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Monetization

AdSense vs Native Shopping Ads

Updated on Jun 07, 2020

Google AdSense being one of the most popular and leading online advertising network for bloggers, publishers and authors to consider on their site. But over the years Amazon being the #1 Internet Retailer has been competing in this section with their product Amazon Native Shopping Ads, this is really good and alternative ad networks to look for. In this article, let us see the comparison between AdSense and Amazon Native Shopping Ads on the basis of CPM, payouts, RPM.

Brief Introduction about the two

Amazon vs Google AdSense
Amazon vs Google AdSense

AdSense

AdSense is an ad serving application run by internet giant Google. Website owners can enroll in the program to enable text, image, and, more recently, video advertisements on their websites.

These advertisements are administered by Google and generate revenue on either a per-click or per-impression basis. Google not only offers AdSense for product feeds but also allows businesses to display ads in custom search engines in web pages. Furthermore, AdSense allows publishers to earn more money from their RSS feeds with contextually ads and placement-targeted ads and as well from the visitors searches.

Native Shopping Ads

Amazon Native Shopping Ads has been started over the years by world's #1 retailer and internet giant Amazon. Native Shopping Ads provide highly relevant and dynamic product recommendations in a stylishly designed and responsive ad unit that can be placed at the end of content or within the content to create a more compelling visitor experience and shopping opportunity

Amazon Native Shopping Ads are similar to AdSense in terms of showing contextual ads. It shows relevant ads based on the page where ads are being displayed. Once you place the ad codes on your blog (you only need to do this once), it automatically scans the content of the page & displays products based on the keywords used within the article.

Minimum Traffic Requirement

AdSense:

Adsense does not have any minimum traffic requirements to become a publisher or to post their ads on your page.  You just have to have a blog sit or any other site (either WordPress, Joomla or any other) where you paste the code and try to attract visitors. You must not click on your own ads yourself, however. Google tracks this, and they will ban you if you do this. It is considered a black hat tactic since it is not an honest inquiry into the services being offered in the ad.

Google only requires that you should post frequent and substantial content that is related in some way to the advertisements running on your site. In the past, the authors of the site would decide which ads to run. Now, Google uses its algorithm and finds ads that best fit your site page where the ad is running so that the chances of someone searching for your content will be greater and will coincide with the ad’s content as well.

Native Shopping Ads

Native Shopping Ads does not mention a specific minimum number of page views required to get approval into the network.  Your Site/Blog must have robust original content – a good rule of thumb is at least 10 posts. They must be publicly available (for example, they should not be a closed group, or behind a paywall).

Currently, Native Shopping Ads display products based on the country of the visiting user only for two countries – US and the UK. Therefore, all the visitors from US are shown products from Amazon.com and the visitors from UK are shown products from Amazon.co.uk. Click here to learn more about this feature.

Visitors from all other countries will see ads from Amazon.com only. Amazon is also working on adding the support for monetizing the international traffic from countries other than UK.

Revenue Share Percentage

AdSense

One important factor to note is that Google is reliable regarding how much of a cut they get. Publishers always receive 68% of the revenue from Adsense ads no matter how much money you make. If the network is used mainly for search then the publishers get 51%. The rest of the share is kept by Google in recognition of the service provided.

Native Shopping Ads

Amazon Native Shopping Ads when started worked differently than traditional CPM ads, where your readers simply have to see the ad for you to earn money. Instead, Native Shopping Ads work more like traditional affiliate links, in that when people click the ad and make a purchase you will receive a commission. Typically, Native Shopping Ads pay out the same as Amazon Associates affiliate commission for the month (which varies based on product category and/or sales volume). With recent changes Amazon started CPM based ads along affiliate commission.

There is huge opportunity to earn up to 10% advertising fees with the most trusted e-commerce leader of the world.

Ad Quality

AdSense

Google AdSense is a giant network which has a reach-ability through the entire globe. It displays advertisements of high quality on its platform for all of the users. They have a number of ad formats which includes display, text, link ads, and native ad formats. Additionally, the network has features like auto ads which scans the web pages and place ads across locations which tends to perform better (the technology uses machine learning) and help publishers make good revenue. Page level ads also form an integral part of AdSense’s offering and its commitment to help publishers increase ad revenue from mobile traffic.

Native Shopping Ads

Amazon being the leading retailer in the world, quality of ads have been great so far. You may choose from over a million products to advertise to your customers. Native Shopping Ads displays highly relevant and dynamic product recommendations in a stylishly designed, responsive and mobile-optimized ad unit.

They have three variants of Native Shopping Ads:

  1. Recommendation Ads: Allows Amazon to automatically recommend the best-matched products based on your web page content and your visitors.
  2. Search Ads: Allows you to drive recommendations based on a search phrase determined by you or your visitor.
  3. Custom Ads: Allows you to specify the products from Amazon.com that you want to promote.

Ads are responsive, so it will work with all screen sizes.

CPM, RPM Rates and Advertising Fees

AdSense

AdSense offers high CPM (Cost per mille) rates in the range of USD 1 to 3. The average RPM for niche websites lie in between USD 5 to 10 and for competitive niches with high CPC (Cost Per Click), the overall page RPM (Revenue per Mille) can go as high as $30. Lot of publishers making USD 30 to USD 50 per 1000 page views on their website which are targeted towards architectural drawing, floor paints, insurance, and more. 

In its simplest form, when Google matches an ad to the needs of the reader on the page, that person clicks the ad and the blogger gets paid.

And some ads pay more money than others, right? Well not really. Some keywords create higher paying ads is a more succinct way to say it. Or some ad sizes create higher paying ads. . . The blog post topic and the ad size dictate if the ad will be high paying or low-paying. The ad position and layout of the page determine if anyone will click them.

An Illustration to show estimated earnings from Adsense Select an Image
An Illustration to show estimated earnings from Adsense Select an Image

Native Shopping Ads

Unlike AdSense, here you will be earning money for actual sales.

Remember: Amazon also pays for other products purchased by your referred users.

To make it easy for you to understand, here’s an example:

  1. Let’s say you have a visitor named Paul:
  1. Paul clicks on one of the ads (Native Shopping Ads) on your blog & goes to the Amazon site via your link
  2. He purchases any product on Amazon
  3. You get a commission of 1% – 10% (depending upon volume)

Now let’s say the product that Paul purchased cost $100:

  1. 4% of $100: $4

This is a typical scenario. If Paul decides not to purchase the product recommended by you, but instead purchases 10 different products worth a total of $1000, you will still be earning 4% of his total purchase.

  1. 4% of $1000: $40

You are earning $40 from just one referral.

In case you didn’t know, Amazon is the top e-commerce site in the world & their conversion rate is much higher than most every other e-commerce site.

An Illustration to show estimated earnings from Native Shopping Ads
An Illustration to show estimated earnings from Native Shopping Ads

This link explains the actual fees paid for the products that are purchased from click on ads from your site/blog 

Payouts

AdSense

AdSense calculates your income for the period of a full month. After the month ends, AdSense takes a few weeks to review your earnings and identify false impressions and clicks before finalizing the payment. This review is normally done by the 20th of the succeeding month. Google AdSense sends payments in the last week of the following month.

In a nutshell, this is a typical payment timeline, which begins the month after you generated your revenue.

3rd of the monthearnings are finalized, revenue for invalid clicks is reduced
20th last chance to make changes to your payment method
21st – 26ththe payment will be sent by AdSense, changes are no longer possible
27thtwo months later you can reissue another payment if you didn’t receive it

Timelines could shift depending on the timezone you are in or if the day a specific action is taken falls on a weekend or bank holiday.

The payment itself may take some time, depending on the payment method. Here are some methods and the time they take until the money reaches you:

Checks by mail1-2 weeks
Wire transfer15 days
EFT payments / bank transfer7 business days  
Western Union Quick Cashyou have 60 days to pick it up
Rapida payments15 days

What is a payment threshold?

A payment threshold is the minimal amount of earnings you need to gather in a row of months before getting paid. As you can see in the sample payment schedule below, you won’t get paid for the month you earned only $40, but when you earned $90 the next month you earned a total of $130 and are eligible to get paid by AdSense in the succeeding month.

The payment threshold is different by currency. Here are some sample values:

U.S. Dollar$100
Euro€70  
British Pound£60
Yen¥8000
Australian Dollar A$100

The payment threshold is probably the most important for you, but there are three other types of thresholds for earnings connected with actions in AdSense:

  1. Address verification threshold
  2. Payment method selection threshold
  3. Cancellation threshold

You can review the detailed list of thresholds, but as a rough orientation the threshold for all of them is the equivalent amount of $10 or €10.

Native Shopping Ads

Amazon will pay Standard Program Fees and Special Program Fees in the default currency for an Amazon Site approximately 60 days following the end of each calendar month in which they were earned by the method described below that you have selected. You may be permitted to elect to receive payment in a currency other than the default currency for an Amazon Site. If you choose to do so, you agree that the conversion rate will be determined in accordance with Amazon’s operating standards.

Option 1: Payment by Direct Deposit. Amazon will directly deposit the fees you earn into the bank account you designate once you have provided us with the name of your bank, the account number, the name of the primary account holder as it appears on the account, and other requested identifying information (such as the ABA, IBAN or BIC number, if applicable).

Option 2: Payment by Amazon Gift Card. Amazon will send you gift cards in the amount of the fees you earn to the primary email address on your Associates account. These gift cards are redeemable for products on the Amazon Site the fees were earned on and are subject to our then-current gift card terms and conditions.

Option 3: Payment by Check. Amazon will send you a check/cheque in the amount of the fees you earn once you have provided us with a physical address. If you select this option, Amazon reserves the right to hold fees until the total amount due to you reaches the minimum stated in the Payment Minimum Chart and to deduct a processing fee as stated in the Payment Minimum Chart from each check they send to you.

Payment Minimum Chart:

Payment chart for US
Payment chart for US

Pros and Cons

AdSense

Pros

  1. It’s free for publishers; Google takes a percentage of what advertisers pay to run their ads on your site.
  2. It’s user-friendly. Even if you aren’t especially tech-savvy, the AdSense system is simple and intuitive.
  3. It’s customize-able. You get to choose your ad styles and sizes and where they’ll go on your site. You can even select the colors in the ad to match your site’s design.
  4. It’s scale-able. With one account, you can place ads on multiple sites.
  5. It’s effective. Earning money with AdSense is easy, provided you have quality content and established traffic.

Cons

  1. It can take a while to get paid, since you must earn at least $100 before you can transfer earnings to your bank account.
  2. Your control is limited. You have some influence over what kinds of ads run on your site, but Google has the final say, and they also determine how much you get paid per click.
  3. You’re stuck in a monogamous relationship with Google. As long as you’re using AdSense, you can’t run ads from any other network on your site.
  4. Your account is in Google’s hands. If they suspect click fraud or any other nefarious activity on your site, they can remove your ads or close your AdSense account completely.

Native Shopping Ads

Pros

  1. A well-reputed and trusted brand: Amazon is a mega-brand which has popularity all over the world. Besides the eCommerce business, their affiliate program is also the most renowned business option online.
  2. Through Amazon’s affiliate program, one can easily expand the revenue because Amazon has set rules to get benefitted. Beyond the products you promote, you can also get profit from other products.
  3. Amazon is safe and secure for both the buyers and the affiliates.
  4. You may choose from over million products to advertise on your site/blog if the quality of contents are good

Cons

  1. Low affiliate commission Starting from 4%, Amazon’s affiliate commission rates go up to 10% and that’s it.
  2. While PayPal figuratively controls the online payment system, Amazon still doesn’t allow this popular option. To pay their affiliate they exclude the PayPal although many of their affiliate partners could really get benefit from it.
  3. Amazon has still not expanded this product to most of the Asian countries yet.

Conclusion

AdSense being the most versatile product for embedding into a blog/site, if you are an author/content writer who reviews or features products in your site then Amazon Native Shopping Ads is really a Gold Mine for you. For those bloggers or site owners who would love to venture out alternative to AdSense, this is a great choice being run by the world's leading retailer. Do try out the Native Shopping Ads if you have still not done yet and let us know your experience.