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Retail, search and Amazon’s $40B ‘advertising’ business

308 点作者 solalf大约 2 年前

23 条评论

mabbo大约 2 年前
I keep trying to explain to people: they aren&#x27;t &quot;ads&quot; they are &quot;pay for customers to ever see your product&quot;. It&#x27;s an extortion ring, basically.<p>Just like nobody ever opens page 2 of Google search, people rarely scroll down very far on Amazon&#x27;s product search page. These &quot;ads&quot; just put the highest bidders&#x27; products at the top-K spots (and K keeps increasing) so that customers aren&#x27;t see the most <i>relevant</i> products, just the ones who paid the most money.<p>Amazon spent 20+ years building customer trust. Now it&#x27;s reaping its reward by selling it off wholesale.
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Semaphor大约 2 年前
I went to Amazon without an ad blocker for the first time yesterday (wanted to try the fakespot service, but it requires an extension and &quot;access all&quot; so I created a clean profile for it). I was surprised how many ads there were on Amazon, I thought the situation was already bad <i>with</i> an ad blocker, considering they show a lot of hard-coded ads, but wow.
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skizm大约 2 年前
Buying things these days:<p>Go to amazon search for product. Find something that looks reasonable.<p>Confirm review section has a reasonable distribution of stars and check out a few 1 and 3&#x2F;4 star reviews (hope they&#x27;re written by a human) and see if there are any deal breakers.<p>Go to google and enter &quot;&lt;amazon product I&#x27;m interested in&gt; reddit reviews&quot;.<p>Go to reddit read reviews and hope they&#x27;re not written by astroturf accounts, bots, or chatgpt (have to manually review accounts).<p>If reddit confirms the product is okay, then I check if I can find it directly on a company site to order direct.<p>If yes, have to confirm with reddit again to make sure the site is reliable and does returns &#x2F; replacements, etc.<p>If yes, buy direct. If no, go back to amazon to buy product there.
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MagicMoonlight大约 2 年前
Amazon is really shit now. You try to buy a product and instead of showing you the actual brands it just shows you alibaba scam products.<p>I have to go to other sites and find the actual products and then search directly on amazon. It won’t be long before I just stop using amazon altogether.
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irjustin大约 2 年前
Anecdotally, I was connected to a number of people on the Ads team and years ago, the upper ups in the G machine were already extremely nervous of Amazon&#x27;s internal ads system.<p>Google has been regularly losing marketshare to Amazon because people perform searches for products directly there when previously it was done through google-search.
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ankit219大约 2 年前
&gt; the ‘retail media’ gold rush: the realisation that a high-traffic website or app could be ad inventory even if you’re not a media company, that you have very relevant ‘consented’ first party data (at the very least intent if not broader profiles) and probably purchase attribution too, that all of this now has more relative value given the push against cookies and third party data everywhere else - and that advertising margins are a lot higher than retail margins.<p>I think it&#x27;s not visitors, but repeat users which makes it possible and so valuable. This is going to be the next phase of Adtech. Uber has a $500M run rate from ads, Walmart has $2.7B (from the same article), and evidently more and more companies will discover, if you can aggregate traffic to some decent level, you can monetize it with first party data. This advantage is only going to increase once we see Android launch their own version of tracking consent, and Chrome gets rid of cookies. A good horizontal play here is to sell targeting, attribution, and profiling services to all these &quot;aggregators of traffic&quot;.<p>Not sure about the revenues per se, but I think Doordash, Expedia, Robinhood, Airbnb could also potentially generate ad revenue at low cost just based how much traffic (and repeat users) they get
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prawn大约 2 年前
I&#x27;ve noticed Bunnings (like Home Depot, but in Australia) adding &quot;Marketplace&quot; listings for non-store things to their website. I assume that there&#x27;s either an internal push to become more like Amazon, or consultants pitch this approach to them and it&#x27;s hard to resist.<p>I wonder what the numbers are for supermarkets and the way they prioritise shelf placements? A friend had a big contract recently going around and hi-res photographing shelf-positioning in a massive supermarket chain. Every aisle. And then eye-scanning tests and analysis on legibility meant it was all used to upsell brands fighting for premium positioning.
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DeathArrow大约 2 年前
I never encountered ads on Amazon, so out of curiosity I disabled uBlock Origin and visited Amazon. It seems that the ads are for products sold on Amazon. Clicking an ad redirects you to the product page.<p>Until now I thought that sites where you go to spend money are free of ads. This is a new low. What&#x27;s next, ads on banking apps? Ads on the revenue service website?<p>I think ads play the biggest part in why the Internet is so fill with junk today, to the point you have to sift through mountains of trash to find something genuinely useful.
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cheeselip420大约 2 年前
So the companies that sell on Amazon pay money to Amazon (from the revenues they get from Amazon&#x27;s customers) to have their products listed more favorably than competitors (one of which is actually Amazon).<p>I can see how this seems advantageous and monopolistic for Amazon...
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1vuio0pswjnm7大约 2 年前
Original HN title used the information in the second line from the blog post, something like:<p>&quot;In 2021 Amazon ad revenue [was] more than the entire global newspaper industry.&quot;<p>Hence some of the comments focus on newspaper business.
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oefrha大约 2 年前
Somewhat tangential, the second graph shows not just Amazon, but every big tech’s advertising revenue growing like crazy year over year from 2016 to 2021, particularly Google and Facebook. Growth slowed a bit in 2020 (still grew nonetheless) but rebounded hard in 2021. Excuse the question from someone who don’t pay attention to the ad industry at all: WTF happened to the popular narrative at the time that companies were cutting ad spend during covid?
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tracerbulletx大约 2 年前
When you walk in your local grocery store and see a Pepsi display with a football player or something and a big stack of Pepsi products right there how do you all think that happens?
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juujian大约 2 年前
What&#x27;s interesting is that in this model a lot of companies might be paying for ads without ever seeing a return, because they cannot outbid those at the top. In that case, Amazon would be sponging up money from a lot of players and returning it to a few. Which would be ok, but the problem is that you can either play the game or drop out. So it becomes a little bit of a gig economy thing where in theory you&#x27;re free but in practice companies are squeezing you for everything.
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yla92大约 2 年前
Is it me or there is this weird double vertical scrollbars? <a href="https:&#x2F;&#x2F;i.imgur.com&#x2F;Upjzoth.png" rel="nofollow">https:&#x2F;&#x2F;i.imgur.com&#x2F;Upjzoth.png</a>
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Xelbair大约 2 年前
Could a web designers finally stop messing up with the scrolling?<p>This one works fine when you scroll the wheel, but when you use middle click and drag to scroll i just moves one single step.
sharemywin大约 2 年前
I think maybe Amazon&#x27;s algo is wrong. I&#x27;ve seen alot of people comment that they search for a brand and get crap instead. I would think they need to take the fees they charge for a sale into account when serving ads.<p>Also, people&#x27;s previous history. If you don&#x27;t buy crap don&#x27;t show it high in the results.<p>And, intent. are they really searching for a new product or just using search to find the product&#x2F;brand they want
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softwaredoug大约 2 年前
From <a href="https:&#x2F;&#x2F;www.amazon.jobs&#x2F;content&#x2F;en&#x2F;our-workplace&#x2F;leadership-principles" rel="nofollow">https:&#x2F;&#x2F;www.amazon.jobs&#x2F;content&#x2F;en&#x2F;our-workplace&#x2F;leadership-...</a><p>&gt; Leaders start with the customer and work backwards. They work vigorously to earn and keep customer trust.<p>What do you do when a product serves two customers (shoppers and advertisers?)
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jesuspiece大约 2 年前
This is egregious imo. Amazon needs to be broken up
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geodel大约 2 年前
Ads are to Amazon now what finance was to GE. Suddenly there are ways to make infinite money without continuous huge expense on physical infrastructure. Slowly other divisions will look like too much hassle for little gain when ads can generate 10s of billion dollars without millions of sq. ft warehouses which are anyway hell-holes as per media.
mattwest大约 2 年前
What I gather from the comments is that perhaps Amazon is facing a goodwill issue and their advertising budget is a function of that.<p>What is the play here? Should Amazon focus on quality goods from quality suppliers in order to rebuild brand trust?
DeathArrow大约 2 年前
It&#x27;s that really hard to buy from other online stores? Sure, you won&#x27;t have all things together and you might have to use a few stores to replace Amazon, but overall it might be a better experience.
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anonymous344大约 2 年前
what this slotting fee does, is the same as one induvidual would own all the city buildings in a small city - price of rent goes up up up, price of products go up up up, and then its just empty, everyb goes shopping somewhere else.<p>i never buy these products because u know its a scam of 800% margin. there are no products anymore that are decent priced. it all like thai taxi mafia
qizzy大约 2 年前
I bought an echo dot on a whim. I was going to post in the thread about Alexa&#x27;s &#x27;failure&#x27; about how miserable the experience was, how demanding of access it was, how little function it delivered in return.<p>But the second half of that story - the reason it led to me blacklisting Amazon belongs here:<p>A day or two after installing the Echo Dot, I wrote a very personal and long postponed email to my sister. We haven&#x27;t communicated much in years. But COVID ended our mother&#x27;s life, and ultimately lead to me having a heart attack and being diagnosed with a genetic condition. I wanted to pick up on something she said about memories of the house we shared growing up. I mentioned, in brief, the table tennis set up, and the bright red, multi-layered, over engineered table tennis bat I was bought as a youngster. I wanted to note that it was more expensive than those of my two elder siblings - and I didn&#x27;t really know why that was the case. I was gently making a concession about the dynamics of our family and how maybe they said something about us as people - fourty years later. - as sensitively as I could, in the face of estrangement, mental health issues for both of us, family tragedy, the march of time on our bodies.<p>The next time I logged into Amazon - I was confronted by page after page of adverts for over engineered bright red table tennis bats.<p>End of relationship with Amazon.<p>I rarely use hotmail for personal emails, so maybe that was how the information leaked. But I doubt that. I think it was about that Echo dot sitting their verifying my identity as an amazon customer.<p>Amazon getting &#x27;people&#x27; so wrong is - for me - just one of many signs that the FAANG&#x27;s business model of the last 15, 20 years - is utterly doomed. Anyone thinking that opportunities to do better aren&#x27;t staring the rest of us in the face, needs to wake up, and realise they maybe insects, in economic terms, but they&#x27;re living on dinosaurs. Don&#x27;t allow yourself to be decieved into thinking your current &quot;host&quot; is the only one that could ever provide you with an environment to survive, or thrive. The West seemingly will not allow anything resembling a meteor strike. Rather it would delay and absorp any change over as long a period as possible. I tend to believe that we&#x27;re actually doing what people in history have always done, when they end up looking very silly and naive: succumbing heavily to recency bias. Evolution and History will eventually have it&#x27;s way.<p>Human identities and the makings of relationships are not the shallow constructs we have learned to consider them as. A flag and a brand do not show you what is inside. Convenience is forgettable if there is something more personal at stake, any half-decent alternative will do. It&#x27;s the organisations who know what that means who will come good. I can&#x27;t help but think, in a quasi-manic hyperconnected way, that this ties in very neatly with what &quot;AI&quot; is going to give us, how it is best considered. And also the need for verified identities.<p>From the moment the web arrived, I prized anonymity, and never paid a subscription. Twenty years later - I see the limits of that approach as fundamental to why the web has turned out to be such a terrible, traumatic, unsatisfying experience. In that one instance, it was clear to me, that they&#x27;ll steal your identity and tell you what it means to be you. What you can have, as well as what turns you on.<p>Hence I am actually excited about a future where I can demonstrate my identity as my &quot;property&quot;, harness that in ways that will satisfy me. And that will include paying for services that work better for me.
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