30.08.2015 by Cedric Monduc
Amazon stops Product Ads
London, August 2015 — From October 31, 2015 online retailers can no longer publish their product ads linked to their web stores. Product ads were popular among e-commerce brands because the format allowed them to partner with Amazon. Ad sellers like Google were able to use the ads to get information about Amazon's users as Amazon did not have access to their customer’s transaction data. This enabled Google to optimize ad targeting on their own platforms.
The company has not given any specific reasons for this change.
As an alternative, Amazon offers ads without pictures. These are connected automatically with the retailers’ Amazon accounts. However, the text-only ads could lead to lower click-through rates than the picture ads, and this means less profit for the retailers. Currently, the format of beta version is only available for US retailers.
Therefore, retailers should consider listing directly on Amazon if they have not done it yet. Apart from the direct listings, the sponsored posts still exist.
Amazon is still one of the top players in the online marketplace and has immense range. However, many retailers made the decision against their presence on Amazon. Some of the reasons include the high technical and organisational requirements. They are related to the initial connection, which could be possibly very complex and also to the product data maintenance. The better a product feed is maintained and adapted to Amazon’s requirements (buzzword: Amazon SEO), the higher the click-through rates are. If a retailer shies away, the ChannelPilot tool can offer the necessary help. The software enables a simple, cost-effective and bidirectional communication with Amazon, which is excellent for very easy product data analyses, as well as the optimisation of product data for the best possible listing thus creating more sales.
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