The first half of 2024 has provided a wealth of data on the advertising performance of Amazon and Walmart. Laura Patterson, Senior Director of Strategy and Insights at Teikametrics, joined us to delve into the trends, efficiency metrics, and insights from these eCommerce giants. Here’s a comprehensive look at what we uncovered.

If you’d like to listen or watch the full breakdown, check out our podcast Human in the Loop.

Overall Efficiency Trends Efficiency, a critical benchmark for advertisers, has shown a decline for both Amazon and Walmart. However, the trends vary between the two platforms:

• Walmart: Efficiency has declined by 11% year over year for H1. This decline is attributed to increased competition as more brands join the platform. Despite the decline, Walmart’s efficiency still comes at a premium compared to Amazon.
• Amazon: Efficiency has seen a smaller decline of 4% year over year. Amazon’s more stable and established marketplace results in less fluctuation in efficiency metrics.

Cost Per Click (CPC) and Sales Per Click (SPC) CPC and SPC are critical metrics for advertisers. Here’s how they have trended in H1 2024:

• CPC:
  • Walmart: Increased by 24% year over year.
  • Amazon: Increased by 17% year over year.
• SPC:
  • Walmart: Increased by 10% year over year.
  • Amazon: Increased by 12% year over year.

Despite the rising CPCs, the increase in SPC indicates that the value of clicks is also growing. This growth suggests improved conversion rates or higher average order values.

Detailed Insights on Walmart

• Efficiency: Declined by 11% year over year, with sales per click increasing by 10%.
• Traffic Volume: Increased, indicating more aggressive advertising and more placements available.
• CPC: Rose by 24%, but the increase in SPC offsets some of the efficiency decline.

Detailed Insights on Amazon

• Efficiency: Declined by 4%, with a stable efficiency score around 5-5.5.
• CPC: Increased by 17%.
• SPC: Increased by 12%.
• Conversion Rate: Up by 9%, indicating a significant positive trend in buyer behavior.

Key Takeaways for Advertisers

• Walmart: The platform is growing and becoming more competitive. Advertisers not yet on Walmart should consider joining soon to take advantage of the first-mover benefits. Despite the rise in CPCs, getting established now is crucial.
• Amazon: The marketplace continues to show stability. With conversion rates and average order values increasing, it’s clear that the platform is becoming more efficient. The introduction of tools like Amazon Marketing Cloud (AMC) helps advertisers optimize their strategies and reduce irrelevant spend.

Looking Ahead to H2 2024 Based on the data from H1, here are some predictions for H2 2024:

• Walmart: Expect continued growth in competition and traffic volume. As more brands join, efficiency may continue to decline slightly, but the platform’s growth presents new opportunities.
• Amazon: Anticipate stable efficiency and continued growth in conversion rates. Tools like AMC will further refine advertising strategies, leading to more efficient spend and better returns.

Conclusion The first half of 2024 has highlighted critical trends in the advertising performance of Amazon and Walmart. While both platforms show increased CPCs, the corresponding rise in SPC indicates growing value in advertising investments. Advertisers should leverage these insights to refine their strategies and maximize their performance in H2 2024. Stay tuned for more updates as we continue to monitor these dynamic marketplaces.

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