2012 Ecommerce Industry Report of CPC Strategy closely examines performance of Google Shopping against its main competitor Amazon Product Ads. Metrics factored in included CPC, traffic, revenue, conversion rate and cost of sale.
Cost-per-sale of advertisers on Google Shopping was 32.5% lower compare to Amazon Product Ads in Q3 and Q4. As for average cost-per-click, Google Shopping clocked $0.31 against $0.41 of Amazon, which translates into 32.5%. This can be attributed to lack of minimum CPC bid requirements and more sophisticated campaign management tools available in Google Shopping.
Google Shopping also surged in traffic. In 2012, the number of clicks enjoyed by Google Shopping more than doubled, sending 120% more traffic to merchants. In fact, Amazon Product Ads were fifth in order for traffic generation, trailing Nextag and Shopping.com.
Where Amazon pipped the others was conversion rates. They enjoyed the best conversion rates for Q4 2012 at 2.8%, an increase of 57.8% as opposed to Q4 2011 when they had a conversion rate of 1.8%. Google, on the other hand, saw a decline of 22.35%. Their conversion rate in Q4 2011 was 3.1%, which slid to 2.4% in Q4 2012.
In April-June 2012, Google announced shift to paid Google Shopping, which had been free for more than 10 years. Thus began its transition to a paid shopping engine. Amazon Product Ads was already 4 years old by then.
Navneet Kaushal
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