Most people don’t realize that Amazon is one of the biggest search engines available today. It delivers results to an audience that is already deep in the sales funnel and more inclined to make a purchase. This platform also has ample data on user spending trends, online shopping behavior, and other such factors. That’s why many marketers consider Amazon pay-per-click advertising a welcome addition to this field. But how does Amazon PPC compare to Google’s established platform? Here’s a look at the two options:
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Google is Still in the Lead
All studies conducted show Google ad spend, click through rates, and Shopping ad spend are relatively stable. Both Google and Facebook are still the leading and more preferred platforms when it comes to paid advertising. Shopping ads are about 27% to 28% of the total ad revenue generated by Google.
On average, Amazon currently gets 21% of a business’s advertising budget; some businesses step more. Amazon beats Google on product search because 55% of online shoppers will look through the Amazon platform before they search on Google. This has led to speculation that the e-commerce giant might disrupt the Google-Facebook dominance in the digital advertising market.
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CTR and Conversion Rates
This platform offers two options; Headline Shopping Ads and Sponsored Product Ads. Analysis indicates that HSA has higher visibility and returns. Ads show up at the top of search results and receive a high CTR of around 2.68%. The SPA has lower CTR of around 0.49% but it receives higher ad spend. Trends show that companies prefer SPA to HSA.
A combination of both gives marketers a considerable amount of visibility on Amazon, which can lead to higher conversion rates and better sales. These PPC ads see around 10% conversion rate, which is substantial when compared to 1% to 2% rates of Google AdWord campaigns.
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Differences Between the Two
It’s a good idea to understand the differences between the two platforms to determine which option is more suitable. A comprehensive marketing campaign should include ads on both platforms but you can determine how much more you should invest in one platform over the other. Here are some differences marketers must understand:
- Google ads will take users to a brand website. Amazon ads will keep users on the website.
- All types of Amazon ads aren’t available to all sellers so the options can be limited.
- Amazon ads don’t capture behavioral information to retarget, which sets it apart from Google.
- Unlike Google, Amazon will factor in unique parameters like reviews. That adds some complexity to the bidding process.
- CPC is slightly higher than Google cost per click, which means you might have to spend more on campaigns. But ROI is also higher on Amazon so the additional expense is worth it.
Both platforms share a lot of similarities when it comes to keywords, targeting, bidding, ad groups, etc. This makes it easier for marketers with AdWords experience so they’re more likely to experiment with Amazon.
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