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

Why Why Google Google Shopping doesn't Shopping doesn't work work for for many many retailers retailers Liam Patterson Founder & CEO

Show of hands? Q: Who is actively running Google Shopping ? About You

27% of SHOPPERS 27% of SHOPPERS ever every y search is search is auctioned for auctioned for sale sale in real time in real time TURN TO GOOGLE TO FIND TURN TO GOOGLE TO FIND ret retailers ailers inventor inventory competing competing WHAT THEY WANT WHAT THEY WANT TO TO BUY BUY 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. Cost Per Click . How much the retailer is willing to pay Google if the shopper clicks on the product ad. Opportunity Opportunity Critical for retailers to win the 63k searches per second 63k searches per second auction to ensure they reach 3.8M searches per 3.8M searches per minute minute shoppers actively looking to buy what they sell

A channel all A channel all retails retails need to be focused need to be focused on on Google Shopping Google Shopping 87% 63% of all Non-Brand search ad clicks of all Google search ad clicks Source : h1ps://searchengineland.com/state-of-the-google-shopping-auc:on-heading-into-the-2018-holiday-season-308426

Challenging as Three Challenging as Three disciplines disciplines need to work together need to work together Product eCommerce Range Store • Shopping What we are • selling experience Google Shopping Ads Intent to buy •

Product Range Product Range search search volume volume

Product Range Product Range Price Price Competitive Competitive

Ecommerce Store Ecommerce Store Average Average Order Order value value Focus Compe: tor AOV • Deep Product Range £ 20 • Product Merchandising Your AOV • Up Sell & Cross Selling £ 10 Compe::on can bid 2x as much and s:ll be profitable

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

Google shopping Ads Google shopping Ads Success Success Metrics Metrics Return on AdSpend Cost per Order <£5 4x Fails : What about product margin? Fails : What about product margin? Fails : What about customer repeat rate? Fails : What about Order Value? Fails : What about customer repeat rate?

Google shopping Google shopping Ads Ads Goal Goal Limited exposure lets compe:tors win profitable new customers, business growth slows

Google shopping Google shopping Ads Ads Campaign Campaign structure structure 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 structure Campaign structure Google recommends to group products around similar a1ributes and apply a cost per click Focus : We apply bids in groups, so how should we group products Use Custom Labels to add • Brand values to enable product Product Type • groupings relevant to • Product Margin your company Price • Best Sellers • Stock levels • Seasonal products •

Google shopping Google shopping Ads Ads Campaign Campaign structure structure

fining how much to fining how much to set set Google shopping Ads Google shopping Ads e cost per click e cost per click is is Campaign structure Campaign structure ficul ficult t to predict to predict mprises many mprises many fa factors Awareness “Running Shoes” ConsideraTon “best adidas running shoes” value Purchase “buy Adidas ultra boost red size 10” Awareness Beer top Why? n's T-Shirt We think they will buy The image cannot be displayed. Your computer e Conversion Rate may not have enough memory to open the image, T What? or the image may have been corrupted. Restart the red x still appears, you may have to delete h your computer, and then open the file again. If i the image and then insert it again. How many click to get a sale Black They are shopping for Product Margin The image cannot be displayed. Your Who? Margin of the product computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, T Average Order Value you may have to delete the image and then insert it again. h e i Value of products sold Past visitors The image cannot be displayed. Your T Customer Life Time Value computer may not have enough memory The image cannot be to open the image, or the image may have h displayed. Your computer been corrupted. Restart your computer, e may not have enough and then open the file again. If the red x memory to open the still appears, you may have to delete the

Google shopping Google shopping Ads Ads Campaign structure Campaign structure 40p 20p 30p CPC CPC CPC CR : 2% CR : 3% CR : 4% Item ID Item ID Item ID Size : Small Size : Medium Size : Large

Google shopping Google shopping Ads Ads Campaign Campaign structure structure

Defining how much Defining how much to to Google shopping Ads Google shopping Ads set the cost per set the cost per click click Purchase intent Purchase intent is is difficul difficult t to to predict predict Comprises many Comprises many “Running Shoes” Awareness factors fa “best adidas running shoes” ConsideraTon value Purchase “buy Adidas ultra boost red size 10” Awareness Football Shirt Why? Man United Men’s The image cannot be displayed. Yo W ur e think they will buy Conversion Rate and then open the file again. If the red x Football Shirt image and then insert it again. computer may not have enough memory to What? open the image, or the image may have been corrupted. Restart your computer, How many click to get a sale still appears, you may have to delete the Man United Away Kit They are shopping for 2017/18 Mens Large Product Margin computer may not have enough memory The image cannot be displayed. Your Who? Margin of the product to open the image, or the image may If the red x still appears, you may have have been corrupted. Restart your computer, and then open the file again. Average Order Value to delete the image and then insert it again. Value of products sold Past visitors Your computer may not have The image cannot be displayed. Customer Life Time Value The image cannot be enough memory to open the image, displayed. Your or the image may have been computer may not corrupted. Restart your computer, have enough memory Frequency & value of repeat purchases red x still appears, you may have to and then open the file again. If the to open the image, or the image may have delete the image and then insert it been corrupted. again. Restart your computer, and then open the file again. If the red x still

Google shopping Google shopping Ads Ads Purchase Purchase intent intent 54% 42%

Google shopping Ads Google shopping Ads Purchase Purchase intent intent 1 SKU CR ROAS Goal Bid Price PLA Posi;on 2017-2018 Man Utd Adidas Away Football Shirt . Awareness Football Shirt Win 0.78% 697% Less ConsideraIon Man United Men’s c 2.54% 1,116% Maintain Football Shirt Purchase Win Man United Away Kit 2017/18 Mens 3.49% 1,743% Large More

Google shopping Ads Google shopping Ads Data Data Unfair Unfair advantage advantage Product & Search Term performance data Your Business Provides long term defensibility

Google shopping Ads Google shopping Ads Data Data Unfair Unfair advantage advantage Impression Share by Purchase Intent (Sports Retailer USA) Client Ar:san Marketplace