Amazon Video Ads & Products with Low Margins


We are back with Liran Hirschkorn talking Amazon Video Ads and his experience in the trial he used a year ago, plus the story of Amazon blocking ads for CRAP products that can’t realise a profit (CRAP) meaning those vendors can’t shift inventory without dropping their price to Amazon fixing the problem

  • Looks like Amazon will soon launch ads in mobile search results
  • Amazon are blocking ads that are unprofitable for certain products

Amazon Video Ads

  • Liran ran ads in a trial back with AMG group now called Display
  • They will run ads for you and get traffic
  • One of the options was video and search ads
  • There is no bidding system – was only 5c per view on iOS
  • Someone scrolls and watches for a second or two then that’s 5c to you
  • If everyone is targeting the same keyword then they rotate
  • Amazon Video Ads works well if you’re targeting keywords no-one else is targeting
  • Seems Amazon are now offering it with a minimum of $35,000 spend
  • Doesn’t need to be spent in 1-2 months
  • A big capital commitment from the Seller to $35,000 in Amazon video ads
  • Liran did see a lift when he did it and felt it worked well but there was very little data
  • This is will likely move into Seller Central over time
  • Be interesting to see how it will be integrated

Amazon blocking ads

  • CNBC story about Amazon blocking ads for unprofitable products
  • It’s only for 1P for Vendor
  • You sell a product wholesale to Amazon and you make money on then you can run ads
  • Amazon will sell faster and you get a re-order from Amazon
  • Problem is Amazon are not making money – CRAP – Products that Can’t Realise a Profit
  • Amazon want to sell cheaper but stop you advertising the product
  • Will force you to sell them at a lower price means you can’t make as much money on it
  • And if Amazon stop you running ads for these then you can’t move the product as fast
  • Makes more ads space for sponsored products for products that do make money
  • More referral commissions from 3rd party sales and money for Amazon and more
  • Sales on the products that are profitable
  • Trying to compete with Google for ads
  • Most profit comes from AWS, advertising and 3rd Party fees

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