Amazon points out that sponsored products are 'too much' displayed in search results
When you search for products on Amazon, you may see advertising products tagged as 'sponsor' alongside regular products in your search results. Foreign media CNBC points out that the number of these advertising products displayed has doubled compared to before, which makes Amazon generate a lot of revenue.
Amazon piles ads into search results as big brands pay for placement
If you search for 'toothbrush' on Amazon, the results will be displayed as shown below, but you can see that the top four products displayed are tagged as 'sponsor'. This is the fifth item from the top that is displayed as a non-advertising item.
CNBC pointed out that, in the past, the number of advertising products displayed was at most 2 to 3 per page of search results, but recently, up to 6 advertising products are displayed. Research firm
Amazon does not disclose the specific sales of the advertising business, but it is predicted that the advertising business will account for the majority of the 'other' items of sales. According to Amazon's second quarter 2021 (April-June) earnings report , sales in other divisions increased 83% year-on-year to $ 7,914 million, the first quarter of 2021 (January-3). It is showing a large growth rate with (March). Research firm Merkle points out that Amazon accounted for 73% of total advertising spend in the second quarter of 2021.
Also, according to Canopy Management , which supports business on Amazon, the cost per click of Amazon's advertising products as of 2021 was $ 1.27 (about 140 yen), an increase of $ 0.41 (about 45 yen) from the previous year. It has been. CNBC points out that the rise in advertising spend is due to intensifying competition among third-party sellers selling products on Amazon. We are paying attention to the fact that a company called 'Amazon aggregator', which is pursuing the acquisition of sellers, has raised a large amount of money and is spending a huge budget on advertising expenses.
'It's not uncommon for sellers to spend more than 50% of their product price on Amazon's advertising,' said Juozas Kaziukenas of Marketplace Pulse. 'Small sellers will now compete with larger, well-funded sellers. It will be. '
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