Amazon Hiked Search Based Advertising Prices: CNBC

Amazon.com Inc's AMZN cost per click for search advertising was $1.27 in August, up 47.7% year-on-year, CNBC reports.
Amazon is also concealing the companies' listings in search results which are not paying the toll. Sellers are paying more overall to Amazon for transaction fees and fulfillment services.
Brands are reportedly spending 50% or more of their product price on various fees to be selling on Amazon, Marketplace Pulse's Juozas Kaziukenas told CNBC.
The growth of Amazon aggregators, venture-backed companies raising big money from outside investors to acquire independent sellers has led to Amazon's ad price rice surge. Additionally, some smaller sellers' doubts against deep-pocketed aggregators are contributing to Amazon's gains.
Amazon's "other" sales were the fastest-growing part of its overall business in Q2, with revenue soaring 87% Y/Y to more than $7.9 billion.
Amazon, which previously promoted two or three sponsored products at the top of search results, now shows six sponsored products.
Amazon eclipsed Microsoft Corp's MSFT ad revenue in 2018, trailing behind Alphabet Inc GOOG GOOGL and Facebook Inc FB.
Amazon spokesperson told CNBC that it has no dedicated ad slots within search results and added that ads improved the visibility of brands.
Sponsored product ads accounted for 73% of retailers' ad spend on Amazon in Q2.
Amazon began replacing product recommendations in listings with product ads in 2020. The e-commerce giant has also added new ad formats like video ads and sponsored brands posts.
Price Action: AMZN shares traded lower by 1.98% at $3,394 in the premarket session on the last check Monday.

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