Amazon recently reported that Advertising is a $31b dollar business. Every year since they rolled out advertising for their Marketplace they have only increased their investments and make concerted efforts to get Amazon Sellers to adopt this as a part of their marketing.
You should be aware that these are only estimates. I’ll explain our estimates and our source of data and let you determine yourself how reliable this is. Even if we’re 25% off, in the hands of the right person, this is incredibly valuable information.
Top Search terms from Amazon’s brand analytics and checked with Helium 10 to get monthly search estimates.
Estimate Cost Per Click from Amazon’s Advertising API.
Click through rate from hundreds of advertising campaigns from our own accounts.
SmartScout data ties all Amazon products back to the brand.
We then are combining all the data points SmartScout is tracking to present this data. Note this is only for ads on the front page of search terms. It does not include Sponsored Display, Product Targeting and Amazon DSP advertising.
What’s the most obvious thing to point out is all the placements Amazon buys from itself. Many of the brands in the top 100 are also Amazon owned. Like Solimo, Mama Bear, Simple Joys and hundreds of others.
Sources say that they do not pay for these placements. This large use of advertising at no cost can raise concerns on the fairness of the marketplace. They are generating millions of impressions of their products while competitors can't do the same. If you want to learn more read here.
There are 1,300 brands that are spending over $1m a year. There are 14,000 that are spending close to $100k a year.
Among the top spenders, well known brands seem to be doing quite a bit. Huggies, HP, Duracell, Gatorade. There’s also a healthy mix of Amazon native brands. Some brands are not advertising in all easily available spots. Sponsored Brands and Sponsored Video do not have the same level of investment.
