Perpetua Q3 Amazon Benchmark Report: Cost of Sponsored Products continued to increase but so do conversions, up 30% YoY

PRESS RELEASE FROM PERPETUA
October 06, 2021
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SAN FRANCISCO —

Perpetua, a global leader in eCommerce advertising and intelligence software today released their 2021 Q3 Benchmark Report showcasing the most important trends and metrics from Q3 2021, on Amazon and Instacart, to help inform marketplace advertising strategy and prepare for what to expect in Q4 and beyond. The report found Sponsored Brands Click Through Rate (CTR) up 44% and Sponsored Product CTR up 32% compared to Q3 2020, at a higher Cost per Acquisition (CPA), meaning while they were more expensive to buy they earned the attention of shoppers with highly engaging ads.

 

Perpetua's 2021 Q3 Benchmark Report is based on performance data from campaigns under Perpetua's management. As expected, sales declined on Amazon as traffic slowed coming off of Prime Day in Q2. While impressions declined 21% on Sponsored Products, from less shoppers browsing online, we saw click-through rates increase 33% and conversion rates increase 24% indicating the shoppers who are on Amazon are ready to buy. Similarly, impressions on Sponsored Display decreased 28%, but advertisers still saw an increase in sales due to their above-the-fold ad placements.

 

"The data shows that traffic on Amazon slowed coming off of Prime Day in Q2, and as sales didn't increase at the same rate as spending did, it appears that advertisers were more eager to be back on Amazon than shoppers were," says Adam Epstein, VP Growth, Perpetua. "And, as we continue to see a rise in average CPC each quarter, advertisers will need to be strategic moving into Q4 to ensure that they don't see ROAS continue to decline year over year."

 

The report also shows that Q3 on Instacart saw a 98% increase in impressions and 46% increase in attributed sales, with incremental investment from the prior quarter. As competition for ad placements continues to rise, many advertisers allocated greater spend towards Instacart ads to maintain market share and conversions.

 

Q3 2021 Benchmark Report Highlights:

  • Video ads continue to engage shoppers better than other ad units with 1.08% Click-Through-Rates in Q3, the highest of any ad unit on Amazon.
  • As Sponsored Display continues to unveil new targeting options, Q3 saw advertiser spend increase 16% in Q3 and sales increase 3% overall, despite impressions decreasing 28% over Q2 2020.
  • With the summer holidays and back to school in September, sales for Toys & Kids products are up 27% in Q3 as parents likely wanted some toys to entertain their children over the summer break.
  • Despite slow down in DSP performance in Q3 across all product categories, Pets + Animals category delivered a significant increase in campaign performances with ROAS up 20% and DPVR up 52% quarter-over-quarter.
  • As we head into Q4, we anticipate Beauty, Clothing / Apparel, Electronics, Jewelry, and Toys + Kids categories to become performance drivers for the Holiday shopping.
  • Advertisers saw greater efficiency with ad spend on Instacart as ROAS was up 12% quarter-over-quarter and total attributed sales up 46%.

 

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About
Perpetua is building the growth infrastructure for eCommerce which includes optimization and reporting technology for the world's smartest eCommerce businesses. Through the platform, advertisers create goals based on strategy and leverage Perpetua's best in class, AI-powered ad engine to execute tactically. Integrations with Amazon, Instacart and Google ensure brands achieve optimal reach and engagement across the full shopper journey, and provide unified performance intelligence for maximum visibility. Perpetua is an Ascential company and has offices in San Francisco, Toronto, London and Tokyo. To learn more, visit perpetua.io