Marketers that advertise on Amazon are continuing to pour more money into paid media on the ecommerce marketplace, according to Q4 2019 reporting from technology providers and performance advertising agencies.
Spending on Sponsored Product ads, which are historically Amazon’s most popular ad product, is continuing to go up, as are prices. Merkle reported that among its clients in North America that had been spending on Amazon for at least a year, Q4 2019 spending on Sponsored Product ads was up 63%. Among US-based clients of Tinuiti, spending on the format was up 30%.
Though the client bases of the two firms are increasing Sponsored Product spending at different rates, and thus seeing different increases in overall click volume, they’re experiencing similar levels of price increases, along with the clients of Pacvue. The three companies reported 12% to 16% increases in the cost-per-click (CPC) of Sponsored Product ads.