E-commerce sales in Switzerland continue to grow annually, with online and mail order sales worth CHF 9.5 billion in 2018. According to this 2018 study, pay-per-click campaigns convert 50% more often than organic traffic and therefore make pay-per-click campaigns the best way to increase sales. 65% of users even click on an ad when they are shopping online.
PPC campaigns not only have higher click rates in the e-commerce sector, they also deliver their first results immediately after the campaign has started.
The most important channels for e-commerce marketing are Facebook, Google and Amazon, not only because they have the highest user numbers.
Below we outline the advantages and disadvantages of these channels and show you how you can best use them in your e-commerce strategy.
Google Shopping Campaigns
With Google Shopping you have the possibility to present your products very prominently in Google search or under the category “Google Shopping”. Google Shopping is a part of Google Ads. However, no fixed text or image ads are placed as standardized data from the online shops is used for these ads. This data feeds form the basis for the ads.
Advantages:
- Google Shopping is a Google service and Google is still the most important search engine with a very high reach depending on the target market.
- Most potential buyers start their product search in Google.
- Due to the prominent placement, shopping ads achieve the highest visibility and a therefore higher click rates.
- Based on our experience, click costs are lower than for classic search ads.
Disadvantages:
- In practice, creating and optimizing feeds is usually technically demanding, time-consuming and cost-intensive.
- Shopping ads are highly competitive as paid advertising in Google is indispensable for most e-commerce shops.
Dynamic Google Search Ads
For dynamic search ads Google decides which ad is played for which search query. The difference to classic search ads is that the search engine itself determines the ad title and target page.
Advantages
- Automatic creation of ads
- Time saving through automated ads and the elimination of keyword research
- Greater reach and more traffic
- Low optimization effort
- Cheap click prices
Disadvantages:
- High scattering
- Little control
- Low quality factors
Amazon Advertising
In contrast to Google, the ads placement on Amazon also has an influence on the organic product ranking in Amazon. How often a product has been sold is one of the most important ranking factors in Amazon. Since Amazon also counts sales that have taken place via Amazon ads, those ads can increase the sales performance and, thus, the organic ranking in Amazon. Amazon offers different types of ads, among others Sponsored Product Ads. This ad type allows you to push out competitors or to focus on new products. A possible targeting strategy is to display product ads when users search for competitors’ keywords. This is particularly useful when your own products are cheaper or better. It is important that you use your top products with high ratings in this case.
Another Amazon ad type are product display ads which are particularly suitable for cross-selling and upselling. If, for example, users want to buy trousers they may also need matching socks or a belt.
Advantages:
- 49% of internet users start their product search directly on Amazon
- Low cost-per-click numbers due to low competitive pressure
- High conversion rates: Compared to Google, 70% higher conversion rates are achieved at 65% lower click prices.
- Users have a concrete purchase intention.
Disadvantages:
- Shopping basket values are on average 55% lower than with Google advertising.
- Lack of optimization possibilities due to a limited reporting function
- Amazon Advertising requires a high organizational effort for the initial setup. You either have to own an Amazon shop or sell brands registered with
Facebook Ads
In the social media sector, Facebook is probably the most important advertising platform. With 1.28 billion daily users, Facebook has great potential for advertisers. Facebook also offers different ad formats. You can advertise current offers or present your top products to potential customers via product ads, for example. Another classic application area for product ads is remarketing.
Advantages:
- You can utilize Facebook’s user data to address your target group.
- You can create Lookalike Audiences.
- A variety of visual ad representations are available.
Disadvantages:
- The costs per click are very expensive in Facebook compared to Google or Amazon and the click rates are rather low.
- Users do not open Facebook to buy something, but rather to find out what is new in their social environment.
Conclusion
As you can see all platforms have their advantages and disadvantages. What can be said is that advertising on Facebook and Google is easier to set up than on Amazon and both channels are suitable for your online marketing strategy.
However, Amazon advertising is a good idea if you run an e-commerce shop with a large number of low-involvement products. You should see Amazon Advertising as a useful addition to Google Ads and combine the possibilities offered by both platforms. Facebook ads help customers find your online store, while Google Ads and Amazon help online stores find customers.
In summary, as it is so often the case, it is important to test what works for your individual business.
Using Paid Search and Paid Social Advertising effectively in 2019 should be your goal if you want to get the maximum return-on-investment out of your advertising budget.
