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1、1Amazon Advertisng Report 2023|2Amazon Advertisng Report 2023|Table of ContentsThe Shifting Landscape of Amazon Advertising /3 The Future of Advertising:Amazon vs.Other Channels The Importance of Advertising on Amazon How Big is Amazons Advertising Business?Advertising Product Usage Among Brands and

2、 Sellers Amazon Advertising Spend /13 Spend by Marketplace Spend by Ad Product Spend by Ad Targeting Type Spend by Product PriceReturn on Ad Spend(RoAS)/19 Effective Advertising on Amazon:Measuring RoAS RoAS by Ad Products RoAS by Targeting Type RoAS by Product Price RoAS by Bidding StrategyCategory

3、 Leaderboard(U.S.)/24 Why Spend&RoAS Vary by Product Category Spend by Product Category RoAS by Product CategoryChallenges,Strategies&Predictions /28 Rising Competition,Rising Costs,Lower Budgets Shoppers Spread Beyond Amazon The Rising Influence(and Necessity)of Social MediaAbout the Report /32 Met

4、hodology Using the Data About Jungle Scout About Jungle Scout CobaltDigital Advertising Glossary /34 Definitions&Descriptions of Common Amazon Advertising TermsCh.1Ch.5Ch.3Ch.7Ch.2Ch.6Ch.43Amazon Advertisng Report 2023|The Shifting Landscape of Amazon AdvertisingChapter 1Amazons advertising revenues

5、 grew 20%from 2021 to 2022,a figure that keeps the influential platform firmly atop the ecommerce mountain.But this growth is well below the 58%rise from the previous year and 147%growth in ad revenue from 2019 to 2020.Some of this is likely due to the waning impact of the COVID-19 pandemic,which dr

6、ove up digital commerce across the board.But there are other factors at play,too.The last few years have begun to carve out a different ecommerce landscape for shoppers.As Amazon navigates the challenges of inflation,a U.S.recession,and increased competition,it is also working to expand its advertis

7、ing options and services that help brands and sellers cope with those same challenges.Amazon annual advertising services*revenue*Includes sales of advertising services to sellers,vendors,publishers,authors,and others,through programs such as sponsored ads,display,and video advertising.4Amazon Advert

8、isng Report 2023|In 2023,63%of Amazon brands and sellers are also selling on other platforms,up from 61%in 2022 and 58%in 2021.Social media channels are making a play at ecommerce,too.41%of SMB sellers and 62%of enterprise brands are now investing in social media advertising to market their products

9、.These emerging trends are changing how brands and sellers of different sizes are distributing their advertising budgets.Even as other channels become part of the marketing mix for advertisers,however,Amazons unique positioning and targeting capabilities mean it remains one of the most important eco

10、mmerce advertising channels.01.THE SHIFTING LANDSCAPE OF AMAZON ADVERTISINGThe Future of Advertising:Amazon vs.Other ChannelsWhere Amazon brands and sellers invest their ad dollarsSource:Jungle Scouts 2023 State of the Amazon Seller ReportSMB Enterprise5Amazon Advertisng Report 2023|01.THE SHIFTING

11、LANDSCAPE OF AMAZON ADVERTISINGAmazon remains an undeniable go-to for shoppers.A majority(56%)still begin their online shopping searches on the channel,and even when shoppers discover a product on social media,theyre still most likely to purchase it(or a similar product)on Amazon.In the first quarte

12、r of 2023,Amazon reported 9%year-over-year net sales growth.The Importance of Advertising on Amazon1.Visited the product/brands website to learn more2.Found the product on Amazon and purchased3.Found a similar product on Amazon and purchased4.Looked at social media comments about the product/brand5.

13、Visited the product/brands website and purchased6.Purchased directly from the social media appWhere do consumers begin their search when shopping online?Top consumer actions after finding a product on social media*Ranked by the number of Jungle Scout Consumer Trends Report survey respondents who rep

14、ort completing each action after finding a product on social media6Amazon Advertisng Report 2023|01.THE SHIFTING LANDSCAPE OF AMAZON ADVERTISINGAmazons advertising services provide unique benefits that set it apart from competitors.The ability to report direct sales attribution a metric that gives m

15、ore detailed insight than the overall impressions and clicks offered by platforms like Google or Facebook is only becoming more valuable to online marketers.This is especially true as economic concerns and building competition make strategic budget planning even more critical.Among the most signific

16、ant reasons the company continues to attract advertising dollars are:Audience of ready-to-buy shoppers:Amazon has always occupied a unique position at the end of the marketing funnel,enabling advertisers to reach customers at the point of purchase.In recent years,Amazon has introduced new advertisin

17、g and marketing products that work to give brands and sellers ways to connect or reconnect with shoppers throughout their entire journey.These include Amazon DSP,the Manage Your Customer Engagement Tool,and Tailored Audiences for email campaigns,among others.Right product,right person:Its not just a

18、bout timing,its about showing the right products to the right people.Amazons wealth of shopper data allows brands and marketers to expand their reach across channels(display,audio,and over-the-top video)with contextually appropriate ads.Amazons targeting options allow advertisers to build and reach

19、highly-specific,custom audiences based on behaviors beyond direct search queries,including product listing visits,previous purchases,Amazon Store engagement,and more.Measuring performance:Amazons attribution is a key differentiator between advertising on Amazon versus other search or social media ma

20、rketing platforms.Attribution tells advertisers which specific ads are driving sales.Its also a key piece of the formula to determine return on ad spend(RoAS),or how much revenue is produced from an advertising investment.Marketing FunnelAmazons unique offering:Shopper targeting and detailed sales a

21、ttribution Amazons 2022 Annual Report“Amazon can tailorsponsored products to be relevant to what customers are searching for given what we know about shopping behaviors and our very deep investments in machine learning algorithms.This leads to advertising thats more useful for customers;and as a res

22、ult,performs better for brands.”Revenue from Amazons advertising services business segment represented 7.3%of Amazons total net sales in 2022,up from 6.6%in 2021.INSIGHTSAmazon Senior Vice President and CFO Brian Olsavsky,speaking on the companys fourth-quarter 2022 earnings call“Sellers,vendors,and

23、 brands continued to look to Amazons advertising capabilities to reach customers in the always competitive holiday season,even as the macro environment required them to scrutinize their own marketing budgets.We saw good growth in advertising revenues in Q4,up 23%year over year.”7Amazon Advertisng Re

24、port 2022|While Amazons YoY advertising revenue growth was lower in 2022 than in 2021,the sheer scale of the platforms ad business means it remains a closer competitor to tech giants like Google and Facebook than the fastest-growing ecommerce competitors.Advertising services YoY Growth01.THE SHIFTIN

25、G LANDSCAPE OF AMAZON ADVERTISINGHow Big is Amazons Advertising Business?Quarterly advertising services revenue2022 Advertising revenue by company1Alphabet 2022 Form 10-K 2Meta 2022 Form 10-K 3Amazon 2022 Form 10-K 4Walmart FY2022 Earnings Report 5eBay 2022 Form 10-KSource:Amazon Q422 and Q123 earni

26、ngs reports*Includes sales of advertising services to sellers,vendors,publishers,authors,and others,through programs such as sponsored ads,display,and video advertising.8Amazon Advertisng Report 2023|Note:includes advertising that appears on desktop and laptop computers as well as mobile phones,tabl

27、ets,and other internet-connected devices,and includes all the various formats of advertising on those platforms;net ad revenues after companies pay traffic acquisition costs(TAC)to partner sites;Google includes YouTube advertising revenues;Facebook includes Instagram advertising revenues.*Data and p

28、rojections via eMarketer *Forecast01.THE SHIFTING LANDSCAPE OF AMAZON ADVERTISINGHistorical and projected U.S.digital ad revenue share by company*Google Facebook Amazon9Amazon Advertisng Report 2022|01.THE SHIFTING LANDSCAPE OF AMAZON ADVERTISINGAmazons persistent popularity with consumers,combined

29、with its expanding ad products and uniquely valuable targeting data,continues to attract brands and sellers even as competition has increased.Amazon continues to report double-digit quarter-over-quarter growth in revenues related to third-party seller services.Amazon selling models:1P vs 3P First-pa

30、rty seller(1P):Sells to Amazon as a vendor and uses Vendor Central.Third-party seller(3P):Sells on Amazons platform and uses Seller Central.Third-party seller growth on AmazonSource:Amazon Q422 and Q123 earnings reports*Includes commissions and any related fulfillment and shipping fees,and other thi

31、rd-party seller services.Quarterly revenue from third-party seller servicesAnnual revenue from third-party seller services*Amazon revenues from third-party seller services rose 20%between 2021 and 2022.Approximately 70%of brands and sellers on Amazon are 3P sellers.INSIGHTS Amazon Senior Vice Presid

32、ent and CFO Brian Olsavsky,speaking on the companys fourth-quarter 2022 earnings call“In Q4,we had our first-ever Prime Early Access Sale in October and the more traditional Thanksgiving to Cyber Monday holiday weekend.These global sales events outperformed our expectations as customers responded to

33、 millions of deals across our growing selection.Third-party sellers remain a key contributor to that expanding selection.In Q4,third-party sellers comprised a record 59%of overall unit sales.”10Amazon Advertisng Report 2023|Sponsored Products is the most popular Amazon PPC option among SMB sellers,w

34、hile Sponsored Brands see the most investment from large brands and enterprises.In 2022,SMB sellers reduced their advertising investment on ecommerce platforms by 6%,while increasing investment in social media ads by 15%.Enterprise brands,however,increased their investment in both ecommerce platform

35、 and social media advertising(by 6%and 18%,respectively).INSIGHTSA recent Jungle Scout study found that while Amazon pay-per-click(PPC)advertising remains the most popular marketing tactic among Amazon sellers of all types and sizes,brands and sellers are increasingly investing in other advertising

36、channels as well.Small and midsize businesses(SMBs):Amazon sellers who earn less than$2M in annual revenue,including solo entrepreneurs.Enterprise brands and businesses:Large brands selling$10M+on Amazon or$50M+across all ecommerce channels annually,and parent companies that own and operate multiple

37、 brands.01.THE SHIFTING LANDSCAPE OF AMAZON ADVERTISINGAdvertising Product Usage Among Brands and SellersTypes of sellers Amazon PPC ad usageTop channels where Amazon brands and sellers advertise their products11Amazon Advertisng Report 2023|Comparative usage between SMB sellers and enterprise brand

38、s diverges further among newer Amazon advertising types and marketing tools,some of which are only available to 1P sellers and brand-registered 3P sellers.In addition to paid ads,sellers also utilize Amazon marketing tools such as Amazon A+Content,available to 1P sellers and brand-registered 3P sell

39、ers,and an expanding suite of other promotional content options.*Survey respondents could select multiple responses;as such,percentages in the above sections do not total 100%.Other Amazon advertising and marketing tools01.THE SHIFTING LANDSCAPE OF AMAZON ADVERTISINGAd type usage by type*Marketing t

40、ool usage by type*For brands and sellers of all sizes,the use of Amazon Video Ads is steadily picking up since their introduction in early 2020.For SMB sellers,use of this ad type jumped from 14%in 2021 to 23%in 2022;for enterprise brands,use of Video Ads grew from 48%to 51%year-over-year.Among SMB

41、sellers,use of Amazons A+Content,Posts,Vine Program,and Editorial Recommendations increased across the board year-over-year.The use of Amazon Posts among enterprise brands fell year-over-year to 28%(from 32%in 2021),while use of A+Content,Amazon Vine,and Editorial Recommendations increased.INSIGHTSI

42、NSIGHTS12Amazon Advertisng Report 2022|01.THE SHIFTING LANDSCAPE OF AMAZON ADVERTISING Connor Folley,VP of Strategy,Jungle Scout Cobalt“There are many factors that make Amazon advertising and retail media in general increasingly complex.For large brands,the sheer scale of their Amazon catalog means

43、forecasting and budgeting for potentially tens of thousands of products.For smaller brands and sellers,staying competitive is getting more difficult and more expensive while budgets may be stalled or shrinking.Compound this across other channels like Walmart,Instacart,and social,and,yes,you have a h

44、uge opportunity but its one that requires exponentially more operational bandwidth to capitalize on.”As social medias influence on ecommerce grows,Amazon continues to expand its tools for brands and sellers,many of which mimic the social shopping experience.The most recent among these is Inspire,Ama

45、zons answer to the massively popular TikTok platform.At the same time,the rising number of brands,retailers,and sellers on Amazon is converging with macroeconomic challenges like inflation and a recession.This adds layers of competition and complexity for brands and sellers seeking to optimize their

46、 approach to advertising and determine where to invest their promotional budgets.According to Jungle Scouts 2023 State of the Amazon Seller Report:Managing PPC advertising is one of the most common challenges reported by Amazon brands and sellers.of Amazon brands and sellers are worried about the in

47、creasing cost of goodsare worried about increasing competition driving prices downsay increasing ad costs are a major concern for them46%39%38%INSIGHTS13Amazon Advertisng Report 2023|Amazon Advertising SpendChapter 2A deeper look into advertising spend on Amazon reveals key insights and trends that

48、help explain how brands,agencies,and sellers are using the platform to market their products.Based on Jungle Scout Cobalt data,this chapter breaks down advertising spend by marketplace,ad product,ad targeting type,and product price.14Amazon Advertisng Report 2023|Among the 18 marketplaces measured i

49、n Jungle Scout Cobalts ecommerce database,U.S.spending far outweighs that of any other country.02.AMAZON ADVERTISING SPENDSpend by MarketplaceMarketplace spending on Amazon advertising by%of total15Amazon Advertisng Report 2022|The majority of Amazon advertising spend is allocated to Sponsored Produ

50、cts,which allow brands to manually or automatically target keywords relevant to their audiences.With this option,advertisers only pay when a shopper clicks,allowing better control over budget.These ads span a wide variety of goals,from increasing visibility to showcasing top-performing items.For a d

51、etailed description of the ad products mentioned in this section,refer to the digital advertising glossary.02.AMAZON ADVERTISING SPENDSpend by Ad ProductTrending share of ad spend by Amazon ad product 2018-2022*Partial year 2018 data(March-December)*Sponsored Display ads were introduced in 2019Displ

52、ay ads have continued to gain popularity since their introduction in 2019,though spending remains far lower than legacy ad products.As competition for Amazon PPC placement grows,and as omnichannel research increasingly becomes part of the consumer shopping journey,Sponsored Display is a self-service

53、 way for advertisers to reach audiences when theyre not on Amazon.Ad spend for Sponsored Display grew from 3%to 5%in 2022,while spend for Sponsored Brands dropped to near pre-pandemic levels.Data from January-March 2023 show Sponsored Display ads with a 4%share of advertising dollars,Sponsored Brand

54、s with 16%,and Sponsored Products accounting for 80%of total Amazon ad spend in Q1 2023.INSIGHTSSponsored Products Sponsored Brands Sponsored Display*16Amazon Advertisng Report 2023|02.AMAZON ADVERTISING SPENDWithin automatic targeting,there are four different match types:Additionally,an advertiser

55、can improve the relevance of their ads by targeting single products or categories,or by targeting shoppers based on past behaviors:There are two targeting strategies for Sponsored Products:Manual targeting:Requires end users to handpick keywords to bid on and the products theyd like to advertise.Ama

56、zon will show ads only if the shoppers search query matches any of the keywords in the campaign.Automatic targeting:Requires advertisers to select the products they want to advertise and set a budget for their campaigns.This form of targeting requires an ASIN,a date range,and a CPC bid.Amazon will t

57、hen use the ASINs metadata to find relevant keyword inventory.Close match products are shown to shoppers who use search terms closely related to an advertisers products.Loose match terms show an advertisers products when shoppers use search terms loosely related to those products.Substitutes are tar

58、geted to shoppers considering products that are substitutes for an advertisers items and are often the same type of product sold by a different brand(e.g.,Reebok tennis shoes instead of Nike).Complements are targeted to shoppers who view the detail pages of products that complement an advertisers pr

59、oducts(e.g.,a baseball glove to go with a baseball).Category targeting(Sponsored Products)allows advertisers to target entire categories within Amazons verticals,like Pets,Clothing,Shoes,Home,Jewelry&Watches or Garden&Tools.ASIN targeting(Sponsored Products)allows advertisers to target specific prod

60、ucts(note:an ASIN is a 10-character standard product identification number assigned by Amazon that always begins with“B0”).Audience targeting(Sponsored Display)allows advertisers to target custom audiences,such as people who viewed product detail pages matching criteria they choose,or people who hav

61、e certain interests.Audiences are available in the Sponsored Display ad type,and not all audiences are available to all advertisers.Views remarketing(Sponsored Display)allows advertising to retarget shoppers who have previously viewed their product listings.Spend by Ad Targeting TypeAdvertisers spen

62、t the most on ASIN ad targeting in 2022,following a trend that began in 2021.Loose match and substitutes targeting saw the largest declines in spend year-over-year.17Amazon Advertisng Report 2023|Early 2023 data shows an uptick in spend for Views targeting.This follows a notable increase in RoAS for

63、 Views targeting in 2022.Click here to learn more about RoAS by targeting type.INSIGHTS02.AMAZON ADVERTISING SPENDTargeting/match type by%of total ad spend*2023 figures represent partial year data(January-March)18Amazon Advertisng Report 2023|An analysis of Amazon advertising spend for more than 25,

64、000 products in Jungle Scout Cobalts ecommerce database shows the largest share of 2022 ad dollars(25%)went towards products priced over$50.The next largest shares went toward products between$21 and$30(24%)and between$31 and$40(22%).These trends may be reflective of widespread price increases cause

65、d by inflation in 2022,causing some products to bump up in price range.According to Jungle Scouts Q4 2022 Consumer Trends Report,93%of consumers reported seeing higher prices in their day-to-day shopping in 2022.*2023 figures represent partial year data(January-March)02.AMAZON ADVERTISING SPENDSpend

66、 by Product PriceTo learn more about how to make the most of your product listing,check out Jungle Scouts resources on effectively setting up and launching Amazon ad campaigns.Tailored solutions are available for SMB sellers and enterprise brands and agencies.Product price range by%of total ad spend

67、Early 2023 data shows a likely continued uptick in advertising spending attributable to products priced in the$21 to$30 and$30 to$40 ranges,respectively,while the share of ad spending on products$50 and up is currently above last years overall share.INSIGHTS19Amazon Advertisng Report 2023|Return on

68、Ad Spend(RoAS)Chapter 3Amazons ability to measure the precise number of sales generated by advertising dollars is unique among broader search and social media advertising platforms.This capability provides advertisers with greater confidence in their investments,as they can measure the impact and re

69、turns of their advertising efforts.This chapter provides an overview of those returns referred to as return on ad spend(RoAS)based on Jungle Scout Cobalt data and broken down by targeting type,product,and bidding strategy.20Amazon Advertisng Report 2023|Why measure RoAS?This metric allows brands and

70、 sellers to evaluate which advertising strategies are performing best and where to make adjustments.Advertisers often use different RoAS targets for different types of products.Generally,having a high RoAS is better for profitability,while a lower RoAS may help increase visibility.RoAS for each Amaz

71、on PPC Ad Product dropped year-over-year.Since 2020,RoAS for Sponsored Brands and Sponsored Products has dropped 54%and 27%,respectively.While RoAS for Sponsored Display dropped 16%from 2021 to 2022,it is still 30%higher than in 2020.Average 14-day RoAS by Amazon ad product03.RETURN ON AD SPEND(ROAS

72、)RoAS by Ad ProductEffective Advertising on Amazon:Measuring RoASRoAs =ACoS =RoAS =TACoS =Total attributed salesTotal spend for a single campaignTotal spend for all ad campaigns1Total ad spendTotal ad attributed sales for that campaignTotal salesACoSWhat is RoAS?This metric measures the effectivenes

73、s of digital ad campaigns by showing how many dollars of revenue resulted from a single dollar spent on an ad campaign.RoAS is viewable in the campaign manager in the Amazon advertising console.It is calculated by dividing total attributed sales by the total cost of the ad campaign(s).How does RoAS

74、compare to ACoS and TACoS?RoAS represents the inverse of Advertising Cost of Sales,or ACoS,which is calculated by dividing the total cost of an ad campaign by its total attributed sales.While ACoS focuses on a single advertising campaign,Total Advertising Cost of Sales(TACoS)takes into account the c

75、osts associated with all of a brands paid campaigns.x 10021Amazon Advertisng Report 2023|03.RETURN ON AD SPEND(ROAS)Returns trended upward for more ad targeting types in 2022 than in 2021,though a majority were still down.Complements,which was the only targeting type to see RoAS increase in 2021,dec

76、lined by 24%in 2022.Close match ad targeting also declined,though it continues to show the largest RoAS overall.RoAS for Views,ASIN,and Category targeting went from a YoY decline in 2021 to YoY increases in 2022.Of these,ASIN targeting had the highest RoAS overall($3.42),while Views targeting had th

77、e biggest YoY increase(22%).These results reflect each ad targeting types ability to convert a sale,likely due to factors such as customer intent and ad relevance.While close and loose match targeting experienced YoY RoAS declines,they are still among the top 3 ad targeting types for actual RoAS.The

78、se targeting types present products that are most similar to what the consumer is already searching for,making them more relevant and,therefore,more likely to result in a conversion.Views targeting can also be used to deliver highly relevant ads,as it allows advertisers to build and retarget custom

79、audiences of shoppers who have already viewed their product pages.This can mean less competition(and therefore lower bid costs)as well as higher shopper intent.Average 14-day RoAS by ad targeting typeRoAS by Ad Targeting Type22Amazon Advertisng Report 2023|03.RETURN ON AD SPEND(ROAS)RoAs for product

80、s priced$20 or less increased year-over-year,while RoAS for all other product price ranges fell.This could be in part due to an increase in price consciousness on the part of consumers,leading to higher conversion rates for lower-priced items.As in 2021,actual RoAS is highest for products priced$50

81、and higher;and although products in the$41-50 price range delivered the biggest year-over-year RoAS decline,actual RoAS for that range is second highest overall.RoAS by Product PriceAverage 14-day RoAS by Amazon product price range23Amazon Advertisng Report 2023|03.RETURN ON AD SPEND(ROAS)Amazon off

82、ers various bidding strategies to allow more options for controlling ad spend and improving campaign performance.Advertisers who would like to manage their own bids can choose the“fixed bids”option.In contrast,advertisers focused on maximizing bid efficiency can choose from automated bidding strateg

83、ies that adjust bids in real time based on the likelihood of conversion.Common bidding strategies for Amazon include:Dynamic bids(down only)have the highest associated ad spend and attributed sales.However,when it comes to RoAS,a manual/fixed bidding strategy performed the best.Dynamic bids(up and d

84、own)are when Amazon raises bids(by a maximum of 100%)in real-time when an ad may be more likely to convert a sale and lower bids when they are less likely to convert a sale.Fixed bids are when Amazon uses the exact bid and any manual adjustments an advertiser sets and wont change based on the likeli

85、hood of a sale.In 2022 a dynamic up-and-down bidding strategy produced the highest RoAS a notable change from 2021,where a manual/fixed bidding strategy performed best.Similar to our views of RoAS by ad product,year-over-year returns by bidding strategy were also lower across the board in 2022 compa

86、red to 2021.RoAS by Bidding StrategyAverage 14-day RoAS by bidding strategy24Amazon Advertisng Report 2023|Category Leaderboard(U.S.)Chapter 4Ecommerce brands and sellers are often playing on widely different fields with their budgets and strategies,depending on the type of product theyre looking to

87、 advertise.Over the past year,many of these variations were likely exacerbated by macroeconomic issues.25Amazon Advertisng Report 2023|04.CATEGORY LEADERBOARD(U.S.)Total advertising spending and returns on those dollars can vary greatly among product categories,largely driven by competition or conge

88、stion in any particular market.Examples of this can be seen with categories like Health&Household,Home&Kitchen,and Beauty&Personal Care all of which ranked among the top 5 most competitive categories for advertisers and fell in the bottom 5 for average RoAS in 2022.Congestion vs.Opportunity:Why Spen

89、d&RoAS Vary by Product Category1.Health&Household2.Home&Kitchen3.Beauty&Personal Care4.Office Products5.Clothing,Shoes&Jewelry6.Grocery&Gourmet Food7.Kitchen&Dining8.Pet Supplies9.Sports&Outdoors10.BooksTop 10 most competitive product categories*Ranked by 2022 total number of distinct advertising ca

90、mpaigns.26Amazon Advertisng Report 2023|Product category share of advertising spend04.CATEGORY LEADERBOARD(U.S.)The Health&Household category remains the leader in terms of share of total advertising spend on Amazon in 2022.Ad spend in this category was nearly 60%higher than the Home&Kitchen categor

91、y,with the second-highest spend.Categories with the most significant year-over-year increases in share of overall ad spend were Clothing,Shoes&Jewelry(6%,up from 4.2%in 2021),and Electronics(3%,up from 1.2%).Categories with the lowest ad spend included Cell Phones&Accessories,Computers&Accessories,H

92、andmade Products,and Appliances.Amazon Advertising Spend by Product Category27Amazon Advertisng Report 2022|A look at average RoAS also reveals wide variations among product categories.Ads for products in the Musical Instruments category yielded the highest average returns in 2022($9.40),while categ

93、ories with the lowest included Pet Supplies($2.18),Health&Household($2.21),and Grocery&Gourmet Food($2.64).Product categories ranked by full-year 2022 average RoAS04.CATEGORY LEADERBOARD(U.S.)RoAS by Product Category Connor Folley,VP of Strategy,Jungle Scout Cobalt“RoAS is a product of many factors.

94、Health&Household,for example,yields some of the lowest returns,while categories with the highest RoAS include Appliances and Musical Instruments.This correlates with selling prices:Health&Household products have low prices,but are sold by brands with huge budgets.By contrast,RoAS for Appliances and

95、Musical Instruments is buoyed by much higher prices.”Certain categories may be more impacted by inflation and recession than others.Electronics had the highest average RoAS in 2021,but saw average RoAS decline nearly$3.00 in 2022.According to Jungle Scout Consumer Trends data,31%of consumers reporte

96、d spending less on Electronics in 2022(more than reported cutting back spending in any other category).INSIGHTS28Amazon Advertisng Report 2023|Challenges&PredictionsChapter 5As more platforms and channels make inroads into ecommerce,brands and sellers are rethinking the way they distribute their adv

97、ertising budgets across a growing number of influential ecommerce channels.To remain ahead of the growing competition,Amazon continues to invest in their unique advertising technology and expand their range of advertising options.These advancements will help brands and sellers reach customers at dif

98、ferent stages of the shopper journey and attract more traffic to their product listings and store pages with off-Amazon traffic.29Amazon Advertisng Report 2023|Economic challenges continue to impact ecommerce and commerce as a whole.As a result,buying trends have become harder to predict,and shopper

99、s are more price sensitive,while brands and sellers find themselves coping with higher supply costs.The other side of the coin is that Amazons unique attribution capabilities are only more valuable to brands and sellers when competition is at a peak,and budgets may be lower or spread across more cha

100、nnels.Amazon advertising provides an added layer of strategic confidence when it comes to targeting and driving conversions.Amazon will continue to invest in strengthening its targeting and attribution capabilities,solidifying its biggest unique value proposition to brands and sellers.As these effec

101、ts linger,balancing advertising investments and optimizing RoAS will continue to be a top focus area for advertisers vying for highly competitive placements with thinner resources and added pressure to justify spend and results.Brands and sellers have become increasingly concerned that this competit

102、ion could ultimately price them out of being visible in some categories a concern that is only deepened by the current macroeconomic climate.05.CHALLENGES&PREDICTIONSRising Competition,Rising Costs,Lower BudgetsContinued Investment in Targeting and AttributionChallengePrediction*Data from Jungle Sco

103、uts Q4 2022 Consumer Trends Report *Data from Jungle Scouts 2023 State of the Amazon Seller Report Amazon 2022 Annual Report“Were continuing to make large investments in machine learning to keep honing our advertising selection algorithms.For the past couple of years,weve invested in building compre

104、hensive,flexible,and durable planning and measurement solutions,giving marketers greater insight into advertising effectiveness.We also see future opportunity to thoughtfully integrate advertising into our video,live sports,audio,and grocery products.Well continue to work hard to help brands uniquel

105、y engage with the right audience,and grow this part of our business.”Rising inflation affected the spending of 84%of consumers in 2022*Inflation and rising business costs on everything from raw materials to advertising are the most commonly shared concerns among Amazon brands and sellers in 2023*Mor

106、e than a quarter(28%)of brands and sellers are worried about Amazon changing search results to favor paid placements over organic.*INSIGHTS30Amazon Advertisng Report 2023|05.CHALLENGES&PREDICTIONSAccording to an early 2023 Jungle Scout survey,38%of Amazon brands and sellers are using Sponsored Displ

107、ay advertising this year,up from 30%in 2022.More brands and sellers also reported increased use of DSP advertising in 2023:11%,up from just under 5%in 2021.Brands and sellers must naturally follow as shoppers branch out to new channels for product research and discovery.As a result,investment in Spo

108、nsored Display and DSP ads is likely to continue to increase.More advertisers will invest in Display advertisingLess shoppers are starting their shopping searches on Amazon even as they continue to purchase from Amazon more than other channels.That means more complex customer journeys to map,and mor

109、e channels to invest in.Some shoppers,for example,may not be browsing Amazon,instead discovering a product on other channels and then searching for it directly by name on Amazon.This raises new questions around ad targeting for brands and sellers,like whether they should target new keywords,whether

110、to invest more in display and social advertising,and where to pull back on existing ad investments to make room for new strategies.Shoppers spread beyond AmazonChallengePrediction Connor Folley,VP of Strategy,Jungle Scout Cobalt“As digital commerce continues to expand and change,advertisers are look

111、ing for ways to spread their budgets between Amazon PPC,DSP,search engines,social media,and all the other traffic channels out there.No brand wants to be entirely beholden to one singular channel,so it will come down to determining which have the most demonstrable ROI,and then cascading investments

112、down from there.”INSIGHTS31Amazon Advertisng Report 2023|05.CHALLENGES&PREDICTIONSAs social medias influence continues to grow,more shoppers especially younger generations turn to social channels instead of traditional or in-platform search to find products.In response,Amazon has already introduced

113、features like Amazon Posts,Amazon Live,and Amazon Inspire to help brands deliver a social shopping experience within Amazons platform.Amazon will likely continue expansion of these features and its off-Amazon advertising network options that deliver the benefits of social media to both shoppers and

114、sellers.More social shopping on AmazonPrediction Eva Hart,Amazon growth expert and agency owner,Jungle Scout Cobalt“In the last few years,social media usage has skyrocketed.This is creating great opportunities for brands and sellers to promote their products on channels like Instagram,TikTok,and Pin

115、terest,and is also changing the way that consumers are shopping online.As this evolution happens,Amazon will almost certainly continue to introduce new ad products and other tools to help those selling on their platform replicate the social shopping experience that more and more consumers are drawn

116、to.”Social media is becoming a powerful force of its own in the world of ecommerce,with more consumers turning to channels like Instagram and TikTok to research,share,and buy products.Outside of ecommerce platforms,social media is the most popular place for Amazon sellers to invest their advertising

117、 dollars.This will continue to create both challenges and opportunities for Amazon brands and sellers.It will add complexity to balancing,allocating,and optimizing their digital advertising budgets.Targeting on social media is not as precise as on Amazon,which can lead to higher spending.Even long-s

118、tanding channels like Facebook lack the attribution features to connect ads to specific metrics the way Amazon does.At the same time,social media advertising has the potential to broadly expand a brand or sellers reach,increase value perception among shoppers,and drive sales.The Rising Influence(and

119、 Necessity)of Social MediaChallengeIn 2022,15%more Amazon brands and sellers invested in social media advertising than in 2021.INSIGHTS32Amazon Advertisng Report 2023|About the ReportChapter 6Findings in this report are based on Jungle Scouts ecommerce data collected over a five-year timeframe spann

120、ing January 2018 through March 2023,and certain other data reflective of the first three months of 2023,across 20 global marketplaces.It includes 5,000+distinct brands and 950,000+unique Amazon advertising campaigns across all key ad media and primarily represents large ecommerce enterprises.It feat

121、ures data and insights from Cobalt,the leading Amazon market intelligence,advertising,and reporting software.We encourage you to explore Jungle Scouts 2023 Amazon Advertising Report and to share,reference,and publish the findings with attribution to “Jungle Scout”and a link to this page.For more inf

122、ormation,specific data requests,media assets,or to reach the reports authors,please contact us at .Jungle Scout is the leading all-in-one platform for ecommerce sellers,supporting more than$50 billion in annual Amazon revenue.Founded in 2015 as the first Amazon product research tool,Jungle Scout tod

123、ay features a full suite of best-in-class business management solutions and powerful market intelligence resources to help entrepreneurs and brands manage their ecommerce businesses.Jungle Scout is headquartered in Austin,Texas,and supports 10 global Amazon marketplaces.MethodologyUsing the dataAbou

124、t Jungle Scout33Amazon Advertisng Report 2023|Jungle Scout Cobalt provides brands and retailers with comprehensive Amazon data,built-in advertising automation,and data visualization templates that streamline reporting.The interface makes it easy to find straightforward answers to the most pressing e

125、commerce questions while seamlessly turning insights on category trends,keyword and share of voice data,competitor strategies,and more into actions that directly impact sales and optimize digital shelf performance.About Jungle Scout CobaltSupports$50 billion in Amazon revenueServes more than 600,000

126、 customers worldwideRaised$110 million in growth equity in 2021Monitors over 1.8 billion data points dailyRecognized as the most trusted platform for selling on AmazonLearn more about how Jungle Scout Cobalt can remove the guesswork from measuring,managing,and multiplying your Amazon sales.Speak wit

127、h an expert today!“Cobalt provides me full visibility into how our business performs on Amazon against our competition,providing the knowledge needed to execute our strategy and meet company KPIs.”“Cobalt data has been fantastic for when we need to provide answers to internal stakeholders about comp

128、etitors,entering a new market,or when our executive team is going through an acquisition.”“Cobalt helped us dial in our ACoS goals within a matter of months,and helped us improve on our RoAS goal.Both have been huge for our ROI.”“Cobalt is a wonderful reporting platform for our organization.It helps

129、 with not only the day to day tracking but also past data analysis and insights generation.”Laura Taylor,National Account Coordinator,Wahl Elliot Frey,National Amazon Account Manager,Rawlings Sporting Goods Cameron Messick,Direct of Ecommerce,MasterPieces Ishitta Mittal,Ecommerce Manager,HPRequest a

130、 demo34Amazon Advertisng Report 2023|Digital Advertising GlossaryWhat follows is a brief glossary containing explanations for some of the most common digital advertising terms.1.Sponsored Products are keyword-or product-targeted ads that promote individual listings and appear in shopping results and

131、 on product detail pages on Amazon.Sponsored Product ads help brands get their products in front of consumers who are actively deciding which product(s)to purchase.By bidding competitively,brands will have a better chance of having their product(s)listed near the top/front of the page.Since many con

132、sumers do not click past the first page of search results,its vital to appear on the first page as often as possible.2.Sponsored Brands are ads that are displayed in the search result pages as headline banner ads always above the result listing.Sponsored Brands ads help reinforce a brand,grow sales,

133、target competitive brands,defend branded keywords,and encourage shoppers to add more items to their cart.They can also bring new customers into a brands shopping funnel by stepping slightly outside your particular category and showing consumers a brands messaging while they are in the shopping and p

134、urchasing mindset.35Amazon Advertisng Report 2023|07.DIGITAL ADVERTISING GLOSSARY3.Sponsored Display allows brands to reach customers via auto-generated ad placements.Sponsored display ads use relevant audiences,customizable creatives,and actionable insights to deliver a message to the right custome

135、rs.Sponsored Display ads encourage consumers to look at relevant adjacent products directed at consumers already looking at a product within a brand or a competitors brand portfolio.Unlike the other ad options,coupons can also be promoted through Sponsored Display Ads,and can function as one last pu

136、sh to close the sale.4.Amazon Attribution is an advertising and analytics measurement solution that gives marketers insight into how their non-Amazon marketing channels across search,social,video,display,and email impact Amazon shopping activity and sales performance.36Amazon Advertisng Report 2023|

137、07.DIGITAL ADVERTISING GLOSSARY5.Amazon DSP or demand-side platform,enables advertisers to programmatically buy display,video,and audio ads both on and off Amazon.6.Amazon Live is a live streaming service that allows sellers to“promote discovery”of their products by hosting their own live streams fo

138、r customers on Amazon.37Amazon Advertisng Report 2023|07.DIGITAL ADVERTISING GLOSSARY7.Audio Ads are ads on Amazon Musics Free service that run across desktop,mobile,tablet,connected TVs,and smart speakers(e.g.,Echo devices).8.Posts help drive brand and product discovery in a shoppable feed on Amazo

139、n.9.Store or Storefronts are where vendors and sellers enrolled in Amazon Brand Registry can exclusively showcase a curated collection of products and elevate their brand.38Amazon Advertisng Report 2023|07.DIGITAL ADVERTISING GLOSSARY10.Video Ads or Amazon over-the-top(OTT)video ads(ads served via the internet rather than cable/satellite)allow a brand to showcase itself alongside premium,brand-safe streaming content,including the latest movies and TV shows.Read more about the different types of advertising available on Amazon here.