- Amazon.com Inc’s (NASDAQ:AMZN) cost per click for search advertising was $1.27 in August, up 47.7% year-on-year, CNBC reports.
- Amazon is also concealing the companies’ listings in search results which are not paying the toll. Sellers are paying more overall to Amazon for transaction fees and fulfillment services.
- Brands are reportedly spending 50% or more of their product price on various fees to be selling on Amazon, Marketplace Pulse’s Juozas Kaziukenas told CNBC.
- The growth of Amazon aggregators, venture-backed companies raising big money from outside investors to acquire independent sellers has led to Amazon’s ad price rice surge. Additionally, some smaller sellers’ doubts against deep-pocketed aggregators are contributing to Amazon’s gains.
- Amazon’s “other” sales were the fastest-growing part of its overall business in Q2, with revenue soaring 87% Y/Y to more than $7.9 billion.
- Amazon, which previously promoted two or three sponsored products at the top of search results, now shows six sponsored products.
- Amazon eclipsed Microsoft Corp’s (NASDAQ: MSFT) ad revenue in 2018, trailing behind Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) and Facebook Inc (NASDAQ: FB).
- Amazon spokesperson told CNBC that it has no dedicated ad slots within search results and added that ads improved the visibility of brands.
- Sponsored product ads accounted for 73% of retailers’ ad spend on Amazon in Q2.
- Amazon began replacing product recommendations in listings with product ads in 2020. The e-commerce giant has also added new ad formats like video ads and sponsored brands posts.
- Price Action: AMZN shares traded lower by 1.98% at $3,394 in the premarket session on the last check Monday.
Why Levi Strauss Stock Is Ripping Higher After Hours
Levi Strauss & Co (NYSE: LEVI) shares are trading higher in Wednesday's after-hours session after the apparel company turned in fourth-quarter results that topped analyst expectations and
