Google Ads VS Amazon Ads

Amazon PPC vs. Google Ads: Which Is Better for Your E-commerce Business?

  • Introduction
  • What is Amazon PPC?
  • What are Google Ads?
  • Comparing Audience Intent
  • Cost and Budgeting
  • Ad Formats and Features
  • Conversion Rates and ROI
  • Which Platform Should You Choose?
  • Conclusion

Have you ever wondered how Amazon Top Sellers consistently dominate search results and drive sales? It’s not just luck, it’s the power of Amazon Pay-Per-Click (PPC). Imagine having your products right in front of interested buyers as they search for what you sell. Sounds like a groundbreaking innovation, right? With expert strategies and data-driven insights, Prime Ecommerce Solutions can take your PPC campaigns to the next level and ensure your products stand out in a crowded market. Are you ready to unlock the secrets of massive sales growth and outshine your competitors? Dive in!

1. What is Amazon PPC?

What is Amazon PPC?

Amazon Pay Per Click (PPC) is an advertising platform where sellers bid on keywords. When customers look for those keywords, the seller’s product shows up as a sponsored listing. The word “pay-per-click” comes from the fact that sellers only get paid when someone clicks on their ad.

Amazon PPC ads are one of the best ways to get more people to see your products and make more sales on the world’s biggest online store. Amazon is the place where millions of people around the world go to shop, with 197 million unique users every month. Prime Ecommerce Solutions focuses on Amazon Pay-Per-Click (PPC) services that are designed to help businesses do well in this tough market.

How Amazon Pay Per Click (PPC) Works

How Amazon Pay Per Click (PPC) Works

  • Keyword bidding: This is when sellers bid on keywords that they think people in their target market will look for. If you pay more, your ad has a better chance of being shown.
  • Ad Auction: When a user searches for a keyword, Amazon runs an auction to determine which ad will be displayed.
  • Pay-Per-Click: You only pay when someone clicks on your ad. If your ad is relevant to the right people, it can save you a lot of money. 

Important Amazon PPC Metrics You Should Know:

Important Amazon PPC Metrics

  • Advertising Cost of Sale (ACOS): is a key measure that figures out how much of each sale was spent on ads. The ACoS is (Ad Spend / Sales) x 100. If the ACoS is smaller, the profit margin is higher. Depending on the business, a good ACoS is usually between 15% and 30%.
  • Click-Through Rate (CTR): The number of people who clicked on your ad after seeing it. Amazon PPC has an average CTR of 0.36%, but this number can go up a lot if you optimize your product ads.
  • Cost per Click (CPC): How much you pay each time someone clicks on your ad. This is called CPC. It costs about $0.81 per click (CPC) for Sponsored Products ads on Amazon. 

You could hire an Amazon PPC management service to help you improve these metrics for better success if you want professional help.

Amazon PPC Ads Types

Amazon PPC Ads Types

  • Sponsored Products:

Advertisements for specific products are called “sponsored products,” and they show up in search results or on pages that describe the products. A person who searches for “wireless headphones” might see an ad for your headphones at the top of the search results table. Sponsored Products are the most popular choice for buyers, with over 72% of all PPC ad spend going to them.

  • Sponsored Brands:

These ads market your business and up to three of your products. They show up at the top of the search results page. Sponsored Brands could be used by a company that sells skin care items to show their best-selling face wash, moisturizer, and serum all in one ad. Sponsored Brands have an average CTR of 0.66%, which is almost twice as high as Sponsored Products. This is because they focus on branding and helping people find new products.

  • Sponsored Display:

With sponsored display ads, sellers can reach back to customers who have looked at their product or related products on Amazon and other websites. If a customer looks at your product but doesn’t buy it, they might see an ad for it on Amazon or even on other websites. Sponsored Display ads are great for getting people to come back and buy again; in fact, 43% of customers are more likely to do so after seeing a retargeted ad. 

 To get the most out of these kinds of ads, using an Amazon PPC Service by Prime Ecommerce Services can help you put your products in front of the right people, which will increase sales and conversion rates.

2. What are Google Ads?

What are Google Ads

Businesses can bid on Google Ads to have their ads show up in Google’s search results and on its huge Display Network, which includes millions of websites, YouTube videos, and mobile apps. Your ad shows up when people search for certain words or go to websites that are related to what they are looking for. This helps you reach your target audience more effectively. The way Google Ads works is called pay-per-click (PPC), and it means that you only pay when someone clicks on your ad. With a lot of different ad formats like text, image, video, and shopping ads, it’s a flexible advertising option that can work for any business.

Google has a huge audience—more than 5.6 billion searches happen every day—and its Ads services let businesses reach potential customers at every stage of the buying process. Google Ads Management Services can help businesses grow by doing term research, coming up with bidding strategies, and making sure their campaigns are running at their best. 

Google Ads: How They Function

Google Ads How they function

  • Targeting keywords: It allows advertisers to place bids on keywords that are pertinent to the products or services they offer. If a person searches for certain keywords, Google will display the advertisements that are the highest-ranking based on a number of parameters including the amount of the bid, the quality of the ad, and its relevance.
  • Ad Auction: Google performs a real-time auction in order to decide which advertisements to display and where they will be displayed on the page.
  • Pay-Per-Click: With this method, similar to Amazon PPC, you only pay when someone clicks on your advertisement. This method is more cost-effective when your advertisements are optimized.

Companies who are looking for a customized approach to pay-per-click (PPC) campaigns frequently turn to Google Ads management in order to maximize their return on investment (ROI) and ensure that their advertisements are seen by the appropriate audience. Businesses have the ability to ensure that their ads are both highly targeted and cost-effective by utilizing the appropriate tools, such as the Google Ads optimization tools. This increases the likelihood that their campaigns will be successful. 

3. Audience Intent: A Look at the Differences Between Google Ads and Amazon Sponsored Products

When it comes to advertising, knowing what your audience wants is very important for running ads. Amazon PPC and Google Ads are both aimed at different types of users, which can have a big impact on how well your ads do.

Sponsored Products Strategy at Amazon (Audience Intent on Amazon)

Amazon’s site is different because it’s mostly used by people who are very likely to buy something. People who visit Amazon are usually ready to buy something or at least check prices, which makes them more likely to make a purchase. For example, 70% of Amazon shoppers never look past the first page of results. This means that Sponsored Products can help you get seen where it matters most.

With Amazon Sponsored Products, you can reach people who are looking to buy something. People who are actively looking for similar items will be able to see your goods because these ads show up in search results and on product detail pages. Because of how Amazon works, it’s more likely that clicks will lead to sales than on most other sites. Amazon Sponsored Products, for instance, have an average sale rate of 9.87%, which is a lot higher than the average Google Ads rate. 

The Amazon PPC Strategy used by Prime Ecommerce Solutions

Amazon PPC Strategy

We use Amazon Sponsored items at Prime Ecommerce Solutions to make sure that your items show up in front of people who are very likely to buy them. Our Amazon PPC Agency is better than others.

  • Making sure that product lists and keywords are optimized to match what customers are looking for.
  • Making your ads more visible by strategically bidding so they show up on the first page of relevant search results.
  • Targeting only the most relevant buzzwords will help you get the most out of your advertising budget and increase your return on investment.

Within three months of using our Amazon PPC approach, one of our clients who sold kitchen appliances saw a 25% rise in sales and a 20% drop in CPC.

Table: Comparison of Audience Intent

Platform Audience Intent Conversion Likelihood
Amazon PPC Shopping-focused audience High
Google Ads Broad audience, includes researchers Medium

Google Ads (Audience Intent on Google)

Google Ads Intent

Google Ads, on the other hand, targets more people. Google isn’t just used for shopping; it’s also used to find information, compare things, and find answers to problems. This means that Google Ads often catches people at different points in the buying process. Not all users are ready to buy, though. A lot of them are still researching or thinking about it.

Google’s strength is its reach, which lets you target people at different points in the buying process, from becoming aware of a product to actually buying it. This isn’t true for Google Ads, though; the average rate of conversion across all businesses is only 4.4%. The cost-per-click (CPC) can be very high, sometimes more than $50 per click, in niches with a lot of competition, like insurance or law services. 

4. Budgeting and Cost

They both have different price models and cost structures when it comes to cost and budgeting, which can change how you spend your advertising budget.

The Amazon PPC cost is mostly based on how much you bid on certain keywords, and you only pay when someone hits on your ad. If your area is very competitive, the cost-per-click (CPC) for Amazon Sponsored Products can be as low as $0.81 or as high as $1.00. For instance, the CPC is usually higher in areas with a lot of competition, like electronics.

A question that a lot of buyers have is, “How much does Amazon Sponsored Products cost?” 

The price changes depending on things like how popular the keywords are, where the ads are placed, and how they are targeted. There is no minimum budget, but buyers can set daily budgets to keep ad spending in check. This makes it a flexible choice for businesses of all sizes.

The CPC on Google Ads can be very different based on the keywords you’re using. The CPC can be more than $50 for search terms with a lot of competition, especially in businesses like insurance or legal services. For niches with less competition, on the other hand, the CPC is much lower. Google Ads also lets businesses set daily spending limits and change them based on how well their campaigns are doing. Amazon PPC costs may be cheaper than Google Ads, but to get the best return on investment (ROI), you need to carefully manage your budget and bidding strategy on both. 

Which is better: Google Ads or Amazon PPC?

Your business goals and the people you want to reach will help you choose between Amazon PPC and Google Ads. Amazon PPC is a great way to reach people who are already thinking about buying if you’re mostly interested in ecommerce. Amazon has a high convert rate because it focuses on searches that are based on products. This is especially true for sellers who want to make the most sales on the site. But Google Ads is great for getting your business seen by more people and attracting possible customers at different points in the buying process, especially when they aren’t specifically looking for your product.

We at Prime Ecommerce Solutions offer services that are specifically made for both platforms to help you pick the one that works best for your business. We make sure that your efforts get the best results and return on investment (ROI), whether you want to use Amazon’s focused marketplace or Google’s broad search network.

Table: Cost and Budgeting

Platform CPC Range Budget Flexibility Industries with High CPC
Amazon PPC $0.81 – $1.00 No minimum budget Electronics, Appliances
Google Ads $0.50 – $50+ Set daily budget limits Insurance, Legal

Types of ads and their features

Amazon Ads and Google Ads both have different types of ads that can be used to meet different business needs and customer habits. Knowing the different kinds of ads can help you pick the best one for your marketing plan.

Amazon Ads for Sponsored Products

Sponsored products ads on Amazon are very focused on promoting specific products, which makes them great for reaching users who are both looking around and ready to buy. People who are actively looking will see these ads more often because they show up in search results and on product detail pages. 

  1. Sponsored Brand: When you have a sponsored brand, your logo and tagline are shown next to up to three goods in an ad that usually shows up at the top of the search results page. They’re a great way to get people to know about a brand or line of products.
  2. Sponsored Display Ads: These let you retarget customers both on and off of Amazon, which means they’re good for getting people who have looked at your items before but didn’t buy them to come back. 

The Formats of Google Ads

Google Ads Formats

There are a variety of formats available with Google Ads, which allows users to be targeted across a variety of platforms, including Google Search, YouTube, and millions of companion websites.

  • Search Ads: Text-based advertisements that are displayed at the top of Google’s search results page when users search for particular keywords are referred to as search advertising. Customers that are actively looking for a product or service and have a high level of intent to purchase are perfect candidates for these promotions.
  • Display Ads: They are displayed on Google’s Display Network, which consists of a wide variety of websites and applications, and are referred to as display ads. These ads can take the form of images or banners. It is possible to increase brand awareness and retarget users who have previously connected with your website through the use of display advertisements.
  • Shopping Ads: These advertisements display product photos, pricing, and detailed information about stores directly within the search results on Google, so assisting customers in comparing and making decisions regarding their purchases.
  • Video Ads: These advertisements are displayed on YouTube and other websites that are Google’s video partners, making them an excellent choice for people who want to engage with rich media content.

Whereas Google Ads has a greater variety of formats that cater to both brand-building and direct response needs, Amazon Sponsored Products are more focused on driving instant transactions. In general, Google Ads is more focused on driving immediate purchases. When choosing between these two platforms, it is essential to select the advertisement format that is in accordance with the particular goals that your campaign aims to achieve. 

5. How Prime Ecommerce Solutions Can Help You Pick the Best Platform

Prime Ecommerce Solutions is an expert in Amazon Ads Agency and Google Ads to help you get the most out of your business. Our experts look at your business needs and the people you want to sell to in order to give you the best ecommerce platform recommendation. We can help you increase your sales and return on investment (ROI) whether you want to attract high-intent shoppers on Amazon or get more people to your website through Google. Companies that use both Amazon and Google Ads see 35% more sales growth because they are taking advantage of the best features of both.

  1. Platform Choice: We help you figure out whether Amazon PPC or Google Ads is best for you based on your product type and target group, or if a mix of the two will work best.
  2. Campaign Optimization: We keep improving your campaigns to get the best results for the least amount of money, from phrases to ad placement.
  3. Full Reporting: We give you full information about how your campaigns are doing, so you can make choices based on facts that will help you succeed in the long run. 
Features Amazon PPC Google Ads
Audience Intent High purchase intent, as users are actively shopping and ready to buy. 70% of Amazon users are in the final stages of the buying funnel. Users are often in the research phase, comparing products or gathering information. Only 17% of searches lead directly to a purchase.
Ad Types Sponsored Products, Sponsored Brands, Sponsored Display, Amazon DSP. Search ads, Display ads, Shopping ads, Video ads, Local ads.
Reach & Targeting Target shoppers already on Amazon, with automatic or manual keyword/product targeting. Ads shown on search results, product pages, and external sites via DSP. Broader reach, covering the entire web, including Google search, YouTube, Gmail, and Display Network. Uses keyword targeting, demographic, and audience-based targeting.
Cost & Budgeting Amazon PPC cost varies by product category, keyword competition, and bid strategy. On average, CPC ranges from $0.81 to $2.16 per click. Google Ads costs depend on keywords, industry, and competition. CPCs for ecommerce generally range between $1 and $2 but can be higher for competitive keywords.
Targeting Options Sponsored Products can be manually or automatically targeted by keywords or product ASINs. Sponsored Brands target keywords, and DSP offers programmatic targeting based on customer behavior. Offers more flexible targeting options including broad match, phrase match, exact match keywords, audience segmentation, remarketing, location targeting, and more.
Conversion Rates Higher conversion rates, with 10% – 15% of clicks converting to sales, due to high purchase intent. Lower conversion rates than Amazon, with typical 2% – 5% conversion rates as users are often researching, not ready to buy.
Bidding & Budget Control Amazon PPC offers dynamic bidding options (up and down) and allows daily budget control. Automatic campaigns are helpful for beginners, while manual campaigns give more control over keyword selection. Google Ads has multiple bidding strategies, including CPC (Cost-Per-Click), CPA (Cost-Per-Acquisition), and CPM (Cost-Per-Mille). Advanced budgeting tools allow businesses to control daily and total spend.
Ad Placement & Visibility Ads appear directly on Amazon’s search result pages, product pages, and recommendations, where consumers are already shopping. Sponsored Products appear at the top of search results, while Sponsored Brands occupy a premium spot. Ads appear on Google Search, Google Shopping, Display Network, YouTube, and Gmail. Placement depends on ad type: search ads show at the top of search results, display ads across millions of sites, and shopping ads on product search results.
Ad Features & Customization Sponsored Products are simple but effective. Sponsored Brands offer more creative options, such as brand logos, custom headlines, and multiple product listings. Sponsored Display Ads enable retargeting. Google Ads offer rich ad formats including text ads, shopping ads, display ads, and video ads, providing multiple ways to engage with customers. Extensive customization is possible, especially with dynamic search and responsive display ads.
Reporting & Analytics Offers robust insights into sales performance, ad spend, ROI, and conversion rates. Provides detailed product-level reporting. Amazon Attribution allows you to track external traffic’s impact on Amazon sales. Google Analytics integration allows for deep insight into user behavior, conversion paths, and performance across multiple touchpoints. Also provides comprehensive data on search queries, audience behavior, and multi-channel attribution.
Ease of Use Ideal for sellers looking to optimize sales within Amazon’s ecosystem. Beginners benefit from automatic campaigns, while experienced sellers use manual targeting. Can be complex due to wide-reaching options. Best for businesses looking to capture broader web traffic, requires experience to manage keywords, ad types, and targeting effectively.

Conversion Rate and Return on Investment (ROI)

When it comes to comparing conversion rates and Amazon return on investment (ROI), both Google Ads and Amazon PPC provide distinct benefits over one another. These advantages vary depending on the objectives of your business and the actions of your audience.

Amazon Pay-Per-Click (PPC)

Amazon PPC

The Amazon marketplace is initially designed with transactional intent in mind, which means that consumers are often in the mindset of making a purchase. Additionally, as a consequence of this, conversion rates for Amazon Sponsored Products advertisements tend to be higher. This is due to the fact that customers are actively looking for products to buy. PPC advertisements on Amazon have a conversion rate of approximately 9.55 percent on average, making them an excellent option for companies who are trying to make direct sales and receive rapid returns.

One of the most important metrics for determining return on investment is Amazon’s Advertising Cost of Sales (ACoS). A lower average cost of sale (ACoS), which typically falls between 15 and 30 percent, indicates that your advertising expenditures are resulting in profitable sales. Increasing the efficiency with which your Amazon PPC strategy is optimized will result in an increase in your profitability. Effectively Amazon conversion rate optimisation also involves using A/B testing and improving your customer reviews to increase credibility. Moreover, Businesses who take the time to fine-tune their campaigns by targeting specific keywords, adjusting their bids, and strategically placing their advertisements can earn remarkable returns on their investments. 

Google Ads

On the other hand, Google Ads often has a lower conversion rate, which is approximately 3.75 percent. This is due to the fact that consumers are frequently in the research or discovery phase rather than being ready to make an online purchase right away. However, if it is managed well, the return on investment (ROI) for Google Ads may still be quite high. This is especially true for companies who effectively optimize their campaigns for relevant keywords, ad copy, and audience targeting. Through the enhancement of brand visibility, website traffic, and awareness, Google Ads campaigns have the potential to deliver substantial long-term value. This, in turn, can result in increased conversion rates over the course of time.

5. Table: Conversion Rates and ROI

Platform Average Conversion Rate (%) ROI Potential
Amazon PPC 9.87% High
Google Ads 4.4% Moderate

Which is Better for Return on Investment?

Ecommerce companies who are focused on driving instant sales can benefit from Amazon PPC because it delivers higher conversion rates and has a quicker return policy. Google Ads, on the other hand, makes it possible to target a larger audience and to create a brand, both of which have the potential to generate a significant return on investment over time. This is especially true for firms operating in highly competitive or expensive industries.

Understanding the distinction between audience intent and customizing your ads for each platform is ultimately the most important factor in accomplishing the goal of boosting conversion rates and return on investment. 

Amazon, where the competition is always high, understanding PPC is the key to steady sales and long-term success. You can make sure that your goods reach the right people at the right time with Prime Ecommerce Solutions, which gives you the knowledge and strategies you need to deal with Amazon’s complicated advertising system. Don’t let your rivals get ahead; purchase a successful pay-per-click (PPC) plan right now and see your company grow. Are you ready to step up your Amazon game and make more sales than ever? Now is the beginning of the way to success.

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