Amazon is always finding ways to increase its customer base, and it is doing so successfully as it is the top e-commerce company. In an attempt to expand its reach, people are no longer limited to shopping through their app or website as they can do so through social media as well.
Shopping Through Snapchat
Snap, the parent company of Snapchat, made a deal with the retail giant where users will be able to buy products through ads displayed on the short-form video site. Snapchat users won't even have to exit the app to do so.
The deal was beneficial to both companies as Amazon was able to capitalize on the frequent usage of social media, while Snap's shares increased by 9% after the news of the new feature broke, as reported by Reuters.
Even TikTok recognized this opportunity as it launched its own shopping features within the app. Principal analyst at Insider Intelligence Jasmine Enberg said that "the partnership will help Amazon compete in the more impulse-driven, serendipitous type of shopping that happens on social media."
It won't be the kind of general ads you usually see as well. Amazon ads will show real-time pricing, Prime eligibility, delivery estimates, and product details on certain Amazon products on Snapchat ads, which adds to the perk of not having to leave the app to shop.
The same deal was made with Meta, allowing shoppers to buy products on both Instagram and Facebook without having to leave the app as well. All customers have to do is click the promotion that appears on their feeds.
For Amazon, this can encourage more customers to buy products they are inclined to when they see them in ads but are too lazy to switch apps. As it is with Snapchat, buyers will also see the important details about the product such as price, delivery estimates, Prime eligibility, etc.
Digital marketing agency Disruptive Digital co-CEO Maurice Rahmey said that it was the most significant ad product of the year, to which Meta Client Solutions Manager for e-Commerce said was "a long process in the making and a huge deal," as per CNBC.
Amazon's Improvements with Ads
The news about purchasing through ads on social media apps like Snapchat, Instagram, and Facebook aligns with Amazon's new AI tool that is meant to help advertisers. The retail giant's new feature makes it easier to add backgrounds to products for ad display.
Amazon claims that 75% of advertisers had trouble with building ad creatives and that click-through rates can be 40% higher compared to ads with standard product images or plain white backgrounds.
To add more elements to an otherwise plain white background, advertisers may generate an appropriate background for the products through the beta feature. It can be found in Amazon Ad Console, where products that need editing can be selected.
All advertisers need to do is click on "generate" and choose from the images that the AI tool will provide. If the user chooses, they can even opt for themes. This eliminates the need to use third-party editing apps to create more enticing ads.
