Spend growth for Amazon Advertising Sponsored Products increased 28% YoY while Amazon DSP ad spend grew for the fifth straight quarter
NEW YORK, NY, August 5, 2020 — Tinuiti, the largest independent performance marketing agency, released their Q2 Amazon Benchmark Report that displays encouraging growth numbers regarding its clients’ ad spend and sales within Amazon Sponsored Products and Sponsored Brands, as well as demand-side platform (Amazon DSP) products and businesses.
This is the first report that fully encompasses the reality of a pandemic-conscious society as trends crystallize and actionable insights surrounding the ‘rebound’ arise. Tinuiti’s research team uncovered that spend growth for Amazon Advertising Sponsored Products in the US accelerated to 28% year over year, following 24% growth in Q1. Sales grew even faster than spend at 37% and clicks soared by 49%. Cost per click (CPC) declined 14% in the first full quarter of the last two years to show YoY declines in pricing, with some advertisers leaving the auction due to issues related to COVID-19. Sponsored Brands growth also soared for the quarter, with spend up 60% year over year and sales attributed to the format growing 79%.
“Amazon Advertising remains a fast-growing opportunity for vendors and sellers to help accelerate product sales and brands. They should be looking to take advantage of the full suite of available formats in order to maximize their footprint in the second half of 2020,” said Andy Taylor, director of research, Tinuiti. “Particularly in the lead up to Q4, marketers should be planning out ad strategy now.”
Amazon DSP has also experienced consistent growth as ad spend increased 28% quarter over quarter, a significant acceleration from the 4% observed in Q1 and the fifth straight quarter of spend growth for the Amazon DSP. Additionally, CPM declined 1% following a 26% decline in Q1.
“The median Amazon DSP display advertiser spent 54% of total Amazon DSP investment towards inventory featured on Amazon owned-and-operated properties in Q2, with that spend driving 67% of purchases,” said Jeff Coleman, group vice president of marketplaces at Tinuiti. “Amazon-owned inventory outperforms non-Amazon inventory in terms of ‘detail page’ view rate and purchase rate for many advertisers, as these units are often featured directly on Amazon immediately prior to purchase. Third-party inventory can be valuable to brands looking to stay top-of-mind with consumers even when they’re off Amazon.”
Every quarter, Tinuiti will continue to analyze its advertiser performance through an intensive reporting series. Similar to this report, Q2 ad-spending benchmarks for Facebook and Google will be released in the coming weeks.
Notes to Editors
Methodology: The Tinuiti Amazon Ads Benchmark Report is based on anonymized performance data from Amazon programs under Tinuiti management, with annual Amazon ad spend under management totaling over $400 million. Samples are restricted to those programs that have remained active and maintained a consistent strategy over the time periods studied. Unless otherwise noted, all figures are based on same-client growth. The trends and figures included are not meant to represent the official performance of Amazon advertisingor the experiences of every Amazon advertiser.
Tinuiti is the largest independent performance marketing agency. Tinuiti unites channel expertise with cross-channel strategy to help clients identify, engage, and acquire customers, then retain and reactivate them as they continue their digital journey. With expertise in search, social, Amazon & marketplaces, mobile apps, CRM & email marketing and more, every solution is built on best-in-class analytics, brought to life with brilliant creative, and delivered by exceptional strategists. Clients include Bombas, Truist (formerly known as BB&T), Eddie Bauer, Ethan Allen, Etsy, Rite Aid, Seventh Generation, The Honest Company, Tommy Bahama, Terminix, Vitamin Shoppe. For more information visit https://tinuiti.com.