While the cost to buy ads on Amazon’s main marketplace has surged in the past year, prices at Walmart and Instacart have dropped as these retail rivals have added more ad space. The divergence suggests the companies eager to copy Amazon, which has created a $31 billion ad powerhouse, may have success luring merchants by touting cheaper ad prices.
Brands and third-party sellers saw the cost per click of a sponsored product ad on Amazon rise 14% last year to $1.36 by the fourth quarter, according to proprietary data from Pacvue, which places ads for big brands like Duracell and Unilever. But the average cost per click fell more than 31% for Walmart and 28% for Instacart, according to Pacvue’s data.
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