To compete with ecommerce giants such as Amazon and Walmart Connect, you must have access to all relevant data. It can be difficult to keep up with their constant updates, changes, and demands, particularly when trying to meet customer expectations and navigate the world of online shopping. Whether you’re new to ecommerce or an experienced pro, we’ve covered you with all the key information, takeaways, and insights to help you understand each marketplace’s similarities, differences, and strengths. This month, we’ll look at the key advertising metrics that provide insight into the strategies used by sellers on both retailers’ marketplaces.

In this blog, we will unravel the complexities of marketing strategies by closely examining the stability of Cost-per-click (CPC) rates and the efficiency of Advertising Cost of Sales (ACOS). We’ve analyzed how Amazon and Walmart Connect sellers allocate their ad spend, which will provide us with valuable insights into their respective approaches. On top of that, we’ll also be reviewing how sellers made the most of key occasions in May, like Mother’s Day, Memorial Day, and Graduation Season, to boost their sales and engage their customers. By analyzing these metrics, we hope to provide sellers with practical insights into sellers’ effectiveness with their ad spend utilization and optimization efforts on Amazon and Walmart.

CPC Stability: Unwavering Strategies for Market Fluctuations

In this analysis, we’ll delve into the advertising landscape for 2023 and 2024, focusing on May data. The transition from May 2023 to May 2024 reveals a notable increase in Cost Per Click (CPC), with 2024 exhibiting higher rates, indicating a significant rise in advertising costs. There’s an increase of 16.41% between the two years.

Advertisers may have ramped up their campaigns to capitalize on increased consumer spending during these periods, resulting in increased competition and higher CPCs. Also, the overall economic environment, changes in consumer behavior in 2024, and strategic adjustments in advertising approaches may have increased these costs compared to May 2024 and May 2023. Recognizing and comprehending these factors is critical for businesses seeking to efficiently change their strategies, ensuring optimal performance and ROI in May’s ever-changing marketplace.

Amazon’s CPC increased 15.49% from 2023 to 2024, while Walmart’s increased 14% during the same period. These increases reflect a general trend of rising advertising costs across various sales channels.

ACOS Efficiency: Contrasting Approaches between Amazon and Walmart Connect

ACOS increased slightly in May 2024 compared to May 2023. The average ACOS in May 2023 was 17.40%, while in May 2024, it slightly increased to 17.90%, representing a 2.87% increase. These increases reflect potential shifts in advertising efficiency or market conditions that influence the conversion rate of ad clicks to sales.

The ACOS for May 2024 ranged between 18.00% and 18.20%, with weekly fluctuations. Compared to 2023, the rise is influenced by shifts in market conditions or strategic adjustments. Sellers prioritize optimization of ad strategies, monitoring campaign performance, and refining keyword targeting to balance ACOS. Profitability amidst May’s evolving landscape depends on agility in response to market dynamics.

Between 2023 and 2024, the ACOS on Amazon increased by approximately 1.02%. In contrast, Walmart experienced a more significant increase in ACOS, which increased by approximately 8.16% during the same period. Walmart’s ACOS has increased significantly, which could be attributed to several factors. Walmart sellers could have increased their advertising efforts to compete more aggressively with Amazon during key sales events in May, such as Mother’s Day and Memorial Day. Also, increased CPC rates likely contributed to increased advertising costs, pushing ACOS.

Ad Spend Allocation: Tracking Strategic Maneuvers and Trends

When comparing ad spend in May 2023 and May 2024, there is a substantial increase in investment. In May 2023, the amount spent on advertising was $62.11M; in May 2024, it increased to $77.14M. This indicates a significant surge in advertising budgets over the span of a year, with ad spend increasing by approximately 24.19% between the two years.

Several factors could have contributed to the increase in ad spend. First, the competitive landscape has intensified, with more advertisers competing for consumer attention during crucial shopping periods in May. Second, Amazon and Walmart may have adopted more aggressive marketing strategies to gain market share, resulting in higher advertising investments. Third, consumer demand and spending capacity could rise overall in 2024, prompting retailers to increase their ad budgets to maximize sales. Seasonal events in May, such as Mother’s Day, Memorial Day, and Graduation Season, are also likely to have contributed significantly to increased spending on ads as retailers sought to capitalize on these high-consumption periods. Understanding these dynamics enables businesses to navigate the complex ecommerce environment and optimize their advertising strategies for greater performance.

Amazon sellers’ ad spend increased by approximately 25.38% from 2023 to 2024, while Walmart’s increased by approximately 16.10% over the same period.

Unveiling May’s Advertising Landscape: A Comparative Analysis of Amazon and Walmart Connect

CPC (Cost Per Click):

Amazon and Walmart Connect demonstrated consistent CPC rates in the dynamic online advertising landscape. In May 2024, Amazon’s CPC increased to $0.82 from $0.71 in May 2023, reflecting a significant rise in advertising costs. Similarly, Walmart Connect experienced an increase in CPC, rising from $0.50 in May 2023 to $0.57 in May 2024.

ACOS (Advertising Cost of Sales):

Examining the Advertising Cost of Sales (ACOS), Amazon’s ACOS slightly increased from 19.60% in May 2023 to 19.80% in May 2024. Meanwhile, Walmart Connect saw its ACOS rise from 9.80% in May 2023 to 10.60% in May 2024, indicating higher spend relative to sales.

Ad Spend:

Unveiling strategic maneuvers in ad spend allocation, Amazon and Walmart Connect, sellers made noteworthy adjustments in May 2024 compared to May 2023. Amazon sellers’ ad spend surged from $54,147,406 in May 2023 to $67,891,404 in May 2024, marking a 24.19% increase. Conversely, Walmart Connect sellers also witnessed a substantial increase in ad spend, from $7,964,350 in May 2023 to $9,247,399 in May 2024.

Seasonal Factors:

During May, Amazon and Walmart Connect sellers likely adapted their advertising strategies to leverage seasonal factors such as Mother’s Day, Memorial Day, and Graduation Season. These key shopping periods contributed to the increase in ad spend and CPC as advertisers aimed to capture heightened consumer spending and engagement during these high-demand times.

Insights for Performance:

The May 2023 and May 2024 comparison shows subtle changes in CPC, ad spend, and ACOS for Amazon and Walmart Connect. Despite shifting trends, both platforms remain committed to effectively navigating the online advertising landscape, positioning themselves for future growth and success. The increase in ad spend and CPC demonstrates the competitive nature of these marketplaces and the strategic investments made to capture consumer attention during major seasonal events.

May’s Advertising Spotlight: Health & Household, Home & Kitchen, and Patio & Garden Take the Lead

During the month of May, a few categories stood out as the leaders in the ever-evolving world of ecommerce advertising on Amazon and Walmart Connect:

Amazon:

Health & Household (11.8%): In May, there was a surge in ad spending for the Health & Household category, as people were likely to have focused on their well-being during the change in seasons. With warmer weather and more outdoor activities, individuals sought wellness essentials, allergy relief products, and immune-boosting supplements. Advertisers took advantage of this trend by promoting self-care products and fitness gear, catering to people’s renewed focus on health and vitality during springtime.

Home & Kitchen (11.9%): As homeowners embraced the spirit of spring cleaning and renovation projects, the Home & Kitchen category saw a noticeable increase in ad spend. Advertisers showcased products for organization, outdoor living, and gardening, catering to consumers’ desires to refresh their living spaces. With outdoor entertaining becoming more popular, advertisers highlighted grilling essentials, patio furniture, and outdoor décor, tapping into the season’s al fresco lifestyle and preparing for summer gatherings.

Clothing, Shoes & Jewelry (7.3%): The Clothing, Shoes, and jewelry category also experienced a rise in ad spend as consumers updated their wardrobes for the warmer months. Seasonal events like Mother’s Day and Graduation Season drove demand for stylish apparel and accessories, prompting advertisers to showcase new collections, special offers, and gift ideas.

Walmart:

Home (15.2%): Walmart’s Home category was spotlighted in May as consumers sought products for household updates and seasonal refreshments. Advertisers focused on furniture, décor, and storage solutions for spring cleaning and organization projects. With Memorial Day weekend events, ads featured festive décor and entertaining essentials, offering affordability and variety to meet diverse needs and preparations for family gatherings.

Patio & Garden (15.2%): In May, Walmart’s Patio & Garden category saw increased ad spend as consumers prepared their outdoor spaces for spring and summer enjoyment. Advertisers promoted outdoor furniture, gardening supplies, and décor to enhance outdoor living experiences. With the promise of warmer weather, consumers turned to Walmart for quality products and affordable options to transform their outdoor spaces into inviting areas for relaxation and socializing.

Electronics (3.4%): The Electronics category experienced a moderate rise in ad spend, driven by promotions for gadgets and tech gifts suitable for occasions like Mother’s Day and Graduation Season. Advertisers highlighted the latest electronics, smart home devices, and entertainment systems, appealing to tech-savvy consumers and gift shoppers.

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