There are several big names that typically come to our minds when we hear of digital advertising. Google is, more often than not, the very first pick. The brand is so dominant that the word ‚google‘ has become a transitive verb by now.
But who’s next on the list?
You might be surprised to hear, but as of late Amazon Advertising has been closing in the gap between itself and competitor Google. According to a 2018 report, 46.7% of US internet users started their product searches on Amazon, while only 34.6% chose Google as a primary search platform.
But this is not something that happened spontaneously throughout a couple of months. Product search volume has been slowly turning more favorable for Amazon ever since 2015. Back then, Google’s share of product searches was at about 54% and Amazon’s at 46%. By 2018, however, the numbers had reversed. Now Amazon has become the third-largest digital advertising platform in the USA, standing alongside Google and Facebook, who own the gold and silver medals in the advertising competition.
It doesn’t end here though, because as Amazon’s search reach is continuously increasing, advertisers see a tremendous opportunity in using it. They are steadily shifting from Google Ads to Amazon Advertising.
Curious to know why? Read on!
A Clearer Return On Investment
When people are heading over to Amazon, they’re typically driven by the intention to buy. On the other hand, Google works as a vast network of possibilities. People might be there to shop, but they might just as well be researching a product or simply discovering new trends.
This is why, when it comes to Google or Facebook, the return on investment is not very easy to determine. As opposed to these platforms, Amazon offers a clearer ROI. How? It’s simple. Considering the business’s nature, the platform is directly connected to online checkouts, so determining how much money you spent on ads truly led to conversions is not a matter of estimating.
Amazon knows exactly what actions a user took after seeing an ad. This way, it lets you know for sure whether a shopper clicked on your ad and actually converted, or if they chose a competitor’s product instead.
Brand Analytics and Higher Conversion Rates
While Amazon vendors previously needed a premium package to access reporting data, brand analytics are now offered freely by Amazon to its users. This is a sign that Amazon advertising services are continually expanding their territory, leveraging marketing data to drive more ad spend.
The key performance metrics you can access by using Amazon Advertising are:
- Detailed page views (DPV)
- Units sold
- Total sales
- Advertising Cost of Sale (ACoS)
The increased conversion rates represent another key factor that makes advertisers shift from Google Ads toward Amazon Advertising. Studies performed by Millward Brown Digital show us that the conversion rate for Amazon Prime members is 74%.
One of the reasons why the Amazon PPC strategy is more effective is because Amazon customers are generally at the bottom of the funnel. Their purchase intent is higher than at any other point.
What About The Competition?
A contrasting difference that might put Google ahead of the game is that, to advertise on Amazon, you must sell on Amazon. Unlike Google, where people enter the keyword in the search bar and presented with a multitude of websites they can choose from, on Amazon, things are a bit different.
People still have to perform a search by using a specific keyword or set of keywords, but the results will show only products that are sold on Amazon. This can be a great thing if you’re a small business and don’t have a business of your own. But if you have a well-constructed website that you’d like possible clients to access, then Amazon might not be for you.
Another benefit of driving clients to your business’s website is that there will be no competition there. Sure, competition might be fierce initially, but that is only until the prospect clicks on your website. After that, they will be presented just with your products and services that they can choose from.
Grasping The End of The Funnel
As previously mentioned, people who start their searches on Amazon are typically driven by a stronger shopping mindset than the audiences who prefer Google.
Of course, nothing beats Google when it comes to sheer traffic, but buyers targeted by Google Ads are highly eclectic regarding their standpoint in the customer’s life cycle. Some of them might be indeed nearing the purchase phase. At the same time, others might still be engaged in the awareness or consideration stages. They might be just looking up a product out of curiosity or still evaluating their options.
On the other hand, users on Amazon are almost always looking to purchase something.
The conclusion? While Amazon might not be able to top Google when it comes to total search volumes, it stands out by providing high-quality traffic, which is more valuable if you are looking to sell your product. This is also confirmed by the higher conversion rates delivered by Amazon Advertising compared to Google Ads.
A Better Shopping Experience
Yet another substantial difference between Amazon and Google lies in the customer experience. When using Google search, ads lead the user to a website where they have to create an account, fill in the information, and input their credit card. By doing this, the overall buying experience becomes somewhat segmented.
Things are different for Amazon, and clients appreciate the more straightforward process. It’s a seamless shopping experience. You don’t have to stop and consider the next step, create an account, and fill in forms for each category of products that you might want to purchase. Everything is aligned, and shopping becomes part of a flow where second-guessing is less likely to intervene and disrupt the buyer’s journey.
Amazon has continuously been growing as a digital advertising platform and doesn’t appear to put an end to the process just yet. While there are still several product categories to be covered in terms of variety, this only means that there’s still plenty of room for more. Soon, companies will undoubtedly start experimenting with selling bigger items as well.
Currently, most of Amazon’s revenue comes from four countries: the US, the UK, Germany, and Japan. Together with its expansion into new markets, the future of Amazon Advertising is sure to bloom.
But no matter the platform you end up choosing for your business, whether it’s Amazon Advertising or Google Adwords, your digital marketing campaigns will need to be carefully optimized for successful results. It requires a lot of dedication, time, and human resources.
Luckily for you, like many other processes that have been successfully automatized in our modern age, advertising campaigns can also deliver extraordinary results with less effort.
Adspert is a carefully designed software that will help you optimize your e-commerce campaigns using a mathematical and statistical algorithm. Adspert’s AI core automatically analyzes millions of data points and correlations to ensure that your advertising campaigns will make the most out of the finances you decided to invest in marketing. Be it Amazon, Google, Microsoft, or Yandex, you’ll be able to achieve your business goals and maximize your profit.