Google Shopping
Speculations on the Future
June 2014
#SMX
Cross-channelanalytics
Mercent Retail:
Ensures the world’s leading retailers are visible, competitive, and
profitable...
#SMX
Google Shopping is growing faster than
Amazon
Same Store Sales Y/Y Growth %
0 %
20 %
40 %
60 %
80 %
100 %
120 %
Googl...
#SMX
PLA has grown relative to “traditional”
paid search . . .
Comparison of Google Shopping to SEM Ratios
0 %
10 %
20 %
3...
#SMX
. . . The impact is showing as Google
Shopping grows share of sales
Trifecta Stores, Channel Sales Distribution
67%
6...
#SMX
Imagining the future
of Google Shopping
Speculating how
Google will satisfy
stakeholders
What consumers want What adv...
#SMX
What consumers want?
Buyers
Treasure hunters
The right product
#SMX
What consumers want?
Buyers
Treasure hunters
The right product
Low prices
#SMX
What consumers want?
Buyers
Treasure hunters
The right product
Low prices
Trusted fulfilment
#SMX
What consumers want?
Buyers
Treasure hunters
The right product
Low prices
Trusted fulfilment
Fun, enjoyment, surprise
#SMX
What consumers want?
Buyers
Treasure hunters
The right product
Low prices
Trusted fulfilment
Fun, enjoyment, surprise...
#SMX
What consumers want?
Buyers
Treasure hunters
The right product
Low prices
Pleasant browseability
Trusted fulfilment
F...
#SMX
What advertisers want?
Digital end caps
#SMX
What advertisers want?
Digital end caps
Efficient placement
#SMX
What advertisers want?
Digital end caps
Efficient placement
Differentiating
experiences
#SMX
How do you prepare for the future of PLA?
DISCLAIMER
The following speculations of where PLA may go are strictly mine...
#SMX
1. More data – more
opportunities for structured
data to be leveraged in faceted
search and personalization
Takeaway:...
#SMX
2. Buyable child variations
to be required to improve
customer buying
experience
Takeaway:
Structure and send variati...
#SMX
3. New experiences that provide
easier price comparisons
Takeaway:
Start measuring price competitiveness. Test
price ...
#SMX
4. More Fulfillment by Google . . .
#SMX
4. More Fulfillment by Google . . . Or a data
certification that is fulfillment certified by
Google
Takeaway:
Continu...
#SMX
Price competitiveness
relative to competition?
5. Price competitiveness metrics in AdWords
. . .
#SMX
5. Price competitiveness metrics in AdWords
. . . and more merchandising-like opportunity
suggestions
Add more popula...
#SMX
6. RLSAs will come to
PLAs
Takeaway:
Test and use RLSA. Prepare for extension to
PLA.
#SMX
7. New advertising programs for brands . . .
like Brand Registry
#SMX
7. New advertising programs for brands . . .
like a ‘boost’ programs to facilitate COOP and
MDF funded programs
Produ...
#SMX
8. Mobile
experiences
become
pleasant –
putting the
best window
for window
shopping
into your
hand
Takeaway:
Provide ...
#SMX
Summary
Expect PLA to get more “commerce-like”
– Prepare your data
– Prepare your organization
– Strengthen your supp...
#SMX
Thank you
Frank Kochenash
Vice President, Product and Services
Frank.Kochenash@Mercent.com
206-832-3931
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Google Shopping Speculations On The Future By Frank Kochenash

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SMX Advanced 2014 Session #SMX #14B - PLA To Pay: Maximizing Profits With Product Listing Ads - Google Shopping Speculations On The Future By Frank Kochenash Of Mercent

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Google Shopping Speculations On The Future By Frank Kochenash

  1. 1. Google Shopping Speculations on the Future June 2014
  2. 2. #SMX Cross-channelanalytics Mercent Retail: Ensures the world’s leading retailers are visible, competitive, and profitable wherever consumers shop Catalog Inventory Price Optimize dynamically: Assortment Content Bids Price Paid search PLA CSE Local SEO Marketplaces Retailer
  3. 3. #SMX Google Shopping is growing faster than Amazon Same Store Sales Y/Y Growth % 0 % 20 % 40 % 60 % 80 % 100 % 120 % Google Shopping Amazon Marketplace
  4. 4. #SMX PLA has grown relative to “traditional” paid search . . . Comparison of Google Shopping to SEM Ratios 0 % 10 % 20 % 30 % 40 % 50 % 60 % Sales Ratio Ad Spend Ratio
  5. 5. #SMX . . . The impact is showing as Google Shopping grows share of sales Trifecta Stores, Channel Sales Distribution 67% 62% 58% 53% 52% 51% 52% 44% 43% 14% 20% 26% 28% 27% 31% 32% 38% 42% 19% 18% 16% 19% 22% 18% 16% 18% 15% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 Shopping Google Shopping Amazon
  6. 6. #SMX Imagining the future of Google Shopping Speculating how Google will satisfy stakeholders What consumers want What advertisers want
  7. 7. #SMX What consumers want? Buyers Treasure hunters The right product
  8. 8. #SMX What consumers want? Buyers Treasure hunters The right product Low prices
  9. 9. #SMX What consumers want? Buyers Treasure hunters The right product Low prices Trusted fulfilment
  10. 10. #SMX What consumers want? Buyers Treasure hunters The right product Low prices Trusted fulfilment Fun, enjoyment, surprise
  11. 11. #SMX What consumers want? Buyers Treasure hunters The right product Low prices Trusted fulfilment Fun, enjoyment, surprise Personalized touches
  12. 12. #SMX What consumers want? Buyers Treasure hunters The right product Low prices Pleasant browseability Trusted fulfilment Fun, enjoyment, surprise Personalized touches
  13. 13. #SMX What advertisers want? Digital end caps
  14. 14. #SMX What advertisers want? Digital end caps Efficient placement
  15. 15. #SMX What advertisers want? Digital end caps Efficient placement Differentiating experiences
  16. 16. #SMX How do you prepare for the future of PLA? DISCLAIMER The following speculations of where PLA may go are strictly mine. No endorsement by Google.
  17. 17. #SMX 1. More data – more opportunities for structured data to be leveraged in faceted search and personalization Takeaway: Structure your data. Send more data. Make your products different. Your differentiation is in your feed; not your bids.
  18. 18. #SMX 2. Buyable child variations to be required to improve customer buying experience Takeaway: Structure and send variations. Send data more frequently. Integrate with Content API.
  19. 19. #SMX 3. New experiences that provide easier price comparisons Takeaway: Start measuring price competitiveness. Test price aware bidding strategies.
  20. 20. #SMX 4. More Fulfillment by Google . . .
  21. 21. #SMX 4. More Fulfillment by Google . . . Or a data certification that is fulfillment certified by Google Takeaway: Continually improve fulfillment and customer service. Plan for next day delivery. Plan for how to expose your metrics.
  22. 22. #SMX Price competitiveness relative to competition? 5. Price competitiveness metrics in AdWords . . .
  23. 23. #SMX 5. Price competitiveness metrics in AdWords . . . and more merchandising-like opportunity suggestions Add more popular products The most popular products in your category have these attributes . . . Reduce price on some products You’re significantly over-priced on these products. Considering price on these products to increase click through rate Add cross-sell opportunities Takeaway: Train your merchandisers on PLA and AdWords (and Mercent )
  24. 24. #SMX 6. RLSAs will come to PLAs Takeaway: Test and use RLSA. Prepare for extension to PLA.
  25. 25. #SMX 7. New advertising programs for brands . . . like Brand Registry
  26. 26. #SMX 7. New advertising programs for brands . . . like a ‘boost’ programs to facilitate COOP and MDF funded programs Product relevance Retailer bid Brand boost Takeaway: Strengthen your relationship with suppliers/retailers. Talk now about how to cooperate as new programs available.
  27. 27. #SMX 8. Mobile experiences become pleasant – putting the best window for window shopping into your hand Takeaway: Provide or plan to provide local store inventory and prices to Google (and others).
  28. 28. #SMX Summary Expect PLA to get more “commerce-like” – Prepare your data – Prepare your organization – Strengthen your supply chain partnerships
  29. 29. #SMX Thank you Frank Kochenash Vice President, Product and Services Frank.Kochenash@Mercent.com 206-832-3931

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