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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
