Reasons Amazon Ads Could Be Better Than Google Ads

There are several reasons you should leverage Amazon Ads for your business and the number one is that it outshines Google Ads especially when it comes to conversion, value, and ROI. Today, almost 9 out of every 10 ecommerce businesses that rely on Ads use Google Ads but the trend is quite in another direction as more ecommerce operators combine Google and Amazon Ads t maximize their PPC results. Experts think that Amazon Ads could perform much better than Google Ads because it offers higher traffic quality, better conversion rates, easier tracking, and higher long-term value. Amazon Ads also offer more lenient policies.

Why Amazon Ads is Undervalued

Amazon Ads is not as popular as Google Ads for some reasons. Google holds the key to global search engine usage with more than 90% of the market share. In 2021, a survey revealed that Amazon’s search volume had increased to 54% of the total product-related searches in the USA alone.

Google has a broader reach but Amazon provides a more relevant and direct-targeting opportunity for business owners. Another factor that seems to work for Amazon is that it is a stand-alone e-commerce platform. Business advertisers will need to invest in Amazon’s ecosystem and build their products before they list such on Amazon’s platform.

The startup capital on Google Ads is lower because Ads can be run directly to your business website. Many people are unaware that Amazon operates a product known as “Fulfilled by Merchants” or FBM, that allows sellers to fulfill products themselves and not rely on Amazon’s fulfillment centers.

As a business owner, you shouldn’t hesitate to join the Amazon marketplace, the reason being that you can build a new sales channel and also gain access to the platform’s network of customers.

Another reason Amazon Ads is undervalued is that the cost of running Amazon Ads on face value seems to be higher than Google Ads. Since Amazon Ads is a CPC platform like Google Ads, advertisers are charged based on clicks on their Ads. Amazon, however, charges a percentage sales commission on a product sold on their site that varies based on the product’s parameters.

The following are 5 good reasons why Amazon Ads is better for your business than Google Ads:

1. Higher Conversion Rates

Amazon provides higher conversion rates than Google Ads. Most consumer product searches in the United States of America occur on Amazon and this alone provides higher conversion rates on the platform than Google Ads.

While Google Ads provides customers with more effective targeting capabilities, Amazon Ads has a more product-focused intent. Amazon also provides its users with several other useful tools including the possibility of advertising your products on competitor listings.

It’s quite common to see Amazon listings with 15% higher conversion rates compared to Google Ads which usually produce conversion rates lower than 5% in most cases. It is also important to mention that Amazon Ads’ ROAS are more cost-effective than Google Ads.

2. Attribution and Tracking are Easier on Amazon

Google tracking is quite efficient, especially with the deployment of Google Analytics 4 and the Tag Manager. But even with these, it remains difficult to handle attribution on the platform. This is not the situation with Amazon Ads because they took a completely different approach. All product information is hosted on Amazon’s platform, and these include buyers’ reviews, long-form content, influencer videos, and even similar products to an item listed on the platform.

Amazon has also built buyers’ trust, especially with its fast fulfillment and free return policy. Most consumer searches and sales are completed on Amazon’s platform, and they ensure that all the information gathered is retained.

As a business advertiser, it is quite easy to understand your customer’s behavior from keyword search to the actual sale hence you can re-focus your ad campaign to meet such customer behavior. Amazon offers efficient brand analytics and an Ad platform that provides business owners with a flywheel to ensure they constantly make the best marketing decisions and improve access to their products.

3. Amazon Ads Drives Higher Ranking

Google and Amazon have distinct policies that affect the way Ads influence organic rankings. Google stated that investment in paid search has no impact on organic search results and the reason is that the platform maintains a separation between search and advertising businesses.

Amazon on the other hand operates a direct opposite policy, and it is common knowledge that Amazon’s sponsored Ads drive higher organic rankings. It means Amazon’s sponsored Ads drive more buyers to their users’ listings which in turn increases sales. Subsequently, it is natural to see your sell-through rates increase and the platform uses this trust factor to rank products organically for used keywords.

With Amazon’s policy, new entrants can quickly rank products and get a foothold on the platform’s marketplace.

4. Amazon Ads Build Better Reviews and Long-term Value

Search Engine Optimization- SEO on Google can be time-consuming, and capital-intensive. This means link-building, content generation, and website optimization on Google which cost a significant amount of money. It is still unclear what works and what doesn’t on Google, the reason being that the SEO parameters set by the platform are constantly changing.

On the other hand, investing your resources in Amazon Ads creates an instant value-added effect. More Ads on Amazon means more sales and higher sell-through rates that will lead to higher rankings. With more sales, your products get more reviews which are the lifeblood of your rankings.

5. It is easier to Dominate the Amazon Marketplace

Amazon Ads makes it easier for businesses to compete, and it has become a lot easier to dominate the marketplace than Google Ads.

Google operates a policy known as “Unfair Advantage” which makes it impossible to advertise two listings for the same keyword. With Google Ads, you have only four Ad spots which means Google doesn’t want a single entity to control the entire space.

With Amazon on the other hand, it is easier for an advertiser to dominate an entire niche on a search results page.

Conclusion

With all the numerous advantages Amazon Ads has over Google Ads, it should be easier for you to decide between the two. Remember, Amazon presents a better opportunity for e-commerce advertisers than Google Ads. Though Google offers more search volumes, Amazon Ads offers more product searches, better conversion rates, better ROAS, easier tracking, easier competition, and the chance to dominate an entire SERP.