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Clicks are Becoming More Expensive

With Prime Day on the horizon, you and other sellers alike will probably be focusing a lot of energy on creating more sponsored ads. Something to keep in mind while you are creating these ads and setting your bids is the cost of that advertising. Info gathered over the months shows that cost per click (CPC) has been on the rise. As of now, on average, CPC is at $1.20. This is up 30% from $0.93 at the beginning of this year and up 50% year-over-year. Demand for advertising is rising faster than the ad inventory which has been driving prices up.

In June of last year, CPC was averaged at $0.79, much different than where it is now. Those nickels and dimes do really start to add up when you consider just how many ads you have running and how many people are searching your keywords. It seems as more and more sellers come to the Amazon platform keyword bidding is getting extremely competitive. Established brands are joining to sell their products and bringing their advertising budgets with them, with these budgets they can afford to spend more on each keyword. This will ultimately increase ad prices further.

So what can be done? Well, we suggest really doing your research. More specifically, keyword research. Look into what people are searching for when it comes to your products or similar products. Don't be vague when you are picking your keywords. You may get sales with those words, perhaps, but you will likely sacrifice your whole daily budget for that particular ad campaign, which is no good. Keep a keen eye on your ads especially on products you are really trying to push. When an ad is new, micro-manage it until you really see what works for it and what doesn't. Do everything you can when optimizing listings and stores. When you can't beat another big brand's budget, you'll have to out-think them.

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