The Effectiveness of Advertising Strategies on Amazon

Abstract

Advertising has long been recognized as a prominent strategy for enhancing sales and bolstering the reputation of a business. Numerous studies have consistently demonstrated its efficacy in achieving these objectives. In recent years, Amazon, a prominent international technology corporation, has exhibited a consistent upward trend in its advertising expenditures, concurrently intensifying the frequency of its advertising efforts. The brand's worth, conversely, has also seen a positive growth trend. The primary objective of this study is to examine the underlying factors driving Amazon's heightened emphasis on advertising and to investigate the potential correlation between the augmented advertising frequency and the resultant change in brand value. Previous studies have indicated that augmenting the frequency of advertising not only yields favorable outcomes in terms of brand recognition and brand perception but also influences customers' attitudes toward the brand in a positive manner. These three variables collectively contribute to an increase in sales, resulting in elevated brand value.