To quote the notice that they sent round today:
Context Links automatically identify and link relevant phrases within your page content to Amazon products, unlocking new ad inventory and saving you the time from having to manually create links. You can add the links to your pages in minutes, and we provide a wealth of options to customize how they are displayed.
Basically, the system works by identifying key words on a site which relate to certain products Amazon has on offer. These words are highlighted as links, and when you hover over them with your mouse, you get a little balloon popping up with a related product, which you can check out if you want.
This sounds like another useful idea, as long as it doesn't get too intrusive to site visitors. It could get annoying, I mean, let's face it, not everyone wants to buy stuff all the time!
I have got Context Links working here finally. As Blogspot is strict about XHTML, I used the really useful little tool at Blogcrowds to convert the Javascript, though I am not sure it wouldn't have worked anyway, since it takes a little while for Amazon to index your pages which might have been the reason they the links weren't showing straight away.
Check out Amazon's Affiliate Blog for more info.
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