Amazon Has Been Spotted Testing Google Product Listing Ads
Amazon has used Google’s Product Search in the past when it was free. Yet for the first time since 2012, when product search became a paid-for feature, Amazon is testing Product Listing Ads (PLAs) across Google.
Usually, a new competitor isn’t something to watch, yet Amazon is a powerhouse. Being both large and scale and offering products at the lowest prices, their impact on the PLA market will be significant.
Who this is good news for:
- Amazon Sellers
Why? With more buyers browsing through mobile instead of desktop, PLAs are typically the first thing seen, and clicked on, on a mobile Google search.
Who this is bad news for:
- Retailer Search Advertisers
- Possibly Google
According to research, if Amazon increases their Google PLAs in 2017, it will increase clicks towards Amazon at the expense of Google’s other PLA advertisers. This means other retailers will have to pay more per click or accept lower level traffic to maintain their current PLA click volume.
However, it was also noticed there was a decline in the ability to trigger the ads. After analyzing Google’s AdWords Auction Insights report, research showed that Amazon wasn’t listed for half of the program checked until December 20 and consistently for home good retailers.
Although it is unclear how long Amazon will continue to use Google’s PLAs it is something you should keep an eye on. Unsure how to change your market strategy to compete with Amazon? The OperationROI team can help devise a strategy.
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