EcommerceBytes-NewsFlash, Number 3005 - February 20, 2013     3 of 5

Study Finds Google Shopping More Cost Effective than Amazon Product Ads

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A report from CPC Strategy says Google Shopping was on average 32.77% more cost-effective for merchants during Q3 and Q4 2012 than Amazon Product Ads. The 2012 Ecommerce Industry Report analyzed the sales data of over 200 online retailers with an ad-buying power of over $2.4 million, analyzing over 6 million clicks and $14.6 million in revenue. The study compared the effectiveness of Google Shopping against rival shopping engine Amazon Product Ads.

Andrew Davis, Director of Marketing for CPC Strategy, said Google Shopping's switch to a paid model was very beneficial to sellers. "It was the most cost-effective shopping engine online in Q3 and Q4 costing merchant an average of $11.30 cents in advertising costs for $100 in sales," he said, "with the lowest average cost-per-click at $0.31 in Q4."

Moving Google Shopping to a paid model gave Google a new incentive to show merchant products to consumers, he said. "Google sent more than twice as much traffic to merchants from Google Shopping in Q3 and Q4 2012 than it did in 2011."

What's the bottom line when choosing between the two ad platforms? Davis said if merchants have to choose one, the data says start with Google Shopping first, but Amazon Product Ads needs to be tested and treated as a tier-1 shopping engine as well. That's because each shopping engine performs differently depending on the product mix, average order value, and site-wide conversion rate of each seller, according to Davis.

"The big takeaway here is that Google Shopping and Amazon Product Ads are very healthy sales channels for advertisers that pay to play. Google Shopping is just twice as big...for now."


About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.


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