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Amazon sells more ads – and charges more for them – to businesses looking to buy product listings in customer search results, reports CNBC.
“There are fewer organic search results on the page, which increasingly means the only way to get to the page is to buy your way there. ” Jason goldberg, director of business strategy for advertising company Publicis, told the news network.
Jupzas Kaziukenas, head of e-commerce research store Marketplace Pulse, reportedly told CNBC that Amazon has gone from two or three sponsored placements at the top of typical search results to as many as six. He reportedly noted that this comes after Amazon founder Jeff Bezos abandoned his anti-advertising stance for the company.
Search for “shampoo,” for example, and you’ll get six ads for different brands before any list of products not influenced by ad purchases.
Citing Amazon, CNBC reported that the number of listings is affected by factors such as the type of device a customer uses to purchase from Amazon.
Amazon reported an 87% increase in second-quarter year-over-year sales – to nearly $ 8 billion – in the revenue category that consists primarily of ad sales.
According to CNBC, in 2018, Amazon replaced Microsoft to become the third-largest recipient of online advertising revenue in the United States, behind Google and Facebook.
CNBC quoted an unidentified Amazon spokesperson as saying, “Like all retailers, we design our store to help customers easily find and discover the right brands and products, and sponsored ads are one. of the many ways we do it. In all cases, we work from the most useful customer experience and the relevance of the results obtained, however they are presented to the customer. “
Digital marketing agency Merkle, according to CNBC, found that about 73% of retailers’ advertising spend with Amazon in the second quarter was on product placements in search results.
A Canopy Management study of 300 retailers, cited by CNBC, found that in August, Amazon was charging retailers $ 1.27 per click, down from 86 cents a year earlier.
“It’s not uncommon now for brands to spend 50% or more of the price of their products on various fees to sell on Amazon,†Kaziukenas said, according to CNBC.
For small retailers, Kaziukenas reportedly said, the change means: “They go from competing with other small sellers to competing with massive, well-funded sellers.”
Read more: DC AG Racine Expands Scope of Amazon’s Antitrust Complaint
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NEW PYMNTS DATA: TODAY’S SELF-SERVICE PURCHASE JOURNEY – SEPTEMBER 2021
On: Eighty percent of consumers want to use non-traditional payment options like self-service, but only 35 percent were able to use them for their most recent purchases. Today’s Self-Service Shopping Journey, a PYMNTS and Toshiba Collaboration, analyzes more than 2,500 responses to find out how merchants can address availability and perception issues to meet demand for self-service kiosks.
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