Amazon ads: You may consider taking a bite out of the Amazon tree

November 7, 2022

Roxanne Denman

Amazon has secured its place as one of the world's biggest marketplaces. Are you surprised? We’re not.

In fact, some shoppers are so loyal they are hesitant to buy anything from another platform. Amazon is the king of variety,  shoppers know it, and so does the eCommerce giant. Chances are if you have ever made a purchase on Amazon, they have catered to your every need. This shopping variety walks hand-in-hand with high competition among sellers. Usually, every item purchased is rated, offering opinions and feedback before finalizing a sale, enabling brand trust and purchaser peace of mind. (If this isn’t a case for social proof, then we’re not sure what is!)

How does Amazon Advertising Work?

Amazon Advertising works similarly to your pay-per-click ads on Google. Sellers only pay when shoppers click on ads, whether or not the click leads to a sales conversion. If you have browsed Amazon, chances are you have come face-to-face with targeted ads. Amazon has a giant nest egg of information about buying habits, securing itself as a valuable place for advertisers.

The shopping giant has used this reach and wealth of buyer information to promote Amazon Ads, and for good reason - it works.

How Amazon Holds Up Against Facebook and Google

Amazon is steadily sneaking its way up the advertising platform ladder and experts say that it is stealing Google’s market share. Do we think this is true? The statistics speak for themselves. While Amazon Advertising still sits in third place behind Facebook and Google, it continues to grow showing a 52.5% increase in 2020. In 2022, it is still outpacing Google and Facebook with an 18% growth in the last quarter. As of August this year, Facebook’s business shrank for the first time ever.

Is it expensive?

On average, Amazon Advertisers pay $0.81 for every click on their ad. On Facebook, this would be in the region of $0.94 per click, and Google charges on average $1 to $2 per click, making Amazon the current most cost-effective option. But how does this relate to ROI?

Because Amazon's advertising rates are still cheaper than those of rivals Facebook and Google, using the unique site as an advertising platform means you are using a high purchase intent retail platform generating revenue cost-efficiently with an enormous reach. For companies just dipping their toes in the pay-per-click world, Amazon seems like a viable option for starting out.

Not only is it affordable, but you’re guaranteed an audience with those buyers ready to, well - buy.

Why should you consider using it?

Let’s look at the pros of Amazon advertising to find out whether it would be a good fit for you or not.

1. Buyers from the beginning

When you reach consumers on Amazon, they are already buying and not just looking for information. PPC ads on this platform have a higher chance of converting if a targeted ad reaches its intended audience because you reach genuine buyers. This may not always be the case with advertising for an educational institution, but - and it’s a big but - students need supplies too. And what better place to shop for stationery in bulk than Amazon?

2. Results are faster

New to the PPC game? You may see faster results and reap the benefits instantly. Search Engine Optimisation (SEO) can take months to make any noticeable impact and ROI. If you are waiting for SEO to take flight, perhaps set a budget aside for PPC while you wait for SEO results.

3. Ads at your fingertips

Your Amazon PPC campaign is device-friendly. It allows your ads to reach consumers on any device in their apps. Reach your target market on smartphones, laptops, and tablets. Not only will you be reaching the right audience - you’ll be doing so on their terms too.

4. You get what you pay for

Analyze your flexibility and budget when selecting any advertising campaign or platform. With Amazon Ads, choose how much you pay when a visitor clicks your ad. There are no hidden costs!

5. Make your traffic jam

The seller chooses their target audience. Choose the right target market to increase your chance of converting and maximizing your ROI.

There are cons, of course

Let’s look into why Amazon Ads, and a PPC campaign in general, may not work.

1. It takes time

You cannot set up a PPC ad campaign and leave it to its own devices. A successful ad campaign will need you to monitor performance and metrics constantly. Modifications need to be made if you are not getting good performance, making a campaign time-consuming.

2. Clicks with no sales

You are paying for clicks, not for conversions. So if your product or service doesn’t take off with your PPC campaign, you may make a loss.

3. Words are key

You can use all the tools to ensure you have the right keywords in your ads and still end up with ineffective keywords. Make sure you do extensive research before your PPC campaign and select the right keywords for a successful campaign. If not, it will be a waste of money.

You may not always find the right audience on Amazon, but who’s to say that it’s not worth a try?

Let’s take a look at the statistics

Gen Z is the prime audience for education marketers - with many of them recently starting their college journey. Marketers have faced new challenges too. Gen Z, unlike its millennial counterparts, seems to reject traditional social media, making it difficult to reach them consistently on one platform. While a Google campaign might combat this, it’s never a good idea to keep all your eggs in one basket.

Enter - Amazon Ads.

As marketers, we need to design a strategy that attracts Gen Z, without turning away our existing audience - and without looking like we’re trying too hard. Easy, right?

Lucky for us, some typical human behavior and good old statistics are on our side.

83% of Gen Z shops on social media
92% of Gen Z multi-task while browsing the internet
97% say social media is their top method for researching shopping options

Their shopping habits spark interest, too.

A survey completed in 2022 revealed that 40% of female Gen Z shoppers shopped for clothing once or twice per month.

It’s fair to say that like millennials, Gen Z favors convenience, and is likely to spend at least half of their shopping budget online. For the digital marketer, this means that reaching these two demographics online becomes easier with a platform like Amazon Ads.

What we think

Amazon Advertising is growing. Sellers must make a strategic decision when analyzing potential ROI on running an Amazon PPC campaign to embark on a flexible advertising plan that will bring them the best possible ROI. If you are considering advertising your product or service on a pay-per-click, Amazon is the cheapest option out of the PPC advertising giants, with just as much reach as other companies.

Amazon Ads has a unique benefit due to its sales platform giving it that slight competitive advantage as you are targetting buyers. If you believe your product will sell, the reasons to go for Amazon PPC are far more impactful than the disadvantages. While the enrollment funnel is nowhere near comparable to the sales cycle on Amazon, the audience may very well be the same.

As ed marketers, we need to go where the audience is - instead of expecting them to find us through a series of predetermined clicks.

Are you a marketer curious to learn about the aspects that affect our industry?

Or do you want to tap into our expertise to sharpen your tactics? Look no further than our free downloadable resources. We work hard to research our content - and offer it to you - free of charge.