Sellers, please take a look! Amazon’s latest advertising benchmark report is out

Recently, independent performance marketing company Tinuiti released the " Amazon Advertising Benchmark Report for the Second Quarter of 2022 ". The report collects and analyzes trends and indicators of Amazon advertising, providing a reference for sellers to formulate advertising strategies.

Data shows that the cost per click of Amazon product promotion and brand promotion has dropped significantly.

In the second quarter of this year, Amazon's CPC growth began to slow down. As Amazon shifted its advertising prime time from June to July, product promotion CPC increased by only 8% in the second quarter, the lowest growth rate since the first quarter of 2021. Clicks increased by only 6% in the first quarter and only 5% in the second quarter.

Meanwhile, spending on Amazon’s sponsored brand ads, which include sponsored brand videos, also declined, from 8% in the first quarter to 2% in the second quarter.

On the other hand, Sponsored Display spending outpaced Sponsored Brands and Sponsored Products, with spending up 59% in the second quarter compared to the same period last year . In the second quarter, Sponsored Display clicks grew 17%, while CPC grew 36% - the slowest growth in the past five quarters.

Among all products, pet products had the fastest CPC growth, up 25% year-on-year, followed by consumer electronics and literary products . In the second quarter of 2022, baby products had the highest CPC decline of all categories .

As Amazon's Prime Day shifted from June to July, advertiser spending growth also began to slow. DSP spending increased 11% year-over-year in the second quarter , down from 13% in the first quarter . Impressions fell 3 % and CPMs increased 14 %.

Amazon determined that 42% of all purchases from its DSPs in the first 11 days of July ( before Prime Day ) were made by new customers , meaning they had not purchased from the advertiser in the previous 12 months .

Notably, CPC for Walmart Sponsored Products dropped by more than 50% .

In the first week of June, Walmart switched its ad auction to a second-price auction , which resulted in a 51% drop in CPC in June , compared to a 7% drop in CPC in May and a 34% increase in CPC in April .

In the case of Walmart, desktop search ads have a higher conversion rate than Walmart Sponsored Products and Search Brand Amplifier ads. Data shows that only 12% of ad clicks are made on desktops, but 19% of the sales of the advertised products purchased through desktops.

For sellers, advertising is very important. Effective advertising can increase product exposure and sales. To increase the conversion rate of advertising, sellers can combine the latest advertising data and arrange advertising in a targeted manner .

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