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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