Amazon and Google PLAs
Amazon’s use of Google PLAs seems to have progressed in January. According to Internet Retailer, Merkle “found that Amazon only appeared in four of the reports in December, but by mid-January, Amazon appeared in more than 20 reports,”. It could be a test.
This could have a big impact on other retailers using PLAs.
Google PLAs were launched in 2012. Amazon’s turndown to buy PLAs hasn’t hurt Google. PLA spending rose 30% in Q4 2016, and clicks grew by 43%. For retailers, PLA clicks now account for almost half of their total Google ad clicks.
According to Merkle’s senior director of research, Mark Ballard:
“The conventional wisdom around why Amazon had refused to participate in Google Shopping. It has been that doing so would strengthen Google’s position in the battle to be consumers’ first destination for product searches by making Google’s results more complete.”
Amazon appears to be more aggressively bidding for PLAs on mobile devices.
Therefore, Internet Retailer notes,
“its impression share of phone PLAs is about twice as high as it is for desktop PLAs.”
Amazon is planning to buy more and scales up its efforts significantly. Retailers advertising through Google Shopping will want to closely watch Amazon.