Amazon advertising costs continue to rise, but conversions are unsatisfactory, and the cost of sellers increases, and profit margins are further squeezed. Recently, many Amazon sellers shouted: "Advertising costs have risen several times, which is completely unbearable!"

When the pain points of drainage troubled sellers, Stone Technology, which has several top-selling products on Amazon, was able to successfully break through. Through efficient marketing methods, it further improved brand awareness and sales performance.

Hard to top!Amazon advertising costs soar

Recently, a number of Amazon sellers have reported that the recommended bids for advertisements of multiple categories of products on the platform have been raised. According to a seller, the category he is in has suddenly risen from more than 2 points to more than 6 points, and the advertising cost has risen sharply. The situation of many peers is roughly similar . Compared with the previous ones, the recommended bids for many products have directly tripled .

The higher and higher advertising bids stimulate the sensitive nerves of sellers. Most of them say that they are anxious when they see the advertising fees every day . A seller was helpless: "Is this robbing money? If it goes on like this, I am afraid that a group of people will be persuaded to be dismissed . "

The seller M, who operates the kitchen category, said that at the beginning, the selection of products locked in the kitchen products, but the involution became more and more serious. On its topic, a peer replied: " Seeing advertising fees, I wonder whether to change careers every day . "

Bernie, a foreign seller, started selling computer accessories on Amazon in 2014. According to him, the CPC cost of advertising at that time was about 14 cents, but it rose to $1.60 in February this year . In the past 8 years, this fee has increased more than 10 times.

"In recent years, Amazon's advertising costs have been rising . In this case, the platform has been enriched and the sellers have suffered. Especially since this year, the rate of increase has been obvious. The specific increase depends on the category corresponding to the product. The US station 3C, home, kitchen The competition in such categories is fierce, and the advertising costs are relatively high . ” According to industry insiders.

Globally, Amazon's CPC is 75 cents, and from 2021 to 2022, Amazon's U.S. site's CPC increased 22% year-over-year to 87 cents, the highest in the world, according to Sellics. It is related to the fierce competition in the US market. The CPC in Germany is relatively cheap at $0.47; the CPC cost in France is only $0.38.

Amazon 's CPC has been increasing. Looking at each category, the CPC of Sponsored Products in the sports, pet supplies and books categories has increased by more than 20% year-on-year, while the CPC in the health and personal care and baby products categories has decreased year-on-year. .

High advertising costs but no orders, sellers fall into the pain point of drainage

With the growth of CPC expenses , the revenue of Amazon's advertising business has also increased significantly in recent years, contributing a lot to its overall revenue. At present, Amazon's advertising business has become the most profitable business unit outside of AWS.

According to the advertising revenue data released by Amazon, Amazon's advertising revenue in 2021 is as high as 32.6 billion US dollars, a year-on-year increase of 55% , of which advertising revenue in the fourth quarter accounts for nearly one-third of the full-year advertising revenue. Over the past three years, Amazon's advertising services revenue has grown to $11 billion, $10.9 billion, and $16.9 billion, respectively.

Perhaps it is the advertising bids of third-party sellers that have pushed up Amazon's advertising revenue. This year's member day promotion and the fourth quarter holiday season promotion, sellers may invest more in advertising costs, and advertising costs may continue to rise at that time. However , with the increase of new sellers, the competition on the platform has intensified. At present, the high advertising fees invested by many sellers do not match the proportion of their orders.

When the cost of advertising rose sharply, some sellers used the bidding point that was commonly used before to run advertisements and found that it was almost impossible to obtain traffic, resulting in a shock to store orders and sales.

Some sellers have also increased their budgets. However, the advertising spend has increased by 2 times, the traffic has only increased by 0.5 times, and the conversion rate has been reduced by half. One operator said that trying to increase the advertising budget by more than 100 US dollars a day did not work for a few days.

Many sellers have fallen into difficulty in attracting traffic, and some of their peers have asked: "Advertising orders have become the main source of Amazon's orders? Does the platform rely on sellers' advertising fees to make money?"

At a time when traffic is becoming more and more expensive, sellers are facing huge cost pressures. They are eager to find more effective and accurate ways to attract traffic, use the money on the edge and improve the effect of advertising.

How can sellers accurately drain traffic and use the money on the edge?

In the team of precise drainage, some "dark horse sellers" stand out, among which Beijing Stone Technology is an "excellent student" , which has further improved its sales performance and brand awareness by virtue of efficient marketing.

Founded in 2014, Stone Technology is mainly engaged in the design, development, production and sales of intelligent hardware such as intelligent cleaning robots. There are several top-selling items on Amazon, and the total sales of its smart sweeping robots in 2021 will exceed 2.81 million units, a year-on-year increase of 18.25%.

The financial report shows that in 2021, Stone Technology’s operating income will reach 5.837 billion yuan, a year-on- year increase of 28.84%, and the total profit will reach 1.598 billion yuan, a year-on-year increase of 2.67%. The net profit attributable to owners of the parent company was 1.402 billion yuan, a year-on-year increase of 2.41%. In the past year, when many cross-border sellers increased their income without increasing their profits, or even suffered losses, the advantages of Stone Technology were prominent.

One of the links that promotes the growth of Stone Technology's performance is precise drainage and efficient marketing.

In terms of traffic drainage channels, the cooperation between Roborock Technology and Taboola has achieved amazing results. It has reached users on a large scale through Taboola video advertisements, obtaining 18.04 million impressions and 4.23 million complete views. Since 2020, CPM has dropped by 25%. More effective than other video platforms.

Founded in 2007, Taboola has 500 million high-quality daily active users around the world. It is the world's leading native advertising platform. It cooperates with 9,000+ high-quality media and content publishers and specializes in placing "content recommendation" links and content on thousands of websites. advertise.

In addition to the video advertisements used by Stone Technology , Taboola also has Connexity and independent website single-page e-commerce that can help sellers grow their performance. Since the outbreak of the epidemic in 2020 , e-commerce sellers have seized the opportunity to take advantage of the dissemination of native advertising, and the sales performance of sellers of epidemic prevention products such as masks has exploded, with a single-day peak consumption of more than 100k+; in the following two years , direct customer e-commerce verticals continued Fermentation, steady growth , platform KA customers have invested more than 10 million US dollars.

More specifically, Taboola's advertising formats include native image/text recommendation positions, homepage, video and high-impact native advertising positions, as well as news recommendation positions in cooperation with Android mobile phone manufacturers, supporting static pictures, dynamic short films, short videos, headlines. Description, CTA button, etc. At present , Taboola advertising has helped different e-commerce companies to acquire high-quality users and improve advertising effects.

Recently, MediaGo, a global AI integrated marketing platform under Baidu International , was awarded as the advertising agency of Taboola, and will work together to provide creative marketing solutions for overseas enterprises.

On the afternoon of May 26, Baidu International MediaGo and Taboola will jointly hold an event to reveal new overseas traffic. This event aims to help brands grow with Taboola 's personalized marketing. Highlights of the event include: unlocking new traffic on native advertising platforms; understanding new ideas for making advertising more accurate and monetizing faster; revealing new ways to play content pages suitable for cross-border e-commerce, etc.