Why Why Google Google Shopping doesn't Shopping doesn't work work - - PowerPoint PPT Presentation

Liam Patterson Founder & CEO

Why Why Google Google Shopping doesn't Shopping doesn't work work for for many many retailers retailers

About You

Q: Who is actively running Google Shopping ?

Show of hands?

Cost Per Click. How much the retailer is willing to pay Google if the shopper clicks on the product ad.

Critical for retailers to win the auction to ensure they reach shoppers actively looking to buy what they sell

ever every y search is search is auctioned for auctioned for sale sale in real in real time time ret retailers ailers inventor inventory competing competing to show in to show in limited limited Ad Ad spots spots.

TWO KEY FACTORS DETERMINE SUCCESS

• Relevance. Google goal is to

return the most relevant product match to the shoppers’ query, to maximise the chance of them clicking.

Opportunity Opportunity

63k searches per 63k searches per second second 3.8M searches per 3.8M searches per minute minute

27% of 27% of SHOPPERS SHOPPERS TURN TO GOOGLE TO FIND TURN TO GOOGLE TO FIND WHAT THEY WHAT THEY WANT WANT TO TO BUY BUY

A channel all A channel all retails retails need to be focused need to be focused on

• n

Google Shopping

63%

• f all Google search ad clicks

Source: h1ps://searchengineland.com/state-of-the-google-shopping-auc:on-heading-into-the-2018-holiday-season-308426

Google Shopping

87%

• f all Non-Brand search ad clicks

Product Range

• What we are

selling

eCommerce Store

• Shopping

experience

Google Shopping Ads

• Intent to buy

Challenging as Challenging as Three Three disciplines disciplines need to work need to work together together

Product Range Product Range search search volume volume

Product Range Product Range Price Price Competitive Competitive

Your AOV

£ 10

Compe: tor AOV

£ 20

Compe::on can bid 2x as much and s:ll be profitable

Ecommerce Store Ecommerce Store Average Average Order Order value value

Focus

• Deep Product Range
• Product Merchandising
• Up Sell & Cross Selling

Ecommerce Ecommerce Store Store Site Site Speed Speed

Conversion Rate impacted by site speed (Outdoor Retailer) 41% loss of revenue from 3 – 7 seconds site speed at same cost

Cost per Order

<£5

Return on AdSpend

4x

Fails: What about product margin? Fails: What about customer repeat rate? Fails: What about product margin? Fails: What about Order Value? Fails: What about customer repeat rate?

Google shopping Google shopping Ads Ads Success Success Metrics Metrics

Limited exposure lets compe:tors win profitable new customers, business growth slows

Google shopping Google shopping Ads Ads Goal Goal

52K+ unique products “All products” single cost per click

Google shopping Google shopping Ads Ads Campaign Campaign structure structure

Limited exposure lets compe:tors win profitable new customers, business growth slows

Google shopping Google shopping Ads Ads Campaign Campaign structure structure

Google recommends to group products around similar a1ributes and apply a cost per click We apply bids in groups, so how should we group products

• Brand
• Product Type
• Product Margin
• Price
• Best Sellers
• Stock levels
• Seasonal products

Focus: Use Custom Labels to add values to enable product groupings relevant to your company

Google shopping Google shopping Ads Ads Campaign Campaign structure structure

Google shopping Google shopping Ads Ads Campaign Campaign structure structure

fining how much to fining how much to set set e cost per click e cost per click is is ficul ficult t to predict to predict mprises many mprises many fa factors

“Running Shoes”

Awareness

“best adidas running shoes”

ConsideraTon

“buy Adidas ultra boost red size 10”

Purchase

Why?

We think they will buy

• r the image may have been corrupted. Restart

What?

How many click to get a sale

They are shopping for

Product Margin

Margin of the product

Who?

• pen the image, or the image may have been
• corrupted. Restart your computer, and then
• pen the file again. If the red x still appears,

Value of products sold

Past visitors

• displayed. Your computer

value

Beer top

Awareness

n's T-Shirt Black

Google shopping Google shopping Ads Ads Campaign Campaign structure structure

CR : 2% Item ID CR : 3% Item ID CR : 4% Item ID Size : Small Size : Medium Size : Large 20p CPC 30p CPC 40p CPC

Google shopping Google shopping Ads Ads Campaign Campaign structure structure

Google shopping Google shopping Ads Ads Campaign Campaign structure structure

Defining how much Defining how much to to set the cost per set the cost per click click is is difficul difficult t to to predict predict Comprises Comprises many many fa factors “Running Shoes”

Awareness “best adidas running shoes” ConsideraTon “buy Adidas ultra boost red size 10” Purchase

Why?

Conversion Rate and then open the file again. If the red x

• pen the image, or the image may have

How many click to get a sale What?

image and then insert it again.

They are shopping for

Product Margin

Margin of the product Who?

computer may not have enough memory

Average Order Value If the red x still appears, you may have

Value of products sold Past visitors

Customer Life Time Value Your computer may not have

• displayed. Your
• r the image may have been

• corrupted. Restart your computer,

Frequency & value of repeat purchases red x still appears, you may have to

• again. If the red x still

Football Shirt Man United Men’s Football Shirt Man United Away Kit 2017/18 Mens Large

value

Awareness

Google shopping Google shopping Ads Ads Purchase Purchase intent intent

Google shopping Google shopping Ads Ads Purchase Purchase intent intent

42% 54%

c 1 SKU

2017-2018 Man Utd Adidas Away Football Shirt

Bid Price PLA Posi;on CR

.

ROAS Goal Awareness

Football Shirt

0.78% 697% Win Less ConsideraIon

Man United Men’s Football Shirt

2.54% 1,116% Maintain Purchase

Man United Away Kit 2017/18 Mens Large

3.49% 1,743% Win More

Google shopping Google shopping Ads Ads Purchase Purchase intent intent

Product & Search Term performance data Provides long term defensibility

Your Business

Google shopping Ads Google shopping Ads Data Data Unfair Unfair advantage advantage

Ar:san Marketplace Impression Share by Purchase Intent (Sports Retailer USA)

Google shopping Ads Google shopping Ads Data Data Unfair Unfair advantage advantage

Client

Defining how much Defining how much to to set the cost per set the cost per click click is is difficul difficult t to to predict predict Comprises Comprises many many fa factors

“Running Shoes”

Awareness

“best adidas running shoes”

ConsideraTon

“buy Adidas ultra boost red size 10”

Purchase

Why?

Conversion Rate

• pen the image, or the image may have

How many click to get a sale

What?

They are shopping for

Product Margin

Margin of the product

Who?

Average Order Value

Value of products sold

Past visitors

Customer Life Time Value

• displayed. Your
• r the image may have been

• corrupted. Restart your computer,

Frequency & value of repeat purchases

• again. If the red x still

value

Awareness

Google shopping Google shopping Ads Ads

• verview
• verview

Football Shirt Man United Men’s Football Shirt Man United Away Kit 2017/18 Mens Large

AD ADVERTISE VERTISE SK SKU ANAL ANALYSE SE ROI ROI ACTION ACTION CPC CPC

New value calculated from many variables and cost per click price adjusted. Conversion rate Performance Prediction Impression Share Click Through Rate Clicks Cost

Google shopping Google shopping Ads Ads bid bid adjustment adjustment

Google shopping Google shopping Ads Ads bid bid adjustment adjustment

Google shopping Google shopping Ads Ads Sparse Sparse data data

Search Intent 25.17% Team 14.07% Colour 7.22% Gender

• 3.07%

Player 13.77% Size

• 13.40%

data data has has surpassed surpassed what what a human can a human can analyze analyze and and manage manage

Price Range

• 3.92%

Category 13.77%

True Bid True Bid Va Value

Delivery Time

• 13.92%

Proven Proven result results, , 70+ + re retailers tailers from from scale ups to high street scale ups to high street brands brands

Spor:ng goods retailer est.1930 with eight high street shops selling world's leading brands

75% 75% revenue

revenue increase increase

42% 42% Reduced cost of

Reduced cost of sale sale

View Full Case Study

157% 157% revenue

revenue increase increase

30% 30% Reduced cost of

Reduced cost of sale sale

View Full Case Study

115% 115% revenue

revenue increase increase

26% 26% Reduced cost of

Reduced cost of sale sale

View Full Case Study

31% 31% revenue

revenue increase increase

53% 53% Reduced cost of

Reduced cost of sale sale

View Full Case Study

Online men's fashion store stocking over 60 designer brands Leading online supplier

• f light bulbs, lamps

and tubes Discover products from the coolest emerging brands ar:sts and designers

Email : Liam@bidnamic.com

Stand f20,

• pposite content & Social

strategy theatre