PYMNTS MonitorEdge May 2024

Amazon Sellers Turning to Google Ads to Reach Shoppers

Amazon seller

Amazon sellers are reportedly increasingly turning to Google Ads to boost their business and stand out in the crowded marketplace.

With the emergence of startups specializing in mining Google queries for potential buyers, sellers can now target specific demographics and send them to Amazon, creating a valuable pipeline for new customers, Bloomberg reported Thursday (May 30).

Amazon has become a major player in the advertising industry, generating $47 billion in advertising revenue last year. However, as the web store becomes increasingly cluttered, it has become more challenging for Amazon sellers to differentiate their products and attract customers, according to the report. This has prompted sellers and brands to explore alternative marketing options.

Google, which has long struggled to establish itself as a shopping destination, has seized the opportunity to assist Amazon sellers, the report said. The search giant rolled out a deal-finding tool last fall to attract cost-conscious consumers and is beta-testing new features that allow brands to upload short videos in their search results.

However, what truly changed the game for Amazon sellers is the emergence of startups like Carbon6 and Ampd, which have developed algorithms capable of mining Google queries to identify potential buyers, per the report.

The software developed by Carbon6 and Ampd enables sellers to target likely buyers on Google and redirect them to Amazon, according to the report. By analyzing factors such as age, marital status, and income, the algorithms calculate the likelihood of a potential buyer making a purchase.

The software tools provided by Carbon6 and Ampd are particularly advantageous for sellers of mid- to high-priced items, the report said. Since keyword costs on Google are not directly tied to a product’s price, sellers can potentially obtain a free ad buy if the cost of the Google search term is lower than the credit Amazon provides for the traffic referral.

Consumer behavior has also played a significant role in the increased usage of search engines like Google to find products, per the report. According to eMarketer, the percentage of shopping journeys starting on online marketplaces like Amazon decreased from 52% in 2022 to 40% in the previous year. In contrast, almost 30% of shoppers began their shopping on search engines, up from 25% in the previous year.