Amazon Product Ads Now Featured Among Marketplace Listings
Amazon announced yesterday in an email to advertisers that Amazon Product Ads may now appear on the offer listings page intermingled with Marketplace Listings “to enhance the comparison shopping experience for customers”:
Though no specifics were provided around how often this will occur, we are excited to see a new ad-serving opportunity for a channel that is already a strong contributor to our clients’ CSE campaigns. RKG’s Q4 Digital Marketing Report shows Amazon Product Ads growing the most in terms of CSE spend share year over year, up from 18% in 2012 to 26% in 2013.
The main avenue for Amazon Product Ad service thus far has been a much less prominently-featured “Product Ads from External Websites” section on product pages, located several scrolls down the page:
Product Ads will also sometimes receive their own product page if a Marketplace Listing for that item does not exist.
Marketplace Listings differ from Product Ads in a couple key ways:
1) Purchases through Marketplace ads occur completely on Amazon.com using Amazon’s cart, such that Amazon owns the customer data. Product Ads bring shoppers to the retailer’s site, where the purchase is completed like it would be if the shopper had arrived to the site through email, direct load, paid search, etc.
2) Marketplace sellers are charged a percentage-based commission once a purchase occurs. Product Ads are paid on a cost-per-click basis, regardless of whether the click results in an order.
This new ad placement is the first time we’ve seen Product Ads and Marketplace Listings competing within the same ad space. We look forward to seeing how frequently these placements start to appear and the resulting impact on performance!