Amazon's Prime Day in 2022 is finally set, and the annual membership day is a good time for sellers to frantically grab advertising space to improve rankings and sales. Recently, many sellers lamented that the advertising fee is getting more and more expensive, and the advertising fee during the membership day is not high?
For Amazon's advertising business, the " 2022 Amazon Advertising Report" jointly customized by Jungle Scout × WorldFirst ( WorldFirst ) global voyage plan is newly released! The entire report is 41 pages long and full of dry goods. Shopkeeper Wan has compiled the essence of the report and shared it with all sellers, hoping to inspire you to advertise on Membership Day.
Wanlihui ( WorldFirst ) " Global Voyage Plan " cooperates with the official platform to build a green entry channel for global store opening, helping cross-border sellers to enter nearly 20 global popular cross-border e-commerce platforms such as Amazon, AliExpress, and Lazada for free. One-stop service for payment collection , rapid settlement of global platforms .
Next, let’s learn about the dry goods related to Amazon advertising in 2022 with shopkeeper Wan !
Advertising business trends
After six straight quarters of double-digit quarterly growth in ad sales, Amazon began reporting standalone revenue related to its ad serving business unit for the first time in February 2022 . In 2021 , the segment's revenue was $ 31.2 billion, up from $ 19.8 billion in 2020 and $ 12.6 billion in 2019 . And according to relevant forecasts, this data will continue to be in an upward trend.
After the epidemic, China took the lead in recovering, and more Chinese sellers chose Amazon to go overseas. According to Wanlihui data: In 2020 , the number of sellers who submitted Amazon's store opening through Wanlihui 's " Global Voyage Plan " increased by 300% compared with the previous year . From 2019 to 2021 , the number of sellers who use Wanlihui for cross-border payment will also show a continuous upward trend …
The increase in the number of sellers and the increased competition have also affected sellers’ advertising spending on Amazon to a certain extent. According to the WorldFirst seller survey data, in 2021 , procurement, logistics and advertising spending will account for almost 90% of Amazon sellers’ operating expenses.
Ad spend percentage
What is the percentage of Amazon's ad spend across major markets? Of the 18 markets measured by the JS E-Commerce Database , the U.S. has far more share of Amazon ad spend than any other country.
These advertising costs have been spent, and what kind of advertising is the most attractive to consumers? In this set of reports by JS , the data after surveying 1,000 American consumers is also given .
Consumers' click preferences are also positively correlated with Amazon's advertising spending data! Most of Amazon's ad spend goes to Sponsored Product Ads. Sponsored brand ads can now appear above, alongside, or within search results, increasing the odds of sellers earning higher RoAS . Below is the share of ad spend trends by Amazon Advertising product from 2018 to 2021 .
In 2021 , ASIN ad targeting is the most expensive for advertisers, and among all targeting types, the click cost is the lowest, but it is also easy to spend more. Below is the percentage of total ad spend by target / match type for 20 years, 21 years, and now 22 years up to date.
Advertising costs rise
Shopkeeper Wan always hears sellers say how much the advertising cost of his category has risen. Of course, all this is not the seller's illusion, it is proved by data ~
Let’s talk about the ten categories with the most intense competition at present according to JS data!
Health and Home
Home and Kitchen
Apparel, Shoes and Jewelry
Kitchen and Dining
Beauty and Personal Care
Tools and Home Improvement
Sports and Outdoors
Sellers of products in these categories may clearly feel that advertising expenditures are higher than returns. For example , in 2021 , the health and home category will have more than twice as much advertising spending as the second-ranked home kitchen category, while the lowest advertising spending will include mobile phones and accessories, books and other categories.
In addition to category, ad spend is also affected by product price range.
According to an analysis of Amazon’s ad spend on more than 25,000 products in the JS e-commerce database, the largest share ( 46% ) of ad spend in 2021 will go to products priced between $ 11 and $ 33 . Within this range, spending is split evenly between products priced between $ 11 and $ 20 ( 23% ) and products priced between $ 21 and $ 30 ( 23% ), with the second largest share going to products $ 50 and above!
According to data from early 2022 , ad spend on products in the $ 21 to $30 and $ 30 to $ 40 price ranges has risen significantly, while the overall share of ad spend on products of $ 50 and above has declined. Below is the percentage of total ad spend that differentiated products.
" Wan shopkeeper warmly reminds that sellers can take seats according to the pricing range of their products, and optimizing Listing and advertising is the key. "
After the epidemic, Amazon has developed a lot, such as strengthening brand advertising, the promotion and application scope of display advertising, but in fact, what sellers are most concerned about may be the return on advertising expenditure ( RoAS ) related data!
RoAS by Advertised Product
RoAS by target type
RoAS by Product Price
RoAS by bidding strategy
The above are some of the report data shared with sellers and friends. If you want to know more data, you can scan the QR code below to download the full report. Sellers and friends can look at these research data trends, combined with their own advertising situation and effects, as well as the specific situation of the category, to see what kind of advertising adjustments to make for the upcoming membership day. Finally, Shopkeeper Wan wishes all sellers to make great orders every day!
Not addicted yet? Enter the link below to download the full report, as well as more cross-border e-commerce research reports for free.
WorldFirst , a sub-brand of Ant Group, was established in London, England in 2004. It has 18 years of industry experience, and its business map covers more than 70 countries and regions around the world. It supports more than 120 e-commerce platforms and gateways. The United States, the United Kingdom, the Netherlands, Singapore, Japan, South Korea and Australia have set up offices in 19 cities in 8 countries to provide more localized professional services for nearly 1 million cross-border merchants around the world. The cumulative transaction amount has exceeded 150 billion US dollars. One of the oldest cross-border payment service providers in China.
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