Google has recently rolled out their advertising solution for online retailers in Ireland, which is called Google Shopping. This solution first appeared in 2004, and since then it has left a significant mark in the world of e-commerce.
How does it work exactly?
Let’s assume you are looking for snowboards on Google.ie. You will be presented with a similar result to the following:
The Shopping ads, commonly referred to as Product Listing Ads (PLAs) appear above the regular search results, showing an image, and information about the product that entails the product name, description, price and the retailer’s name in green. Users can swipe to view products that did not make the first result page. They can either click one of the listed products and be taken to the landing page of the retailer, or enter the Shopping page of Google.
In case they go onto the shopping section of Google, users will be brought to a shopping interface. Here they are presented with larger images of the products, and a filtering menu on the left side of the screen where products can be filtered by price, retailer, also allowing for the listing of only new items.
An important thing to note, is that both products and retailers can receive reviews by customers, and Google will show these reviews in the listings.
Product reviews will be shown on an orange five stare scale, while sellers rating will be showed in green.
So what’s the big idea?
Although reported figures vary, most sources claim that PLAs accounted for nearly 70% of Non-Branded paid clicks of US online retailers advertising on Google. Considering that Non-Branded search terms are vital in generating new leads, the potential Google Shopping brings to Irish retailers is substantial. Moreover, it is also important to note that activity on Google Search partner websites started increasing rapidly in 2015 and 2016. This means that retailers, such as Target, show more PLAs on their website, thereby increasing the reach for advertisers.
How can it help Online Retailers?
Advertising metrics fluctuate across countries and industries, online marketers see improved click-through rates (CTRs) on shopping ads in general. This indicates that the use of engaging images, and the ability to explore and compare products without having to leave search results drive more clicks from users. According to a Shopify case study, the cost per acquisition (CPA) of leads can be 50% lower in case of PLAs compared to text ads. The performance of Google Shopping especially excels in case of mobile devices. In 2016 Q1, the year-to-year growth of clicks from mobile were 162%, while the same rate remained below 40% for both tablet and desktop.
So, what do we recommend to do if you are an online retailer?
Set up your Merchant Centre Account: This will be your gateway to Google shopping
Generate and upload a data feed for your products: This will be required to inform Google about updates and changes in your product portfolio
Strive for good customer reviews: Good products and customer service will bring you rewards. Google Shopping will show reviews for both your products, and for you as a business. Make sure to capitalize on happy customers
Manage your campaigns actively: Similarly to other AdWords solutions, Shopping campaigns will need attention, and will require you to review and refine keywords, ad formats, bids and other relevant metrics