Amazon to test new ground for its Sponsored Products ads: the rest of the internet

Amazon is planning an expansion to their Sponsored Products ad program by allowing the ads to run across the whole internet, not just sites owned by Amazon. This would allow Amazon to retarget its customers when they are visiting other sites. Sponsored Products uses keywords to target people for ads, and this latest expansion is clearly inspired by Google?s ads that span the entire internet. Google is trying to capture some market share from Google and Facebook, which collectively control about two thirds of the online advertising market.

Key Takeaways:

  • Sponsored Products ads allow brands to target customers by using keywords.
  • Unlike Google, Amazon has the ability to steer customers to their website, where they can purchase the item that is being advertised.
  • 88 percent of Amazon’s ad revenue from search-based advertising comes from Sponsored Products ads.

“Amazon is talking with top agencies and brands about participating in a test that would expand the scope of product ads, delivering them to outside websites by retargeting consumers who visit Amazon, according to ad industry executives familiar with the strategy.”

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