Coronavirus Impact on Amazon Advertising

We summed up our main takeaways in this article.

Purchasing behaviour

• People are spending more money on Amazon than before the crisis
• Shoppers seem to be ordering more frequently or ordering lower-priced items
• People seem to look at fewer items before purchasing and make quicker buying decisions.

Category changes

• The personal care, gardening, and home sports equipment categories have become particularly relevant
• Shoppers are less likely to purchase luxury goods, such as fashion items

Advertiser behaviour

• Advertisers are focusing on the most relevant products in the current situation
• Advertisers in popular categories are increasing their budgets and being rewarded with a lower ACoS
• In less relevant categories, like fashion, advertisers seem to be reducing their advertising spend (also due to lost BuyBoxes or slow shipping) and tend to be more conservative

Overall

• Many campaigns are seeing high conversion rates and tend to have a better return of investment since the crisis started

The analysis can be found here: Download PDF