Amazon Ads: How it expanded Sponsored Product Ads?

Amazon Ads: How it expanded Sponsored Product Ads?

What is Amazon Off-site Sponsored Product ads?

Amazon is actively expanding Sponsored Products ads, which is one of Amazon sponsored ads, to high-quality applications and websites, including Pinterest, BuzzFeed, Hearst Newspapers, Raptive, and Ziff Davis brands such as Lifehacker and Mashable.

This aims to assist customers in finding and purchasing products within Amazon's online store.

How Amazon Off-site Sponsored Product ads works?

In terms of how it works, these off-site ads are similar to placement ads and appear as users browse Amazon. These ads provide users with detailed product information, including star ratings, pricing, and stock availability. When users click on an ad, they are directed to Amazon's page and can add the desired product to their shopping cart.

Amazon plans to use machine learning algorithms to place contextually relevant ads. For example, on Pinterest, Amazon advertiser products will appear in search results, matching users' interests and needs.

Amazon off-site sponsored ads

How can marketers use Amazon Off-site Sponsored Ads?

For Amazon sellers, it’s easy to join off-site ads program. Actually, the product promotions will automatically extend to third-party platforms without any additional actions required. These ads will be displayed based on the page, campaign details, and the cost-per-click set by the sellers. All ads will link to corresponding Amazon product pages and will only appear if they meet the following conditions:

  • The product must be in stock.
  • The product includes trusted Amazon shopping attributes, such as Prime delivery commitment, ratings, and accurate pricing information.

Marketers also have the option to choose not to display their ads on specific applications and websites, ensuring the precision and targeting of the ad placements.

This initiative shows Amazon's new innovation in the digital advertising and also brings broader Amazon advertising strategy for sellers and advertisers. By establishing tighter connections, Amazon is committed to creating a more convenient and personalized shopping experience for users.

Can Amazon sellers self-compete against their products?

Some marketers promote their products on multiple platforms, such as their own websites and Pinterest. They are concerned that by running Amazon Sponsored Products ads, they might end up competing against themselves and potentially drive up click costs due to increased ad competition.

However, Amazon's off-site sponsored ads as a new Amazon advertisement have several features that can help reduce self-competition:

Ad Placement Control

To address this concern, Amazon offers a certain level of control over where ads are displayed. Sellers can choose to exclude their ads from showing on specific apps or websites. For instance, if a seller is advertising on Pinterest, they can prevent their Amazon Sponsored Products ads from appearing on Pinterest, thus minimizing the likelihood of self-competition.

Disable the Feature

Amazon provides the option to exclude specific placements. If marketers believe that Amazon Sponsored Products ads might negatively impact their advertising strategy, they can turn off the display of these ads on external platforms.

Targeted Display

Amazon emphasizes that Sponsored Products ads are only shown to customers who are likely to be interested in the advertised products. This ensures that ads are relevant to viewers and increases the likelihood of engagement.

Pay-per-Click Model

With Amazon Sponsored Products, sellers only pay when a customer clicks on their ad. This cost-per-click (CPC) model means that advertisers pay based on the actual engagement their ads receive. This aligns with Amazon's commitment to providing value to both customers and advertisers.

Compared with Etsy Off-site ads

Etsy has already targeted Google and social media, helping sellers in broader audiences reach for increased sales potential. Let’s see what’s the difference between Etsy Off-site ads and Amazon sponsored offsite ads.

For Platforms, Etsy also offers off-site advertising, allowing sellers to promote their products on external platforms like Google, Facebook, Instagram, and Pinterest. For now Amazon has extended to some external platforms.

For sellers Participation, Amazon's product promotions automatically extend to third-party platforms for Amazon advertisers. On the other hand, Etsy's off-site ads are managed through the Etsy Ads dashboard and sellers must opt to participate in off-site advertising.

For Control, Amazon sellers have some control over where their ads appear by excluding specific applications and websites. However, sellers do not have direct control over where the ads are displayed on Etsy.

amazon and etsy sponsored ads comparison

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Xuan Xie
April 9, 2024
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