The wind has changed! 41% of Amazon sellers place ads outside the site

Recently, e-commerce data statistics agency Jungle Scout released the 2023 Amazon Advertising Report, which analyzed Amazon's advertising business with a market value of US$37.7 billion, second only to Google and Meta.

The report shows that more and more Amazon sellers have begun to pay attention to traffic resources outside the Amazon platform, and have diversified their advertising portfolios on channels such as social media and paid search, while also paying more and more attention to emerging models such as video advertising.

In addition, the report also pointed out that 55% of Amazon sellers and brands have adopted new marketing strategies amid changing consumer preferences .

Data shows that Amazon's advertising sales growth slowed by about 20% between 2021 and 2022, which is obviously not a good look compared to the year-on-year growth of 58% in 2021 and 147% in 2020.

Additionally, Amazon sellers and brands’ investments in paid search and social media advertising increased by 26% and 15%, respectively, while investments on Amazon and other e-commerce platforms decreased by 6%.

Now, Amazon sellers are turning to social media more and more. According to statistics, 41% of Amazon sellers are currently using social media to market their products and reach new audiences.

In addition to traditional advertising, Amazon live streaming, video advertising, and demand-side platform video advertising spending increased by 150%, 77%, and 60%, respectively.

“Amid a volatile economy and shifting consumer preferences, it’s critical for sellers and brands to diversify their advertising strategies,” said Connor Foley, vice president of strategy at Jungle Scout.

“Social commerce, including TikTok, is becoming increasingly popular, and we are closely watching new channels such as Amazon Live and Amazon’s version of social shopping, Inspire.”

It is understood that the data in this report comes from more than 5,000 different sellers and brands, covering multiple sites including North America and Europe.

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