Google and Amazon are two of the most popular online markets online today. Benefiting from an incredible amount of traffic and revenue. That is why they are both keen to not just keep their revenue but to also effectively compete with each other.
In 2022, Amazon’s retail giant cemented its place as the dominant player in online commerce. Its revenue in that year was $280 billion, twice that of its closest competitor. Additionally, Amazon’s advertising business generated $50 billion in revenue. In this article, we will compare Amazon Ads and Google Ads to see which one is more profitable in 2022.
Amazon Vs Google Ads – A Detailed Comparison
In the early 2000s, Amazon.com was used primarily for shopping and Google.com for searching. However, many people today use Amazon to compare products, research purchases, and do other tasks that would have been done on Google in earlier years.
Let’s see a detailed difference between these two platforms:
Product Searchers are increasing on Amazon
According to statistics, 55 percent of product searches now take place on Amazon, rather than on Google. A survey of more than 2,000 U.S. consumers confirms this preference, with 66 percent stating that Amazon is their first stop when looking for a new product.
Companies such as Amazon have begun to increase their advertising spending in response to the rising demand for their products.
E-commerce organizations invest in Amazon
Since 2018, Amazon has made a significant investment in its advertising platform Amazon has grown into one of the biggest digital ad platforms for advertisers and publishers alike. The company is in a strong position to expand its advertising business and increase revenues using existing technologies and innovations like voice-activated technology.
Amazon Ads and Google Ads both offer several types of ads, including display, video, and search. Amazon’s rebranding of Amazon A9 to Amazon Advertising Platform was a success: in 2018, the company’s advertising revenue increased by nearly 120 percent.
As of 2018, Google Ads’ share in the digital advertising market was 17 percent, and that of Amazon was 4 percent. Despite the fact that Google Ads claims the largest share of the digital advertising market, making it hard for the tech giant to undergo Amazon-like growth in 2018, Amazon’s growth is still noticeable.
One reason for this is that more than 65 percent of businesses use online advertising in the U.S., where most American companies are located.
Increased Amazon Ad Spending
Google has a dominant position in online advertising, generating $17 billion in annual advertising revenue. Amazon’s advertising platform, however, is growing at a faster rate and threatens to take market share from Google.
Major brands such as Unilever and Procter & Gamble have made the shift from Google Ads to Amazon Ads. For example, 50-60% of CPG advertising spending comprises the budget of these brands making it a bigger reason for the combat zone between Amazon and Google.
Amazon Spending on Google Ads – Retailers vs Search Engine!
Amazon and Google have an advertising relationship that goes beyond just search. Amazon is the largest online retailer in the world, and Google is the most popular search engine. By 2022, Amazon is expected to spend $10.8 billion on advertisements through Google.
Amazon’s spending on Google ads is likely to continue in the coming years. The organization has been putting forth a major attempt to guarantee that its items are unmistakably shown when individuals look for them on the web, and the outcomes appear in higher deals and a bigger piece of the pie.
Let us explore how this auction works for Amazon ads and Google ads.
Amazon Auction Working
Advertising with Amazon means that you can achieve a great return on your investment. They have an average of over 200 million monthly visitors and over 20 million daily page views. Amazon.com is a company based in e-commerce. Which means that you can sell your stuff online and make money.
You don’t even have to have your own website. Just sign up, list your stuff, and Amazon will put it on their website for you. Best of all, when someone buys something from you, Amazon charges them for shipping, then gives you a portion of their fee.
Although Amazon Ads uses an algorithm to calculate which ads are most relevant to search and eligible to be displayed, the specific details of how it works are unknown.
Amazon requires advertisers to include keywords in their ads that match the search. This is to ensure that the ads are relevant to the search query.
Google Auction Working
Google Ads uses an auction-based system similar to that of AdWords. Google’s closeout framework, notwithstanding, makes it more clear how promotion quality influences the bartering system. Google utilizes different signs and constant information to decide Ad Rank, which estimates the nature of your promotion for an inquiry.
When calculating cost per click, Ad Rank is considered. This means that ads with higher Ad Rank are displayed over those with lower values. However, even though you may pay slightly more than the next highest bid for a click it will still be significantly less than if you had a lower Ad Rank.
Let us explore the ranking factors for Amazon so that you have a better understanding.
Amazon Ranking Factors You Must Consider
Ad Rank is the metric used by Google to determine how relevant an ad is to a user’s search. Amazon has also adopted Ad Rank, though it uses different algorithms than Google because of its unique audience, platform, and needs.
If your ads are not relevant to users, then you don’t accomplish your main goal—to make a sale. If this happens, neither you nor the advertising platform benefits. This is why Google and Amazon evaluate each ad and make sure it is relevant to users.
Following are the Amazon ranking factors:
Let us see these in detail.
Keywords in your ad help Amazon determine how relevant your product is to a customer’s search terms. Targeting the right keywords can help you reach potential customers.
Correct Product Listing
It is essential to coordinate your product listings with your ads to avoid misleading the consumer. For example, a promotion for a hairbrush that links to the product page of shampoo will not appeal to users looking for a hairbrush.
Amazon and its customers value detailed product information, so when Amazon grades ad listings for products sold on Amazon, it evaluates the completeness of a seller’s product listings.
Buy box Eligibility
If you are an Amazon seller and want your product to appear in the Buy Box, one factor will affect your ad rank: Buy Box eligibility.
When creating Amazon Ads, you should consider bidding on competitive keywords and using text that emphasizes the value of your product. However, you must also provide all the information a potential customer would need to make a buying decision and improve your ad’s Ad Rank.
Google Ads Ranking Factors You Must Also Know
Google Ads uses a bidding system to determine the placement of ads. The price you are willing to pay for someone to click on your ad is a factor in determining your ranking in an ad auction, but it does not guarantee the placement of your ad.
Let us see these points in detail:
Ad Relevancy for Search
When creating a keyword-targeted ad to appear in the top positions of a search results page, it is essential to choose keywords that will appeal to users. A local business may limit its advertising to a specific area to make sure that it only advertises in the area where its services are relevant.
Expected CTR (Click Through Rate)
Google Ads also takes into account your clickthrough rate, or how likely users are to click your ad. If your CTR is low, it usually means that your ad does not fit the needs of the audience you are targeting.
Landing Page Experience
Google AdWords uses a metric called “Ad Rank” to determine which ads get displayed and in what order. This metric considers landing page experience as a factor in showing ads that best match an individual’s search query.
Landing pages that provide users with the content promised by your ad, as well as the information or products they are looking for, will rank higher than those that do not.
Personalization is an important part of the Internet experience, and Google’s Ad Rank algorithm takes into account many different factors to determine which advertisements are displayed. These include the search context of the user, their location and time of day, as well as their equipment and past search behavior.
Estimated Extension Impact
By using ad extensions on your Google Ads, you can include your business phone number in your ads to increase their relevance. Ad Rank determines where your ad appears and how often it is shown.
Amazon Ads has a single metric, called Ad Rank, used to determine the order in which ads appear. While Google has multiple factors as listed above.
Major Differentiating Factors between Amazon Ads And Google Ads
Following are the differences between Amazon and Google Ads:
Both platforms use keyword searches as their primary method of targeting consumers, but they differ in their use of match types to reach the right users.Both permit promoters to utilize exact, phraseological, and expansive watchword match types, yet every stage characterizes these terms in an unexpected way.
In addition to exact match keywords, both Google Ads and Amazon Ads include close variants. However, Google’s close variants are more transparent than Amazon’s.
Amazon Ads let you target specific products, categories of products, or a list of products based on criteria such as brand and star rating. But Google doesn’t offer this specific product targeting.
Amazon Ads is again competing with Google Ads, this time with its unique automatic targeting capabilities. Amazon can handle keyword research for sponsored product campaigns, allowing advertisers to focus on their creative strategy.
Amazon’s automatic targeting feature allows users to view a list of search terms and products where your ad appeared. This information can be valuable when manually targeting keywords and products in your campaigns.
Demographic and Audience Targeting
Google has a huge data set of client data that promoters can use to upgrade their publicizing efforts. For instance, promoters can target explicit clients by age, orientation, family pay, leisure activities and interests, gear, and relationship status.
However, Amazon only supports similar targeting capabilities on the Amazon DSP. Furthermore, audience and demographic data are not supported by a sponsored product campaign or a sponsored brand campaign.
Amazon and Google Ads allow advertisers to track conversions automatically, but they do so in different ways. Amazon tracks any purchase made on your website, while Google allows you to create custom conversion actions to track other important events, like submitting a lead form or adding a product to a customer’s shopping cart.
A change following arrangement may be quite difficult for novices. Be that as it may, Google gives careful documentation on the cycle and their client service group is accessible to help you in the event that you want extra assistance.
Google Ads offers automated bidding strategies that allow you to focus on the most important tasks in your campaign management efforts. For example, Target ROAS automatically adjusts your bid for a keyword and sets it at the level needed to get as many conversions as possible from that keyword.
Unlike Google Ads, Amazon Ads doesn’t feature fully automated bid strategies. You’ll need to set bids manually or use pattern forecasting software, like Google’s software. However, Amazon does offer two automatic bid adjustment features that can help you raise or lower bids based on the potential for conversions.
The implication of this study is an interesting one. The growth of Amazon’s advertising business will likely outpace that of Google’s, which doesn’t seem to be facing any major headwinds. So while Google will likely remain the dominant company in online advertising, brands that advertise on Amazon Ads should see a lot of growth over the next six years.
With the right tools and the right attitude, you can become a rock star at Amazon PPC. But with an increasing number of sellers advertising on Amazon, it’s becoming increasingly important for sellers to have a winning strategy in order to stay competitive and remain successful.