MarketingCharts: In the second half of 2012, Google Shopping was 32% more effective than Amazon Product Ads

2013.02.25@MarketingCharts

Recent survey data from CPC Strategy shows that Google's PLA (Product Listing Ads) has better marketing effects than text ads. The report points out that since Google started using PLA, Google Shopping's marketing efficiency has been higher than Amazon Product Ads. In the second half of 2012, Google Shopping's efficiency was 32% higher than Amazon Product Ads - in Q4 2012, Google Shopping spent $11.3 on advertising for every $100 in sales, while Amazon Product Ads spent $15.6.

The study also found that the gap between the two was smallest in 2012-Q3. Google Shopping's marketing expenses accounted for 12.3% of sales, while Amazon Product Ads accounted for 16%. The data also showed that in 2012-Q4, the traffic provided by Google Shopping to advertisers increased rapidly. By 2012-Q4, the traffic provided by Google Shopping to advertisers exceeded Amazon Product Ads by 96%.

Other findings:

• In 2012-Q4, the CPC for Google Shopping was $0.31, while that for Amazon Products Ads was $0.41, 32% higher.
• Google Shopping’s conversion rate was 2.4% in 2012-Q4, down from 3.1% in the same period of the previous year. During the same period, Amazon Product Ads’ conversion rate increased from 1.8% to 2.8%.