While Google still dominates the online advertising market, it has seen Amazon grow to become a formidable competitor in recent years. The latest Amazon Advertising numbers show over 40% growth, making it the third-largest advertising platform in the world (just behind Google and Facebook).
So how is advertising on Amazon different from Google?
- All advertising on Amazon are for products that are actually sold on Amazon. This means that Amazon is not sending traffic away from their website, creating a win-win situation that generates revenue for itself and the product seller when users click on the advertisement
- Amazon advertisements have a higher ceiling. Certain types of ads on Amazon has a minimum purchase of $100
- Conversion rate of Amazon campaigns is higher than Google campaigns. This is because people who search on Amazon already have an intention to make a product purchase, while people search Google for more general information
Amazon offers a few standard formats for their advertisements:
- Sponsored products – these appears when users search for a particular products. They can be pushed to the top, middle or bottom of the product results page depending on the amount of bids the advertiser puts in
- Amazon display – these are pay-for-click options which shows up on Amazon marketing emails, side-bars of product search pages
- Headline ads – these are banner ads that can advertise one or three products at once
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