2 x Inc 5000 CEO (Fastest Growing Companies in America): Amazon /Walmart Marketplace Agency - Management Solutions for Brands/Sellers/Manufacturers/Private Equity Portfolios
Amazon is taking their advertising tactics to drive more advertising profits to new levels. This is wrong for so many reasons. But I will highlight 3 obvious reasons. 1. They hide the text to bump up ads. 2. The ads are basically at the door steps of the product showcased on the detail page. 3. It creates a clumsy and confusing experience for their customer (But who really gives a flying... as long as Amazon profits) *Special note see how the Amazon PVL label product is right below? Again - this helps Amazons profits and hurts brands big time. ** Is it me or are the ads LARGER?
Cliff Burleson
6mo
This is where anti trust is needed. Amazon shouldn’t be allowed to advertise directly on a competitors product page, especially rent free
Lucas Barnes
6mo
In this case it seems selling ads is more profitable than selling the actual products.
Basil Zaidi
6mo
Amazon would start sending brochures of sponsored products in a customer's delivery box after some time. Amazon loving their customers and giving them an edge against sellers was okay. But confusing even the customers and getting them to click one extra button to see the features of the product is simply inhumane. Brands must focus on infographics a lot before we see a sponsored ad on our images too
Matt Atkins
6mo
The worst part is Amazon’s competing product is front and center. This is what the FTC should be focusing on.
Nojus Latvinskas
6mo
Amazon ads is becoming more pay to win with not just how they restructure detail pages, but the amount of ad inventory they are constantly adding up on the search page and whatnot. Fees are going up and heavy reliance on ads leads to more profits for Amazon, as always.
Jon Payne
6mo
They make 15% on referral fees. Most advertisers have higher than 15% ACOS. Ergo, advertising brings more margin than actually selling. It’s in their best interest for you to click 3 or 4 ads before buying that to just find the right product and buy it right away!
Soheb Panjwani
6mo
Amazon’s choice is Amazon’s own brand lol.
Steven Pope
6mo
I agree!
Affan Mughal
6mo
That's amazing Phillip D'Orazio
I help Amazon agency founders get unstuck with their Amazon Ads | Pakistan’s 1st & only Amazon Ads Helium10 Trusted Partner | 15000 hrs, Upwork top 3%, BCG certified @ Strategy | PPC management & consulting projects
6moMy two cents. Amazon Ads has been a lot more profitable than FBA revenue for Amazon. The fulfilment side has been a loss maker for them for quite a while. It’s no surprise they’re making the platform more ad-centred than ever because that’s where the $ is for them. On the contrary, while this will hurt brands, it will allow other brands to steal sales with better volume from PDPs. The rich become richer. Great product offerings significantly better than other competitors will be able to utilize this more prominent placement better due to higher relative conversion rates. It will cost them ad spend too but they can manage the ACoS too. This will concentrate revenue and market share stronger at the top, making it hard for new/smaller sellers.