I previously reblogged a post by Nicholas C. Rossis about using Amazon’s advertising program (Advertise with Amazon: A Step-by-Step Tutorial) as a marketing tool.
Today Nicholas, along with some other authors, shared his experience of advertising on Amazon. This post is an extensive analysis of his experiment, including how changing variables influenced the results in terms of effects on sales and costs for advertising.
The consensus: use Amazon’s advertising program with caution.
I’m sure you remember my step-by-step tutorial on how to advertise with Amazon. Three weeks later, I have some preliminary results, which, as promised, I’m sharing with you, so that you can learn from my mistakes.
In a nutshell: I’ve failed. The experiment has so far been a disappointment, albeit one offering fascinating insights.
You may remember that I had done my math and knew that, to make any profit, I had to bid under the proposed $0.50.
Now, for a peek behind the scenes: whenever Amazon is about to show a product page, a small bidding war will rage for a few nanoseconds. Amazon will check to see if that product is linked to any ads. If more than one ads want to be displayed, they will bid for that space, until they reach their cut-off threshold. So, if I have specified 5c as my maximum, then an ad…
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