Amazon is secretly testing a sponsored ads platform that allows publishers to place sponsored Amazon ads outside the Amazon ecosystem. Currently, such ads are sprinkled around the main landing page on Amazon or are keyword-targeted ads that pop up after a product search. By testing sponsored product ads, Amazon is directly trying to compete with Google and extend the scope of its ads beyond the Amazon website. People who click on these ads will be delivered to the brand's storefront back on Amazon. Amazon provides what other platforms such as Facebook and Google have struggled to provide - an ability for the user to buy the product instantly. Amazon has been steadily growing in this space and it is expected that by 2020, Amazon will leapfrog Microsoft and Verizon's Oath to become the #3 ad-seller for the U.S. Market. As more and more people are performing their first search on the Amazon main page, it has become a powerful tool for retargeting users based on their search history. Amazon's sponsored Products and Headline Search ads convert about 3.5x the rate of Google Shopping ads.
Source: http://adage.com/article/digital/amazon-tests-ground-product-ads/314321/
Source: http://adage.com/article/digital/amazon-tests-ground-product-ads/314321/
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