• June 9, 2023

Picture Perfect: The Hidden Consequences Of AI Beauty Filters

We are increasingly curating our online personas, handpicking the images we share, and choosing to present ourselves through a “beautification” lens. This shift has given rise to a quiet revolution: the …

Google’s Generative AI Platform Is Now Available To Everyone

Google announced the general availability (GA) of generative AI services based on Vertex AI, the Machine Learning Platform as a Service (ML PaaS) offering from Google Cloud. With the service becoming …

Startup Co-Founded By Entrepreneurial Doctor To Leverage Seismic Shift Of $265 Billion In Healthcare Marketplace

Healthcare, while critical and needed is also very big business. According to Insider Intelligence reports from January of 2023, the US national healthcare expenditure is estimated to reach $6.2 trillion by …

Software company Sellics released data yesterday showing Amazon

ads cost 68% less than Google

ads and 44% less than Facebook ads, when comparing average cost-per-click on those platforms.

In its 2022 Amazon Advertising Benchmark Report, Sellics found that Amazon also compares favorably with other major players like Instagram (-79%) and LinkedIn (-86%), as well as close competitor Walmart

(-13% compared with Amazon US).

This is despite cost-per-click on Amazon steadily increasing. Sellics data also show that the cost-per-click on Amazon’s US site has increased by 22% year-over-year from 2021 to 2022.


This comes at the same time as Facebook and Google become less attractive advertising destinations with the deprecation of the 3rd party cookie. Amazon, with its first party sales data, is relatively immune to this effect.

Amazon is not a silver bullet, however. And cost per click is not the yardstick that all brands should be using. While it is an effective measure of relative affordability, brands need to also consider what the purpose of the advertising strategy is. A brand who’s looking to grow overall market share should not be overly concerned with profitability-oriented metrics like cost-per-click (CPC) and return on ad spend (ROAS).

This is the same as many of the other metrics that were tracked by Sellics in this report, and that often appear in other industry benchmarks. Click-through-rate, conversion rate, average order value all are metrics focused on an objective of profitability. The retailers themselves operate with their own agenda, offering metrics that are either in their interest or the simplest to track and report on.

Brands who prioritize market share growth as an objective should be tracking metrics like share of voice, first time buyers, and market share – metrics that are generally not shown in a retailer’s advertising dashboard.

Amazon advertising certainly represents great value-for-money for advertisers right now, even if its own ad rates are increasing. And the variety of advertising types with different targeting and display options certainly means Amazon earns its place in the new advertising ‘triopoly’. But all brands need to be wary of which metrics they select to measure their financial objectives – not always which is the cheapest platform.


Leave a Reply

Your email address will not be published.