Amazon knows the demographics of buyers, which items they’re adding to their Wish Lists and what people are searching for, thus developing back-end recommendations for merchants around additional products to sell or which product listings need optimization.
DeFrank said Amazon’s pitch is not dissimilar from Facebook’s, where brands, no longer blessed with boundless organic reach, have to pay in order to be seen.
“Some new clients say, ‘We’re nowhere to be found,’ but they find once they hit certain sales volumes with paid [media] in terms of discoverability and sales, they generate higher page ranks, in which then the natural search would kick in,” she said.
Corey Frons, CEO of ecommerce specialty lighting business BulbAmerica, said his – business uses both Google Shopping Ads and Amazon Product Ads, although Amazon’s format is his #1 driver of referral traffic.
“The click is very close to a Google Shopping click,” said Frons. Ironically, BulbAmerica uses Google Analytics to measure both Google’s and Amazon’s product listings streams. “We find that for every person who comes into our site [from Amazon] and makes a purchase, they come back another eight to nine times, so it’s worth our investment to collect that customer data.”
Frons isn’t worried about Amazon cannibalizing his own traffic, as Amazon’s Product Ads link shoppers back to BulbAmerica’s own site and represent only a fraction of BulbAmerica’s total conversions in the Amazon marketplace.
Additionally, Amazon is testing ways to make Sponsored Products – highly qualified keyword-targeted ads that merchants often use to promote new or unique products within the Amazon environment – more personalized based on the device they’re using, “where if I’m looking at a product page on one screen, and someone else is looking from another screen, we’ll see different ads,” said DeFrank.