Sponsored Display Advertising, One-Tap Review System, the influence of advertising on sales and have Amazon changed search results to boost profits?

Amazon launches Sponsored Display advertising

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Amazon has launched a new advertising campaign objective for Vendors and professional Sellers on Amazon called Sponsored Display. This new ad type addresses a gap in Amazon’s pay-per-click advertising options - the ability to retarget Amazon shoppers.

Previously, retargeting was only available as a feature for those with access to Amazon’s Demand Side Platform (DSP), which was only available to brands with significant spend and access to skilled-resource to operate it.

Sponsored Display is now available to millions of Amazon sellers and vendors, and setting up campaigns is simple. However, reports from Beta testers indicate that Advertising Cost of Sales (ACoS) was generally higher than the account average. This is because it targets people browsing off Amazon as well as those who are actively navigating the site. We believe Sponsored Display will help sellers build brand awareness and find new customers for their product.

If you want to explore your Amazon advertising strategy including Sponsored Display, we can help - so please get in touch.

Amazon tests a one-tap review system for product feedback

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Amazon is testing an easier way for people to leave product feedback with the launch of one-tap ratings. The change is meant to encourage those who don’t have the time, energy or interest in writing reviews to still share their opinion about the product, which benefits the larger Amazon community of shoppers who rely on ratings and reviews to assist with their purchasing decisions.

The new feature could collect feedback from a larger number of online consumers to help balance out ratings with genuine feedback from real shoppers, as opposed to those who may have been incentivised or paid to leave reviews.

Amazon changed search results to boost profits

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Amazon changed its search algorithm in ways that boost its own products despite concerns raised by employees who opposed the move, according to a Wall Street Journal report.

Last year saw Amazon altering their search algorithms to manipulate their product results to their advantage so that the most profitable merchandise for the marketplace would have a higher chance of being discovered by consumers. These changes to its search results appear to prioritise profitability over relevance and were reportedly spurred on by demands from Amazon’s retail divisions and private label team. Tweaking the search algorithm to favour Amazon-made products could help expand sales of those products as the majority of clicks come from the first page of search results, with most coming in just the top few rows.

The chairman of the Federal Trade Commission has described Amazon’s reported use of its search engine to favour its own products as “potentially problematic”. Reports suggest both state and federal government regulators are ramping up their plans to probe Amazon for potentially engaging in anticompetitive practices.

More of the products you view on Amazon are coming from ads

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One out of 10 products pages you visit on Amazon comes from sponsored content, a 3 percentage point jump up from last year. Eleven percent of all product views on Amazon come from sponsored listings, according to new data from digital research firm Jumpshot. But what is not clear, is if this is a result of an increase in sponsored ads or because sponsored ads have become more effective.

Showing up higher in search results greatly affects whether people will click on and buy products. This has repercussions for both small third-party marketplace sellers as well as giant brands.