Coronavirus Impact on Amazon Advertising
The coronavirus currently affects all parts of our society. Together with our partner diva-e E PWR, we have created a full analysis on the changes that have happened on the German Amazon advertising market. This study aims to investigate and analyze the effects of changed buying behavior on Amazon Advertising (Sponsored Ads). It is essential for brands to understand how important metrics are changing, such as click prices, conversion rates or the profitability of advertising campaigns. These insights can serve as a base for making strategic advertising decisions.
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