For a long time, Google held the crown when it came ad spend. Their monopoly over the ad market meant they were often the only option. Until recently, 70% of all ad spend in the UK was being used via Google and Facebook. However, a new challenger stepped up in recent years; Amazon.
Why are Amazon ads popular?
Thanks to its rapid growth and popularity, Amazon is now a major competitor for the tech giant that is Google. It has become so popular in fact that Google’s ad market has dropped for the first time ever. The cause of this drop is down to both Amazon and Snapchat.
These two players are able to more easily adapt ads for the small screen. No, we don’t mean television. Smartphones and tablets are fast overtaking the desktop. Noting this, Amazon developed strategies that could monetise better on these devices.
What makes Amazon ads different from Google ads?
While you may recognise some similarities between the two, they are different enough to make them respectively unique. Here are a few examples of how Amazon ads run differently from their Google counterparts:
- Amazon ads are internal to the site. All of the ads are for products found on the site, there is no referral to external sources. These are click-through ads that generate revenue for themselves and the seller.
- Different ad types require different minimum ad purchases. This allows Amazon to generate higher revenue from certain product sellers.
- Amazon doesn’t capture audience information. It also doesn’t retarget behavioural details of audience action.
Are there similarities between the two?
Since both ultimately have the same goal, to promote products and increase conversions, there are a few things they do similarly. For example, they both are:
- Based off of a CPC model
- Triggered by keywords
- Organised by ad groups
- Optimised for conversions
- Displayed before the organic result
Will Amazon catch up with Google?
It goes without saying that Amazon is already giving both Facebook and Google a run for their money. They are already winning in the knowledge that 55% of online shoppers begin their search on Amazon, not Google.
Another main selling point for Amazon ads is that the conversion rates can be 10% higher. This is because their structure puts customers at the bottom of the funnel.
However, Google Adwords isn’t to be sniffed at. With years of development behind it, it undeniably offers better user experience for advertisers. Although, Amazon ads are still very much in their infancy in comparison and advertisers are only now utilising the platform. This lends itself perfectly to ongoing updates and changes to the interface and usability.
Are you looking for support when it comes to PPC and ad spend? We are an Amazon ads partner which means we can help you to develop a strategy that works. Drop us an email on team@modo25.com to find out how we can work together.
You can also use our digital marketing prediction index, BOSCO, to find out where you should be spending your paid media budget for the biggest returns.
