Amazon is showing more sponsored products when you search, charging advertisers extra

midian182

Posts: 7,289   +65
Staff member
TL;DR: Have you noticed that there seems to be an increasing number of sponsored products at the top of Amazon's search results? You're not imagining it. The retail giant is showing users up to six of these items—it used to be two or three—and is charging companies more money to appear in the top slots.

There are a lot of items on Amazon, which is why many sellers are willing to pay for their goods to appear prominently in search results. CNBC reports that instead of the usual two to three sponsored products, users are now more likely to see five to six. In some cases, online shoppers using the mobile app have to swipe past two screens of results before encountering any unpaid listings.

Not only is Amazon showing more ads, but it's also charging companies extra for them. According to a survey of more than 300 Amazon sellers conducted by Canopy Management, the cost per click for search advertising on Amazon was $1.27 in August. A year ago, it was just 86 cents.

"It's not uncommon now for brands to be spending 50% or more of their product price on various fees to be selling on Amazon," said Marketplace Pulse's Juozas Kaziukenas.

The winner in all this, of course, is Amazon's bottom line. In its most recent quarterly report, the "other" sales segment, most of which is advertising, was the company's fastest-growing in Q2. Revenue was up 87% year-on-year to over $7.9 billion.

Two years ago, the formerly anti-advertising Amazon moved ahead of Microsoft to become the third-largest US ad platform behind Google and Facebook. eMarketer predicts it will control over three-quarters of the $24 billion e-commerce ad market by 2023.

In 2021, Amazon's 5.8% share of the worldwide ad revenue put it behind Ali Baba's 8.7%, with Facebook at 23.7% and Google on top with 28.6%.

Amazon told CNBC that it has no dedicated ad slots within search results, meaning users could see just one ad or even none. It said advertising is an optional service that helps improve products' visibility.

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Uncle Al

Posts: 8,358   +7,165
Just another reason Iḿ moving away from Amazon. God knows itś convenient as hell but when I cannot get the straight results in a search itś wasting my time.
 

Ravey

Posts: 326   +143
I still prefer Amazon over e-bay but I will start avoiding any “recommended” results that pop up.

I want to see products that are best value and best product over what pushes up Amazon’s bottom line. It feels more like false advertising
 

Theinsanegamer

Posts: 2,843   +4,503
I still prefer Amazon over e-bay but I will start avoiding any “recommended” results that pop up.

I want to see products that are best value and best product over what pushes up Amazon’s bottom line. It feels more like false advertising
I buy what products I want from whatever vendor has the best deal. Sometimes that's amazon, sometimes now. I do prefer to use other vendors simply because amazon's search function is beyond horrible. I dont think I've ever used their "recommended" function.
 

wujj123456

Posts: 60   +36
TechSpot Elite
Once you've been a seller on any of the major platforms, you would know the dirty secret. All those sponsored slots cost quite a lot of margin, which means those listings have to be overpriced, especially for products with no differentiation.

These days I explicitly avoid any sponsored results, and look for similar listings down the page. I sometimes even tweak my search keywords based on those sponsored results to find other listings. I almost always find same or cheaper prices. I'd rather deal with smaller business that are more focused on their customers than ads.