In H2 2012, Google Shopping Proved More Cost Effective Than Amazon Product Ads

February 25, 2013

This article is included in these additional categories:

Analytics, Automated & MarTech | Data-driven | Digital | Paid Search | Retail & E-Commerce

CPCStrategy-Cost-per-Sale-Google-Shopping-Amazon-Product-Ads-Feb2013Recent research has shown Google Product Listing Ads (PLAs) to outperform text ads, and new data from CPC Strategy demonstrates that since moving to PLAs, Google Shopping has performed far better when compared to Amazon Product Ads. In the second half of 2012 (H2), Google Shopping proved 32.8% more cost-effective for advertisers than Amazon Product Ads, according to the report. In Q4, for example, advertisers using Google Shopping paid an average of $11.30 for every $100 in sales, as opposed to $15.60 for those using Amazon Product Ads.

The study found a similar gap in Q3, with a 12.3% cost per sale on Google Shopping versus a 16% cost per sale on Amazon Product Ads.

The data also shows a spike in traffic for Google Shopping in the second half of the year: in Q4, Google Shopping sent 96% more traffic to merchants than Amazon Product Ads.

In other study results:

  • Google Shopping’s average cost per click (CPC) was $0.31 in Q4 2012, while Amazon Product Ads had an average CPC that was 32% higher ($0.41).
  • While Google Shopping’s conversion rate slipped from 3.1% in Q4 2011 to 2.4% in Q4 2012, Amazon Product Ads’ conversion rate grew from 1.8% to 2.8%.
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