Online advertising costs fell, and Amazon SP advertising sales increased by 12% year-on-year

According to the " 2021 Q4 Digital Marketing " report by digital marketing agency Merkle , online advertising costs for US e-commerce or website platforms are on a downward trend, while Amazon platform advertising has brought sellers a higher rate of return. Data shows that in the fourth quarter of 2021, Amazon SP advertising sales increased by 12% year-on-year .

Online advertising costs fall

The report shows that the cost per click (CPC) increased by 13% and the number of clicks decreased by 7% in the fourth quarter of 2021 compared with the fourth quarter of 2020. The decrease in clicks led to a year-on-year increase in advertising expenditures of 6%. Compared with the second and third quarters, the cost of online advertising decreased in the fourth quarter of 2021. (This data includes year-on-year growth in paid search advertising expenditures, clicks, and cost per click on the overall online platform in the United States)

Amazon platform advertising has a higher return rate

According to Merkle , Amazon's product advertising sales increased 12% year-on-year, clicks decreased 11% year-on-year, and CPC decreased 2% in the fourth quarter compared with the previous quarter , resulting in a 35 % year - on - year decrease in product advertising spending .

In the second and third quarters, Amazon's brand advertising CPC increased by nearly 75% year-on-year, but in the fourth quarter , brand advertising CPC decreased by 4% year-on-year , and clicks also decreased by 33% year-on-year, which led to a 35% reduction in sellers' brand advertising spending . As a result, sales from brand advertising also decreased by 20 % year-on-year.

Data shows that Amazon SP ads have the highest return on clicks . The sales per click of Amazon brand ads increased by 3 percentage points compared with the third quarter to 89%. The sales per click of display ads also increased by 9% to 59%.

At the same time, of all search ad impressions on the Amazon platform in the fourth quarter of 2021 , SP ads generated 75% of impressions , followed by brand ads, which accounted for 17% of impressions . Compared with the third quarter , both product ads and display ads gained exposure share, but the exposure share of brand ads fell by 11 points. Compared with the same period last year , brand advertising clicks , spending and sales have all declined to varying degrees .

Amazon

advertise

CPC