Amazon is set to invest $7 billion in music and video content this year. The main objective is to make Prime the most valuable service of its kind in the industry. Music and video will lead the marketplace giant into new markets and give it the potential to take the lead over existing competitors. This strategic decision also holds significance for the brands who sell on Amazon. Continue reading to learn more about how Amazon’s investment in music and video will help brands reach more consumers.
Leverage Advertising Through Subscriptions and Smart Speakers
Amazon’s focus on music and video opens the door to new revenue through streaming subscriptions. Consumers will now have the option to choose Amazon over services like Spotify, Pandora, TIDAL, and Apple Music. If Amazon offers competitive pricing for shoppers, it will stand out from the key players that currently capture the market. This is one step toward expanding and enhancing its value across all retail.
Subscription services also will provide brands on Amazon another avenue to target customers through over-the-top (OTT) advertising. This is exciting because brands will potentially be able to target many of the 53 million adults in the United States who own a smart speaker as a part of this new audience. We can expect Amazon will claim even more advertising dollars versus traditional avenues, like Facebook and Google than it did earlier this year.
Amazon’s Investment in Music and Video Aims to Increase Loyalty and Retain Customers
Investing in the lucrative market of streaming creates the opportunity for more consumers to become loyal to the brands selling on Amazon’s marketplace. Amazon’s hope is that the more people who use its services across the board, the more likely they will be to use Amazon to shop for products as well.
Brands will have the chance to leverage this high-level loyalty and a wider span of spenders as more traffic makes its way to the platform.
As Amazon continues its journey to become the leader in all retail, brands who sell on its platform can stay on top of the developments and enhancements along the way. If your brand needs a strategic partner and resource for all things Amazon, schedule a free consultation.