A Comprehensive Analysis of Amazon Ads on Google Shopping

January 6, 2021
A Comprehensive Analysis of Amazon Ads on Google Shopping Download PDF
Google Shopping Analysis on Amazon Ads

To find out how Amazon ads were performing against the competition on Google Shopping ads, we collected and analyzed over 72 million ads from 43K advertisers from Nov. 15th to Dec. 15th. Below, we provide our analysis and insights on the contents of Amazon ads that are allowing them to have a majority of their ads in the top 10 positions of the ad auctions.

Amazon ads frequently display on Google Shopping Ads auction pages for various products like the below examples of “Desks” and “Water Bottles”. After seeing many Amazon ads like these, our experts decided to investigate how these ads were performing against their competition on Google Shopping Ads.

amazon ads

GrowByData collected and analyzed the performance of ads from Amazon on Google Shopping during the period of November 15th to December 15th, 2020. We monitored Amazon’s ads on various categories such as Apparel, Sports, Electronics, Furniture, Health, etc. from 4 US regions (Virginia, Ohio, California, and Oregon), multiple times a day.

Our Advertising Intelligence Solution found a total of 72 Million ads from 43K advertisers on 25K keywords during the month. Amazon ads were seen on 44% of the search keywords. This was slightly higher in comparison to the same period from October to November, where they were seen on 39% of keywords. Graph 1 below of ads seen from Amazon compared to the rest of the competition, showing they have a very large presence on Google Shopping Ads auctions. Their ads alone make up almost 10% of the total ads seen on a daily basis.

ads coverage over time - Amazon Vs Competitors

Looking into the ad coverage on devices, 66% of total ads during the month were seen on desktops and 34% on mobile devices. Out of this, Amazon ads had a 14% coverage on mobile devices, compared to only 6% on desktops. Since a majority of the searches came from desktops, with 74% of retailers competing for ad impressions on desktops compared to 93% of retailers competing on mobile devices; there seemed to be more opportunity for Amazon to improve their presence on desktops.

Digging further into the ad coverage, we investigated which regions Amazon ads were visible the most and found they had the greatest ad visibility in the Ohio region, followed by the California region, as shown in Graph 3. Per our data, a majority of the total competitor ads were found in the Virginia region (48%) per Graph 4, showing Amazon’s competitors were more visible in this region. Therefore, Amazon has plenty of opportunity to gain visibility in this region, where they have very minimal presence.

Regional Coverage - Amazon vs Competitors

Looking into the distribution of ads based on price ranges, 63% of Amazon ads were found in the $0-50 price range, while their competition had 72% of ads in this price range. Only 17% of the ads from Amazon were found within the above $150 price range. This means that most of the Amazon ads on Google Shopping were focused on cheaper products to the masses.

Price Range of Amazon Ads

Since Amazon ads were so popular on Google Shopping Ads, we wanted to find out who its top competitors were and how they fared against them. We found the top 5 competitors based on the highest number of ad auction coverage and ad impressions during the 1-month period were Walmart, Target, Staples, ULINE, and Wayfair. Looking at the table below, Walmart ads were visible on much more ad auctions, compared to the rest. However, Amazon ads were visible on almost 3 times more ad auctions (1M+) compared to Walmart, which shows how much more visibility Amazon ads have over their competition on Google Shopping ads.

Competitors auction Count and impression

We looked at the site ranking on Alexa to get a sense of the website popularity of these top competitors (shown in the table below). Although a high ranking on Alexa does not automatically mean that an ad on Google Shopping will also be high, but it means that the website is a popular choice among customers, which boosts the credibility of a site.

Site Rank per Alexa for Amazon and competitors

Now that we know how popular Amazon ads are on Google Shopping, we wanted to find out how they were performing in terms of their ad positions. Analyzing where Amazon ads were positioned on the Google Shopping ad auctions, we found 29% of their ads were found within the top 5 positions of the ad auction. And 19% of their ads were between positions 6-10. This means that almost 50% of their ads were found in the top 10 positions of the ad auctions.

Rank distribution of Amazon Ads on Google

From the analysis and graphical representations above, we see how big Amazon ads are on Google Shopping ads, but what could be the possible reasons that they are so far ahead of their competition? One of the reasons may be that they have the resources to spend on their ads to beat the competition. This abundance of resources also allows them to more easily optimize their product feeds and allows them to constantly monitor the data quality (which includes enhanced images, optimized title, description, etc.) of their product feed on Google Shopping.

From our previous blog article, we know that the bid amount alone cannot increase your ad positions. Google also investigates other features like ad relevance, ad quality, landing page experience, ad extensions, shipping annotations, local inventory ad usage, and more.

Landing Page Experience

This is where the conversion happens, so it is crucial to have a landing page that is easy to navigate clearly, which is useful to the customer who clicks on the ad. Amazon has a very comprehensive product feed with highly enriched product images and up to date product information that matches the exact ad information you click on Google Shopping. A better landing page experience means they can get a higher quality score, allowing for a higher ad rank and lower bid amount, thus lowering their cost per click. Therefore, to be able to compete on Google Shopping ads with large retailers like Amazon, it is crucial to optimize your product feeds.

 Ad Title

According to Google, the title of the ads should be between 70-150 characters. Analyzing the title length of Amazon ads on Google Shopping, we found that 76% of the ads had a title length within the recommended parameters. The majority of their title’s word length was over 10 words, showing that the title is informative and represents key attributes like brand, gender, size, color, description, etc.

Ads by Title Word Count and Length

Reviews and Ratings

Per our data, almost 80% of Amazon ads on Google Shopping had a rating score of more than 4. They also had more than 100 reviews on 58% of their ads. This shows that people trust their ads and product, which is an important factor in Google deciding the ad positions.

Ads Graph by Rating Score and Review Count

Shipping Annotations

Our data showed that Amazon ads made the most use of the ‘free shipping’ annotation. Around 9% of the ‘free shipping’ annotation usage were on ads from Amazon. This helped their ads stand out in the ad auction, which can improve their click-through rates.

Free Shipping Usage by Amazon vs Competitors

Auto Annotations and Local Inventory Ads

In terms of auto annotation uses such as ‘sale’, ‘price drop’, ‘reduced price’ etc., we found that Amazon ads mainly focused on the ‘price drop’ annotation. 5% of the total use of this annotation were on Amazon ads. We did not find any local inventory ads usage from Amazon, which makes sense, since they do not have physical stores. This is potentially an area of opportunity that competitors can focus on to increase their visibility, as Amazon has no presence.

In Conclusion

Although Amazon and Google might be seen as fierce competitors, looking into our data, we can see that they are both benefitting from having Amazon ads on Google Shopping. Since Amazon is one of the top sellers that appear on Google Shopping Ads auctions, they get more impressions, thus helping them to get more clicks and conversions. This also helps Google, as Amazon is paying for the Google Shopping Ads listings.

In our next article, we will be comparing the ad performance of some of the largest retailers in the US – Amazon, Walmart, and Target. If you would like to stay updated on our insights, email us at info@growbydata.com or subscribe to our blog.


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GrowByData Content Team

Team of Data Analyst, Business Analyst, and Project Managers with years of experience in data analysis and online retail industry

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