Businesses’ overwhelming reliance on sponsored product ads is not surprising, given that it was one of the first ad formats Amazon launched in Mexico back in October 2018. However, DataHawk found that format allocations differed depending on the size of each company’s monthly budget for Amazon ads:
- Those that spent over $100,000 per month employed a much more sophisticated mix of ad formats to reach consumers on Amazon.
- Conversely, those that spent less, or that had much smaller budgets to work with, tended to stick with one or two advertising solutions—most notably, sponsored product ads.
Advertisers also made “similar” allocations on Mercado Libre, Rubio said. “Mercado Libre is one of the most-used product search engines in Latin America,” and ad formats, like product ads, "allow brands and sellers to increase their visibility, exposure, and boost sales on the digital shelf."
Since sponsored product ads are also seamlessly integrated into retailers’ UX, “there is tremendous opportunity to increase the number of product ad placements on their digital properties without negatively affecting, or disrupting, the customer experience for shoppers,” said Grégoire Flatin, head of retail media solutions at RelevanC.