Source
Amazon’s response to the FTC’s lawsuit regarding Sponsored Ads
Amazon is defending its advertising auction practices against FTC allegations of deception, arguing that its relevancy-focused model benefits both shoppers and advertisers.
Why it matters
The outcome determines if Amazon's ad pricing unfairly costs advertisers money and whether those costs lead to higher prices for consumers.
The details
Amazon employs 'soft reserve prices' to reflect placement market value and 'hard reserves' to cover costs. The company asserts that the FTC's claims rely on a small number of outdated training materials rather than evidence of consumer price increases.
What's next
Amazon intends to present its defense and evidence in court.
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In this article
Countries
Organizations
Key connections
Amazon owns Sponsored Products
Sponsored Products search ads
Amazon owns Subscribe & Save
our Subscribe & Save reorder program
Amazon owns Ad Console Campaign Builder
manage directly in the Ad Console Campaign Builder
Amazon owns Amazon Marketing Stream
One such tool, Amazon Marketing Stream
we started to invent with machine learning and AI to benefit both shoppers and advertisers
Amazon uses generalized second price auction
we have priced clicks using a form of generalized “second-price” auction
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