CPG brands looking to expand their online presence are increasingly leveraging Amazon as a retailer channel. However, as Amazon continues to expand its private label offerings, home care brands must be deliberate about their advertising strategies to outmaneuver competition.
Gartner L2’s Amazon Marketing Playbook: CPG Home Care finds that Amazon uses Generic Display and Product Display Ads on competitor product pages to promote Presto!, its private label brand, which focuses on paper products like toilet paper and paper towels.
Across 1,100 analyzed product pages in the home care space, Presto! had a Generic Display or Product Display Ad on 60% of competitor product page listings. These ads were seen on 81% of all paper product pages, where the brand used advertising to drive switching behavior within the category. In addition to this, Amazon also targeted categories that would boost opportunities for cross selling products. On average, these ads were seen on 70% of air, dish, laundry and surface care product pages, but only on 46% and 17% on pages in less relevant categories like food storage and home insecticides categories.
Additionally, Presto! preferred to have ads on traditional brand product pages in a bid to position itself among heavy hitters in the home care vertical. This is evidenced by the fact that 68% of traditional brand product pages showcased a Product Display Ad from Presto!, while the number stood at only 37% percent for indie brands.