> Google’s U.S. ad revenue is expected to rise $5 billion this year to $39.9 billion, while Facebook could rise $3 billion this year to $21 billion, according to eMarketer.
Adwords is just so effective to find your customers. You won't beat `buy new headphones` type traffic on Amazon or Facebook.
It’s not like Amazon is a site that people haven’t heard of. It’s the 4th most trafficked site in the US.
It showed ads where I could get headphones from different web sites - where neither I nor most people have an account.
What’s more likely? That I am going to register for an account on “Under Armour” - the first site that appeared or that I’m going to go to Amazon where they already have all of my information,I’m an Amazon Prime customer and where I have one-click activated?
If Under Armour were smart they would have web based Apple Pay payments available to reduce friction.
Retail vs. online is a prime example of channel selling. Some people prefer to try on things or are so brand loyal that they're blind to other retailers.
3 out of 4 people searching "buy new headphones" will buy a product on amazon.com
On Google ads, you're lucky if one quarter of your clicks convert into anything.
Advertisers are choosing amazon because people on amazon are 1 click away from transacting. Google just can't compete there for eCommerce.
Now, on home services and virtually everything else Amazon falls short, but for direct to consumer eCommerce they win hands down.
Not that Amazon is a startup exactly, but they certainly act like one a lot of the time.
People searching on Google (or checking in on friends and family on Facebook) or browsing the Internet don't expect their history to be mined for advertisements.
People browsing on Amazon have already signaled their intent to shop.