Amazon Struggles in Industrial Distribution, AMS Video Ads on Mobile, Amazon Advertising Sees Highest ROIs

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Amazon Business Not Necessarily Disrupting Industrial Distributors
Our recent research into the industrial distributor market shows limited penetration by Amazon to this point, particularly as it relates to large players such as WW Grainger and Fastenal. The business that Amazon does have in these markets appears tied mainly to Maintenance, Repair and Operations (MRO), and is typically more focused on consumer and DIY vs larger customers, which typically require more hands on service and support than Amazon is currently capable of offering. Amazon Business remains an investment focus for the eTailer though, and our research suggests they have recently hired several key Grainger sales people with a special focus on winning Government business.

Amazon Advertising Spreads – Offering Mobile Video Ads
Bloomberg reported recently that Amazon was offering video advertising inventory to brands within its iOS app. These ads are offered within search results, and are expected to expand to Amazon’s Android app later this year. We have been writing about these video ads since late last fall, and feedback from brands trialing the new ad unit indicates the return on ad spend has been strong, but that reach has been more limited vs traditional AMS advertising.

Amazon Seeing Strongest ROI vs Expectations in Digital Marketing
We recently surveyed 50 ad agencies, brands, and tech partners and found Amazon was by far seeing the highest ROI compared to expectations thus far in 2019, with a net 63% of respondents seeing better than expected performance despite rising costs from increased adoption.

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