Monday, January 25, 2021

Amazon: Just Beginning -- January 25, 2021

Disclaimer: this is not an investment site.  Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here. 

For the past couple of days I've posted a few notes about Apple and AAPL. I think folks are missing the bigger story with regard to Apple but eventually the share price of AAPL will catch up to where it should be. 

But enough of that, today we turn to Amazon. 

Quick: when folks want to buy a product on line, where do they check first? Even if they don't buy from this site, they turn to this site for product reviews and "lowest" price out there. What site is that? It turns out that about 50% of folks planning to buy something on line, turn to Amazon first, even if they order from Amazon. 

Quick: Amazon Prime members? What percent of Amazon Prime members start with Amazon when searching for a product they plan to purchase on line? It turns out that two-thirds (67%) of Amazon Prime members always start with Amazon.

Quick: what percent of Amazon shoppers are influenced by ads? One hundred percent. 

Quick: what percent of Amazon Prime members are big spenders on line? One hundred percent. 

A reader sent me an article yesterday that advertisers are pulling out of the Super Bowl this year, and the price for an ad (30-second ad?) has dropped from $5.6 million last year to $5.5 million this year, or something like that. Or maybe it was $5.5 million to $5.4 million. Whatever, it was a half-million-dollar drop year-over-year.

Oh, sorry for the digression. 

But where do you think advertisers are headed? Yup, to Amazon. 

Note some interesting data points at this Motley Fool article

Search:

  • Google: searches everything; relies on ads.
  • Amazon: searches consumer preferences. Ads make up a small part of its bottom line.
  • Apple: no proprietary search engine yet, but is there a niche for Apple and search?

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On Another Note

While "researching" this note, an Amazon advertiser targeted me with an ad for this product (yes, I'm in the market for a new power strip). 


I didn't tell anyone that I was looking for a new power strip. I did not even mention it to Alexa but somehow Amazon knew I was in the market for a new power strip, and targeted me with this ad. And I love it. I would not have found it on my own. And I very seldom get ads on social media sites where I am known that do not pertain to me. If I'm going to get ads, I prefer targeted ads. Just saying.  

This morning I spent a lot of time on Amazon and a couple of tech sites looking for various cables for iPhones, iPads, laptops. Perhaps that's how I was spotted. LOL. 

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On Another Note

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