Amazon is Discontinuing The Amazon Product Ads Program.
Amazon is shutting down their widely popular Amazon Product Ads program, with Oct. 31st being the official day the lights go out. Tuesday, August 11, 2015 marks the start of this phase out, as no new accounts will be accepted into the program.
What Will Take The Place of the Shuttered Product Ads Program?
There’ll be a new Text Ads program that will be launched in place of Product Ads. Currently, the Text Ads program is in beta and there is no word of when the rollout will be made available to the general public, however it should be available to existing Product Ads users.
What You Should Know About Amazon Text Ads
According to Amazon, Text Ads functions much like Google AdWords. In fact, Amazon suggests merchants begin their venture with Text Ads by uploading their AdWords ppc campaign .csv files. Ads will appear in the widgets on areas of Amazon.com that display Sponsored Links (such as search and browse pages, product detail pages, and mobile searchers performed on browsers).
Amazon Text Ads will perform like PPC ads, in that merchants are only charged when ads are clicked. It’s a 2nd-price auction with no set PPC rates, other than a .10 minimum CPC bid.
Going Against The Grain? Why Amazon Would Disband A Program That’s So Successful Elsewhere
The news of the disbanding of Amazon’s Product Ads program comes as a shock to many online merchants, as well as to us over here at Operation ROI.
Simply put, the data couldn’t be any clearer: Google, Bing, and Facebook are all thriving with the use of “Product Ads.” And, as these product ads continue to provide success for merchants, traditional PPC is on the decline for ecommerce sites.
Why, then would Amazon choose to move in the opposite direction and remove its product ads, in favor of the declining PPC text ad?
What Amazon Says “Text Ads” Will Do For Merchants
According to the online merchant giant, text ads help Amazon shoppers easily discover products and services while simultaneously driving traffic to merchants’ websites. As Amazon states, the “text ad format is a quick path for publishing campaigns and driving traffic to any part of your site, not just the detail pages.”
But there has to be more behind such a drastic and unorthodox change as the departure from Product Ads, which have proven their worth across multiple channels. It’s possible that Amazon is looking to formulate a way to keep more sales within. It’s also possible they’re looking for a way to build upon their established Sponsored Products program.
If deciding between Text Ads or Sponsored Products, understand that Sponsored Products are similar to Product Ads, but they link-in to products being sold on Amazon vs. linking out. Text Ads are PPC ads, where you are only charged when ads are clicked.
Sponsored Products are designed to put your products in a range of prominent places (such as on page 1 of a searchers journey). Winning this coveted ad space requires you to pick keywords and place a bid. Amazon then picks a winner based on the bid and relevance of the ad. But, unlike Amazon Product Ads, which lead to an external website, these ads go to products on Amazon.
What Can Ecommerce Merchants Do To Prepare For This Shift To Amazon Text Ads?
Until the program is rolled out to the masses, there’s not too much you can do except prepare yourself for the shift. This includes reviewing your AdWords .csv files so that when you’re granted access to Text Ads, you can hit the ground running.
OperationROI remains vigilant on uncovering the news surrounding this shift, and will work steadfastly to help our clients navigate through the confusion sure to be associated with the eventual demise of the Amazon Product Ads program.
Learn more about how we can help you prepare for the new landscape at Amazon by calling us at 1-888-277-5429 or by filling out our contact form.
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