Amazon US is testing with some sellers in its marketplace a new ad format, which allows them to re-target on sites and third-party users who have viewed their products on Amazon.
Amazon has begun to invite some vendors in its marketplace to test a new advertising tool directly competing with Criteo and Google, reveals Bloomberg. In 2017, the Seattle firm already released $ 1.7 billion of its advertising activity, mainly sponsored links appearing in the search results made by users on its platform. Its new format allows sellers, on a performance model, to bid for ads that appear on sites and third-party apps (we do not know yet which ones …) and will redirect to Amazon. A way of retargeting the surfers having visualized the product sheets of a merchant or references comparable to hers.
The retargeting industry is brewing huge revenues. Criteo has recorded $ 2.3 billion in sales in 2017. However, the effectiveness of this type of e-marketing is regularly debated. But for Amazon, this new revenue line is particularly interesting. Of course, the e-commerce giant is becoming more aggressive in the e-pub market, to the satisfaction of the market since this activity is more profitable than e-commerce while boosting the online sales platform. In addition, Amazon withdrew abruptly from Google’s Product Listing Ads (PLA) in late April and no longer bids for these popular formats of rich sponsored links. With its new format of retargeting, it will somehow pay its sellers to promote their products on the web … instead of doing it himself on Google.
Amazon’s advertising revenue is still well below the 95 and 40 billion that Google and Facebook respectively account for. But the firm Jeff Bezos, who started slowly on this job, certainly has the potential to come to shake them. Among other assets in its sleeve: its visitors are a priori more qualified since already in a process of purchase, and its advance in the vocal trade positions it as a must for what could be the next revolution of e-commerce. To begin with, Criteo’s stock fell by 2.62% as soon as Bloomberg revealed.