DISCUSSION

E-Commerce Sites Exploring Selling Ad Space

Written by Tom Ryan
By Tom Ryan

While Amazon.com is apparently testing running display advertisements on its website, Backcountry.com, a leading e-tailer of outdoor products, has formally launched a program offering advertising space available on its websites.

Backcountry.com, a subsidiary of Liberty Media Corp., said the program will be available first to Backcountry.com's vendors and partners, but will open it up to "customer complementary" advertisers shortly. The company said the program offers exposure opportunities to Backcountry.com's one to four million unique monthly visitors who engage in 10 to 35 million page views per month. It will also allow advertisers to reach its niche audience of hardcore outdoor enthusiasts.

"Most people still use the internet as it was originally intended: a research medium," said Dustin Robertson, Backcountry.com's chief marketing officer, in a statement. "Having customer-complementary ads on our sites can enhance the customer's shopping experience as well as provide the customer with more brand and product information opportunities while they are in their research phase."

Advertisers can buy inventory available on a navigation level basis (e.g., Men's Clothing, Women's Clothing, Hiking) as well as on all Product Detail Pages. Potential advertisers will also have the ability to send traffic to any destination URL they choose; from their own site, to a smaller retailer or to a custom campaign.

"We would much rather have our customers exit to a vendor site to learn more about the products they are researching than go anywhere else," said Mr. Robertson.

Meanwhile, on Amazon.com, the bottom of the front page on Tuesday afternoon showed an ad for ING Direct with a click-through link to the bank's website. Clicking on the words "ad feedback" underneath the advertisement brought up a survey asking clickers two questions: "How relevant is this ad?" and "How appropriate is this ad for Amazon?"

A link to a page, "About Amazon's Advertising Program," included the explanation, "As you've noticed, Amazon.com has recently started incorporating display advertising on some of our pages. At Amazon, our ultimate priority is to ensure that your shopping experience is a good one. When companies place ads on Amazon we generate additional revenue, which allows us to offer lower prices to you, something we are dedicated to doing in every way we can. All 3rd party advertisements will always be clearly labeled as such."

Discussion Question: What do you think of e-commerce sites selling display advertising space? Will consumers accept the rationale that ads enhance their shopping experience?

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