Recap: Google Subsidiary of Alphabet, Amazon Drops Product Ads, Automated Bidding Strategies for Google Shopping

It’s Monday and time for our weekly recap. Last week everybody was speaking about the founding of Alphabet and its consequences for Google. In addition, we heard about Amazon dropping product ads and AdWords introducing automated bidding solutions for Google Shopping.

Google Now Subsidiary of Alphabet Inc. 

Last Monday, Larry Page and Sergey Brin announced the founding of Alphabet Inc., a new holding company. The new company will consist of several subsidiaries, one of them being Google including all main Internet products like Search, Maps, YouTube, Android, AdWords or Apps.

At the same time, Sundar Pichai, former Product Chief at Google Inc, will become the new CEO of Google while Larry Page will become the new CEO of Alphabet and Sergey Brin its president.

Why is Google doing this? Larry page wrote that they’re doing this “to continue to scale their aspirations” without being hindered by the daily work at Google. Others say it’s about transparency, showing which parts of Google are responsible for which revenues and expenses, probably fearing that the conglomerate of companies is too devious for regulatory authorities.

Amazon Shuts Down Product Ads Service

According to Wall Street Journal and Search Engine Land, Amazon will stop showing Product Ads on by Oct 31st 2015 and instead replace them with text ads.

While Amazon did not give an official explanation yet, cannibalisation might be a likely reason. Amazon monetises by both selling goods to consumers and clicks to advertisers. Both strategies can, of course, easily compete with each other. For every click on a product ad, the shoppers are directed to another website – where they are able to do a transaction that might as well have happened on Amazon.

Automated Bid Strategies for Google Shopping

In May 2013, Google announced flexible bid strategies for AdWords. Last Thursday, Google introduced the same “suite of bidding strategies” for Shopping campaigns, promising “to go beyond manual max CPC bidding to deliver specific bids for each auction, tailored to people’s context”.

Bid Strategies Google Shopping

It’s basically the same strategies already eligible for text ad campaigns, including

  • Enhanced CPC: automatically adjusts your manual bid up or down based on each click’s likelihood to result in a conversion.
  • Target search page location: automatically adjusts bids to help you get your ads to the top of the page or the first page of search results.
  • Target CPA: automatically sets bids to help you get as many conversions as possible while reaching your average cost-per-acquisition goal.
  • Target outranking share: automatically sets bids to help you outrank another domain’s ads in search results.
  • Maximize clicks: automatically sets bids to help you get the most clicks within a chosen target spend amount.
  • Target return on ad spend: automatically sets your bids to maximize your conversion value, while trying to reach an average return on ad spend.

While most of the bid strategies are already available, Target ROAS is currently a beta and only available to a handful of retailers. If you’re interested in it, you can contact Google via this request form.


Maximilian Hainlein

I'm working for crealytics as Social Media and Marketing Manager since 2011. My motto: "It's better to be the needle than the haystack."