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Amazon to roll out self-serve PPC advertising on site

November 3rd, 2006 by Ben Flux

Amazon to roll out self-serve PPC advertising on site
ClickZ reports on a new PPC program from Amazon.com, ClickRiver Ads. Interestingly, this program is built by A9, the subsidiary that Amazon seems to have given up on.

The “Sponsored Links” will be displayed along with search results as well as other relevant content pages-so treat it as a combination of advertising for search as well as content within the same site.

The program is currently accepting applications from advertisers, though being in beta, the number of advertisers it will accept may be quite limited. It is not clear if they will allow affiliate publishers to advertise - here’s an excerpt from the About page:

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For the Clickriver beta, we welcome applications from businesses who advertise services and products that complement Earth’s Biggest Selection of products sold on Amazon.com. …We welcome services of all types - in travel, finance and investment, training and education, entertainment, insurance, news, healthcare and physical fitness centers, IT assistance and consulting, photo printing and more. We also welcome product retailers whose offerings complement the many products on Amazon.com.
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If this initiative takes off, I suspect Amazon will look at integrating it with its Omakase contextual advertising program. Even though Omakase works on a pay-per-acquisition model, and ClickRiver on a pay per click model, I would be surprised if Amazon doesn’t take advantage of its associate network.

While the move itself is an attempt at increasing its revenue stream, an online retailer must certainly be wary of diverting traffic away from its site. As it is, Amazon’s recent financial performance hasn’t been really great— even with a good jump in sales, profitability has declined.

From a marketer’s perspective, this will be another great avenue to advertise; it will also be very interesting to watch the extent of impact this new development will have on Amazon’s bottom line.

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