Amazon has clearly been an important part of helping Americans access the products they want and need during the Coronavirus. Demand has been so great that it’s rapidly expanding its workforce and adjusting FBA policies over time to ensure essential products are available and ready to ship to consumers.
While advertiser performance shifted in several key ways as a result, one trend that was front and center in Q1 was the explosive growth of Sponsored Brands. This and other key insights will be included in our upcoming Amazon Ads Benchmark Report, which will be released Tuesday, April 28.
Sponsored Brands Grow on Strength of Clicks and Sales Growth
Looking at anonymized Amazon ads data across an extensive collection of long-standing, same-store advertisers, we found that Amazon US Sponsored Brands spend grew 47% year over year. This was driven by a 46% increase in clicks and just a 1% increase in cost per click.
Perhaps more impressive is the corresponding sales growth, as advertisers attributed 57% more sales to the ad format compared to last Q1. This marks the second straight quarter of improvements in the return on ad spend of these units year over year.
Growth remained strong even as events surrounding COVID-19 unfolded.
Sponsored Brands Spend Up 37% Final Week of Q1
Looking at how spend growth tracked to end the quarter, Sponsored Products spend growth slowed to 6% for the final week, but Sponsored Brands spend was still up 37%.
Given the strength of growth throughout the entirety of the quarter, we found that Sponsored Brands spend relative to Sponsored Products rose and topped 20% on the last day of the quarter.
These are just a few of the key insights we’ve dug into and included in our upcoming Amazon Ads Benchmark Report, available for download Tuesday, April 28.