Google vs. Amazon: Who Will Win the Battle for Ad Spend?
Being a business owner, you always want to spend your ad budget wisely to get returns. You might be new to Amazon and Google advertising, this article will help you consider advertising and how to balance spending on both Google and Amazon. I want to give you some tips to understand how bidding on each platform works by choosing the new pointers where your budget can show the ROI.
A decade back, Amazon was only a shopping platform, and Google was a searching platform. Now, the entire scenario is different as users switch to Amazon when searching, comparing the quality and price of products. According to reports, more than 55 percent of product searches are now shifting to Amazon. Further revealed that users are more interested in finding products on Amazon than on Google search engines. Thus, many companies started spending more money on Amazon than on Google.
Amazon poured a substantial amount into Amazon advertising for the last few years and merged AMS, AMG, and AAP into what we call Amazon Advertising. So Google counteracted this by changing Google Adwords to Google Ads. Amazon and Google provide the same range of advertising services like display, video, and search. However, Amazon’s advertising revenue went up to 120 percent, but Google could only see 17 percent. Nevertheless, Amazon has more revenue than Google. Both are powerful tools for advertising small to big brands.
How ad auction works on Amazon Ads and Google Ads
Amazon Ads
The bidding processes of both Amazon and Google are different from each other. This is why Amazon uses a second-price auction. For example, If you were to bid $ 2 on an ad and a user clicks on it, you don’t need to end up paying that much. The price you will pay per click will come to the second-highest bid placed on the ad. So there is an option of $ 1. 50 is how much you will be paying.
Google Ads
Google will have a similar process, but with more visibility, Google will assess the quality of the ad and go with real-real data to consider how your ad will rank. This is what Google considers when finalizing rank inc bid value, calculating click-through rate, ad relevance, and even the user’s location and device.
How do ranking factors decide on advertising on both Google and Amazon?
If you decide to bid on Amazon or Google, they have logical algorithms to assess the ad for a particular set of ranking factors.
Amazon:
Keywords
Amazon can establish the relevance of your ad to users with the right keyword relevance. Using relevant keywords will help get your ad in front of the users.
Details Of The Product
You must ensure that the landing page for the ad should be relevant to the ad itself. For instance, if you have an ad for a trip that leads to a topic listing the hotels and ticket fares, users might not be interested because the information you provide is not enough.
Complete List Of Products
You must provide a complete list of the products or services to customers. It helps you get more users and attract more to get sales.
Google Ads
Click-through rate
The ranking factor for Google Ads is your click-through rate. If your CTR is less, the relevance for customers will be lower. Therefore, CTR plays a crucial role.
Ad relevance to search intent
According to major PPC agencies, Google Ads won’t show adverts to customers if the ad is not apt to the customer’s search intent. So, keywords and location will be the key aspects for ads.
What are the differences between Amazon Ads and Google Ads?
Product targeting vs keyword targeting
Amazon’s primary focus is products, but Google’s focus is keywords. Thus, organizations use Amazon ads to target particular products or their list of products filtered down by customers’ reviews and ratings. Although Amazon and Google use keywords, Google targets keyword placement for ads more than Amazon.
Automatic search terms
Based on the user’s product search, Amazon provides automated target keywords for showing products to users. Amazon applies artificial intelligence technology to match ads with relevant products and keywords so that advertisers can view a list of search terms and products to choose the campaign.
Demographic targeting
On the other hand, Google designed a systematic method of advertising for brands as it includes demographics. Google has enough library of user data that brands have at their disposal for their campaigns. Based on the location, gender, age, and relationship status, Google segregates data, so it would be easier to get sales than Amazon.
Price
For retail marketers, any campaign aims to get more sales on investment. The main difference between Amazon and Google is that Google Ads won’t require advertisers to set the budget because Google allows brands to advertise to generate bidding strategies that work on business goals.
How Olio Global AdTech can improve budget decision-making
As you have gone through the aforementioned factors, it is difficult to decide which platform is better: Google or Amazon for advertising. Recent strategy concludes that Amazon is growing more and becoming the cynosure of brands to advertise than Google.
Olio Global AdTech can help in this regard. If you are planning to make your ad simpler and better, call upon us and mail it to us.
