According to a report by Merkle, Amazon’s key driver for direct sellers was its cost-per-click format.
Despite having only 3% of impression, sponsored ads on top-of-search results page saw a 45% increase in sales during the second quarter of 2019. Advertisers also saw a 102% increase in sales because of the sponsored products format.
According to the report, the product details pages had 82% of Sponsored products impressions and generated 40% of the clicks in the Q2. Sponsored Products on Amazon accounted for 86% of non-display spend in Q2 and generated most of its traffic from the product details pages.
This article says that despite Google and Facebook having a 60% combined share of the U.S digital ad market, Amazon’s ad formats are outperforming Googles shopping ads. Amazon ability to reach consumers when they are ready to purchase with its vast data has given it an edge.
[4 minute read]