Amazon is no stranger to the digital advertising world and already has a major footprint within the Ecommerce vertical. Now, the online retail giant is looking to expand its footprint beyond Ecommerce with the launch of a new retargeting ad solution, similar to Criteo.
Digital advertising investment is expected to surge even more in the coming years. Amazon’s advertising solution not only offers another revenue source for the company, but it provides the perfect synergy with its emphasis on the company’s existing marketplace.
Amazon Display Ad Basics
The Amazon ad display solution is proprietary to merchants that sell on the Amazon marketplace. Rather than targeting consumers based on demographic or geographic criteria, the ads will display to consumers that have viewed a product listing but not yet completed a purchase.
Retargeting is a more efficient way to execute display ads because the messages appear to customers with an established interest in the product. The Amazon ad solution addresses common issues in online retail, which include low first-visit conversion rates and abandoned shopping carts. It also allows merchants to stay engaged with consumers as they navigate through the buying journey.
Key Things for Advertisers to Know
The following are some of the key things for marketers to know about the Amazon retargeting display ad solution:
Test Market: The solution is not immediately available to all merchants. Instead, Bloomberg recently indicated the company is including select merchants on a test of the new ads. This test allows the company to identify any issues in the formatting of the ads, delivery, and tracking.
CPC Model: As with Criteo, and other major ad servers, Amazon’s retargeting solution will exist as a cost-per-click payment model. This model gives advertisers the flexibility and control of only paying for the ads when a user clicks on them. As the sales will occur on the Amazon marketplace, advertisers are also likely to receive rich data on conversions and cost-per-acquisition. This data is readily available to authors and publishers currently using the Amazon eBook advertising platform.
Ad Publishing: Amazon has not yet disclosed its publishing network for distribution of the ads. Regardless of where the ads are placed, natural concerns arise regarding fraud and bot traffic. Advertisers planning to use the Amazon tool should consider layering ad verification tools to combat these issues.
A Bright Future Ahead
Until testing is further along or complete, there is a lot of uncertainty as to the final setup for the Amazon ad solution. Time will tell if this new product extends beyond just merchants on Amazon to include all interested advertisers outside of Amazon.
Testing is likely focused on ironing out the kinks in its service. However, it is highly certain that Amazon’s retargeting ad solution will have a significant impact on its retail presence. The company has experience in delivering display ads on its own site, along with proven expertise in capturing and leveraging data.
Display advertising is evolving quickly, and more big changes are on the horizon. See why we believe video will be key to the success of your future campaigns: Display Advertising – Leveraging Video To Impact Your Bottom Line