Is Prime Video Amazon’s Secret Weapon? | ClickZ Amazon Insights Newsletter

PLUS: How Much Should You Be Spending on PMAX

Author

Zihan Lyu
April 09, 2025 • Estimated Reading Time: 30 minutes

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Welcome to ClickZ Amazon Insights, an essential newsletter crafted for eCommerce professionals navigating platforms like Amazon and similar marketplaces.

Editor’s Pick 🌟

Curious to know the optimal way to allocate your Google Ads budget? Fospha’s latest analysis of top performers reveals key insights into balancing Performance Max (PMAX) and Paid Search:

🥇 How Top-Performers Do It: For the highest-performing 25% of brands, a strategic allocation of around 55% of total Google budget to Performance Max and 12% to Paid Search appears to be the sweet spot for driving results.

🏢 Size Matters: Note, this optimal allocation does vary slightly between different brand sizes. Top-performing small brands were found to have a 52% PMAX / 15% Paid Search split, while top-performing large brands allocated more to PMAX, with a 59% PMAX / 9% Paid Search split.

Why? With extensive product catalogs and diverse customer segments, large brands can leverage PMAX's AI-driven optimization, while smaller brands benefit from the precision targeting of Paid Search to capture high-intent traffic while still leveraging PMAX for efficiency

Unlock the full potential of your Google Ads budget! Fospha’s new Performance Max and Paid Search Playbook is your guide to cultivating cross-channel synergies, reducing wasted ad spend, and maximizing blended performance.

The Insight Track

GENERATIVE AI EXPANSION

Amazon's expansion of the Nova foundation models via nova.amazon.com enhances generative AI access for developers and tech enthusiasts. With the launch of Amazon Nova Act and its SDK, developers can build sophisticated web agents, propelling advancements in AI-driven content creation and task automation.

This development positions Amazon as a pivotal player in providing cost-effective, high-performance AI solutions that can be leveraged by marketers for innovative customer interactions and streamlined operational strategies.

ADVERTISING IMPACT

Amazon and Meta could lose over $10 billion from Chinese ad revenue due to new U.S. tariffs introduced by Trump, affecting eCommerce and digital media significantly.

Analysts highlight the pivotal role of Chinese advertisers in driving ad revenues for Amazon and Meta, which may diminish as trade tensions rise, impacting the broader tech and advertising landscape. The interconnected nature of global supply chains might pose additional challenges, suggesting a strategic need for companies to diversify ad markets for sustained growth and resilience.

STREAMING OPPORTUNITIES

Prime Video's low engagement among Amazon Prime subscribers presents a significant opportunity for Amazon to monetize its vast user base through advertising.

Despite having over 200 million subscribers, the platform's low utilization highlights a potential revenue stream by targeting under-engaged users with strategic advertisements. This insight is pivotal for marketers aiming to capitalize on untapped audiences within eCommerce platforms.

ECOMMERCE CONVERSION

Amazon and Walmart lead the online retail industry in conversion rates due to their strong omnichannel presence, extensive personalization efforts, and effective use of first-party data. Their innovative use of physical and digital infrastructure, like fulfillment centers and pickup options, ensures consumer convenience and boosts purchase intent. Marketing professionals can draw insights from these strategies, recognizing the importance of a robust, integrated approach to improve customer engagement and conversion in eCommerce.

Influencer Corner 📢'

We chatted with Amy J. Oelkers, TikTok’s GM, US Head of Commerce, about how the power of discovery on TikTok is driving commerce everywhere | TikTok for Business

📌 4 in 5 users are discovering brands through creators' recommendations.

📌 After discovering something on TikTok (via a creator), 45% of users continued searching for more information on the platform.

📌 1 in 4 users search within the first 30 seconds of opening the app (internal user data).

In our Shoptalk 2025 wrap up with ClickZ.com, one thing was clear | Lee Arthur

This industry is operating in a new reality. From full-funnel AI to omnichannel orchestration, the conversations weren’t speculative,they were tactical.

Here are the biggest shifts we heard on the ground:

🔹 AI is everywhere
“AI isn’t a concept -it’s a capability,” summed up by voices across the floor. From text-to-buy to media measurement, brands are moving from testing to scaling.

🔹 Omnichannel is baseline
“Omnichannel isn’t a trend - it’s the new baseline,” said Sam Carter, CEO at Fospha. The new standard is unified journeys online and off.

Optimization Hub ⚙️

BUSINESS MEASUREMENT FRAMEWORK

Breaking organizational silos is essential for building effective measurement frameworks, ensuring data-driven insights drive marketing success. By involving all stakeholders and focusing on real-world applications, businesses can align metrics with strategic objectives. Tailored frameworks improve communication and performance across departments, essential for today's competitive landscape.

SOCIAL MEDIA MARKETING

Instagram's new monthly recap feature provides creators with valuable insights into their content performance, including total views, follower engagement, and specific audience activity times. This feature aids marketers by offering actionable tips to enhance content strategy based on the unique behaviors of their audiences, fostering a more tailored approach to growth and engagement.

ECOMMERCE OPTIMIZATION

Adjusting the Google Ads bid strategy, specifically the Target ROAS, can enhance Shopping Ads revenue without reducing profitability for eCommerce businesses. Use Impression Share and Search Lost IS metrics to identify and rectify revenue loss. Gradual budget and ROAS adjustments ensure consistent performance improvement.

📲 Like what you’re seeing?

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