The Similarities Between Amazon & Google
Amazon’s advertising platforms share many similarities with Google’s own tried and tested AdWords structure. From Ad Groups, keyword search data and pay-per-click ads that appear in search results, most advertisers will already have a sufficient understanding and experience to get them started on Amazon. A key benefit for retailers looking at Amazon is the lure of lower average CPCs. In fact, Amazon’s CPCs are around 38% lower on average than AdWords. Over the last 17 years, AdWords’ CPCs have risen in line with an increased popularity amongst advertisers and it is likely Amazon will follow suit, so it’s advisable for retailers to get in there early and benefit from lower costs whilst they last.
However, last year was huge for Google Shopping and their advertising offering for retailers is now looking stronger than ever. Most recently, they launched ‘Shopping Actions’ with a cost-per-sale pricing model, which supports greater ROI for retailers over their traditional pay-per-click ads. Cost-per-sale pricing mimics that of Amazon’s own model and was reported by as some as a direct retaliation against their competitor.