Amazon started as online book store and has grown to be the worlds largest online retailer.
Amazon Advertising Growth and insights from Q1 2019
Ahead of Amazon’s Q1 earnings report due later today (25th of April), Merkle’s Q1 2019 Digital Marketing Report (DMR) has revealed how brands were advertising in the first quarter of the new year. Key findings from Merkle’s DMR show Amazon Advertising Growth continues to accelerate:
- Amazon Sponsored Products spend grew 19% Y/Y, while Sponsored Brands (formerly known as Headline Search Ads) grew 77%. Sponsored Products accounted for 85% of all Amazon ad spend in Q1 2019.
- Ad placements on product details pages accounted for 41% of all Sponsored Products clicks, while the top-of-search results accounted for just 33%.
- Brand keywords accounted for about a quarter of all Sponsored Brands and Sponsored Products clicks and about half of sales, with spend share roughly in line with click share.
If you’re still wondering whether to invest in Amazon Advertising it’s worth noting that while Amazon Sponsored Products and Sponsored Brands spend grew 19% and 77% Y/Y, respectively, sales grew by at least 100% on both formats.
It’s also worth noting that only a third of clicks on Amazon Sponsored Products came from search results pages. Single Product Detail pages accounted for 41% of traffic so with the relatively new ability to adjust bids based on placement the Single Product Detail Page is where to increase your spend.
Amazon Advertising spend was split in Q1 with 85% of spend on Amazon Sponsored Products, 13% of Amazon Sponsored Brands and the remainder on Amazon Product Display Ads. However it is worth noting that Click Through Rates for Amazon Sponsored Brands remains significantly higher than for Sponsored Products.
As well as the accelerating sales per click for Amazon Sponsored Products and the higher proportion of sales from the Single Product Detail page, it’s worth noting that Amazon have also expanded the placement positions on the Single Product Detail page giving more opportunities for ads to be displayed.
You can read more detail on Amazon Advertising Growth in Q1 2019 in Merkle’s Q1 2019 Digital Marketing Report.