PMG Digital Made for Humans

Amazon Ad Business Booming, Despite Declining Prices

1 MINUTE READ | May 21, 2020

Amazon Ad Business Booming, Despite Declining Prices

Author's headshot

David Gong

With PMG since 2012, David Gong has led marketing initiatives at PMG, drawing on his past experience at agencies, publishers, and industry partners.

Chances are, you are one of the millions of people who have ordered from Amazon during the COVID-19 crisis. Enough people have done so, helping the company see a 44% spike in year-over-year ad sales during the last quarter. However, according to PMG’s Price Glomski, while the company’s ad business is booming, there are significant challenges that Amazon must overcome to legitimately consider itself on par with Facebook and Google’s ad platforms.

In thoughts shared with Business Insider, Glomski mentioned that one of Amazon’s challenges is around logistics, which is surprising given how renowned their fulfillment process is. However, the company had to switch to handling only essential items during the crisis, which impacted its appeal to advertisers looking to promote non-essential items.

Furthermore, Glomski said that “cost-per-click prices for Amazon search ads increased 30%” for some brands in March when shopping sales shifted to essential goods, but in April, advertisers saw prices decline 21% on average across all formats.” The turbulent pricing reflects major brands pulling out of the platform, but could also represent an opportunity for smaller advertisers.

Stay in touch

Bringing news to you

Subscribe to our newsletter

By clicking and subscribing, you agree to our Terms of Service and Privacy Policy

For the full read, you will need a subscription to Business Insider Prime.


Related Content

thumbnail image

Campaigns & Client WorkSocial MediaProgrammatic AdvertisingCreative DesignStreaming & VideoStrategyDigital MarketingCompany News

PMG Partners with Old Navy to Create a Fully Inclusive Shopping Experience with BODEQUALITY

4 MINUTES READ | August 20, 2021

thumbnail image

Consumer TrendsSEO & Paid SearchAI & MarketingData & TechnologyPlatforms & MediaDigital Marketing

Google Doubles Down on Automation, Consumer Privacy at Google Marketing Live

5 MINUTES READ | June 4, 2021

thumbnail image

Social eCommerce is The Darling of Cyber Weekend

4 MINUTES READ | December 2, 2019

thumbnail image

How to Win With Google’s Shopping Showcase Ads

2 MINUTES READ | September 20, 2019

ALL POSTS