Amazon Introduces Text Ordering With Sponsored Product Ads
Amazon's shopping agent now takes orders by text message, with Sponsored Product ads appearing in the replies, according to Digiday. This new feature may change how customers interact with the platform.
Original reporting · digiday.com
Original: “Amazon’s shopping agent now takes orders by text, with Sponsored Product ads in the replies”
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How this was written. Clicktag wrote this article with a language model from Digiday’s reporting (model: @cf/meta/llama-3.3-70b-instruct-fp8-fast); it describes that reporting rather than adding to it. The original, linked above, is the full story.
Key points from Digiday’s report
- Amazon has introduced a new feature allowing customers to place orders via text message, with Sponsored Product ads integrated into the conversation thread.
- The feature, called Alexa for Shopping, enables customers to interact with the agent as they would with a friend, and is currently available to a small group of US customers.
- Amazon is not currently charging for these ad placements, which will enable the company to test customer tolerance for advertising in text threads.
- The feature is designed to work seamlessly across Amazon's shopping app, website, and Alexa-enabled devices, allowing conversations to be carried between platforms.
- The definition of an impression and the reporting and measurement of ad effectiveness will be critical in determining whether this format drives efficiency for brands.
Amazon has launched a new feature allowing customers to place orders via text message, with Sponsored Product ads integrated into the conversation thread, Digiday reported. This development may significantly impact the company's advertising business. The texting option is currently available to a small group of US customers, but Amazon plans to expand it to millions more in the coming weeks.
The feature, called Alexa for Shopping, enables customers to link a phone number and interact with the agent as they would with a friend, according to the source. Customers can reorder products, build a grocery list, or find birthday presents, and the agent will search, compare options, and text back with suggestions. The agent can also add items to the cart and checkout when instructed.
The ad opportunity is available during the discovery stage of the text exchange, when the agent texts back a set of options, including a Sponsored Product, Digiday noted. This placement allows brands to reach customers in a personal and intimate channel, with limited space for products. Amazon has chosen not to include ads in purchases made by the agent, potentially to avoid disrupting the customer experience.
Amazon is not currently charging for these ad placements, which will enable the company to test customer tolerance for advertising in text threads, according to the source. With over 400 million customers having used Alexa for Shopping in the past 12 months, and an eightfold increase in agentic feature usage since January, Amazon has a substantial user base to test this new ad format.
The feature is designed to work seamlessly across Amazon's shopping app, website, and Alexa-enabled devices, allowing conversations to be carried between platforms, Digiday reported. Customers can send photos, set price alerts, or ask the agent to watch for new product launches, and the agent will keep a running tally of preferences to shape future recommendations.
Independent ad tech consultant Jonathan D'Sousa-Rauto noted that any new ad placement is an interesting test, and Amazon's approach is no exception, according to the source. The definition of an impression and the reporting and measurement of ad effectiveness will be critical in determining whether this format drives efficiency for brands.
Rajiv Mehta, VP of conversational shopping at Amazon, stated that the feature allows customers to access their personal shopping agent via text, making it easier to manage their shopping needs, Digiday reported. This development is the latest installment in Amazon's evolving ad business, which has seen several updates in recent months, including the introduction of Sponsored Products and Brands prompts, and the rebranding of its advertiser platform as Amazon Ads Agent.
Questions and answers
How does the new text ordering feature work?
Customers can link a phone number and interact with the Alexa for Shopping agent as they would with a friend, sending messages to reorder products, build a grocery list, or find birthday presents.
Where will Sponsored Product ads appear in the text conversation?
Sponsored Product ads will appear during the discovery stage of the text exchange, when the agent texts back a set of options, including a Sponsored Product.
Is Amazon charging for these ad placements?
No, Amazon is not currently charging for these ad placements, which will enable the company to test customer tolerance for advertising in text threads.
