According to foreign media reports,Based on the information released by technology providers and performance advertising agenciesFourth Quarter Report 2019displayAdvertising on AmazonbusinessContinue to invest more funds in paid media in the e-commerce market.
Sponsored Product advertising has always been Amazon's most popular advertising product, but as advertising prices rise, the cost of sponsoring product advertising continues to grow. Merkle reported that its North American customers have spent at least a year on Amazon, with sponsored product advertising spending increasing by 63% in the fourth quarter of 2019. In Tinuti's US customers, the expenditure in this format increased by 30%.
Although the customer base of these two companies is increasing sponsorship product spending at different rates, resulting in different overall click through growth, they arePacvue's customers are experiencing similar price increases. These three companies report that,The cost per click (CPC) of Sponsored Product advertising has increased by 12% to 16%.
Advertising benchmark for Amazon sponsored products in North America in the fourth quarter of 2019 (change compared to the same period last year)
AmazonThe price of Sponsored Product advertisements has been rising for some time. In the third quarter of 2019, Pacvue's stock price increased by 13%, while Merkle and Tinuti's stock prices increased by 11% and 10% respectively. At the same time, the prices of Sponsored Product advertisements have been declining due to Amazon increasing its inventory of sponsored brand advertisements in areas where conversion rates are unlikely to occur.
Sponsored Brand AdvertisingWill beAmazon America brings9.79 billion US dollarsAdvertising revenue
Pacvue and Tinuti both reported an 8% decrease in CPC for Amazon Sponsored Brand advertising in the fourth quarter of 2019. However, for Merkle's customers, the CPC of Amazon Sponsored Brand advertising has increased. Merkle pointed out that in the fourth quarter, the cost per click of Amazon Sponsored Brand advertising resumed year-on-year growth, after a period of cost decline due to increased inventory.
Amazon's North American Sponsored Brand benchmark, Q4 2019 (change compared to the same period last year)
according toAccording to Pacvue's data, even with these declines, the CPC cost of Sponsored Brand advertising is still higher than the average sponsored product advertising. Pacvue reported that in the fourth quarter of 2019, the average CPC for sponsored products was $1.08, while the average CPC for Sponsored Brand advertisements was $1.30.
according toEmarketofEstimated, sponsored products andSponsored Brand accounts for the majority of Amazon's advertising business. These ads, along with other search ads primarily targeting keywords, will generate $9.79 billion in Amazon's search advertising revenue in the United States this year, an increase from over $7 billion in 2019.