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Amazon India introduces advertising solutions for its marketplace

Amazon India has launched advertising solutions for its website, allowing third party sellers to promote their products to consumers, reports Mint. Its competitors, including Flipkart and Snapdeal, have also turned to advertising in order to boost revenues, given that the transaction part of the business is  hyper-competitive in India, and at present, none of these companies is profitable. Earlier this year, Flipkart bought mobile ad firm AdIQuity Technologies and mobile marketing startup Appiterate, and its co-Founder Sachin Bansal is leading its advertising solutions initiative.

Readers should note that Amazon is a marketplace in India, and doesn’t take ownership of inventory. The Amazon marketplace, therefore, now allows third party advertisers and merchants to advertise on its platform. Amazon told MediaNama that it has launched the following advertising solutions over the last 2-3 months, across mobile and desktop:

– Sponsored Products: This is a native ad product by Amazon.in, based on a keyword-bidding advertising program, which are priced on a cost-per-click (CPC basis), and the prices are determined by an online auction.
– Sponsored Search: Allows advertisers to get a prominent placement on customer searches on Amazon.in. These ads are also priced on Cost Per Click (CPC) determined by an online auction mechanism.
– Display Ads: These are charged on a Cost per Impression (CPM) basis, where advertisers can target specific interest shoppers. Amazon provides analytics such as ad impressions, clicks, add-to-cart number and sales volume to help monitor ads performance.
– Amazon Marketing Services: is meant specifically for merchants selling products on Amazon.in. This is a self-serve advertising solution, allowing advertisers to create a display advertisement and a customized landing page. These ads are priced on a CPC basis, with the price determined by an online auction.

We searched around, and we couldn’t find a publicly available advertising solutions page for Flipkart, Amazon or Snapdeal, to understand what kind of advertising solutions they have on offer. Snapdeal has a “get your business featured page” here, with a form to be filled, so that “Our representative will get in touch with you within 7 days.” Amazon has a product ads page, which focuses entirely on advertising on Junglee.com, and hasn’t been updated with these new products. Are any of these companies serious about their advertising solutions business?

(with inputs from Mohammed Rumman)

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