Amazon PPC

Amazon PPC vs Google Ads: Which Platform Offers Better Returns?

August 15, 2024
4 mins read

In today’s digital marketing landscape, choosing the right advertising platform is crucial for maximising your returns. Two of the most popular options are Amazon PPC and Google Ads. But which one delivers better results? Let’s dive into the ins and outs of both platforms, compare their effectiveness, and help you determine which one is best suited for your business goals.

Understanding Amazon PPC

Amazon Pay-Per-Click (PPC) is an advertising platform designed specifically for sellers on Amazon. It offers a variety of ad types, including Sponsored Products, Sponsored Brands, and Sponsored Display. These ads appear directly on Amazon’s website, making them highly visible to shoppers who are actively searching for products.

How Amazon PPC Works

With Amazon PPC, you bid on keywords relevant to your products. When a shopper’s search query matches one of your keywords, your ad may appear in the search results or on a product detail page. You only pay when someone clicks on your ad, hence the term “pay-per-click.” Key metrics to monitor include ACoS (Advertising Cost of Sale), CPC (Cost Per Click), and conversion rate, all of which help gauge the effectiveness of your campaigns. If you want to hire professional assistance with your campaigns, visit AmazonPPC.co.uk.

Understanding Google Ads

Google Ads is a versatile advertising platform that reaches users across Google’s vast network, including search results, display networks, and YouTube. It offers various ad types such as Search Ads, Display Ads, Shopping Ads, and Video Ads. Unlike Amazon PPC, Google Ads targets users based on their search queries, browsing behaviour, and demographics.

How Google Ads Works

Similar to Amazon PPC, Google Ads operates on a bidding system where you choose keywords to target. Ads appear in Google search results or on websites within Google’s Display Network. Key metrics for Google Ads include CTR (Click-Through Rate), CPA (Cost Per Acquisition), and ROAS (Return on Ad Spend), which help assess campaign performance.

Comparing Amazon PPC and Google Ads

Audience Intent and Targeting

Amazon PPC targets users with high purchase intent. When shoppers use Amazon, they’re often looking to buy, so ads here are shown to users actively searching for products. Google Ads, on the other hand, has a broader approach. It targets users based on keywords and behaviour, which can capture a wider range of intent but might not always be as purchase-focused.

Cost and Budgeting

Both platforms operate on a bidding system, but their cost structures can differ. Amazon PPC typically has a higher CPC due to intense competition within product niches. Google Ads offers more flexibility in budgeting, but costs can accumulate quickly depending on your targeting and bidding strategy. Evaluating average CPC rates and overall budget control is essential to make the most of your investment.

Ad Formats and Visibility

Amazon PPC ads are highly visible on product pages and search results, directly influencing purchase decisions. Google Ads, with its diverse ad formats, offers various ways to engage users, from search ads to banner ads across the web. Each platform’s ad visibility can affect user engagement differently, depending on your campaign goals.

Effectiveness and ROI

In terms of ROI, Amazon PPC often shines for product-based businesses due to its direct connection with purchase intent. Google Ads can be more effective for brand awareness and capturing a broader audience, but the ROI can vary based on your industry and keyword competition. Examining case studies and industry benchmarks can provide insights into what works best for different scenarios.

What You Do Not Want to See from an Amazon Advertising Agency

Often, you’re advised on what you want to see from an Amazon advertising agency. In other words, you’re looking for experience, case studies and a friendly team. But, there are also signs that you shouldn’t hire an Amazon advertising agency that you must look out for. These act as warning signs that the team aren’t a good fit for your business and may not deliver the results you’re looking for. Let’s take a look at what they are.

A High Monthly Retainer

Nobody wants to be charged a fortune for an Amazon advertising agency. Often, there’s no need to do this. But it doesn’t stop agencies from trying to rip you off and charging a fortune. You may want to look elsewhere if you notice that the agency has a high monthly retainer. This can cause you financial issues later on and you should never take on more than you can afford. Yes, hiring an Amazon advertising agency is going to bring in more customers. But, sometimes, it won’t be enough to combat a high monthly retainer.

A Non-Negotiable Full Service

Is the Amazon advertising agency trying to offer you a full service that you don’t really want? This can be a red flag. In particular, it can be a way to get more money out of you. You could be paying for services that your business doesn’t really need, which is a waste. Instead, you want a team that’s going to work with you and give you a service that actually benefits your business. Sometimes, a full service spreads their team too thin and you don’t achieve great results.

A Lack of Transparency

You have to be cautious of an Amazon advertising agency that doesn’t want to be open and honest with you. For example, do they object to giving you full reports every month? You need to know what they’re doing to understand if the service is working for you. If the team refuse to be transparent in their work, you should stay clear. Otherwise, you could be spending a lot of money without any reward.

Conclusion

Both Amazon PPC and Google Ads offer valuable opportunities for advertisers, but their effectiveness can vary depending on your business goals and industry. By understanding the strengths and limitations of each platform, you can make an informed decision that aligns with your advertising objectives. Whether you choose Amazon PPC for its purchase intent or Google Ads for its broad reach, the key to success lies in strategic planning and ongoing optimisation.

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