Amazon's fourth quarter advertising report is out

Perpetua, an e-commerce advertising optimization platform, recently released its fourth quarter report for 2021, collecting and analyzing Amazon advertising trends and indicators, providing a reference for sellers to formulate advertising strategies .

Since November and December are the peak shopping seasons, coupled with shopping festivals such as Black Friday and Cyber ​​Monday, the fourth quarter is the most competitive quarter of the year for sellers . Perpetua 's report shows that Amazon's sponsored display ad CPC in this quarter increased by 20% compared with the third quarter , which is the fastest growing ad type.

Although Amazon's advertising costs were higher in the fourth quarter, the click-through rate and return on ad spend decreased , such as a 12% decrease in the click-through rate of sponsored display ads . However, it is worth noting that the click-through conversion rate of ads increased by 13% compared with the third quarter .

“Advertising proved to be a critical component this holiday season as consumers increased the frequency with which they clicked on ads while decreasing the number of products they considered. This resulted in relatively stable ROAS for advertisers despite CPCs rising by more than 30%, ” said Adam Epstein, President of Perpetua.

“Also of note, in Q4, we saw more advertisers shift their marketing budgets toward brand advertising to reach more new customers. We expect this to continue into 2022, with Amazon continuing to capture more revenue from advertisers through DSP and OTT . ”

Perpetua said Amazon sponsored brand ads are becoming more and more effective in driving sales, with sponsored brand sales increasing 33% in the fourth quarter of 2021 compared to the fourth quarter of 2020 , even outperforming sponsored product ads.

As a result, advertisers have shifted their budgets toward brand promotion, with brand promotion ad spending increasing 39% in the fourth quarter . New brand sales have also increased, up 159% from the third quarter .

As more advertisers tend to use brand promotion videos to attract shoppers to buy their products, CPC and CPA declined in the fourth quarter compared with the third quarter .

Rising CPCs have been a theme for Amazon Advertising over the past year . The flattening of CPCs this quarter is a bullish sign .

In addition, according to Perpetua ’s report data, the CVR and CTR of the beauty category are the highest among all categories : the average CVR is 43%, and the average CTR is 0.72%.

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