When Did Amazon Start Bidding on Shopping Ads Again
In an impactful move reported by the digital marketing firm, Merkle, Amazon has stopped behest on Google Shopping Ads.
Amazon's decision to stop behest on the lucrative Shopping Ads, otherwise known equally Product Listing Ads (PLAs), adds fuel to the burn down of their contempo disputes betwixt the marketplace behemoth and Google, such as YouTube being pulled from Amazon devices, voice-controlled speakers (of which Amazon owns over 50% of market share) and the fact that Amazon refuses to sell Google products such equally Google Home.
Merkle estimates that Amazon was spending over $50 Million a twelvemonth on PLAs. They also reported that on the sew to Christmas, Amazon's impression share against home goods retailers skyrocketed from 0% to 25%, indicating just how much Shopping Ads real estate Amazon snapped upwardly since they began advertizing on Google in 2016.
Why did Amazon Stop Buying Google Shopping Ads?
Amazon'due south Prime number membership program made the online market place desirable and a formidable competitor for both Google and retailers alike.
Would you wait 3 to five working days for that gift yous bought for Mum or receive it the next solar day just in time for her birthday? Nearly would choose the latter, which is why consumers might accept been tempted to click on the Amazon product listing over others.
If this is the case, and so why cease doing something that's been and so successful?
Amazon'southward determination to stop ownership Google Shopping Ads shows sign of their desire to expand within the digital advertisement marketplace.
Although we can't know why exactly, Amazon's history with PLAs leads us to speculate as to why they pulled their listings once more:
Merkle, in 2016, said that Amazon's investment in PLAs would only strengthen Google in the struggle to exist the first port of call for consumers' product searches. By pulling out, Amazon saves (if a correct estimation) over 50 one thousand thousand a yr and, as a hugely successful marketplace, Amazon limits Google Shopping's search listings.
Information technology isn't the get-go time Amazon accept pulled their listings from Google, having done then in 2012; a move to limit consumer selection on Google so that they would have to visit Amazon, and again in 2015 over data concerns according to Concern Insider:
"Ad sellers like Google were able to utilize the ads to get data about Amazon's users, which enabled them to hone up advertising targeting on their ain platforms. Amazon is now plugging that hole, which was allowing hundreds of companies to substantially steal chunks of its online advertising share past using its ain data (for a cost.)"
Google Shopping Actions
In addition to this, Google introduced their Shopping Actions progam in March, essensially turning their platform into a marketplace, which might be why Amazon decided to withdraw.
The program offers retailers a fashion to fight back against Amazon past working directly with them. Consumers can now consummate their purchase without e'er leaving Google, which means Amazon would lose out on traffic and be helping their rival to expand as a marketplace.
The Impact on Advertisers
Depending on where advertisers list, the impact of Amazon's decision will be felt by those on each end of the spectrum;
Good News for Advertisers on Google Shopping:
When Amazon first started their Shopping Campaigns on Google, information technology put them in direct competition with retailers like Walmart, and because of their dominance and brand recognition, was claiming a large impression share.
Advertisers on Google will meet an increase in clicks and lower CPC overall as their primary competitor, Amazon, won't be taking up and then much Shopping Advertisement real manor and impression share.
Bad News for Brands and Retailers on Amazon:
Those advertising on Amazon will meet lower clicks and ROI equally their products will no longer accept advantage of Google'southward hugely successful Shopping Ads. In fact, PLAs in Q1 of 2018 were driving 76.4% of retail ad spend in the US and 82% in the Britain (Adthena Search Advertizement Report, 2018).
Information technology was also reported by CPC Strategy that Amazon's sales accept dipped since they ended their Google Shopping campaigns.
Whether it is a temporary move or a permanent one, Amazon's decision to terminate behest on Google Shopping Ads has provided advertisers on Google Shopping a window in which they can obtain more than clicks and sales. Amazon may have made the right option, given that Google's Shopping Deportment plan is due to make waves in the ecommerce world.
Get in touch to find out how you can optimise your production data for both Amazon and Google Shopping.
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Source: https://www.intelligentreach.com/blog/amazon-stops-bidding-on-high-revenue-google-shopping-ads/
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