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SMX Advanced 2014 Session #SMX #14B - PLA To Pay: Maximizing Profits With Product Listing Ads - Google Shopping Speculations On The Future By Frank Kochenash Of Mercent Read more about marketing at http://marketingland.com
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Google Shopping
Speculations on the Future June 2014
#SMX
C
ross
-ch
ann
el a
nal
ytic
s
Mercent Retail: Ensures the world’s leading retailers are visible, competitive, and
profitable wherever consumers shop
Catalog Inventory
Price
Optimize dynamically: Assortment
Content Bids Price
Paid search
PLA
CSE
Local
SEO
Marketplaces
Retailer
#SMX
Google Shopping is growing faster than
Amazon Same Store Sales Y/Y Growth %
0 %
20 %
40 %
60 %
80 %
100 %
120 %
Google Shopping Amazon Marketplace
#SMX
PLA has grown relative to “traditional”
paid search . . .
Comparison of Google Shopping to SEM Ratios
0 %
10 %
20 %
30 %
40 %
50 %
60 %
Sales Ratio Ad Spend Ratio
#SMX
. . . The impact is showing as Google
Shopping grows share of sales
Trifecta Stores, Channel Sales Distribution
67% 62%
58% 53% 52% 51% 52%
44% 43%
14% 20% 26%
28% 27% 31% 32%
38% 42%
19% 18% 16% 19% 22% 18% 16% 18% 15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2
Shopping
Google Shopping
Amazon
#SMX
Imagining the future
of Google Shopping
Speculating how
Google will satisfy
stakeholders
What consumers want What advertisers want
#SMX
What consumers want?
Buyers
Treasure hunters
The right product
#SMX
What consumers want?
Buyers
Treasure hunters
The right product
Low prices
#SMX
What consumers want?
Buyers
Treasure hunters
The right product
Low prices
Trusted fulfilment
#SMX
What consumers want?
Buyers
Treasure hunters
The right product
Low prices
Trusted fulfilment
Fun, enjoyment, surprise
#SMX
What consumers want?
Buyers
Treasure hunters
The right product
Low prices
Trusted fulfilment
Fun, enjoyment, surprise
Personalized touches
#SMX
What consumers want?
Buyers
Treasure hunters
The right product
Low prices
Pleasant browseability
Trusted fulfilment
Fun, enjoyment, surprise
Personalized touches
#SMX
What advertisers want?
Digital end caps
#SMX
What advertisers want?
Digital end caps
Efficient placement
#SMX
What advertisers want?
Digital end caps
Efficient placement
Differentiating experiences
#SMX
How do you prepare for the future of PLA?
DISCLAIMER
The following speculations of where PLA may go are strictly mine.
No endorsement by Google.
#SMX
1. More data – more
opportunities for structured
data to be leveraged in faceted
search and personalization
Takeaway:
Structure your data. Send more data. Make your products different. Your differentiation
is in your feed; not your bids.
#SMX
2. Buyable child variations
to be required to improve
customer buying
experience
Takeaway:
Structure and send variations. Send data more frequently. Integrate with Content API.
#SMX
3. New experiences that provide
easier price comparisons
Takeaway:
Start measuring price competitiveness. Test price aware bidding strategies.
#SMX
4. More Fulfillment by Google . . .
#SMX
4. More Fulfillment by Google . . . Or a data
certification that is fulfillment certified by
Takeaway:
Continually improve fulfillment and customer service. Plan for next day delivery. Plan for
how to expose your metrics.
#SMX
Price competitiveness relative to competition?
5. Price competitiveness metrics in AdWords
. . .
#SMX
5. Price competitiveness metrics in AdWords
. . . and more merchandising-like opportunity
suggestions
Add more popular products
The most popular products in your category have these attributes . . .
Reduce price on some products
You’re significantly over-priced on these products. Considering price on these products to increase click through rate
Add cross-sell opportunities
Takeaway:
Train your merchandisers on PLA and AdWords (and Mercent )
#SMX
6. RLSAs will come to
PLAs
Takeaway:
Test and use RLSA. Prepare for extension to PLA.
#SMX
7. New advertising programs for brands . . .
like Brand Registry
#SMX
7. New advertising programs for brands . . .
like a ‘boost’ programs to facilitate COOP and
MDF funded programs
Product relevance
Retailer bid
Brand boost
Takeaway:
Strengthen your relationship with suppliers/retailers. Talk now about how to
cooperate as new programs available.
#SMX
8. Mobile
experiences
become
pleasant –
putting the
best window
for window
shopping
into your
hand
Takeaway:
Provide or plan to provide local store inventory and prices to Google (and others).
#SMX
Summary
Expect PLA to get more “commerce-like”
– Prepare your data
– Prepare your organization
– Strengthen your supply chain partnerships
#SMX
Thank you
Frank Kochenash
Vice President, Product and Services
Frank.Kochenash@Mercent.com
206-832-3931
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