|Tue May 15 2018 21:32:02|
Paying to Drive Traffic to Your Amazon Listings?
By: Ina Steiner
Amazon may expand its ad platform by running merchant ads off-marketplace. According to Bloomberg
, Amazon sellers will be able to buy ads that follow people around the Internet "to lure the consumers back to Amazon to buy." (That's the definition of retargeting ads.)
That sounds potent - Amazon is good at matching shoppers to products. But there's a potential downside to an Amazon retargeting format that Google advertisers don't face: When sellers run ads through Google's platform, they can send shoppers who click on their ads to their own ecommerce websites where the cost of selling is significantly less than on Amazon.
But with Amazon retargeting ads, sellers would have to send shoppers to their listings on Amazon.
For many brands, the rumored Amazon retargeting ads may make sense. Amazon is working hard to attract brands to its site, and we previously noted, it launched new brand stores
But regular sellers, especially those selling low-margin products, will have to look closely at the return on investment. How effective are the ads and how much do they cost? Amazon may not even make the format available to every type of seller.
Amazon had called its advertising business a bright spot when speaking to Wall Street analysts last month. It's a multi-billion dollar program, according to Amazon Chief Financial Officer Brian Olsavsky, who said advertising was a strong contributor to the company's profitability in the first three months of 2018.
The CFO said advertisers come in all shapes and sizes, and all wish to reach Amazon customers to drive brand awareness, discovery, and eventually purchase. It would make sense for Amazon to test new formats in a business it finds so lucrative.