Amazon Advertising Rates Soar in Pandemic-Fueled Surge
- Rates in May rose 50% from a year earlier, signaling profits
- Merchants look to raise prices to cover cost of visibility
Source: Amazon.com Inc.
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Amazon.com Inc.’s advertising rates jumped more than 50% in May from a year earlier, signaling the online retailer’s rising profitability should continue through busy periods like its upcoming summer sale Prime Day and the holiday shopping season.
The rise in ad rates, reported by industry researcher Marketplace Pulse, may give lawmakers and regulators momentum in their effort require Amazon to pay higher taxes and push merchants on the e-commerce platform to raise prices at a time they are grappling with higher shipping costs and other inflationary pressures.