AMP

The Total Economic Impact™ of AMP across publishers and e-commerce

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Speed equals revenue on the web, especially mobile. In fact, studies have shown even 100ms delays in page load time correlate with lower conversion rates. To better understand the impact AMP can provide for mobile sites on speed and revenue, Google commissioned Forrester Consulting, a leading global research and advisory firm, to conduct a Total Economic Impact™ study across publishers and e-commerce websites using AMP.

To conduct the analysis, Forrester interviewed 4 web companies who have been utilizing the AMP format. Based on the results observed by the sites interviewed, Forrester created a model to project the expected return from implementing AMP over a three year period. Using the model, a website with 4 million site visits monthly and a 10% profit margin would expect to win back the costs of implementing AMP and begin to see positive gains in less than 6 months.

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Some of the topline results from the study:

  • 20% increase in sales conversion rate. A/B testing conducted by the two e-commerce websites interviewed for this study demonstrated a 20% increase in the conversion rate on their AMP pages, which would drive over $200K in annual profit, based on the Forrester model.
  • 10% year-over-year increase in AMP site traffic. An increase in site traffic results in additional sales and ad views, which would drive over $75K in annual profit for a site in the first year, based on the model.
  • 60% increase in pages per visit. AMP pages performed positively for e-commerce and news publishers who both said that there was a 60% increase in people coming to the site and those people spent twice as long on the site with a small increase in return visitors of 0.3%.

AMP is still a relatively new format, and while there are costs associated with adopting it, the pay-off greatly outweighs that initial outlay. Specifically Forrester’s model found that a site with 4M visitors monthly implementing AMP could expect benefits of $1,005,447 over three years, against a total investment of $210,827, yielding a 377% ROI.

You can read the full study here, detailing the outcomes for both content and e-commerce websites. Enabling the creation of profitable, user-friendly websites for publishers and merchants is a core objective of the AMP Project. We are excited to see these results demonstrating the business viability of creating great user experiences on the web with the open-source AMP format.

Posted by Lisa Wang, Product Manager, AMP Project