In recent years, more and more sellers have complained that it is very difficult to do advertising on Amazon. Is it because the advertising operation has become more difficult? Is it because the level of advertising operation has regressed? Obviously not. So where is the problem?
The key to the problem is that the traffic cost has risen. As the number of sellers entering Amazon gradually increases, more and more sellers are advertising, but the advertising position cannot be increased. The cost per click of in-site advertising naturally rises, and advertising becomes more and more difficult. According to statistics from the famous advertising agency AD BADGER, in 2019, the average cost per click (Cost Per Click, CPC) of Amazon’s overall advertising on the US site has increased significantly within a year.
Let’s look at the second case. Do sellers who have worked on both the European and American sites feel that advertising on the European site is much easier? Obviously, the products are similar, and the advertising operator is the same person. Why do the advertising effects presented on the European and American sites differ? In the final analysis, it is because the CPC of in-site advertising in the United States is much higher than that of the European site.
The root cause of the above two problems is the increase in traffic costs. At this point, some readers may ask, isn’t traffic divided into paid traffic and free traffic? The advertising traffic just introduced is all paid traffic, so where exactly is the cost of free traffic reflected? Although free traffic is free, it also has costs. For example, if you want to get more natural traffic, do sellers have to go to great lengths to rank the core keywords of their products in the top three or top five on the homepage? Do sellers have to do a lot of discounts and promotions in the process of promoting keyword rankings? Do you have to spend a lot of time observing ranking changes and formulating strategies? The cost of this time and money is no less than the cost of obtaining paid traffic, and sometimes even more.
Since we have clearly realized that both paid and free traffic have costs, the next thing we have to do is to do our best to make good use of this traffic, that is, to convert this traffic into consumers’ final purchases as much as possible.