In a move to enhance its advertising offerings, Amazon is extending its cost-per-click Sponsored Products ads to encompass select third-party apps and websites. This expansion offers advertisers the opportunity to showcase their content on partner platforms, including prominent names like Pinterest, BuzzFeed, Hearst Newspapers, and brands under Raptive and Ziff Davis, such as Mashable and Lifehacker.
The placement of these ads is determined by the relevance of the page content and existing cost-per-click parameters. This strategic expansion reflects Amazon’s commitment to revitalizing its decade-old Sponsored Products ads, particularly in a rapidly evolving digital landscape where more retailers are entering the advertising arena.
Colleen Aubrey, Senior Vice President of Amazon Ads Products and Technology, stated, “Sponsored Products has always been about helping customers discover products they may love. We are excited to now apply what we’ve learned about connecting customers and products in meaningful ways to a range of great websites and apps.”
Much like the existing Sponsored Products ad functionality, the placement of ads on third-party pages is driven by their potential appeal to consumers, context within the relevant page, and the predetermined cost-per-click parameters of the brand. Advertisers will not need to take additional actions to utilize this feature. Furthermore, these ads will only appear when the advertised items are in stock, and they will direct users to the respective Amazon product page, where they can access additional information, including ratings, Amazon Prime availability, and pricing.
Initially, only a select few third-party sites and apps will be available for Sponsored Products ads. However, this list includes influential platforms like BuzzFeed and Pinterest, with the latter forming a partnership with Amazon earlier this year. Amazon intends to take a measured approach to expansion, focusing on learning and adapting as they go. The company has been actively enhancing its advertising infrastructure, employing machine learning algorithms to enhance relevance, improving advertiser bidding controls, and broadening campaign targeting parameters to encompass product attributes, in addition to keywords.
Guy Cohen, Chief Product Officer at advertising intelligence agency Skai, noted, “Customers today are exploring products across a range of apps and websites, and we’re seeing advertisers successfully plan and execute digital advertising strategies by shifting their focus and success metrics to the customer. Amazon’s latest innovation of its Sponsored Products ads enables our clients to achieve exactly that.”
This extension of Amazon’s Sponsored Products ads comes during a period of significant growth for the company’s advertising ventures. In the second quarter, Amazon experienced a 22% year-over-year increase in advertising sales, reaching $10.7 billion. This growth can be attributed, in part, to the implementation of advanced machine-learning models that assist brands in engaging previously untapped audiences. It underscores Amazon’s prominent position in the thriving retail media category, where the company already wields considerable influence.
Source: MARKETINGDIVE
