Shopping Wars: Google Vs. Amazon
Google is merging its Product Listing Ads and its “free” shopping results into a single paid format. (Product listings are basically souped up ad words campaigns that can include product images).
Analysts believe the change to a fully paid model for product searches could generate $1.4 billion in incremental revenue. However, the change in strategy isn’t just about money. It’s an escalation in the ongoing shopping wars that Google and Amazon have been waging.
According to a Forrester study issued this summer, in 2011 about 30 percent of web users went straight to Amazon to search for online shopping while 13 percent used Google or other search engines. At the same time, product searches on Amazon rose 73 percent as Google Shopping were flat.
Amazon’s test in June 2011 with demand-side platform Triggit was part of a larger effort to expand its existing retargeting platform and as a way for Amazon to create a display ad business beyond banner ad revenues generated on its site.
~ Zorilla City