Amazon is experimenting with a new advertising strategy that places ads within the "Frequently bought together" section on a brand's own product page. This move has sparked discussions about its potential impact on brands and customers alike.
Key Aspects of the Experiment
- Ad Location: Ads appear in the "frequently bought together" section on a brand's product page
- Target: Aimed at increasing Average Order Value (AOV) for brands
- Current Status: In testing phase
Potential Benefits and Concerns
For Brands
- Concern: Paying for ads on their own product pages may seem counterintuitive.
- Opportunity: Increase AOV through promoting complementary products.
For Amazon
- Revenue: New avenue for ad revenue from existing feature
- User Experience: Potential impact on customer shopping experience
Key Considerations
- Ad Effectiveness: These placements may drive customers to add items directly to their carts, suggesting high conversion potential
- Bidding Process: Unclear how Amazon will charge for these ad placements, especially if multiple items are added to cart simultaneously
- Cost-Benefit Analysis: Brands need to evaluate if the cost of advertising on their own pages is offset by increased sales
Amazon is testing whether this ad placement makes more sense as a sponsored feature or a regular, non-paid feature. The results of this experiment could shape future e-commerce advertising strategies and impact how brands approach product bundling on the platform.
