Amazon Takes Credit For 115% Leap In Ecommerce Ad Spending

Marketers spent 115% more on ecommerce in the third quarter of 2019 compared with a year ago. The investments were mostly made on Amazon, according to a report released Thursday.

Marin Software’s Q3 2019 Digital Advertising Benchmark Report, released Thursday, shows a seasonal leap in ecommerce advertising and mobile search among brands that buy media on its platform. 

The leap is largely attributed to Amazon Advertising and Prime Day. The cost per ecommerce click rose 10.5% compared with the second quarter in 2019.

Retailers in total spent 40% of their budgets on Shopping ads, and the number of clicks on Shopping ads rose 14% quarter-over-quarter.

Amazon last week reported revenue from its “other” category -- which mostly consists of advertising -- of about $3.6 billion in the third quarter of 2019, but lower-than-expected profits of $2.1 billion on $70 billion in revenue.

Mobile search continues to drive the amount marketers spend in search. It accounted for 47% in the third quarter of 2019, up 2% from the prior quarter and 5% YoY. This percentage is based on the total amount spent in search among Marin’s clients.

Local search queries more frequently occur on smartphones, according to the report.

Much of the decision by marketers to increase the amount spent on search points to a need to reach Generation Z, which relies heavily on Snapchat, YouTube and Instagram.

Search click volume grew 14% year-over-year, with an 85% jump in ad clicks for healthcare. The technology industry came in second, with a 25% increase.

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