Amazon's advertising costs are up again? It's too hard for the seller!
According to the fourth quarter 2019 report released by technology providers and advertising agencies, operators who market Amazon's advertising continue to invest more in paid media on Amazon's platform.
Sponsored Product ads are the most popular ad products in Amazon's history.But as advertising prices rise, so does Spending on Sponsored Products。 Merkle reported a 63 percent increase in Amazon's Sponsored Product advertising spending in the fourth quarter of 2019 among customers who spent at least a year on Amazon ads in North America. Among Tinuti's U.S. customers, Spending on Amazon ads rose 30 percent.
As both companies' customer base increases Amazon's Sponsored Product advertising spending at different rates, they see different overall click-through growth, but like Pacvue's customers, price increases are similar. The three companies reported a 12 to 16 per cent increase in CPC per click on Amazon's Sponsored Product ads.
The price of Amazon's Sponsored Product ads has been rising for some time. In the third quarter of 2019, Pacvue reported the price of the Amazon adUp 13%.And Mekle reports on the Amazon ad priceIt's up 11%.Tinuiti reports on the Amazon ad priceIt's up 10%.。 Meanwhile, however, the price of Amazon's Sponsored Brand ads has been falling.
Pacvue and Tinuiti both reported an 8 percent decline in CCPCs for Amazon Sponsored Brand ads in the fourth quarter of 2019. For Merckle customers, however, CCPCs for Amazon's Sponsored Brand ads have risen. Merkle noted that the cost-per-click (AP) for Amazon's Sponsored Brand ads returned to year-over-year growth in the fourth quarter, after a period of cost declines due to increased inventory.
Even with these declines, the CPC cost of Amazon's Sponsored Brand ads is still higher than the average cost of Amazon's Sponsored Product ads, according to Pacvue. Pacvue reported that in the fourth quarter of 2019, Amazon's Sponsored Product ads averaged $1.08, while Amazon's Sponsored Brand ads averaged $1.30.
Sponsored Product ads and Sponsored Brand ads together make up the majority of Amazon's advertising business. Emarketer estimates that these and other Amazon search ads, which primarily target keywords, will bring $9.97 billion in net revenue to Amazon's search advertising business in the U.S. this year, up from $7 billion in 2019.
(Seller's Home/Compilation: LEO)
Disclaimer: This article was first published on sellerhouse.com (MJZJ.COM) and compiled and edited by the seller's home author, and this article may not be revised in title and original text, and the source and original link are retained, otherwise we will reserve the right of rec pursuement.
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