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Amazon is testing a new program that pays media companies for sending it shoppers

1. Amazon pilots NCA, paying publishers for driving traffic. It may boost ad revenue. 2. Publishers earn money regardless of purchase conversion. This builds on Amazon Associates. 3. Pilot factors in cost-per-click variability. Editorial integrity risks are noted. 4. Program aims to expand ad inventory without cluttering search results. It may enhance digital media revenue.

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FAQ

Why Bullish?

The initiative mirrors past affiliate innovations, potentially deepening ad revenue streams for Amazon. Historically, expanding revenue channels like the Associates program has bolstered investor confidence.

How important is it?

While the program represents a new revenue stream and competitive edge, its full impact remains uncertain due to implementation complexities and potential editorial conflicts.

Why Long Term?

Though in pilot mode, a full rollout could sustainably bolster Amazon's advertising ecosystem over time, akin to how earlier programs built recurring revenue.

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