Amazon more than doubled the average number of sponsored products that show up atop search results, but those rates range from below 20% for some categories, such as frozen food (a tough category for Amazon to warehouse and deliver, so it deprioritizes sponsored listings) to more than 60% for some products, said Momentum Commerce founder and CEO John Shea.
It is unlikely that Amazon’s more competitive categorizes will relax, allowing organic brand listings to reassert themselves, Shea said. Instead, categories with relatively low advertising saturation, even those around the current average of 43% Sponsored Product ads, will grow more competitive with higher rates of paid media to organic listings.
The same dynamic is on display whenever Amazon expands to a new global market or brings Prime shipping to a new country, according to Kennedy. At first, Franklin Sports will see high ROI and organic placement for a spell without many other sellers spending on ads, he said. As more sellers start bidding in that market, ad metrics like cost per click go up. So do the overall rates of Sponsored Product units vs. organic listings.
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