CPC doubled, bidding increased 3 times, but still couldn't grab ad space

The rising cost of advertising on Amazon has been one of the hot topics this year. According to Amazon sellers, the bidding price of Amazon ads has been rising since June this year , mainly due to two aspects: on the one hand, it is difficult to get an ad position with the same bid, and on the other hand, the recommended bid price of Amazon is gradually increasing.

It is understood that a seller who usually does not bid high has seen his product advertising bid more than doubled compared to before. Some sellers also reported that the product advertising bid for a new product launched this year (about half a year ago) has increased by 3 times since its launch , but they still cannot get an advertising position.

The main reasons for this phenomenon are as follows:

1. There are more and more new sellers, and the demand for advertising space is insufficient

2. New product advertising bids are getting higher and higher, driving up the advertising bids for the entire category

3. The product performance is not good, so the user has to keep raising the bid to grab the advertising space.

For sellers, the number of new sellers and the location of advertising space are two factors that cannot be controlled. However, sellers can also improve the cost-effectiveness of their advertising spending through other channels:

On the one hand, you can make full use of some of the new advertising features launched on the Amazon platform this year, such as: the free post advertising display space provided, the launched smart advertising bidding model (rule-based bidding), etc.; on the other hand, you can consider off-site traffic, but you need to follow the platform policies to avoid your store being blocked; in the end, it still depends on the product itself. Sellers need to optimize their products as much as possible and improve product conversion rates. If the product performs well, they can get better advertising positions with a lower bid.

Since the cost of advertising will directly affect the seller's profit, sellers need to understand the advertising expenditure of related categories when selecting products to avoid the situation where "the advertising cost is greater than the value of the product itself." If funds are limited, it is recommended that sellers choose relatively blue ocean categories or avoid "existing hot-selling products."

Internet e-commerce

Amazon

CPC