Sunday, April 12, 2020

Amazon’s now allows sellers to advertise on competitors’ product pages!


Amazon Advertising recently launched Product Targeting for US Sellers on Sponsored Display which means that Amazon now allows sellers to advertise on product or category pages which are similar or complementary to the products sold by them. This sounds like an amazing deal for customers as they will now be able to see ads for better alternatives on the pages they are browsing. However, it is questionable whether this is beneficial for sellers. For example, if for a product, consumers are indifferent between brands, the brands that are excessively advertising or discounting products will easily gain market share forcing competitors to also price match or advertise. There may also be some cannibalization of sales. However, there are certainly benefits to sellers if used right. For one, it’ll be easier to reach customers as they browse product detail pages and filter search results for specific products that are similar to yours. Also, auto-targeting will allow for automatically targeting ads to customers based on keyword and products. Moreover, new negative product targeting feature can be used to prevent ads from appearing on specific search results or detail pages that are low-performing. I’m certainly curious about how this will be received by digital marketers and small business owners.

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