Pay per Click

Study Predicts Google’s Search Ad Revenue Will Drop While Amazon’s Grows

A new forecast from eMarkerter on US ad spending predicts that Google’s share of search revenue will drop over the next two years, while Amazon’s share will grow.

From eMarketer:

“The US search ad market overall will grow nearly 18% this year to reach $55.17 billion. Google will obtain a 73.1% share, translating to $40.33 billion. But, while Google will remain the dominant player for the next several years, its share is dropping. By 2021, it will capture 70.5% of the market.”

Study Predicts Google’s Search Ad Revenue Will Drop While Amazon’s Grows

Customers Turning to Amazon Before Google

Polling results from eMarketer suggest that more customers are turning to Amazon before Google when it comes to product searches.

Amazon’s search business has grown nearly 30% this year compared to last year. In turn, Amazon’s net search revenue has grown to $7.09 billion.

Amazon’s share of search ad market will be 12.9% this year, growing to 15.9% by 2021. As of 2018, eMarketer notes that Amazon surpassed Microsoft to become the second-largest ad platform for search in the US.

On the growth of Amazon’s search ad business, eMarketer principal analyst Nicole Perrin says:

“Amazon’s ad business has attracted massive increases in spending because advertisers can reach consumers during product queries, a time when they’re ready to buy.

Amazon has also rolled out better measurement and targeting tools, making it even more attractive for advertisers.”

Lastly, eMarketer notes that the search ad shares of Walmart, Target, eBay, and Pinterest are all growing at the expense of Google as well.

Pay Per Click (or PPC advertising) is a form of paid digital marketing where advertisers pay a fee each time their ad is clicked.

The term PPC can apply to paid ads on social media networks, like Facebook, Twitter and LinkedIn. However, today we’ll focus on Google Adwords which helps your ads stand out to search engine users, displaying them at the top and right-hand side of Google’s search engines. We’ll also explore Google Display Network which displays your ads on relevant websites your customers and prospects land on.

Study Predicts Google’s Search Ad Revenue Will Drop While Amazon’s Grows How Does PPC Advertising Work?

Once you have an amazingly written ad spiel, you can bid on a series of search phrases or keywords you want your advert to appear for. What placement your ad gets depends on two things: your bid price and your quality score. Your bid price is how much each click will cost you – so if you bid €1.50 and 100 people click on your advert, it will cost you €150.

Your quality score is decided from a number of factors including: your land page copy, your click metrics, your website’s metrics, amongst others.

Sounds simple enough?

Not quite, to get great conversion rates (people actually buying/signing-up for your offerings) takes a lot more than getting people to click on a link.

The term PPC can apply to paid ads on social media networks, like Facebook, Twitter and LinkedIn.

However, today we’ll focus on Google Adwords which helps your ads stand out to search engine users, displaying them at the top and right-hand side of Google’s search engines.

We’ll also explore Google Display Network which displays your ads on relevant websites your customers and prospects land on.

We’ll take a look at the benefits of both services to help you decide the best fit for you business and the best way to reach your target audience.

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