Sponsored Listings

What are sponsored listings?

Sponsored listings are an advertising solution that promote a vendor's products or services in prime placements on product listing pages. They appear as products or services with a label “promoted” or “ad” next to the listing.

Here are some examples of sponsored listings:

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Who uses sponsored listings?

Companies that use a website with organic listings. A few examples of these sites are:

  • eCommerce Marketplaces – online retail experience selling multiple products from multiple brands; e.g. Amazon, Walmart, Best Buy, Home Depot, Etsy
  • Job Search Sites - job postings listing; e.g. Indeed, glassdoor
  • Travel Bookings Site - website to book flights, lodging, and other travel activities; e.g. Expedia, Tripadvisor
  • Apartment Sites - apartments and housing options listing; e.g. Apartments.com
  • Food Delivery Apps - mobile apps with listings of restaurants or groceries for food delivery ; e.g. Uber Eats, Doordash, Instacart, Wee
  • And more

Why use Sponsored Listings?

Sponsored listings allow customers to have a more positive user experience.

  1. They are relevant to the customer’s shopping interest. They appeal to their purchase intent and help them discover new products or find products they were already looking for.
  2. They appear in a non-intrusive manner. By appearing similar to other organic listings – save for a little “sponsored” tag – the customer’s viewing experience is not disrupted.

Because sponsored listings appeal to a customer’s interests, sponsored listing ads lead to high ROAS because customers who see the ad are more likely to click and purchase the product or service.

Sponsored listings also bypass the need to use third-party cookies to collect personal information from your customer to display relevant ads. They rely on first-party data (what the customer searched for or what page the customer is on) to personalize ads. This builds trust for your customers and prepares the marketplace to survive the cookie apocalypse.

Marketplaces, vendors, and customers all benefit from sponsored listings. Marketplaces generate more revenue from ad placements and sales, vendors receive high ROAS (return on ad spend), and customers find and buy what they are looking for.