Amazon products priced between $21 and $30 offer the best return on advertising spend (ROAS) but they currently take the smallest share of investment, according to data from seller management company Jungle Scout.
Products priced between $21 and $30 deliver a ROAS of $2.81 when advertised on Amazon, the only product price category to deliver a ROAS above $2.00. However, advertising of these products accounts for just 5% of total Amazon advertising spend, the smallest share.
Products priced between $11 and $20 attract the most advertising spend, taking a 39% share of Amazon investment. However, the ROAS for this price range is one of the lowest recorded at $1.13.
The return on advertising spend is also affected by the advertising format used on Amazon – Sponsored Brands delivers the highest ROAS ($6.28).
WARC Data's latest analysis of Amazon advertising shows the company doubled its share of the online ad market between 2018 and 2020 and this will likely accelerate as e-commerce takes a larger share of retail sales.
Advertisers on Amazon now also have a broader range of upper-funnel ad opportunities than just conversion tools, something that could become more important as Amazon expands into shoppable media which can mix storytelling and sales together. Digital packaging can support this as a way to creatively engage consumers.
However, integrating this e-commerce investment with the broader retail experience will be fundamental, particularly as 81% of consumers shop from both brick-and-mortar and online channels and consumers find understanding the quality of products more difficult online than offline.