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Amazon ads are shaping the future of the platform. Compared with Google and Facebook, Amazon is also making rapid progress in e-commerce strategies and paid search advertising.

Facebook ads and Google ads.

Facebook and Google's ability to adapt to small-screen devices and monetize them is key to their growth and dominance. Both Facebook and Google have developed new ways to monetize consumers' transition from desktops and laptops to smartphones, tablets and e-readers.

Google's most profitable advertising product is Google Ads, which directly led to a 52 per cent year-on-year increase in paid clicks, its highest level in seven years. On the other hand, when Facebook introduced ads to page feeds, ad revenue soared. The two companies' mobile applications make them an efficient advertising platform.

In the UK and the US, Google and Facebook are indeed leading the advertising world. But as Amazon's advertising business continues to soar, the other two companies are showing signs of declining market share.

Google Shopping Ads VS Amazon Sponsored Products.

Although both Google Shopping and Amazon Products show images, titles, prices, and stars of the products, there are significant differences between the two e-commerce platforms:

Google Shopping ads are not controlled by keywords. If you search for a product, Google will decide what to display based on the product information provided by advertisers through the product data feed, and it is recommended that sellers of their own website use them, and that the ad will be displayed in Google Search, Google Pictures, YouTube and Gmail, bringing consumers directly to your site.

Amazon product promotion ads are ads that target or target product attributes by keyword. They operate in a bid auction format, bringing consumers to product details pages for specific products for Amazon's VC sellers and third-party sellers.

For Amazon, all ads are internal. If you search for a specific item, the search results will only be products sold on the platform.

Typically, Amazon ads rank ads based on the total profit generated by their ads, while Google ranks them based on the click-through rate of their ads.

Amazon's advertising revenue.

Amazon generated $2.8 million in advertising revenue in 2017 and $6.6 billion in 2019, according to JPMorgan. This surge is possible because of the uniqueness and advantages of Amazon's advertising on its platform, such as:

Paid product promotion ads can appear at the top of Amazon's product search results page to reach a larger audience. With SP ads, sellers will have the opportunity to appear at the top, bottom of the page, or on similar product results pages for more presentations.

Amazon Display is another form of Amazon's PPC ads that appear on the comments page, the sidebar of the product search results page, and Amazon's marketing emails.

A headline ad is a banner ad that promotes 1 or 3 products at a time. Ranked in the top of the gold seat, exposure, large clicks, high conversion rate.

Why do more brands prefer Amazon's advertising platform?

A Survey of more than 1,000 retail decision makers by Feedvisor found that 73% of brands advertise on Amazon. Of these brands, 83 per cent received four times as much return through Amazon ads, while up to 62 per cent drive sales through Amazon. This ratio proves that brands prefer Amazon's advertising platforms for a reason, including:

According to Feedvisor's 2020 survey, Amazon generates a higher ROI (return on investment) than Google and Facebook, at 59%. That's why more brands are spending more on Amazon ads.

Amazon's return on advertising spending (ROAS) can deliver at least seven times the return on brands. Ad platforms offer a variety of solutions, such as self-service pay-per-click advertising and media purchases, attracting more brands that use multiple ad types. More effective advertising options include product promotion ads, branded ads, display ads, and Amazon DSP.

Amazon offers advertising services at all stages of the customer's shopping process. As Amazon's advertising platform becomes more sophisticated, more and more brands are advertising shoppers at all stages of shopping: awareness, shopping intentions, buying and re-purchases.

Amazon has greatly influenced the modern e-commerce experience. "Amazon is a platform where two-thirds of shoppers start searching for products, and three-quarters of people choose their shopping destinations," said Dani Nadel, President and Chief Operating Officer of Feedvisor. So as Amazon continues to invest in advertising solutions, brands should seize the opportunity. "

It's time to invest in Amazon ads.

As a result of the outbreak, the Amazon market is experiencing a "new normal", especially in advertising spending, average CPC and CTR. The good news for many advertisers is that the average CPC is declining. Therefore, for a brand with resources, it is necessary to seize the opportunity to increase conversion rates and accumulate relatively cheap clicks.

Jordan Gisch, senior strategist at Marketplace Search, said: "The outbreak is likely to have a lasting impact and will continue into the fourth quarter of this year, with holiday shopping going to be significantly affected." "As a result, advertisers who invest more in advertising in the fourth quarter may benefit from lower delivery costs and achieve greater results." It's also a good time to invest in the upper level of the funnel because recent traffic is much cheaper.

(Source: AMZ Think Tank)

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