Dive Brief:
- Amazon is no longer featuring photo ads with search results, replacing those placements with text-only advertising.
- The change goes into effect at the end of October.
- With Amazon dropping Product Ads, the new ads will be called Text Ads. The move has been speculated as targeting ads placed by Google.
Dive Insight:
Amazon is making a shift in the ads presented in search results, removing photo ads linking back to third-party retail sites and will only serve text ads. The e-commerce retailer says the goal is to “best reach its customer base.” There is no official explanation for the change but industry insiders believe the move is due to Google phasing out in October it's ad network's use of Product Ads.
Whatever the reason for the change, Amazon is taking away a valuable platform for businesses that don’t sell through Amazon. Through the ads, businesses can reach Amazon's 280 million-strong customer base with multimedia advertisements. Those marketers can still place text ads, but the new Text Ads appears to only be a test for Amazon and a move aimed at enticing marketers to place their products available through the e-tailer's marketplace. Amazon’s ad sales are expect to reach almost $127 billion this year.