I recently informed several author clients that I no longer recommend Amazon ads. For almost ten years Amazon ads have been the best advertising investment, but now the ROI is upside down. You might spend a couple hundred dollars per month to earn fifty in royalties. It seems my gut instinct was correct. A recent article in MarketPlace Pulse confirms that too many ads are chasing too few clicks, thus increasing bid prices.
According to Marketplace Pulse research, the average cost-per-click (CPC) was $0.85 in 2020. It reached the lowest point of $0.70 in early May when the pandemic caused supply chain disruptions, resulting in some brands running out of stock and pulling back on advertising. However, it recovered by mid-September and then hit three distinctive peaks: Prime Day in October, Black Friday and Cyber Monday in November, and holiday shopping in December. After that, CPC settled at around $0.90 for most of Q1 2021.
My experience suggests Amazon ad pricing will only rise. As a way to combat the limitations Christian authors face, in the months ahead look for a new BookBub like site / app for Christian Readers. The ministry of Christian Devotions continues to work in new ways to make books found.
Books I support—authors I trust.