In addition to Amazon advertising data from Jungle Scout Cobalt, this blog features insights from the Google advertising experts at Ampd. Ampd is an intelligent advertising platform that makes it easy to launch expert Google Ads to Amazon campaigns. Learn more about Ampd.
Rising ad costs are the number one challenge to selling on Amazon, according to our latest survey of brands and sellers. In response, many are turning to alternative advertising channels in search of more efficient ways to drive traffic to Amazon.
Approximately 40% of brands say that directing external paid traffic to their Amazon listings is a top priority this year.
Jungle Scout’s new 2024 Amazon Advertising Report reveals that the number of brands and sellers investing in ecommerce advertising — like Amazon PPC — has fallen nearly 10% over the past two years. During the same time period, investment in paid search ads has grown more than 50%.
For enterprise brands, search engine advertising has actually overtaken ecommerce advertising. In 2024, 64% of these brands use Google or other search engine advertising, compared to just 50% who invest in Amazon and other ecommerce advertising options.
But all search engines are far from equal when it comes to attracting the ad dollars of Amazon brands and sellers: 95% of those who invest in paid search ads use Google specifically.
Why Run Google-to-Amazon Ad Campaigns?
What makes Google such an enticing platform for advertisers trying to combat the growing competition on Amazon? Like Amazon, Google is widely popular with consumers and has near universal recognition as a go-to for online searches.
4 Benefits of Google Advertising for Amazon Brands and Sellers
Brands and sellers can use Google ad campaigns to drive searchers directly to their Amazon product listings — helping them bolster on-Amazon efforts with traffic from outside channels.
Less competition
One of the biggest benefits that Amazon brands can gain from using Google advertising is quite simple:
“By engaging consumers searching for their products on Google, brands can link those shoppers directly to their products on Amazon, turning them from shoppers into customers.” – Brandon Nutter, CTO, Ampd
Take, for example, a comparison of search results for “Vitamin D” on Amazon versus Google. The brands running a Sponsored Product ad for this keyword could be up against 4 competitors at the top of the search results:
On Google, however, a brand targeting the same search term (“Vitamin D”) can secure the only Sponsored spot at the top of results (and use it to lead shoppers right to Amazon):
In short, Google ads can be a brilliant tactic for brands that want to direct shoppers to their listings but find themselves falling behind the competition in Amazon search.
Cost efficiency
Google ads targeting consumers who are researching products tend to have a low cost-per-click and a high click-through rate, giving brands a more cost-effective way to direct traffic to their Amazon product listings.
This is particularly valuable for brands that are selling in highly-saturated categories where the level of competition has driven up the cost of Amazon PPC advertising.
Almost 40% of brands selling on Amazon say they are worried about rising ad costs.
Our 2024 Amazon Advertising Report illustrates exactly how competition within a category impacts advertising costs. The data shows that Health & Household is the most competitive category for Amazon advertisers, claiming nearly a quarter of ad spend in the U.S. market. But it also shows that Health & Household delivers the second lowest return on ad spend (RoAS) across 23 categories.
See our ranking of the top 10 most competitive Amazon categories for advertisers. Get your copy of the 2024 Amazon Advertising Report.
Given these figures, it’s easy to see how brands that aren’t among the most highly-funded market leaders struggle to compete for ad space. Enter Google-to-Amazon campaigns, which not only pit advertisers against fewer competitors but can also deliver high-intent engagement, often at a lower cost than Amazon PPC.
Ampd data shows that more than 10% of searchers who are served a Google-to-Amazon ad for a product in the Health & Household category add at least one of the advertiser’s products to their carts.
High RoAS
Because Google ads are mid-funnel, most of the KPIs are different than bottom-of-the-funnel channels like Amazon PPC. For many brands, the metrics that matter most for on-Amazon advertising (like Total Sales) may have little bearing on strategic decisions about Google campaigns (where metrics like Add to Cart Rate are key).
Return on ad spend (RoAS) is one of the most important metrics in Amazon PPC, where ads are targeting shoppers at the moment of purchase. But it’s worth noting that Google advertising can also have a positive impact on RoAS, even if that’s not the key metric that your brand is measuring success by.
On average, Google ads directing to Amazon deliver a 203% return on ad spend (RoAS).
This is another way that Google campaigns can help improve the cost efficiency of advertising strategies. After injecting customers from Google into the middle of their funnel, brands can then nurture these potential customers with Amazon efforts. This approach increases the likelihood of conversion and helps to maximize the return on multichannel advertising investments.
Get detailed insights on RoAS on Amazon, including returns by category, ad type, targeting method, and more. Download the 2024 Amazon Advertising Report.
New-to-brand sales
Google is a great channel for leading new customers to Amazon listings since Google ads target consumers during the consideration phase.
A shopper searching on Amazon has a very specific intent to purchase, leading them to favor known brands, Best Sellers, and products with the highest rankings. On Google, however, a consumer is exploring their options.
With a Google-to-Amazon campaign, brands can reach these consumers and direct them from their research to a specific listing that highlights why the advertised product is a good fit.
72% of all conversions from Google ads directing to Amazon are new-to-brand sales.
For brands that sell products with a high repeat purchase rate (such as consumables), this is a great opportunity to capture new customers that will deliver a high Lifetime Value. Google ads empower such brands to be more aggressive in their advertising by bidding higher to beat out competitors and secure a first purchase, knowing that more will follow.
Tips for Using Google Ads for Amazon Products
The key to successfully integrating Google campaigns into your Amazon advertising strategy lies in understanding the fundamental differences between the two channels and using those differences to create a multi-stage competitive advantage for your business.
This requires:
- Measuring the right key performance metrics
- Closely analyzing attribution data
- Leveraging tools that help you set up and run campaigns more effectively
- Taking advantage of Amazon-specific features — like the Brand Referral program — to further boost the returns on your ad spend
Learn more about how to execute Google-to-Amazon ad campaigns in our on-demand webinar Clicks to Conversions: Mastering Google Ads to Boost Your Amazon Traffic.
Get the 2024 Amazon Advertising Report
NEW
What you’ll find inside:
- Where and how brands are allocating their ad investments, both on and off of Amazon
- Which ad types and tactics deliver the highest returns on ad spend
- How Google ads generate new sales and make brands more competitive
- Which Amazon categories are the most competitive for advertisers
- What AI, social media, and other factors mean for the future of advertising
LeeAnn Whittemore is a strategist and writer who creates content that helps brands leverage ecommerce trends and tools. Prior to joining Jungle Scout, LeeAnn was the Content Manager at an independent marketing agency serving clients ranging from solo entrepreneurs to nationally recognized brands.
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