It’s safe to say that despite the amount of choice on Amazon, consumers aren’t ready to scroll through too many pages to find a product they want to purchase, as two pages are the maximum number of pages for one-third of Amazon shoppers. Recent research [download page] from Tinuiti shows that if retailers with Sponsored Products want to generate the most sales, they want to be at the top of search.
In an analysis of Q3 2019 performance data from Amazon programs under Tinuiti management, almost half (48% share) of sales of Sponsored Products came from top of search placement. Same SKU sales, which are sales of the same product that was clicked on in an ad, fared even better, with top of search placement accounting for a full 55% of this type of sale.
Sponsored Products received the most clicks (45% share) on product detail pages, however, with top of search placement only accounting for 30% share of clicks.
Those clicks on Sponsored Products are bringing quick conversions and sales. Eight in 10 (79%) Sponsored Products conversions and sales happened within 24 hours of the ad click attributed to the product. Some 85% of same SKU conversions and 84% of same SKU sales came within 24 hours of the product ad click.
Ad Spend for Sponsored Products and Brands Continues to Grow
Ad spend on Amazon Sponsored Products in the US grew 30% year-over-year (y-o-y) in the 3rd quarter, per Tinuiti’s data. Sponsored Brands also saw an increase in investment in Q3. Nonetheless, the 19% y-o-y growth is considerably less than the rate of growth seen in Q1 and Q2 (73% and 64%, respectively).
Finally, Amazon is already the first place that about 3 in 10 consumers go when they have in mind which product they’d like to buy, and the largest portion of Amazon DSP spend is focused on the purchase stage of the funnel. However, advertisers have been investing more of their DSP spend in the middle to upper stages of the funnel, with 42% share of spend going towards awareness and consideration in Q3 2019 (up from 26% share in Q1 2019).
The full report can be downloaded here.
About the Data: Per the report: “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. The trends and figures included are not meant to represent the official performance of Amazon advertising or the experiences of every Amazon advertiser.”