On August 16th, 2023, Amazon revealed its bold expansion of Amazon Sponsored Products ads, extending its reach beyond the confines of its platform. Now, Amazon sellers have the opportunity to showcase their products through Sponsored Products ads on third-party websites, including influential platforms such as Pinterest and Buzzfeed. This strategic move by Amazon holds immense significance for sellers, offering them a novel avenue to reach their target audience and elevate their brand presence beyond Amazon’s ecosystem.
What difference does it make?
The expansion of Amazon Sponsored product ads to third-party websites like Pinterest and Buzzfeed makes a significant difference for sellers and Amazon PPC experts in several key ways:
1) Increased reach: Amazon sellers can now tap into the vast audiences of popular third-party websites, reaching potential customers who may not have engaged with their products on Amazon’s platform. This expanded reach opens up new opportunities for exposure and brand awareness.
2) Diversification of advertising channels: Sellers are no longer limited to advertising solely within Amazon’s ecosystem. They can now diversify their advertising efforts by leveraging third-party websites, reducing reliance on a single advertising platform.
3) Enhanced brand visibility: Sellers can enhance their brand’s visibility beyond Amazon, strengthening their presence in the digital space. This exposure can contribute to improved brand recognition and customer trust.
4) Access to different demographics: Third-party websites attract diverse demographics and interests. Amazon sellers can tailor their advertising strategies to target specific audiences on these platforms, broadening their customer base.
5) Competitive advantage: Sellers who embrace this new advertising opportunity may gain a competitive edge by effectively reaching potential customers where they spend time online. It allows them to stay ahead in the evolving e-commerce landscape.
6) Potential for sales growth: With access to a wider audience and the ability to showcase products on trusted websites, sellers have the potential to drive more traffic and sales, ultimately contributing to revenue growth.
7) Efficient use of advertising budget: Diversifying advertising channels allows sellers and Amazon Sponsored Ads management experts to allocate their advertising budget more efficiently, optimizing their ad spend based on performance and audience engagement.
Where offsite Sponsored Products ads will appear?
These ads will now find their place on premium apps and websites, making a significant impact on the advertising landscape. The roster of partners includes household names like Pinterest, BuzzFeed, Hearst Newspapers, Raptive, Lifehacker, and Mashable, with Pinterest being a standout choice for advertisers.
What makes this particularly exciting is that these offsite Sponsored Products ads have the potential to reach consumers at an earlier stage of their buying journey than ever before, offering a fresh perspective on product discovery.
While Amazon has mentioned a handful of partners initially, it’s only the beginning. Expect to see these ads expanding their footprint across more websites and apps as Amazon continues to roll out this game-changing feature.
What will offsite Sponsored Products ads look like?
The off-Amazon Sponsored Products ads that you’ll see on other websites are designed to be user-friendly and straightforward.
These ads will be auto-generated, drawing from the existing product listing to ensure a hassle-free experience for advertisers. What’s particularly convenient is that advertisers won’t need to invest additional creative effort, as these ads will effortlessly feature the product image, title, and essential information that shoppers find invaluable, including star ratings, review counts, and pricing details.
How can sellers participate?
One notable aspect of this expansion is that participation by sellers is automatic. Advertisers and Amazon Sponsored Products optimization experts do not need to take any specific action to have their products featured in off site Sponsored Products ads. The ads are displayed based on page context, campaign details, and cost-per-click parameters that sellers have already set.
It’s important to note that these ads will only appear when the advertised items are available for purchase. Additionally, sellers have the option to exclude specific apps and websites from displaying their ads.
A look at the bigger picture
The introduction of offsite Sponsored Products ads aligns with Amazon’s broader strategy in the digital advertising arena. According to our forecasts, Amazon is poised to capture 7.5% of the global digital advertising market share in 2023, with a projected growth of 9.2% by 2025.
While Google and Meta (formerly Facebook) continue to dominate this landscape, Amazon’s innovative approach with offsite ads has the potential to further disrupt the digital advertising duopoly.
Intriguingly, data from Tinuiti suggests that Amazon’s share of Google Shopping impressions increased significantly compared to the previous year, while competitors like Walmart faced a dip. If offsite sponsored listings gain popularity, Amazon might reduce its reliance on Google Shopping, enhancing its profitability while simultaneously challenging Google’s advertising revenue.
FAQs about Off-Amazon Sponsored Products Ads
1. Are offsite Sponsored Products a new Amazon ad unit?
Technically, no. These ads are a new placement type within the existing Sponsored Products ad unit.
2. What are the existing Sponsored Products placements?
Sponsored Product placements now include Product Detail Page (PDP), Top of Search, Rest of Search, and Off-Amazon. Advertisers can analyze performance across these placements using the Sponsored Products Placement Report.
3. When will off-Amazon Sponsored Products go live?
Amazon is expected to roll out offsite Sponsored product placements gradually, starting with a testing period for selected advertisers before a broader release.
4. Do off-site Sponsored Product ads have specific campaign types?
Currently, these placements are not exclusive to any particular campaign type. They can appear for both auto and manual campaigns.
5. How is targeting for offsite Sponsored Products ads determined?
Targeting is contextual, not audience-based. The ad placement depends on the nature of each third-party site or app. Search-driven sites like Pinterest align with campaign targeting, while others evaluate page content.
6. How can advertisers set up off-Amazon Sponsored Products ads?
Advertisers running Sponsored Products campaigns in Amazon’s US marketplace will automatically have off-Amazon placements included. No additional setup is required.
7. How can I track the performance of offsite Sponsored Products ads?
You can monitor performance through the Sponsored Products Placement Report, which will now include metrics for off-Amazon placements, accessible through the advertising console and API.
8. Can I control where my Sponsored Products ads appear off-Amazon?
While there isn’t a simple switch to opt in or out, you can use placement bid modifiers to influence the budget allocation. Increasing investment in native Amazon placements reduces the proportion allocated to off-Amazon ads.
9. Can I choose specific websites or apps for my offsite ads?
Yes, Amazon offers a brand safety mechanism that allows you to opt out of specific domains and apps where you don’t want your ads to appear. This gives you more control over ad placement.
10. How effective will off-Amazon Sponsored Products placements be compared to on-Amazon placements?
Off-Amazon placements reach different audiences at different stages of the buying process. Performance metrics may differ, and advertisers need to understand how to optimize these placements effectively.
11. In which geographies are offsite Sponsored product ads available?
Initially, these placements are available for advertisers in the US, with potential expansion to other regions in the future.
12. Do offsite Sponsored Product ads replace the Amazon DSP (Demand-Side Platform)?
No, the Amazon DSP remains a separate advertising tool. Off-Amazon Sponsored Products ads offer additional opportunities for advertisers to reach new audiences beyond the Amazon ecosystem.
How can eStore Factory help?
eStore Factory, as a specialized Amazon seller agency, offers comprehensive support to Amazon sellers seeking to harness the potential of off-site Sponsored Products (SP) ads.
We’ll start by developing tailored advertising strategies, including campaign setup, keyword research, and bid management, ensuring that your products are effectively positioned on third-party websites.
eStore Factory’s performance tracking, analysis, and A/B testing expertise enable ongoing campaign improvement. Moreover, they help manage opt-out domains, ensuring brand safety and relevance. With our guidance, Amazon sellers can navigate the off-site SP ad landscape confidently, driving sales growth and maximizing their advertising impact.
Wrapping it up
As these offsite Sponsored Products ads blend seamlessly with Amazon’s organic search results, their effectiveness outside of Amazon remains to be seen. Amazon has taken a cautious approach with a select group of publishers for the rollout. It’s an exciting development to watch, as it could potentially redefine how products are discovered and advertised in the e-commerce landscape.
In conclusion, Amazon’s extension of Sponsored Products ads to third-party platforms represents a significant shift in digital advertising. It underscores Amazon’s commitment to connecting customers with products while opening up new opportunities for sellers and advertisers. As this trend continues to evolve, it may reshape the digital advertising landscape and offer new avenues for businesses to reach their target audiences. Stay tuned for further developments in this space as Amazon explores the vast potential of off-site advertising.