still manage to be
successful with their online sales. From 80 million in the fourth quarter of 1999, the company spent only 50 million in the same period of the following year. In recent years, the cost has been reduced even more. Clearly, Amazon.com recognizes the fact that a lot of people now go shopping online; hence, they concentrate their resources more on online advertising.
Pay Per Click Advertising
Initially Amazon.com used Clickriver as a pay per click strategy. This was replaced by ProductAds in 2008. The program works by allowing web merchants to buy PPC advertisements on the website of Amazon. Aside from this, the company also buys PPC ads from Google, in order to drive potential visitors to their websites. It’s a simple strategy but clearly an effective one in garnering prospective customers.
Given these effective techniques, other companies could learn from Amazon.com in coming up with
their own marketing programs.