Findings include a correlation between ad campaign efficacy and higher product pricing; Amazon brands dominate Sponsored Product campaigns
DataHawk, a business management software company and e-commerce acceleration platform, is announcing the release of its 2021 Advertising Benchmark Report that examines advertising-related performance metrics exclusively from Amazon’s U.S. Marketplace.
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With the growing popularity of Amazon ads, brands are increasingly concerned with the performance of their ads in comparison to their competitors.”— Raphaël Menesclou, CMO of DataHawk
The Benchmark report is supported by comprehensive insights from 297 anonymized active DataHawk user accounts throughout 2021 that had an average weekly AD Spend between $630 to $8,579. It includes key performance indicators related to four types of Sponsored Ads: Sponsored Products, Sponsored Brands, Sponsored Brand Video and Sponsored Display. In relation to advertising, the report measures average, median, top and lower quartile metrics, segmented by price range and ad spend volume.
Among the four ad types, in 2021, Amazon brands relied substantially on Sponsored Product campaigns to advertise their products. The data showed an astonishing 81% of Amazon brands’ advertising budgets were allocated exclusively to Sponsored Products, with the smallest share distributed to Sponsored Display ads.
The findings from the report will help Amazon merchants measure campaign efficacy, assess weekly advertising metrics such as RoAS, ACoS, conversion rates, CPC, CTR and the performance of Sponsored Ads during significant online shopping events such as Prime Day, Cyber Five and December holidays.
Prominent patterns are explored in further detail to determine potentially opportune moments for 2022. Key insights gleaned from the report include:
* Amazon ad campaign efficacy correlates to higher product pricing.
* Brands with relatively higher-priced products tend to have lower ACoS, leaving room for higher margins.
* Amazon brands rely heavily on Sponsored Product campaigns over other ad types, making it the most popular ad 52 weeks out of the year.
* Sponsored Display ads, the least popular ad campaign type, appeared to be the most expensive ad type in 2021 and among all quartiles.
* Sponsored Display ads could be less popular given their inconspicuous placement on the platform.
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“With the growing popularity of Amazon ads, brands are increasingly concerned with the performance of their ads in comparison to their competitors. Therefore, it’s paramount that brands understand the ways in which each ad type reaches prospective customers,” said Raphaël Menesclou, CMO of DataHawk.
Advertising is one of the many areas that DataHawk supports its global customer base. Supporting e-commerce businesses, DataHawk’s analytics and optimization software suite extracts data that reveals insights on Search Engine Optimization, Product Analytics, Market Intelligence, Advertising and Finance.