Google Ads vs. Amazon Ads: Where Should You Advertise?

Selecting the perfect online advertising platform can make or break your business. There are two giants (or titans) in the digital advertising space today, Google Ads and Amazon Ads, offering unique benefits for different needs. 

Google Ads comes first with a reach no other search engine advertising service can match and targeting options of all kinds, including but not limited to keyword-based ads, whereas Amazon Ads tries to convert shoppers right at the scale of its e-commerce ecosystem. 

The choice ultimately depends on where you want to spend your ad budget, and the following highlights should make that decision easier. In this article, we compare and contrast the benefits of Google Ads vs. Amazon Ads, while also illustrating how an Amazon expert can increase your profits.

The key differences between Google ads and Amazon ads

Keywords, targeting and intent

The search network in Google Ads uses keyword-based targeting to allow advertisers to reach users who are looking for information, answers, or products. This is why it’s perfect for targeting users in the discovery or consideration phase. 

On the flip side, Amazon Ads targets users based on shopping behaviour and intent to purchase, using its wealth of e-commerce data to access customers deeper in the sales funnel. On Amazon, advertisers can either use keywords specific to a product or opt for advanced targeting, such as retargeting past purchasers. 

Google offers a wider net of potential customers, but Amazon closes sales by pitching to existing buyers.

Audience reach

Google Ads is a unique forum with worldwide recognition featuring a collective bank of trillions of users on its search engine, YouTube, and the display network. The platform has a far-reaching ecosystem that enables brands to tap into various demographics at different points in the buyer journey. 

Meanwhile, Amazon Ads relies on its large pool of shoppers. Amazon’s audience is more limited, but it targets people ready to buy. That means Amazon Ads is less about total reach and more about finding the most qualified, purchase-ready customers. 

While both platforms have their advantages, Google wins points in reach, but Amazon wins points in specificity of audience.

Conversion tracking and ROI potential

With in-depth tracking capabilities for clicks, form submissions, and offline conversions, Google Ads offers an accurate view of how users interact with your content across the web. Since it is such a versatile tool, businesses, whether focusing on lead generation or brand awareness, can take advantage of its features. 

Amazon Ads is really all about sales-oriented metrics like cost per sale (CPS) and return on ad spend (ROAS). Instead, tracking on Amazon is more straightforward as it relates to e-commerce returns, with some level of ROI simplified for product sellers.

 Both platforms offer excellent tracking, but Amazon better serves businesses with immediate revenue-generating goals, while Google supports a wider variety of goals.

Automated bidding

Automated bidding on Google Ads applies dynamic algorithms to adjust user behaviour while targeting specific goals, including maximisation of clicks or conversions. This works best for companies that have more understated goals as it allows them to calibrate it exactly right for different types of campaigns. 

Amazon Ads has similar automated bidding, but it’s really geared toward winning ad placements in its marketplace to ensure ultra-high visibility with active shoppers. Amazon maintains its automated system with its sales ecosystem, allowing instant optimisation for optimal ROI.

Although both use automation well, Amazon is specific to e-commerce, while Google allows more freedom with other industries and types of campaigns.

Ad placement dynamics

Using Google Ads, businesses can serve ads on Google’s search engine, YouTube, and on an enormous display network – providing you with numerous touchpoints. Advertisers can display ads at different levels of the user journey, depending on the keywords and quality scores — and how much each is willing to pay. 

Amazon Ads, on the other hand, focuses ads directly within its marketplace, showing ads on search results pages, product detail pages and competitors listings. This gives you elevated exposure to ready-to-buy customers. 

Google placements are perfect for creating awareness and generating leads, whilst Amazon places product-driven ads—a surefire way to guarantee relevancy and increase the chances of immediate conversions.

Why Amazon advertising is better than Google advertising

Amazon offers higher conversion rates

Conversion numbers would always be higher when it comes to Amazon than Google Ads. That can be attributed to the nature of Amazon, as users already have purchase intent and are looking for products to buy. Statistically, most product searches in the U.S. occur directly on Amazon, resulting in conversion rate numbers that can vary between 10% and 15%, or even higher if they target Prime members. 

In comparison to Google Ads, conversion rates are usually below 5% because Google has users who are either researching or just becoming aware. This means Amazon Ads offers cheaper ROAS despite its commission fees.

Amazon ads help with rankings

While Google Ads establishes a firm wall between paid ads and organic search rankings, Amazon Ads will have a direct correlation with where the product ranks organically. When advertisers advertise their products on Amazon through Sponsored Ads, visitors visit their listings more, causing higher sales volume. Listings that convert well are rewarded with higher organic keyword rankings by Amazon as sales increase. This feedback loop allows new sellers or listings to rapidly gain visibility and higher search rankings. 

But on Google, these paid search ads do not influence the organic ranking, and you have to work alongside SEO which is time consuming.

Amazon is easier to get on top of

Compared to Google Ads, it is much easier for advertisers on Amazon to gatekeep their marketplace. Although Google limits advertisers via its “one keyword, one bid” policy to ensure that no more than one advertiser can bid on multiple listings for the same keyword, Amazon enables one advertiser to dominate more than one spot on the search results page. 

When one brand fills multiple ad placements on the SERP, like in the right-side image results of queries, it allows them to own the entire search results page. 

On the other hand, Google’s “Unfair Advantage” allows very few spots available for advertisers, thus preventing monopolisation of search. Due to Amazon’s lax policies, it becomes easier for an e-commerce business to receive a huge exposure.

Amazon has more opportunities for ecommerce businesses

For e-commerce brands, it opens up a suite of options on Amazon Ads that are unavailable on Google Ads. The main reason for this is the fact that more product searches happen on Amazon than Google, which means it has a larger pool of customers actively searching to buy. Amazon Ads are designed for e-commerce objectives, with higher conversion rates, better ROAS, and easy-to-track results. 

Advertisers also use different formats, including those that allow them to own the entire search result page or even impact organic rankings—these are differentiated aspects between ad platforms. Furthermore, emerging brands have an easier time competing and fast-track brand awareness and growth, thereby improving their odds of long-term survival.

How can an Amazon advertising agency help increase profitability from Amazon ads?

Expert campaign optimisation

An Amazon advertising agency is a specialist that helps businesses achieve ROI from their campaigns. With their effective targeting strategies on the basis of shopping behavior, purchase intent and demographics, they make sure that your ads are served to the most relevant audience. Equipped with extensive knowledge, they know how to design campaigns that attract more clicks and conversions.

Effective keyword research and competitive analysis

The agencies perform complete keyword research and competitive analysis to find high-converting keywords. Using this data, they will optimise product listings and create ads that get them on top of Amazon’s search results page so your products can be seen by the right shoppers at the right time.

Budget and bidding optimisation

An agency can optimise your bids for optimal placements to be reached at the lowest possible prices on Amazon. Also, automatically control budgets to make the most out of your ad budget, allowing you to adjust for the maximum sales volume possible for your money by getting the lowest cost points.

Real-time performance monitoring and adjustments

Agencies check your campaigns in real-time with Amazon’s reporting tools, finding deficiencies. Your campaigns will be running competitively and at a profit in an ever-changing marketplace as they are constantly making data driven adjustments.

Summary

You will notice that Amazon Ads usually offer higher conversion, much better chances of ranking well in their marketplace and ultimately a far superior ROI for most e-commerce businesses. 

Furthermore, the ability for businesses to monopolise search results pages and target buyers that are heavily driven by intent on Amazon makes it a good option for product-centric advertising as well. Better targeting, optimisation, and experience combined will help businesses make the most out of their ad spend and support long-term sales and profitability.

Having an expert partner like Mercatus is a must. Contact Mercatus now to unleash the full potential of your Amazon advertising.