Homeecommerce blogAmazon leads way as E-commerce Ad Spend Inc by 115%

Amazon leads way as E-commerce Ad Spend Inc by 115%

The total expenditure in digital advertising saw an increase of 115 percent in Quarter-3 of this year compared to 2018. It also grew 51 percent compared to the previous quarter. The major force behind this massive increase can be attributed to Amazon, which spent huge on digital ads for its Prime Day and Back-to-school sales.

These findings were provided by Marin Software, a digital marketing software company, in its Digital Advertising Benchmark Report. The report presented many key points in its findings, which offers great insight into the general trends of digital marketing. Some of the highlights include:

  • Mobile marketing continues to be the biggest area of focus for digital marketers. Out of the total ad spend, 47 percent was spent only on mobile advertising.
  • Retailers seem to have understood the vitality of advertisement, and spend 40 percent of their budget on shopping ads. This, in turn, led to an increase of 14 percent on shopping ads clicks.
  • The Cost Per Click (CPC) continued to fall further, from $0.72 in Q2 to $0.66 in Q3. For advertisers, this is positive news.
  • Click volume via search saw an increase of 14 percent. The biggest upheaval was noticed in healthcare ads, where click volume increase by a massive 85 percent.
  • Click-through rates saw a great decline since last year (where it once stood at 3.27 percent). However, Q3 saw them growing to 2.99 percent, from the stagnant 2.91 percent in both Q1 and Q2.

Wes MacLaggan, the Marketing Senior VP for Marin, said that Amazon can be held primarily responsible for continuously shaping the digital marketing trends. While he agreed that retailers not selling on Amazon lose a competitive edge, he refuses to believe that Amazon is stealing money from any businessman. If anything, the pie was getting bigger for everyone to share.

The report also found that sponsored brands saw 27 percent more clicks than sponsored products. MacLaggan also believes that retailers can optimize their campaign by using individual platforms like Amazon for specific purposes and then connecting the dots.

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Alf Alferez
Alf Alferez
Dedicated writer with a strong track record of developing customer loyalty and managing general office operations. Enjoy being a part of a company where my skills and creative ideas will benefit the overall productivity of the organization. I have a strong desire to work in helping make the world a better place. Please reach out to me on alf@ecommercenext.org

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