Categories: Amazon Advertising|By |5.9 min read|

Amazon Fresh Advertising

Amazon is a great place to go for everything nowadays, and that includes marketing. The online retailer has leveraged its massive traffic as a source of revenue through Amazon Ads — a program that allows businesses to buy pay-per-click (PPC) placements where internet users frequent most. More recently, it’s included websites owned by both Amazon Fresh and Whole Foods Market.

This article will dive deep into the world of Amazon Fresh Advertising, illustrate what the landscape currently looks like and discuss the various strategies marketers can use to make sure their products stand out in an increasingly competitive market.

What Is Amazon Fresh?

Let’s start out with a simple introduction for those who may not already be familiar — what is Amazon Fresh, exactly?

Amazon Fresh is Amazon’s digitally-enabled grocery delivery service. With it, customers can shop for their groceries online, place orders from a range of local and national supermarkets and stores, and have it delivered to their door.

The service became extremely popular during the pandemic as people limited public outings to the grocery store. It’s also always been an invaluable resource for those who don’t have the time or energy to shop in person. Plus, since Amazon Fresh works with many different vendors (including Whole Foods Market, Safeway, and Publix), customers of the service have the same access to organic, plant-based and specialty items as in-store shoppers.

Amazon Fresh utilizes Amazon’s logistics network to make deliveries from local fulfillment centers within days. It offers a variety of delivery options, ranging from same-day to scheduled deliveries.

The service is integrated with Amazon’s existing online shopping experience and has special benefits for members of its paid Prime program. When Prime members shop, they receive free delivery on orders over a certain amount and get access to exclusive deals and discounts on items from their favorite local stores.

Emerging Trends in Amazon Fresh Advertising

Amazon Fresh has existed since 2007 but only really began taking off in the mid-2010s. Since then, it’s been the first choice for home-delivered groceries of tens of millions of consumers worldwide. That’s a major slice of the market that continues to grow by the day. In a bid to capitalize upon this popularity, Amazon Fresh launched a special display ads program in 2022. It allows Amazon Fresh and Whole Foods Market vendors to publish grocery-specific campaigns through Amazon’s larger console and API.

Amazon Fresh’s Impact on Consumer Shopping Behavior

Amazon Fresh has had a major impact in the online grocery space since its debut over 15 years ago. The program pioneered a new model of grocery delivery and has been adopted by a wide variety of other businesses and inspired major retailers to launch their own competing services. A partnership with Whole Foods Market enhances its appeal to those looking for access to organic and natural products.

The most significant effect of Amazon Fresh is on consumer shopping behavior. Consumers are now able to shop for groceries from their phones and computers without leaving their homes or offices, with delivery times as short as two hours in some areas.

This convenience makes it easier for busy consumers to buy groceries and increases their willingness to try new products. According to research published by Insider Intelligence, nearly half (48%) of Amazon Fresh online grocery shoppers indicate that they try new products at least twice a month.

How Amazon DSP and Amazon Fresh Work Hand-In-Hand

The tricky thing about display advertising, especially in the food and beverage market, is that it can be difficult to know how effective your campaigns are until after they run. Amazon Fresh inherently mitigates that concern by hosting advertising campaigns on the actual platform where the purchase occurs.

But for new advertisers concerned about the risk of switching overs, the best option may be mixing the use of the platform with another during the early days of their implementation. Combining contextual targeting campaigns with regular Amazon DSP ads can be an extremely effective way of gauging ongoing campaign performance while mitigating potential risks.

Creating Effective Amazon Fresh Campaigns

Being a relatively new channel, Amazon Fresh display advertising is still rife for experimentation and creativity. But for the most part, marketers are approaching the process as they would with regular Amazon marketplace DSP placements — the same fundamentals of audience targeting, creative optimization and campaign management apply.

That said, it’s important to emphasize the unique qualities of Amazon Fresh display ads. As this is a grocery-specific service, there are inherent user behaviors that marketers must consider when running campaigns on this channel.

For instance, Amazon Fresh customers may be shopping on a regular basis for the same items. This opens up the possibility of running retargeting campaigns, which can be useful in driving higher purchase intent and conversion. The audience targeting should also take into account the type of groceries or meal items being purchased, as this will determine the types of ads that should be served.

Digital Signage: A New Frontier in Amazon Fresh

Amazon’s expansion of Amazon Fresh into the real world through what is now more than 40 grocery stores across the United States creates yet another opportunity for advertisers to capitalize upon its growing consumer base. The company has begun testing electronic signage that leverages its data-driven technology to serve up relevant ads based on consumer profiles and purchase history.

This type of targeted advertising presents an entirely new dimension for the company to explore. It allows marketers to reach customers in a more personalized and engaging way, as they are able to tailor their advertisements based on what consumers have already purchased, or even where they currently are located within the store.

Unique ASIN Strategies for Amazon Fresh

Amazon Standard Identification Numbers (ASINs) are special ten-digit codes that are used to uniquely identify products in the Amazon marketplace. As a marketer, understanding how to use ASINs will be key for successfully targeting customers through both digital signage and during their online shopping experiences.

It’s considered best practice to configure ASINs specifically for Amazon Fresh. Doing so creates sponsored product campaigns that are focused only on shoppers using the grocery platform, rather than those from other sources.

ASIN lookup tools are also worth exploring. They allow companies to identify which keywords their competitors are using in their Amazon listings so they can better optimize and enhance their own campaigns.

ASINs can also be leveraged to determine which products are most popular, or trending, within the Amazon Fresh space. By identifying these trends in real time and staying up-to-date with their competition, companies can then adjust their own offerings and marketing tactics accordingly.

Measuring Amazon Fresh Advertising Campaign Results

Spreading advertising efforts across multiple channels — otherwise referred to as omnichannel advertising — can be a great way to diversify audiences and get promotions in front of as many new people as possible.

Amazon DSP provides advertisers with insights into how their online campaigns are driving incremental sales, both in-store and online.

Using these metrics as a guide, advertisers can then adjust their strategies in real-time to maximize return on ad spend (ROAS).

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