I’ve said it before, and I’ll say it again: There’s a lot going on this week. Hence some daily posts. Today’s topic of choice? More on Amazon’s Advertising System.
So some of you may remember my first post on this topic a few months ago. I’d taken the plunge, using my tax return to pay for Amazon Advertising Services to see exactly how it would shake out. I had to use the tax return for it, because Amazon is paid up front, but any earnings you make are, as expected, royalties. So while you may spend $50 to make $50, you will still have several months to go before that $50 rolls back into your bank account.
Anyway, I’m not going to spend time reiterating exactly how AMS functions, since I gave it a long-form explanation last time. The basic gist of it is that you set up advertising keywords that describe your product (for example, one of Colony‘s keywords is “Expanse” because of its similar genre to The Expanse) and then a bid for that advertising spot. Your bid wins while someone is looking at that product? That individual sees your product, and if they click on it, whether or not they purchase it, you pay the bid.
Anyway, after a month of using it, I’d come to some tentative conclusions, which at the time were that many people who found it balanced out pretty much neutral were right. I was earning back pretty much exactly what I put in, plus or minus a few bucks here and there. Which I found odd, as even if my numbers jumped around quite a bit, they still somehow wound up around 100% in and out.
I’m still not sure why that is. But I can report that with lots of careful fine tuning, several months in, the venture is a little less neutral.