crealytics' PPC Blog


The place to be for paid search and Google Shopping

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How to Get Customers Through The Shop Door With Google Shopping

 

Lower prices translate to more in-store foot traffic, but how can you make that behavior work for you on Google Shopping? By drawing on the in-depth research that we presented at SMX Seattle we can unlock the connection between price points and Shopping success.

Over the past few weeks we have been talking about the findings of our Advanced Google Shopping study, which uncovered some fantastic insights into consumer buying behaviour and how product pricing strategy plays an important part in campaign performance.  Here’s a brief recap.

66% of consumers don’t buy the product that they initially clicked on

We analyzed a dataset of more than 15,000 Google Shopping conversions across the German, UK and US markets, covering several international retailers from the fashion, sports, outdoor and luxury sectors. We looked at search queries, clicked product ads and products purchased. We found that, of Google Shopping conversions:

  • Only 34% were for the product that was initially clicked
  • 30% bought a product by the same designer, but from a different product category
  • 36% bought a product from a completely different designer

Read  the full article by Andi Reiffen (Crealytics CEO), “Can you manage your inventory with Google Shopping?”.

Understanding the link between what was clicked and what was bought is crucial in driving bidding strategies moving forward. But how much control do advertisers really have over this?

 

Higher priced products see a 70% drop in impressions

We also investigated the impact that changes in product price has on Google Shopping performance. We tested a set of products at a “low price” and then at a price increase of 43%, with bidding staying the same. The results:

  • Impression volume on the higher priced products decreased by 70%
  • Click volume on the higher priced products  decreased by 79%

Generally, it would be fair to expect that lower-priced products generate higher CTRs, but the difference in impression and click volume  suggests that Google is actually favouring those campaigns with products at low price points.

 

Read the full article, “Is price a proxy for Quality Score in product ads?” on Search Engine Land HERE.

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What does this mean for advertisers?

 

This is what we know.

  • Consumers, more often than not, browse your site and buy a different product from the one that drove them to your sites.
  • Low-priced products receive a much higher impression share than those above market averages.

 

While there’s a historical fear that lower prices only deliver bargain shoppers and small shopping carts, our data shows that lower priced goods can be an excellent catalyst for additional business. The fact is, often the queried and clicked product is the cause of engagement, but exposure to additional choices and a well-executed customer experience can translate to outstanding value.  

 

Given two thirds of users get distracted into purchasing other products on retailer’s websites, advertisers can selectively use lower-priced products as entry points to gain traffic, in order to upsell /cross-sell other high-margin products.

 

In a continuously competitive auction, these gateway products or loss leaders can be the key to driving increased traffic via Google Shopping.

So what next?

Pricing strategy is a fertile ground to test the relationship between Google Shopping and impression volume. Retailers looking to increase market share and revenue via Google Shopping should identify which of their products could act as catalysts for increased buying behavior, bigger shopping carts and higher profitability.

 

Work with your product team to identify which of your items you could test as catalyst products.  

 

If you are a Crealytics client, then please feel free to contact your Account Manager to talk about this.

 

We’d love to hear your thoughts on this, so please comment below or tweet us. Alternatively, contact info@crealytics.com to talk about how we can help you with your Shopping campaigns.

 

 

 

 


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Search Engine Land – Product Pricing is Key to Success in Google Shopping

Back in June, Crealytics’ CEO Andi Reiffen spoke as part of the “Mad Scientists of Paid Search” panel session at SMX Advanced in Seattle. During the session, he presented Crealytics’ latest research on Advanced Google Shopping. The presentation included some findings relating to user behavior within the channel and uncovered how much product price really impacts performance.

In our latest article on Search Engine Land,  Andi goes into more detail about pricing strategy in Google Shopping and looks at Crealytics’ client data to draws comparisons on the performance of low-cost products versus more expensive products.

Read the full article here. Don’t forget to share on LinkedIn and Twitter, where you can also ask us anything about the article and our insights.


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Google Shopping is Conquering the Earlier Stages of the Customer Journey

Google have announced the beta of Showcase Ads in the US, UK and Australia. The new Google Shopping ad types, Local Inventory Ads and Showcase Ads mark the beginning of how Google Shopping will be supporting the earlier stages of the customer journey, for example when users are searching by broad terms. Instead of just showing a selection of multiple products over many retailers, the user is led to a Google-hosted area, in which more products of the same retailer, together with ratings and reviews collected across retailers, are shown. Thus, Google starts to let users explore and discover a retailer’s product offering outside of their own website.

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Retailers can significantly increase ROAS with Google Smart Lists

Google Analytics’ Smart Lists was first launched in April 2014 with the purpose of helping advertisers to simplify their remarketing campaigns and maximize conversions. Now over 2 years on, we’d like to look at whether Smart Lists are actually beneficial and in what ways can advertisers use them efficiently. To answer this we set up a test* and analysed the impact Smart Lists have on campaign performance.

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Search, Analytics & Social Conference (look out for the unicorn keyword!)

What: Search, Analytics and Social Conference (SAScon)

Where: Manchester

When: 16 & 17 June

Ticket price: £295.00 +VAT

Last week I attended SAScon, a Search, Analytics and Social Media conference taking place for the 7th time and attracting over 350 digital marketing professionals (mainly senior). My aim was to get some insight into the relationship between PPC and SEO in the future and how it will be influenced by the technological innovations.

Topics covered:

  •   Creativity and data in different channels
  •   Creative retargeting
  •   Social commerce
  •   Success measurement with alternative metrics

Most interesting speaker:

Jim Banks from Groove – talked about how PPC has evolved since its beginning, gave examples of best practices and highlighted what the focus should be in the future; including cross device tracking, the growth of Bing, social and virtual reality.

Banks also spoke about finding the “unicorn” keyword – that keyword that no one else has found, but which can become the most profitable one. He used an example relating to the increased interest in credit ratings seen online a few years ago. The unicorn keyword was “teletrack” – a large volume of users were searching for it, but hardly any advertisers thought to bid on it. It cost only 10cent. Banks said that he built his summer house off the back of this keyword.

Top takeaways:

  • With Mobile continuing to grow (5.5 billion users predicted by 2020), there is increased interest in voice search. As such, the focus should be on long tail keywords – on predicting what users would ask search engines. Also, marketing efforts should be adapted to ongoing technological innovations such as virtual reality and augmented reality, which will influence customers’ online behaviour.
  • Invest more in Bing and don’t just import duplications of your Google campaigns. In particular Bing Shopping Ads are growing in popularity due to the adoption of Windows 10, so there is increasing opportunity here.

Was it worth the ticket?

From my point of view, the conference had a great mixture of search, analytics and social related talks. It was interesting to hear best practices for different channels from digital marketing experts, as well as to gain insights on what the future will bring and how the industry will be affected.


Ofcom report results

Ofcom 2016, Adults’ Media Use and Attitudes: What we learned

Ofcom recently released their latest annual report on how people in the UK use and interact with media. It is a cornucopia of data on consumer habits and how these have changed over the past decade. In this piece I’d like to highlight some of the statistics that stood out and will be of particular interest to advertisers.

 

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5 Predictions on how GTINs Will Drive the Retail PPC Evolution

On May 16th Google started to require online retailers to embed Global Trade Item Numbers (GTINs) into their Merchant Feed. Most teams are still getting used to the operational changes this has brought.  Let’s take a look beyond that. I’ll dare to make five predictions on how GTINs will drive PPC evolution:

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Google Shopping search engine land crealytics

Search Engine Land – Can you manage your inventory with Google Shopping?

Following up from my recent talk at SMX Munich, we have just published a new piece on Search Engine Land which discusses the possibility of managing product inventory through Google Shopping. In it we explore:

  • Why Shopping is a key platform for inventory management
  • If consumers buy what they search for
  • What values to assign to the sale of an overstocked product
  • Calculating accurate bids

Read the article here. Please feel free to comment and talk to us via Twitter @crealytics.


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Camato has been shortlisted for a 2016 European Performance Marketing Award!

We are delighted to announce that Camato for Product Ads has been shortlisted for a European Performance Marketing Award, under the Best Performance Marketing Technology category.

The European Performance Marketing Awards has revealed its shortlist of nominees ahead of a debut ceremony in Amsterdam’s Grand Hotel Krasnapolsky on July 4, co-hosted with Performance Marketing Insights: Europe.

Crealytics has been shortlisted alongside the likes of zanox, JVWeb, NetBooster, Forward3D, DigitasLBi, and many more.

The first ever European performance marketing champions will be crowned on the evening of July 4, bringing an end to day one of Performance Marketing Insights: Europe in the heart of the Dutch capital.

Until then, follow us on Twitter for updates.

Wish us luck!