Amazon Pulled The Plug On Right-Hand Column Ads
When was the last time you search for a product on Amazon? Did you notice the right-hand column ads were no longer there? That’s right, Amazon has pulled the plug on right-hand column ads. So what does this mean for Amazon sellers, particularly those who run Sponsored Products ads to scale their businesses? Images below show how Amazon has pulled the plug on right-hand column ads.
Before:
After:
So, why did Amazon remove the right-hand column ads?
For customers, Sponsored Product ads will blend in more seamlessly with organic listings, meaning it won’t be so obvious to determine which listings are paid placements and which are organic. This also makes Amazon shopping experience more consistent across mobile and desktop, as right-hand column ads were only displayed on desktop searches. Not to forget the Headline Search ads opened to 3rd party sellers recently in August.
The point is, Amazon is putting customer experience first. Let me explain why. Amazon is looking to capitalize on both sides of the coin, the ad spend and sale. Amazon wants to match the keyword and bid with the advertiser and product that will most likely lead to click and subsequently the sale. All parties (Amazon, seller, and customer) win in this case.
On the other hand, should Amazon made a bad match between the customer and the advertised product, all parties are left with a click but no conversion. The customer has not found the ideal product and the seller has paid for a click but didn’t receive a conversion. The truth is, Amazon put customers’ experience first opposed to sellers and will always find the opportunity to put the right ad in front of the right customer at the right time.
What are the consequences for advertisers/sellers?
Firstly, your ad impressions will drop because fewer ads displayed will result in fewer impressions. Be prepared for an increase in Amazon Sponsored product ads cost. Supply and demand states that as a commodity (ad placement spots) becomes more scarce, its value will increase, thus driving up the price (cost per click). Sellers need to watch their numbers more carefully and be willing to spend more to acquire a customer.
Amazon now shines the torch at Headline Search ads since removing the right hand column ads. Sellers who are eligible to use Headline Search ads, please take advantage of this golden opportunity. This placement has always been a high-performing location and will become increasingly so since the right hand column ads are gone.
What’s next?
Amazon might test new ad placements throughout the platform. You’d probably noticed ads are shown on the product detail page, the add-to-cart space, and the thank-you page, etc.
All of these ads are Sponsored Products ad placements. Ads displayed on product detail pages are derived from both manual and auto-targeting campaigns, but the other two placements are auto-targeting limited. Amazon will continue to make changes to improve the marketplace and buying experience.
Sellers need to keep up with news, beta testings, and rollouts, and they need to constantly review their strategies, and roll with the changes so that they can build a highly profitable Amazon ecommerce business.
