Which Product Categories Spend the Most on Amazon Ads?

June 9, 2022

This article is included in these additional categories:

Advertising Trends | Industries | Retail & E-Commerce | Spending & Spenders

Amazon advertising is becoming big business – to the tune of talk of a “triopoly” rather than a “duopoly.” Indeed, Amazon already accounts for more than 1 in 10 US digital ad dollars, and that share is only forecast to grow in the coming years. So which product categories are the most active spenders on Amazon ads? Jungle Scout’s Amazon Advertising Report | 2022 [download page] has some answers.

To arrive at its conclusions, Jungle Scout examined e-commerce data “collected over a three-year timeframe spanning January 2019 through December 2021, in addition to select early 2022 data, across 14 global marketplaces. It includes 3,500+ distinct brands and 560,000+ unique Amazon advertising campaigns across all key ad media, and primarily represents large e-commerce enterprises.”

Looking specifically at the last full year of data, 2021, Jungle Scout reports that the Health & Household category vaulted to the top, alone comprising more than 1 in 4 ad dollars invested in the platform (26.5% share). That was more than double the share of the next-biggest spending category, Home & Kitchen (11.4%). The Pet Supplies (10.4%) category was the only other with double-digit share of spend last year, per the analysis.

Rounding out the top 5 product categories by Amazon ad spend share last year were Office Products (8.8%) and Beauty & Personal Care (8%).

The report also details the “most competitive” product categories, as determined by examining the total number of distinct advertising campaigns in each category. On this measure Health & Household led once again, followed again by Home & Kitchen. However Clothing, Shoes & Jewelry was in the third spot, while Pet Supplies was in the 6th position.

Perhaps as a result of this intense competition and spend, Health & Household fell to the bottom of the 22-strong category list when it came to full-year average return on ad spend (RoAS), at an average of $2.25 last year. By comparison, the categories enjoying the highest RoAS were Electronics ($7.80), Office Products ($7.66), and Musical Instruments ($7.40).

For more, download the full report here.

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