19 votes

Amazon is stuffing its search results pages with ads, and they seem to be working

4 comments

  1. [4]
    deciduous
    Link
    Does amazon have an especially good conversion of ad clicks to sales? The price they list of 84 cents seems high for click-through rates.

    Does amazon have an especially good conversion of ad clicks to sales? The price they list of 84 cents seems high for click-through rates.

    5 votes
    1. Deimos
      (edited )
      Link Parent
      I don't have any data or anything, but I'd assume that conversions would be far higher than "standard" ads because people are already searching on Amazon for the purpose of shopping, and probably...

      I don't have any data or anything, but I'd assume that conversions would be far higher than "standard" ads because people are already searching on Amazon for the purpose of shopping, and probably already signed into an account and ready to purchase whatever they select.

      When advertising on a lot of other sites, you're often taking someone out of whatever "context" they're in (reading an article, looking through Facebook posts, etc.) and trying to switch them over to buying something, which may involve creating a new account, typing in their shipment/payment info, and so on. That involves a lot more hassle on the consumer end than just being guided to a specific product on Amazon.

      Edit: there's some more detailed data in this article, which is linked at the bottom of the Recode one: https://www.cpcstrategy.com/blog/2018/07/amazon-advertising-q2-benchmark-report-for-2017-vs-2018/

      6 votes
    2. [2]
      Defluo
      Link Parent
      As someone who's used these ads in the past, the conversion rate is really good. This was a year ago and I don't remember exactly what my conversion rate was but it was something like 1 out of...

      As someone who's used these ads in the past, the conversion rate is really good. This was a year ago and I don't remember exactly what my conversion rate was but it was something like 1 out of every 7 clicks would buy my product. Compared to facebook or google adwords, amazon ads performed far better. People go on amazon already wanting to buy something so they're more willing to click on your ads and go through with the purchase.

      If amazon did not allow ads, I probably would not have gotten any sales as my product was buried under the established but inferior products.

      6 votes
      1. deciduous
        Link Parent
        Wow. That's a really good rate. I see why amazon is pushing so hard for ads if that's the kind of rates you are getting.

        Wow. That's a really good rate. I see why amazon is pushing so hard for ads if that's the kind of rates you are getting.

        3 votes