Soon Amazon sellers may be able to promote their products to other websites. Currently, Amazon is testing Sponsored Products placement to external sites. The company has been dedicating a new focus to advertising, and this latest test expands that focus beyond Amazon’s own properties.
According to Ad Age, Amazon is speaking with top agencies and brands about testing the placement of product ads on third-party websites, made possible by retargeting capabilities that use information about customers’ visits to Amazon. When customers click an ad from a third-party website, the ad will redirect them to the brand’s storefront on Amazon. The test has the potential to boost the reach of Amazon’s Sponsored Products ad.
What Is Sponsored Products?
On the Amazon site, Sponsored Products is an advertisement that appears at the top of the search results page when a shopper looks for a specific item. Advertisers pay for these ads to appear on top of the page. Amazon uses keyword targeting to promote these ads so they are given priority in search results. This format is one of the most popular on the Amazon platform.
With the new test, however, this format will extend to websites within Amazon’s advertising marketplace, according to Ad Age.
Look Out, Google
Google has a similar ad format to Amazon’s Sponsored Products when shoppers search for a specific item. However, when shoppers click on Google’s ads, they’re directed to the website that sells the product, not the Google store. With Amazon’s Sponsored Products taking on the rest of the Internet, they’ll give Google a run for its money because unlike Google ads, they’ll take shoppers back to Amazon to make the purchase.
According to Ad Age, Sponsored Products are responsible for 88 percent of the ad revenue Amazon generates from search-based advertising. Additionally, Amazon reported over $2 billion in ad revenue for its first quarter in 2018. Evidently, this format is already successful. Broadening its scope will only add to that success, making Amazon an even more formidable foe.
The Mechanics of Sponsored Products Beyond Amazon
The mechanics of Amazon’s Sponsored Products reaching external sites are seamlessly integrated, capitalizing on Amazon’s robust technology and data infrastructure.
The Sponsored Product ad unit is dynamically generated when a customer engages with an ad on an external site. These ads display relevant product information, images, and pricing details, leveraging Amazon’s deep product data.
The result is an immersive ad experience that seamlessly blends with the external site’s content, enhancing user engagement and driving conversions.
Why is Amazon expanding Sponsored Products to external sites?
By expanding Sponsored Products to external sites, Amazon can reach a wider audience beyond its vast marketplace, increasing brand awareness and extending its influence to online shoppers across various platforms. As recent study found that only 45% of online shoppers use Amazon.
This move amplifies the potential customer base and enhances brand recognition, leveraging Amazon’s trusted reputation to elevate businesses’ visibility.
Moreover, the inclusion of Amazon Sponsored Products on external sites serves as a strategic conduit to drive traffic directly to businesses’ websites, facilitating lead generation and boosting sales. In fact, a study by Amazon found that businesses that use Amazon Sponsored Products see an average of 10% increase in website traffic.
The comprehensive reporting offered by Amazon Sponsored Products empowers advertisers to closely monitor ad performance, enabling data-driven decisions and ensuring optimal results through ongoing refinements.
Who can use Sponsored Products?
Sponsored Products on Amazon are a versatile advertising solution accessible to a wide range of businesses and sellers. Whether you’re a brand-new startup or an established enterprise, Sponsored Products offer an effective way to increase visibility, drive sales, and achieve your advertising goals.
Sellers across various categories, including individual sellers, vendors, and agencies, can harness the power of Sponsored Products to enhance their product presence within Amazon’s competitive marketplace. Small and medium-sized businesses (SMBs) can leverage Sponsored Products to level the playing field and compete with larger brands, as the platform allows for targeted exposure to relevant audiences.
Established brands can also utilize Sponsored Products to maintain their market share and launch new products with precision targeting. Whether you’re offering niche products, unique creations, or popular items, Sponsored Products provide the means to connect with potential customers actively searching for relevant products.
Furthermore, Sponsored Products offer flexibility, enabling sellers to set their budgets, bids, and targeting options, ensuring that the advertising strategy aligns with business objectives.
Conclusion
Amazon’s expansion of Sponsored Products to external sites is a great opportunity for businesses to reach a wider audience and increase their sales.
The inclusion of Amazon Sponsored Products on external sites serves as a strategic conduit to drive traffic directly to businesses’ websites, facilitating lead generation and boosting sales.
Furthermore, the comprehensive reporting offered by Amazon Sponsored Products empowers advertisers to closely monitor ad performance, enabling data-driven decisions and ensuring optimal results through ongoing refinements.
In the coming weeks, Sponsored Products will appear on sites outside of Amazon.
FAQs
What are Sponsored Products?
Sponsored Products are pay-per-click (PPC) advertising that allows business firms to promote their products on Amazon. When a user searches for a product on Amazon, Sponsored Products ads may appear at the top of the search results page. These ads are marked with the “Sponsored” label.
How do Amazon Sponsored Products work on external sites?
Amazon Sponsored Products ads can now be shown on external websites, such as news sites, blogs, and social media platforms. When a user visits one of these websites, they may see Sponsored Products ads for products that they are interested in.
Who can use Amazon Sponsored Products on external sites?
A business that uses Amazon to sell products can use Sponsored Products on external sites. There are no minimum sales volume or revenue requirements.
What are the benefits of using Amazon Sponsored Products on external sites?
There are a number of benefits to using Amazon Sponsored Products on external sites, including:
- Reach a wider audience: Amazon Sponsored Products can be shown to users on a variety of websites, not just Amazon. This means that business firms can target a wider audience with their ads.
- Increase brand awareness: Amazon is a trusted brand, so when businesses use Amazon Sponsored Products, they can help to increase their brand awareness.
- Drive traffic to your website: Amazon Sponsored Products can drive traffic to your website. This can help you to generate leads and sales.
- Track your results: Amazon Sponsored Products offers detailed reporting so you can measure ads performance and make necessary adjustments.
What are the limitations of using Amazon Sponsored Products on external sites?
There are a few limitations to using Amazon Sponsored Products on external sites, including:
Cost: Amazon Sponsored Products can be expensive, especially if you’re targeting a large audience.
Competition: There is a lot of competition for Sponsored Products ads on external sites. This means that you may have to bid more for your ads to be seen.
Tracking: It can be difficult to track the performance of your Sponsored Products ads on external sites. This is because Amazon
