Amazon Product Ads allow advertisers to load their product feed into Amazon and advertise their products alongside Amazon’s and their marketplace partner’s inventory on a cost-per-click basis. The ads show up not looking like ads at all in search results, below product detail pages, in side columns and in their own product pages and all drive customers away from Amazon and directly to the advertiser’s site.
Google Shopping still dominates in terms of volume but Amazon is catching up. From what I can see year over year across all accounts, revenue from Amazon Product Ads grew in the triple digits. Not only is it growing in revenue but it’s conversion rate is much higher than Google’s. This makes sense because any user that’s already on Amazon and searching is automatically a very motivated buyer–as opposed to someone on Google who may just be searching for information.
How long before Amazon is the portal for all shopping online – whether you’re buying from Amazon or just shopping for anything online? Google has long held the status of being the starting point for people shopping online but I think they should be very concerned with Amazon beginning to be the ones to hold that mantle.
Add comment January 14th, 2013