How Amazon is pay-to-play for brands, why that matters, and what to do to win.

This report is a collaboration by Bobsled, an Acadia company, and Analytic Index

Amazon's native advertising solution Sponsored Ads is an obvious growth engine for many brands seeking to increase market share or retain existing market share. 

But many brands wonder to what extent Amazon is 'pay to play'. If they suddenly turned the ads off, what would happen? If they want to grow market share, is it necessary to adjust ad spend accordingly?

In partnership with marketplace analytics solution Analytic Index, we analyzed hundreds of brands in major selling categories, to establish the relationship between ad spend and sales outcomes. 

We also spoke with digital leaders from companies like LEGO, Ghirardelli, Hain Celestial, and Jelmar, to answer their biggest questions on this topic, including:

• What is the relationship between Sponsored ads and organic ranking on Amazon? 

• How much "real estate" is taken up by sponsored placements in various categories? 

• Which product categories are more  'pay to play' than others?

• How much is enough with ad spend? What is the point of diminishing returns?

• Does the requirement for ad investment change along the brand and product maturity curve? ( new brands versus a mature brand)