With the way things are going, it’s expected that figures for net digital ad revenues alone will reach a projected value of USD 39.45 billion by 2023.
It has an audience of engaged consumers who are ready to make a purchase.
The platform is capable of showing the right products to the right people.
In 2020 and 2021, there was a slight decrease in ad spend on Sponsored Products (80% in 2020 and down to 77% in 2021), while spending on Sponsored Brands ad products increased by 18% and 20% respectively. Advertising spend on Sponsored Display ad products remained at 2% from 2020 to 2021.
Which Ad Types are Most Profitable?
Which type of ads do advertisers spend the most money on? According to a Jungle Scout report, advertisers are spending 26% of their total ad spend on loose-match ad types. This is followed by Substitutes (21%) and ASIN ad targeting (21%). Why all the attention on loose-match targeting? Compared to close-match products and other ad targeting types, loose-match ad types have the lowest cost per click rates. This enables advertisers to spend more on ads, even if this targeting type doesn’t always guarantee a good ROI.
