If you are a consumer product manufacturer and sell online, where does it make sense for you to advertise: Google or Amazon?
For a long time, there was never a second credible option. Shopping on internet being not so prevalent, people would look for products, on a generic search engine, like Google.
Two things then happened, online shopping gained massive momentum and Amazon built itself into a behemoth. If Google is generic to search, Amazon is to shopping online, at least in US.
Some advertisers are now moving half of their Google search budget to Amazon and it amounts to hundreds of million dollars.
Losing hundred of million of dollars of business might not seem threatening for a company which generated $95.4 billion in ad revenues last year. But if you consider that it consists of 86% of it’s revenues, then definitely it is.
Behind Google and Facebook, Amazon has already become the third largest digital advertising platform in US.
Major category which is moving towards Amazon is the consumer packaged goods. This is understandable, people would rather go to a big online shopping destination, if they need to find a specific consumer product. At Amazon, they not only get the availability of the product, but the entire package. Pricing, product information and the consumer reviews.
Over 90 percent of searches for products that start on Amazon end with a purchase, even though that user may end up on social channels. The bang for your buck is where people are ultimately going to buy.
For companies, it makes more sense, because quantum of information which they can be add on Amazon, is far greater, like reviews etc.
Sometime in future, we would start stating, “Amazon it!“