Selecting the correct advertising medium is crucial in today’s dynamic e-commerce landscape. Although most digital marketers prefer Google Ads every time, Amazon Ads can give you better results, especially when it comes to e-commerce businesses. This platform has the potential to be much more effective for E-commerce PPC as compared to Google ads. Amazon Ads has higher-quality traffic, improved conversion rates, manageable tracking, long-term value, and more lenient guidelines. This article highlights the significant reasons why Amazon Ads might be the better option for your e-commerce strategy.
The Underestimation of Amazon Ads
There are various reasons why Amazon Ads has gained less popularity than Google Ads, even among e-commerce corporations. Here are some of them.
- Google dominates global search with more than 90% market share. However, a survey conducted in 2021 by Jumpshot revealed that Amazon manages 54% of all product-related searches in the U.S. Although Google offers a wider reach, Amazon gives more targeted advertising possibilities, which e-commerce advertisers can miss.
- Another fact is that Amazon works as an independent e-commerce medium. You have to invest in their system and set up product listings to list your products on Amazon. On the other hand, Google Ads drives traffic directly to your website, resulting in lower startup expenditures and a more straightforward setup. Most people are unaware that Amazon offers a program called Fulfilled by Merchant (FBM). This program helps sellers manage shipping and fulfillment independently instead of using Amazon’s fulfillment centers.
- In addition, Amazon Ads appear more costly upfront due to the CPC (cost-per-click) model and the inclusion of percentage commissions on sales. However, they can still be budget-friendly compared to Google Ads because Amazon’s CPCs are typically lower, and conversion rates are higher on their platform. Hence, Amazon Ads usually provide better value for driving sales even with the added commission.
Benefits of Amazon Ads for E-commerce Businesses
Amazon Offers Better Conversion Rate
In the USA, most people usually search for products on Amazon, leading to higher conversion rates than Google Ads. Although Google Ads provides reliable targeting opportunities, Amazon’s focus on product searches with high purchase intent gives it an edge.
Another benefit of Amazon is that it allows advertisers to present their products on competitors’ listings. Amazon listings usually have conversion rates of 10% to 15% or more, and prime members often have even higher rates. Contrarily, Google Ads generally witness conversion rates of less than 5%.
Even after a 15% commission on sales, Amazon Ads’ return on ad spend (ROAS) is often more pocket-friendly than Google Ads’.
Amazon Simplifies Attribution and Tracking
Google Ads tracking has enhanced significantly with Google Analytics 4 and Google Tag Manager. Nevertheless, even after these improvements, learning attribution and understanding the importance of Google Ads to a keyword or product listing is still challenging.
However, Amazon Ads does not have this scenario as it follows a different approach. People can find product details, buyer feedback, influencer videos, and related content hosted within the Amazon platform, making tracking and understanding the customer journey straightforward.
Amazon has an excellent reputation for quick shipping and free returns, so customers feel confident completing their transactions on this platform. It becomes straightforward for advertisers to comprehend the customer journey from keyword to sale and witness the revenue yielded by each ad campaign and the keyword and product target.
Amazon’s Brand Analytics and advertising tools give its users an edge by assisting them in enhancing their products and marketing approaches. This platform becomes highly effective with time, whereas Google Ads might keep you in doubt about the actual performance of your campaigns.
Amazon Ads Boost Product Rankings
Google and Amazon use different strategies for how ads influence organic rankings, which presents a remarkable opportunity for Amazon advertisers.
Google clearly states that investing in paid search ads does not impact your organic search rankings. They keep their search and advertising functions entirely distinct.
While Amazon’s approach is different, even though it’s not officially declared. In practice, Amazon Sponsored Ads increase organic rankings. They engage a more authentic audience in your listings and boost sales. Consequently, Amazon’s algorithm helps your products get better organic rankings for those keywords.
Both techniques have merits. Amazon’s approach allows new sellers to quickly gain visibility and begin to rank in the marketplace whereas enhancing organic rankings through SEO is a time-consuming process.
Amazon Ads Enhance Reviews and Long-Term Value
SEO on Google can be a slow and expensive procedure. It takes a lot of time and effort to build links, create content, and optimize websites to enhance rankings. In addition, SEO practices are continually altering, making it challenging to understand what will actually work.
However, investing in Amazon Ads straightly helps your Amazon SEO. More ad leads mean more sales, enhancing your sell-through rates and increasing your rankings. Furthermore, running ads raises customer reviews, which are paramount for ranking on Amazon, just like links are for Google SEO.
Thus, Amazon’s investment not only helps you gain visibility and improve sales but also positively influences your product’s ranking through increased reviews. This is not the case when it comes to Google Ads, where the investment does not affect your SEO rankings because Google keeps its ad and search operations separate.
The Amazon Marketplace is Easier to Dominate
Amazon Ads’s leading advantage is that it allows you to compete and dominate the entire marketplace, unlike Google Ads.
Google’s “Unfair Advantage” approach stops advertisers from handling considerable ads for the same keyword. Google ensures that no single advertiser can control all the space, with only four ad spots available. On the other hand, Amazon permits a single advertiser to take over a large portion of the search results page.
It is technically feasible to circumvent Google’s practices by creating multiple accounts. This is against their guidelines and can lead to all your accounts being closed if you are noticed.
However, Amazon promotes this policy and authorizes e-commerce businesses to own the entire search results page.
Why Are Amazon Ads A Reliable Option for E-commerce Advertisers?
Amazon provides a more substantial opportunity for e-commerce advertisers. While Google has a higher search volume and can be helpful, Amazon Ads offer more benefits for savvy e-commerce companies. The primary reasons incorporate the following:
- More product searches occur on Amazon compared to Google.
- Increased return on ad spend (ROAS).
- Improved conversion rates.
- Simplified and more precise tracking.
- More accessible for new firms to compete.
- Straightforward to acquire long-term rankings.
- Ability to dominate the entire search results page.
Conclusion
To sum up, Amazon Ads offers decisive benefits for e-commerce businesses. From better conversion rates to simplified tracking and the ability to dominate SERPs, Amazon Ads provides a unique opportunity to drive growth and success in today’s competitive e-commerce landscape.
At RevoluteX Digital, we are committed to helping enterprises navigate the intricacies of Amazon ads and achieve sustained success in the marketplace. Whether you want to improve your ROAS, enhance your product rankings, or specify a dominant presence on Amazon, we are here to guide you through every step. Contact us today!