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Amazon’s Advertising Rates Have Rocketed During Pandemic

Amazon is certainly one of the big winners from the ongoing pandemic, with advertising rates leaping more than 50 per cent last month, from a year earlier.

According to a new report from Marketplace Pulse, advertising on Amazon now averages US$1.20 per click, which is up 30 per cent from $0.93 in January, and up from a low of 70 per cent in May 2020.

The average CPC throughout 2020 was 85c, with the obvious peaks occurring during Prime Day in October, Black Friday and Cyber Monday in November, and the December weeks leading up to Christmas.

These advertising trends have changed “nearly identically” across all Amazon markets, according to Marketplace Pulse, with the same trends visibly in Japan, Europe, Australia, and other markets.

“Since most of the ad spend on Amazon is for sponsored product results in search, that has caused CPC to rise as more brands advertise on Amazon,” the report explains. “Nevertheless, ad prices have increased across all Amazon ad types. Established brands are bringing their advertising budgets to Amazon.

“As a result, they can afford to compete for ad space despite rising prices, only to increase them further.”

Facebook and Google, the other two leading ad platforms, enjoyed similar trends in growth.

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