Nine out of 10 ecommerce businesses I’ve encountered have utilized Google Ads at some point. Surprisingly, many have neglected the significant opportunities offered by Amazon Ads. In my opinion, Amazon Ads has the potential to outperform Google Ads for ecommerce PPC due to higher quality traffic, conversion rates, tracking ease, long-term value, and lenient policies. In this article, I will delve into these advantages and explain why it is essential for your ecommerce business to prioritize Amazon Ads over Google Ads.
Why is Amazon Ads Undervalued?
Amazon Ads has not gained as much popularity as Google Ads, even among ecommerce businesses, due to several reasons. Firstly, while Google dominates global search engine usage with over 90% market share, a 2021 survey by Jumpshot revealed that Amazon accounts for 54% of all product-related searches in the United States. This means that Amazon offers a more targeted audience for ecommerce advertisers, a fact that often goes unnoticed.
Another reason for the lack of popularity is that Amazon is a standalone ecommerce platform. To list a product on Amazon, advertisers must invest in the Amazon ecosystem and build a product listing. This requires a higher startup cost and learning curve compared to Google Ads, where traffic can be directed directly to the ecommerce website.
Furthermore, many advertisers are unaware of Amazon’s Fulfilled by Merchant (FBM) program, which allows sellers to fulfill products themselves without utilizing Amazon’s fulfillment centers. Despite potential hesitations, joining the Amazon marketplace provides access to a wide network of customers and their ad platform, making it a significant advantage.
Lastly, Amazon Ads may appear more expensive than Google Ads at first glance. Amazon Ads, like Google Ads, operates on a cost-per-click (CPC) basis, where advertisers are charged for each click on their ads. However, Amazon also imposes a percentage sale commission on any product sold through their platform. Despite this commission, Amazon Ads are still likely to be more cost-effective than Google Ads, considering the lower CPCs and higher conversion rates on Amazon.
**Keywords to Target: Amazon Ads, Google Ads, ecommerce PPC, higher conversion rates, higher quality traffic**
Amazon Has Higher Conversion Rates
The majority of product searches in the United States occur on Amazon, resulting in significantly higher conversion rates compared to Google Ads. While Google Ads offer effective targeting capabilities, Amazon’s advantage lies in its product-focused intent. Additionally, Amazon offers tools for advertising products on competitor product listings, further enhancing its conversion rates.
Amazon listings often achieve conversion rates of 10% to 15% and even higher for Prime members. In contrast, Google Ads typically have conversion rates below 5%. Despite the 15% commission on products, Amazon Ads usually provide a more cost-effective return on ad spend (ROAS) compared to Google Ads.
**Keywords to Target: higher conversion rates, Google Ads, Amazon Ads, cost-effective**
Amazon Makes Attribution and Tracking Easier
Although Google Ads tracking has improved with Google Analytics 4 and Google Tag Manager, it is still challenging to accurately analyze the value and attribution of Google Ads at the keyword or product listing level. This is where Amazon Ads distinguishes itself. All product information, buyer reviews, influencer videos, long-form content, and similar products are housed within the Amazon platform.
This centralized platform not only makes it easier to track the customer journey from keyword to sale but also provides valuable insights into the revenue value behind each ad campaign. Amazon’s Brand Analytics and Ad platform allow ecommerce businesses to constantly improve products and make informed marketing decisions. In contrast, accurately measuring the performance of Google Ads campaigns remains a challenge.
**Keywords to Target: attribution, tracking, Amazon Ads, Google Ads, ecommerce businesses**
Amazon Ads Drive Rankings
When it comes to the impact of ads on organic rankings, Google and Amazon have contrasting policies. Google explicitly states that paid search investment has no influence on organic search rankings. On the other hand, it is a well-known industry fact that Amazon Sponsored Ads drive organic rankings.
By driving more buyers to listings and increasing sales, Amazon Sponsored Ads improve sell-through rates and contribute to higher organic rankings for relevant keywords. This is a significant advantage for newer entrants looking to gain a foothold in the Amazon Marketplace. In contrast, achieving organic rankings through Google’s SEO efforts can be a tedious and time-consuming process.
**Keywords to Target: Amazon Ads, organic rankings, Google Ads, sell-through rates**
Amazon Ads Build Reviews and Long-Term Value
Investing in Amazon Ads not only positively impacts Amazon SEO but also facilitates the accumulation of reviews. Reviews play a crucial role in Amazon’s ranking algorithm, similar to how links affect Google’s SEO rankings. More ads on Amazon result in more sales, which leads to higher sell-through rates and improved rankings.
Unlike Google Ads, where investments do not directly contribute to SEO efforts, Amazon Ads provide tangible results in terms of reviews and organic rankings. This makes Amazon a more attractive platform for ecommerce advertisers looking to invest in long-term growth.
**Keywords to Target: Amazon Ads, SEO, reviews, organic rankings, ecommerce advertisers**
The Amazon Marketplace is Easier to Dominate
While Google Ads offer competition restrictions to prevent advertisers from monopolizing ad space, Amazon presents a different scenario. In the Amazon Marketplace, one advertiser can easily dominate a large portion of the search results page. This level of dominance is not achievable with Google Ads, even with strategies like opening multiple accounts, which violate Google’s policies.
Amazon encourages advertisers to control and own the entire search engine results page (SERP) for targeted keywords. This creates a significant advantage for ecommerce brands looking to establish a strong presence on Amazon. Owning the entire SERP is an opportunity unique to Amazon and offers unparalleled visibility to potential customers.
**Keywords to Target: dominate the entire SERP, Amazon Ads, Google Ads, ecommerce brands**
Conclusion
While Google Ads remain a popular choice for many ecommerce businesses, Amazon Ads present numerous opportunities for growth and success. Amazon’s higher conversion rates, easier tracking, ability to drive organic rankings, value-added effect on SEO, and dominance of the SERP make it an attractive platform for ecommerce advertisers. If you want to maximize your ecommerce business’s potential, consider leveraging Amazon Ads to complement your advertising strategy.
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