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Amazon is currently the third largest advertising revenue generator in the world behind Google and Meta. With more than £10 billion generated in the last quarter, the American company has established itself as one of the pillars of the online advertising market. But Amazon does not intend to stop there. At the start of this year, the Seattle-based giant took a new turn with the launch of Amazon Retail Ad Service.
Amazon Ads recently made a surprising announcement. On 9 January, the American company posted a blog announcing the arrival of a new solution enabling e-retailers to integrate contextual advertising on their own websites, using the same system as Amazon. “Retailers can use this service to quickly, easily and cost-effectively deliver contextually relevant advertisements to the right place at the right time in their online shops,” Amazon explains.
Launched in the United States as a beta version, this new product looks quite promising. Using Amazon Retail Ad Service, e-merchants will be able to display product advertisements in various strategic locations on their websites, such as search pages, navigation pages, and product pages, in order to generate more revenue. These advertisements incorporate certain features specific to the products being promoted, such as their price or availability, as well as contextual elements such as customer queries or product categories viewed, in order to offer internet users advertisements that are most likely to reach their target audience.
In addition, e-merchants using the Amazon Retail Ad Service tool will also benefit from high-quality tracking and performance measurement. They will be able to determine its effectiveness through indicators such as click-through rates and ad conversion rates, revenue generated by each campaign, and the overall impact of ads on their sales.
Several North American companies have already had the opportunity to test the potential of Amazon Retail Ad Service. This is particularly true for iHerb, a brand of vitamins and natural health products. “This innovative solution allows us to offer more relevant and personalised advertising to our buyers, thereby improving their experience while generating greater engagement and conversions,“ says Neil Forgate, Head of Marketing at iHerb. “Leveraging Amazon’s expertise in delivering relevant, contextual advertising at every stage of the consumer journey is invaluable,“ adds Drew Habeck of Flywheel, which has also had the opportunity to test this new tool.
With Amazon Retail Ad Service, the American company aims to open new doors for online advertising, enabling e-retailers to offer an innovative contextual advertising experience.
For its part, Amazon is using this new solution to extend its advertising methods beyond its own platform. This strategy will inevitably enable it to collect additional data with the aim of improving the effectiveness of its existing technologies. Although only certain companies in the United States have been able to benefit from this so far, it would not be surprising to see Amazon extend the use of its new advertising tool to the European market in the coming months.
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Pierre Blarre