Amazon and Google both seek large amounts of revenue from their advertisement departments. They, however, have very different approaches to their advertising. Google highlights text ads below product listings ads which can potentially lead to a lot of clicks and therefore a lot of revenue. Amazon receives an even larger share of revenue from product listing ads. Amazon uses both sponsored search ads and headline ads although the sponsored search ads yield a lower click rate. This headline ad success rate could result in Amazon increasing its price structure and therefore increasing overall revenue.
Key Takeaways:
- Compared to Google advertisements, Amazon headline searches get more clicks and conversions.
- Among millennials, Amazon’s mobile app is one of the fastest growing applications for users looking for product information.
- Amazon’s advertisers are getting more value via sponsored products compared to headline search ads.
“Despite the figures, Amazon?s search ads could possibly be worth a lot more than Google?s.”