Doing a search for “cereal” or “detergent” on Amazon will show you a prominent list of sponsored products on its results page. It’s not until you scroll past that section, as well as the following section showing products from Amazon’s own 365 Everyday Value brand, that you’ll see the rest of the results.
And brands want in. Compared to last year, the amount spent on sponsored products on Amazon searches went up 165 percent in the second quarter of 2018, according to marketing agency Merkle.
With sponsored ads, brands bid to have their products appear in searches for related terms. For example, if you search for cereal, Kellogg’s Raisin Bran Crunch could pay to show up at the top of those results.
Recode found that these sponsored ads showed up for items ranging from lotion to phone chargers. In some instances, the sponsored ads take up almost the full page before scrolling.
This advertising model could prove to be increasingly beneficial for both Amazon and brands that sell products on the site, given that more than half of online shoppers start searching for products on Amazon instead of search engines like Google. Advertising is also Amazon’s fastest-growing segment, according to Recode.
Jason Goldberg, senior vice president of commerce at digital marketing agency SapientRazorfish, told Recode that the competition is leading to a “perfectly escalating arms race where all the trends are to spend more money to buy more ads to have better visibility on Amazon.”
Amazon didn’t immediately respond to a request for comment.
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