Another effort has been made by Amazon to control a different area of the online economy. Online sales came first, followed by cloud computing, same-day delivery, and now ads. In some circumstances, Amazon has doubled the amount of promoted products in its ad listings on search results pages.
The top search result positions are reserved by Amazon to display the product listings of those who pay, allowing producers to sail on paid boats. The maximum number of reserved places was often two or three, but up to six sponsored listings have lately been added.
When you search for “phone cases,” you’ll see many listings for products from every brand, frequently based on Amazon’s algorithm, and available in a variety of numbers and sizes. The same holds true for other goods. Depending on the search, you’ll get a seemingly infinite sea of results with various degrees of variation.
Amazon is the biggest online retailer in the United States, thus companies and sellers are prepared to spend whatever it takes to rank well. The cost per click has risen to over $1, which has led to an 87% yearly gain in ad revenue for Amazon’s “other” category, which makes up the majority of revenue.
To compete with Google and Facebook in the realm of digital advertising, Amazon still has a ways to go. In 2021, Amazon held a 5.8% portion of the global ad income market, while Facebook and Google each held a 23.7% and a 28.6% share.
