Amazon’s search advertising
Amazon, as a online seller and reseller, is paying a lot more attention on search advertising. Although nowadays, Google is taking up almost all the search advertising market, it is obviously a wise choice for companies to make their advertisements on amazon, for it is a platform where people may buy products directly. And also, when people are searching on Amazon, they are more likely to be already planning to buy a certain product. So advertising on Amazon is possibly a more profitable choice for sellers and is more and more popular these years.
Amazon’s search advertising model is very similar to the one in ad we discussed in class. It is also a pay-per-click model, and provide different positions on app and website to add your ad. It also allows different types of ads, which can be products on Amazon, products on other websites, videos, pictures, and so on. Amazon also determine which advertisement to show by key words, and buyers have to make sure where they would like to see their advertisements. The determinations on pairing advertisers and ad slots are also similar. They are ambitious on their attempt to share 16 percent of the search advertising market.
In one of the articles, there is also a very general strategy about how can a seller on Amazon gain the most profit with advertised search. The model, as we discussed in class, is complicated, so sellers still have a lot of actual situations to think about when they plan to make advertisements on Amazon.
However, it is not always easy for you to get a best advertising slot on Amazon, for amazon may advertise their own brands such as Amazon basis on those slots. But sellers will still be able to have a strategy to maximize their benefit.
https://blog.hubspot.com/marketing/amazon-advertising
https://adage.com/article/digital/amazon-nibbles-away-googles-search-advertising-dollars/2206916
https://adage.com/article/digital/amazon-primes-ad-business/313300