Why Amazon’s Biggest Ad Business Could Be Maxing Out
Advertisers have flocked to Amazon, turning it into a $56 billion a year ad juggernaut. But some brands are saying competition has made it too expensive to advertise on the site.
Over the last several years, advertisements have seemingly begun creeping into nearly every crevice on Amazon. They populate carousels of products promising to show shoppers what other “customers frequently viewed” on search results. They also appear on pages where shoppers can find deals on Amazon. And they pop up on the checkout page when a customer actually makes a purchase.
The changes, all of which have occurred in the past five years, according to former employees, have helped turn Amazon’s ads business into a $56 billion a year cash cow, as brands pour money into the promotions to boost sales for their products on Amazon. Still, the demand for those ads so outstrips supply that people like Katya Constantine have found advertising on Amazon no longer makes as much sense as it once did for her clients.