Experts advice to Amazon Advertisers in Wake of COVID-19

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    COVID-19’s global impact has forced Amazon advertisers to adjust to a new reality or what some are calling “the new norm”.

    According to Tinuiti’s client data, advertiser performance from the week of March 15, which followed the first major national announcement from the CDC regarding limiting gatherings to 50 or fewer people, showed an uptick in conversion rate for Sponsored Products, which peaked at 18% higher than last year. 

    However, conversion rate has since fallen, and while it remains on par with what was observed at the end of March last year, this is a meaningful decline from the 10%+ year over year increase seen for much of Q1 2020.

    In turn, CPC growth has fallen in line with conversion rate, such that the cost per conversion has remained roughly even throughout the late-March, early-April shifts.

    According to Andy Taylor, Director of Research at Tinuiti, it’s important during volatile periods of time such as this to have “a robust reporting and bid system in place to understand and adapt to current market conditions in hitting profitability goals”.

    Why now is the time to invest in Amazon advertising

    Largely due to the COVID-19 response, a new “normal” is emerging on the Amazon Marketplace as it relates to spend, average CPCs, and click-through rate. 

    For some advertisers, the good news is average CPCs are decreasing. For brands who have the resources, now is the time to focus on bolstering conversion rate and accumulating relatively cheap clicks.

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