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Amazon coming back to PLA?

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# 1
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I have seen reports that Amazon started to test a comeback to PLA, should we be scared? Any thoughts on that?

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Accepted by James_Clemens (Top Contributor)
December 2016

Re: Amazon coming back to PLA?

[ Edited ]
Top Contributor
# 2
Top Contributor

google does not normally divulge the names of their advertisers --
except in rather public examples such as "success stories" or similar.

 

generally, if the marketing-budget allows, direct competition in the auctions
can be improved by using tools such as auction-insights, bid simulator, and

to some limited extent the keyword-planner with respect to a shopping-ad's

physical product details.

 

however, such directly competitive strategies can quickly become throw-away
campaigns that result in poor placement and poor quality outcomes, over time.

 

the best likely course would be to ignore such overtly competitive strategies,
in favor of more internal and longer-term metrics to help remain profitable --
such as the value of each conversion, the cost of each conversion, relevancy,
customer satisfaction, and related click-through-rates.

View solution in original post

Marked as Best Answer.
Solution
Accepted by James_Clemens (Top Contributor)
December 2016

Re: Amazon coming back to PLA?

[ Edited ]
Top Contributor
# 2
Top Contributor

google does not normally divulge the names of their advertisers --
except in rather public examples such as "success stories" or similar.

 

generally, if the marketing-budget allows, direct competition in the auctions
can be improved by using tools such as auction-insights, bid simulator, and

to some limited extent the keyword-planner with respect to a shopping-ad's

physical product details.

 

however, such directly competitive strategies can quickly become throw-away
campaigns that result in poor placement and poor quality outcomes, over time.

 

the best likely course would be to ignore such overtly competitive strategies,
in favor of more internal and longer-term metrics to help remain profitable --
such as the value of each conversion, the cost of each conversion, relevancy,
customer satisfaction, and related click-through-rates.

Amazon coming back to PLA?

Rising Star
# 3
Rising Star

Heard nothing, I think this belongs in the fictional category.

 

If they do enter, it will be no different than eBay or Etsy. A normal retailer can still compete if all effective methods are incorporated.

 

Hope it helps.

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Re: Amazon coming back to PLA?

[ Edited ]
Visitor ✭ ✭ ✭
# 4
Visitor ✭ ✭ ✭

There is nothing hidden about this and it is public knowledge as it has been in the press for about a week.  For Amazon sellers, it could be a very good thing.  Back before Google shopping was a pay to play system, Amazon and eBay routinely made deals with Google and marketed products via the shopping feeds.  One of the pros of selling on a marketplace like Amazon is if your products do well, you will also benefit from the marketing power and spend that no small businessman could afford.  I see listings all of the time that we post on many different platforms for clients that are receiving retargeting ads the same day that it is posted..  Jet spends a ton in marketing and if your products do well in the category they are focusing their marketing dollars on at that moment, expect to see a boost.  

 

So far Amazon is only listing items listed and sold by Amazon themselves.  They have not listed any 3rd party sellers items.  I'm sure if they expand the program though it will include 3rd party seller items as well.  at the very least the most popular best sellers.  Traditionally, you can find items listed on Google Shopping cheaper than you can on Amazon.  It will be interesting to see how this changes the dynamic.  The majority of the items listed so far are in the home goods category which coincidently happens to be Jet.coms main category as well.  I haven't seen this mentioned in any of the articles, but Im an ecommerce consultant and own a jet api integration company so i see this as a possible angle.  

 

I wouldn't recommend changing anything about your current PLA's except to say that you should always be optimizing, testing and checking the competition.  One definite potential pitfall to this entire thing though is that Amazon is not a small business with an advertising budget.  It they want to commandeer something they will throw more money at it which is unsustainable for most small businesses.  If your bids are automated, set ceilings or keep a close eye on it.

Re: Amazon coming back to PLA?

Top Contributor
# 5
Top Contributor

Most all tech giants have a long history of being close for many months and then being far apart for many months. Very few stay close and remain close partners for the long haul. Google and Amazon separated around Q4 2014, which remained as such through 2015 and most of 2016.

 

Then Q3 2016 brought them back together, along with Microsoft, Facebook and IBM to shape the A.I. movement. This brought a friendly highway connecting Amazon and Alphabet once again.

 

Suddenly, around December 17th, a surprise sighting of Amazon back on Google Shopping with product listing ads (PLA) for home goods were verified. As of today, Amazon is back in the Google SERPs with standard text ads and in Google Shopping.

 

No one knows what this means long term except that for the holiday season the tech giants are working together. Some surmise that it is a holiday thing only and others insist this is the new normal. The one thing we know is that Google Shopping is growing leaps and bounds and that it is the leading provider of advertising to consumers... and that Amazon needs to connect with more consumers to grow.

 

My thoughts on this are simple: AdWords works great and Amazon needs AdWords performance to reach their potential. Any advertisers competing in the home goods segment should check their Analytics and look at the weeks building up to the week of December 12th, and see how things look then and also for each week after up until today. In AdWords, use the competitive analysis feature to see clicks lost to budget and clicks lost to rank and review this in weekly time blocks and see if your campaigns shifted any. Draw your notation line at December 12th and see what has happened before, during and after. Plan to play next to Amazon in the ad space for the unforeseen future.

 

Your overall marketing strategy should still remain no matter... and Celebird states it in plain talk:

 

The best likely course would be to ignore such overtly competitive strategies, in favor of more internal and longer-term metrics to help remain profitable--such as the value of each conversion, the cost of each conversion, relevancy,
customer satisfaction, and related click-through-rates.       

 

Great find, @brower J, and keep us informed on what you discover further. 

 

All the Best,

 

James

 

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