Google, against Amazon’s burgeoning ad market: will offer free ads on Google Shopping

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Google, against Amazon’s burgeoning ad market: will offer free ads on Google Shopping

In the online advertising market growth data for the last semesters, one of the players was positioning itself as especially emerging. Although it still did not have the position that the big players in the market occupy (the Facebook-Google duopoly), Amazon has been climbing positions and Switzerland Mobile Database becoming a stronger rival. The online store has managed to capture the attention of advertisers because online purchases are increasingly important, but also because its site has become a default access portal to brands. Consumers, wherever they go to buy in the end, are using Amazon as a platform to discover products. The financial results that the giant published in May already indicated that its advertising division had grown by 44% . In fact, 2020 is being a particularly positive year for the platform and its advertising market. While the advertising market falls in a generalized way, Amazon is one of the players that continues to register increases . Switzerland Mobile Database

Google may have posted quarterly losses for the first time due to the market contraction and slower investment by some of its key advertiser segments. Amazon has weathered the storm well and benefited from market trends. Locked up in their homes, consumers buy more online and Brother Cell Phone List advertisers are betting more on ecommerce ads. Amazon could emerge from the crisis as an even stronger rival. And that’s where Google has no choice but to make moves. No matter how high a position of power you occupy and no matter how high your role in the market, you cannot let water get into your boat, no matter how minimal the leakage.

And because of this, Google’s latest move regarding advertising on Google Shopping should not be seen only as an act of goodwill, but also as a strategic move. If in April Google Shopping opened its ads for free by eliminating commissions for those shops hit by the pandemic in the United States, now it is also doing it in EMEA and will take it to the global market from mid-October. Beneficial sellers will appear in Google Shopping results for free. “Buyers will find more products from more stores, in time for the region’s peak shopping season,” they explain in the presentation of the action. According to Google data, SMEs have improved results since the free listings appeared. Adding the free presence and paid ads, these companies (in the US, where it operated) achieved double the number of views and a 50% growth in visits.

Google is also launching in some European markets, including Spain, its local service ads option, which focuses on hyperlocal. This ad format, which allows for example to find the closest plumber to home, is not exactly what Amazon allows, which offers ads for products that can be purchased online. For the rest, Google’s movements enter the areas in which the ecommerce giant’s advertising is strong. The emerging world of ecommerce advertising
In addition, advertising in ecommerce and linked to online sales, regardless of who dominates the market, is becoming a segment on the rise. Future forecasts already indicate that investment in ecommerce ads will grow by 18.30% year-on-year. This means growing 30 times faster than the average of the online advertising market.

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