Amazon Ads Inflation
Industry reports about Amazon ads show that CPCs are rising quickly, as much as 50% year over year. These price increases negatively impact Amazon advertisers’ most watched metric, advertising cost of sales (ACoS).
In this report, learn about the factors contributing to these rising ad costs, countermeasures practitioners may take, and find a prescriptive, four-step technology-led plan to help you stay profitable with your Amazon Ad programs from Skai’s commerce experts.
Why are Amazon CPCs skyrocketing?
Amazon Ads is experiencing the same growing pains around this point in its evolution as we saw with Google’s and Facebook’s ad businesses. Early adopters paid pennies on the dollar for clicks in the first years, but competition increased as more marketers flocked to these channels.
This price inflation signals that we’re entering the second era of Amazon Ads. The game has changed. The tactics that may have worked a year ago may not work anymore.
“With an ecosystem as dynamic and broad as Amazon’s—sellers, non-endemics, global brands, aggregators, and accelerators—there is no singular driver that explains price inflation. Perhaps more appropriately, it’s a syndrome: billions of competitive venture dollars flowing into the ecosystem; large brands and digitally native direct-to-consumer brands shifting more into retail media’s gold-standard customer acquisition machine; and long-tail sellers with supply chain challenges are passing costs to consumers. All of these audiences and efforts are still looking to maintain a linear correlation to marketing efficiency (ACoS).”
-Nich Weinheimer, General Manager of Strategy & Commerce at Skai
Read this complimentary report today to learn more about the rising costs of Amazon Ads, including:
- What are the key factors contributing to this inflation
- How practitioners are adapting to offset these rising costs
- Learn how technology can help you stay profitable