Win the E-Commerce War with Google Shopping Ads!
Win the E-Commerce War with Google Shopping Ads!
At the latest Redeye SaaS Seminar, Fredrik Lindros, the CEO of Speqta (SPEQT), made several good points on the state of the modern e-commerce environment:
“Every purchase starts with a need or a want — you think, ‘I need to grab some food’ or ‘I want the latest game coming out on the so-and-so Console’.” Fredrik says at the start of his e-commerce presentation. “Then, you have two options, you either go shopping in real life (like at a mall or a store) or you look up the item online.”
He goes on to explain that, as time passes, the number of folks that end up going with the latter option (using the internet to guide their shopping decisions) rises — and rapidly at that!
In fact, in 2019, the estimated number of online shoppers worldwide was 1.92 billion. And, during that same period, e-commerce sales accounted for 14.1% of all retail purchases around the world. This number, while not necessarily the most impressive right now, is expected to jump to 22% by 2023!
This is it. E-commerce is the future, and the modern battleground where the proverbial ‘war’ is raging between retailers, is Google—which owns 72% of the Search Ads market (with the rest owned by Amazon and Bing)—more specifically, Google Shopping Ads, which account for 65% of all clicks on Google Ads.
How can you win the e-commerce war with Google Shopping Ads? More in this below:
Google Shopping | Overview
Google Shopping is the best way of driving traffic that converts. Setup can be a bit laborious, but the benefits are more than worth the effort.
The platform is a Comparison Shopping Engine (CSE) or, more simply, it is a service where you can put your products up for advertisement. The ads themselves appear when someone types in a query on Google that is relevant to the data that you put into your product feed — along with, of course, several other ads of similar products from your competitors.
The bidding system that allows it to operate functions on a Cost-Per-Click (CPC) payment model. So, when a user clicks on one of your Ads, you pay your bid amount in exchange for Google redirecting the user to your website (or, more specifically, the product page where they can make the purchase.)
Reasons Why You Should Use Google Shopping Ads
- Shopping Ads appear at the top of Google SERP (Search Engine Results Page) above both Search Ads and Organic Search Results.
- They also feature images of the product — proof of concept if you will, as the pictures allow Shopping Ads to draw attention more than text-based advertising.
- Shopping Ads are also Intent-based Advertising — they appear for users that are actively looking for a product to buy, which naturally performs better than ads that are interruption-based (appearing at random points.)
How Do Google Shopping Ads Work?
For absolute beginners, the first thing you have to dispel is the belief that Shopping Ads are anything at all like Search Ads — because they’re not.
Shopping Ads are processed by Google’s algorithms through self-managed product feeds (which you have to set up yourself) that contain all the product data of your store (product titles, descriptions, images, pricing information, etc.)
If we were to break the process down into steps it will look a bit like this:
- You (the retailer) will create a product feed with relevant information and upload it to your Google Merchant Center account for Google’s algorithms to ‘crawl’ through.
- The next player is the user (the potential buyer) who types in a query on Google Search (i.e., “Sony Wireless Headphones”).
- In an instant, Google’s algorithms jump into action to process the user’s query by selecting the product in your store that best matches that query and creating a Shopping Ad for it so that it can be shown to the user along with other relevant advertisements.
- The buyer then has the chance to peruse the available products directly on SERP with a title, description, image, and the price of each product displayed.
- If the buyer clicks on your advertisement, they will be taken to your product page (where they will hopefully finish the sale) and Google will charge you based on your set CPC bid for that product.
The work you have to do in order to make this possible can be a bit tricky if you’re doing it for the first time. Fortunately, there are plenty of excellent Google Shopping guides out there that can help you with the different stages of the process, feel free to check those out when you’re ready. For now, let’s just say that it’ll take at least a couple of hours to accomplish, and will require that you have a stocked store, a product feed prepared, a Google Merchant Center Account to upload the product data to, and a Google Ads account to manage your Google Shopping campaigns.
How to Win the E-Commerce War? | Bidbrain
To end us off right, let’s discuss what it takes to actually win at Google Shopping.
At the aforementioned Redeye SaaS Seminar, Fredrik Lindros talks about this topic in great detail, saying: “I’ll let you in on a little secret. I think that the ones that can be the most granular with their bidding will be the one to win this ‘e-commerce war’. It’s the e-retailers that are able to use all of their data to determine when best to bid high or low that will win. And, for that, you’ll need to either have an in-house department filled with expert data scientists… or you can save yourself the extra effort and resources and rely on AI-based tools instead.”
For the latter, he recommends Bidbrain, which is a Speqta product that has just released. According to Fredrik, it takes advantage of what Shopping Ads do best (driving traffic that converts) by using the available data to pay more when there’s a high probability of converting traffic and pay less when the probability of conversion is low.
Early reports from available case studies have shown that their Bidbrain clients have seen an average of +20-50% increase in sales (or, even, a +128% increase in sales at a -21% reduced Cost of Sales (CoS).) So, it’s definitely got something going for it.
The post Win the E-Commerce War with Google Shopping Ads! first appeared on Tekrati and is written by Parker