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Ads for Amazon is like Walmart choosing what product to be put on display and where. It is an established business. I echo some of your sentiment. If Amazon is

Ads for Amazon is like Walmart choosing what product to be put on display and where. It is an established business. I echo some of your sentiment. If Amazon is truly as customer obsessive as they branded themselves, they would avoid putting cheap ads out there. Since their click rate is going to be so high, those ads will be very expensive indeed, which I would assume to be quality ads as well.

CodeSheikh 9y ago
Quality ads would be like "hey see that you are buying Topo Chico. Why don't you try these new flavors as well at a discounted rate?". Instead of "Buy Nestle water" ads. Or something very unrelated. Basically a win-win situation for both parties. But to be honest I would be very much reluctant at seeing a lot of ads. They do this already with "Sponsored" products and most of the time it serves as distraction instead of convincing buyer into even at least clicking their ad.
- remir 9y ago
  This is what I never understood in online ads. You're looking to buy, say, a North Face jacket but the price is a bit higher than you're willing to pay, so you close the tab. Now, you go elsewhere on the web and you see ads for that particular jacket, but there's no incentive for you to click on the ad because you already know the price is too high. But if the ad says: "hey, 10% off on this jacket in the next 30 minutes with coupon code xyz" then yeah you might click on the ad, buy the jacket and in the end, the customer, the retailer and the ad agency are all winning.
  - mrob 9y ago
    If you could manipulate coupon codes like that then why would anybody pay full price (if it wasn't urgent)?
    - Slansitartop 9y ago
      Not everyone is that savvy or willing to put in the effort. There are people who save ridiculous amounts with traditional coupons, but not many people are willing to put in the effort or make the sacrifices to to that, so they still work for the companies.
    - remir 9y ago
      I bet a lot of people would still pay full price. I mean, Gap has 30% off coupons every week like clockwork. 40% off is pretty regular, too, so why would anyone pay full price? Well, I bet a lot of people do.
Finnucane 9y ago
In a retail environment, the choice of product position on a shelf or display is often not entirely the random choice of the retailer; the producer may be paying for that. IN publishing, where I work, there's a system known as 'coop' (cooperative marketing) in which the publisher credits the bookseller in exchange for favorable positions on a table or other visible spot (it's legal as long as the deal is clear to all and terms are offered to all). Normally these sorts of promotional considerations are hidden from the consumer. Recall that back when Amazon was still primarily a bookseller, they had actual category editors who chose books to be featured on the category's opening page. So just having paid advertising is just an extension of this. As Amazon acts less like a department store and more like the operator of a bazaar with thousands of merchants hawking their wares in the street, I guess it makes sense.

CodeSheikh 9y ago

Quality ads would be like "hey see that you are buying Topo Chico. Why don't you try these new flavors as well at a discounted rate?". Instead of "Buy Nestle water" ads. Or something very unrelated. Basically a win-win situation for both parties. But to be honest I would be very much reluctant at seeing a lot of ads. They do this already with "Sponsored" products and most of the time it serves as distraction instead of convincing buyer into even at least clicking their ad.

remir 9y ago
This is what I never understood in online ads. You're looking to buy, say, a North Face jacket but the price is a bit higher than you're willing to pay, so you close the tab. Now, you go elsewhere on the web and you see ads for that particular jacket, but there's no incentive for you to click on the ad because you already know the price is too high. But if the ad says: "hey, 10% off on this jacket in the next 30 minutes with coupon code xyz" then yeah you might click on the ad, buy the jacket and in the end, the customer, the retailer and the ad agency are all winning.
- mrob 9y ago
  If you could manipulate coupon codes like that then why would anybody pay full price (if it wasn't urgent)?
  - Slansitartop 9y ago
    Not everyone is that savvy or willing to put in the effort. There are people who save ridiculous amounts with traditional coupons, but not many people are willing to put in the effort or make the sacrifices to to that, so they still work for the companies.
  - remir 9y ago
    I bet a lot of people would still pay full price. I mean, Gap has 30% off coupons every week like clockwork. 40% off is pretty regular, too, so why would anyone pay full price? Well, I bet a lot of people do.

Finnucane 9y ago

In a retail environment, the choice of product position on a shelf or display is often not entirely the random choice of the retailer; the producer may be paying for that. IN publishing, where I work, there's a system known as 'coop' (cooperative marketing) in which the publisher credits the bookseller in exchange for favorable positions on a table or other visible spot (it's legal as long as the deal is clear to all and terms are offered to all). Normally these sorts of promotional considerations are hidden from the consumer. Recall that back when Amazon was still primarily a bookseller, they had actual category editors who chose books to be featured on the category's opening page. So just having paid advertising is just an extension of this. As Amazon acts less like a department store and more like the operator of a bazaar with thousands of merchants hawking their wares in the street, I guess it makes sense.