Amazon.com, Inc. (NASDAQ:AMZN) has quietly scaled down a pay-per-click advertising program that enables businesses to divert traffic from the e-tailers’ platform to their own website.
Advertisement
Scot Wingo, the executive chairman of ChannelAdvisor that assists manufacturers and retailers to sell on ecommerce platforms, said that consumers performed highly well with it as it offered a middle ground of being able to collaborate with Amazon but also not letting them to observe all their transaction data.
Wingo stated the programme was recognized for its excessive conversion price and stated advertisers have been stunned once they acquired an e mail from Amazon notifying them of the change this week.
An Amazon spokeswoman has confirmed the change while saying that the advertising programme would not be available after October 31. “We are in continuous communication with our advertisers and partners on alternative opportunities to reach Amazon customers including Selling on Amazon”.
“We are disappointed with the news”, said Angela Hsu, vice president of Internet business and marketing at Lamps Plus, a home decor company that used the product ads program. Amazon offers other advertising options for third-party sellers to differentiate their products like its sponsored ads program.
According to The Wall Street Journal, the Product Ads, which appeared with product photos under Amazon search results, were being replaced by simple text ads running alongside product searches, and it had something to do with Google. The company was featured in an Amazon case study in May and said the program increased its sales by more than 80 per cent.
According to forecasts from eMarketer that trails online advertising, the overall advertising business of Amazon is capable of bringing in $1.26 billion in 2015 globally and rise to $1.83 billion by 2018.
Amazon will no longer allow retailers to advertise their products and take users away outside of the Amazon website.
In October 2014 Google chairman Eric Schmidt admitted that Amazon had become the search engine’s “biggest search competitor”.
Brands were able to use these ads to promote their own sites’ product catalogs to people who were browsing similar products on Amazon’s site.
Advertisement
Shoppers can uncover, examine and buy merchandise immediately from retailers by clicking on Google’s ads.
