Amazon(AMZN) Business Insider·2025-02-25 19:35Core Insights - Amazon is testing a new payment model for publishers, called Native Commerce Advertising (NCA), which compensates them for driving traffic to its platform, regardless of whether purchases are made [1][12] - The NCA program aims to provide an additional revenue stream for publishers, complementing the existing Amazon Associates program, which pays commissions based on sales generated from product recommendations [4][11] - The program is currently in a pilot phase with participation from notable publishers like CNN and Vox Media, and Amazon plans to expand it further this year [3][5] Publisher Participation and Revenue - Publishers involved in the NCA pilot have reported a decent increase in revenue, although the implementation has been described as complicated [6][7] - The cost per click for the NCA program varies significantly, ranging from 20 to 60 cents, making it difficult for publishers to predict long-term profitability [7][10] - The New York Times reported $95 million in "other revenue" in Q4, highlighting the importance of affiliate revenue for publishers amid tough competition for advertising dollars [6] Editorial Integrity Concerns - The NCA program's structure may challenge publishers' editorial integrity, as there is an incentive to recommend products with higher cost per click, regardless of their quality [8][12] - Reputable publishers typically maintain a separation between revenue generation and editorial content to safeguard their credibility [9] - The variability in cost per click within the same product category could tempt some publishers to prioritize profit over quality recommendations [10] Industry Context - The digital media sector is facing significant challenges, with many publishers struggling as tech giants dominate digital advertising [11][13] - Google's crackdown on affiliate businesses has further complicated the landscape, leading to declines in traffic for some publishers' product recommendation pages [13][14]