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Advanced Strategies to get your Google Shopping Campaigns to the Next Level - Andreas Reiffen | PPC OFFLINE #9

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Prezentace o strategiích pro reklamní kampaně Google Nákupy v AdWords.
Prezentující: Andreas Reiffen (CEO @ crealytics)

Prezentace z PPC OFFLINE #9
30. 1. 2018, Praha - PVA Letňany

Video záznam přednášky zde: Připravujeme

Více o PPC OFFLINE na http://www.ppcoffline.cz
Porádáno agenturou KOFEIN: http://www.kofein.cz

Published in: Marketing
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Advanced Strategies to get your Google Shopping Campaigns to the Next Level - Andreas Reiffen | PPC OFFLINE #9

  1. 1. 1 Advanced Strategies to get your Google Shopping Campaigns to the Next Level Andreas Reiffen – CEO @ crealytics Prague, Czech Republic January 30, 2018
  2. 2. 2 Topics we‘ll cover today … • Show how Google steadily increased the share of product ads • How will Shopping develop in the future? 1 Semantic Advertising TechnologyEcommerce Expo Prague 2018 3 • Taking a variety of factors into account makes bidding on Google Shopping difficult • What do you have to consider to successfully optimize your bidding? 2 • Advice on Google Shopping campaign structure • What is the right way to structure your Shopping campaigns? Google Shopping global market insights Advanced strategiesGetting the basics right
  3. 3. 3 Google Shopping – Global Market Insights Semantic Advertising TechnologyEcommerce Expo Prague 2018
  4. 4. 4 Google Shopping spending already surpassed text ads in in all markets Semantic Advertising TechnologyEcommerce Expo Prague 2018 DE spending share US spending share UK spending share 58%57% H2 16 43% 42% H2 17H1 17 55% 45% H1 16H2 15 67% 45% 55% Text Ads Shopping H2 15 48%54% 52% 36% H1 16 H1 17 38% 60% 66%64% H2 16 40% H2 17 46% H2 17 31% 68% 35% H1 16 69% H1 17 32% H2 16 65% H2 15 63% 37% 49% 51%
  5. 5. 5 UK: 74% of mobile PPC budget is spent on Google Shopping Semantic Advertising TechnologyEcommerce Expo Prague 2018 63% 37% 26% 74% Shopping Text Ads Desktop Mobile Mobile is much more profitable in Google Shopping which leads to higher spending Shopping was the main reason for mobile surge in 2016/17 Spending shares in H2 2017 Insights
  6. 6. 6 More clicks for cheaper CPCs Is Google Shopping getting even more attractive for advertisers? Semantic Advertising TechnologyEcommerce Expo Prague 2018 CPC decreased by 21% while paid clicks expanded by 55% Shift to mobile is reason for declining CPCs as mobile CPCs are still less expensive The deflation of CPC also indicates that there is temporary excess of auctions where advertisers can lower their CPC and still are able to spend their budgets This sounds like a great story for advertisers, you get more valuable clicks for cheaper CPCs However, this would be only true if you don’t pay for clicks that have been free in the past and if you don’t pay twice for the same users https://abc.xyz/investor/pdf/2017Q3_alphabet_earnings_release.pdf Lorem ipsumAlphabet investor report Excess of auctions leads to lower CPC?
  7. 7. 7 In 2013 product ads were displayed underneath the top text ads Semantic Advertising TechnologyEcommerce Expo Prague 2018 SERP layout Screen shot http://www.cpcstrategy.com/blog/2013/07/google-16-product-listing-ads-serps http://www.business2community.com/online-marketing/google-shopping-merchant-center-step-by-step-setup-guide-0371869#
  8. 8. 8 In 2014 Google made a big change and placed product ads on top of the text ads Semantic Advertising TechnologyEcommerce Expo Prague 2018 SERP layout Screen shot https://www.searchenginejournal.com/breaking-google-changes-serp-images-king-ppc-holds-key-kingdom/80455/
  9. 9. 9 In 2015 Google started to show eight product ads in the right side rail Semantic Advertising TechnologyEcommerce Expo Prague 2018 SERP layout Screen shot http://certifiedknowledge.org/blog/the-complete-adwords-audit-part-12-google-shopping-campaigns
  10. 10. 10 In 2016, Google eliminated text ads from the side rail Semantic Advertising TechnologyEcommerce Expo Prague 2018 SERP layout Screen shot https://ambergreeninternetmarketing.com/blog/what-the-adwords-just-happened-to-googles-serp
  11. 11. 11 2017 developments show nine even larger products on the side Semantic Advertising TechnologyEcommerce Expo Prague 2018 SERP layout Screen shot https://ambergreeninternetmarketing.com/blog/what-the-adwords-just-happened-to-googles-serp
  12. 12. 12 Google‘s rationale: Product ads are more attractive for the user and generate more revenue Semantic Advertising TechnologyEcommerce Expo Prague 2018 3 product ads have roughly the (pixel) size of one text ad or organic listing More than double the revenue for Google per pixel ad space (mobile example) = RevenueCPC +28.0% +126.0% Aggregated CTR +77.0% Google still puts the “user first” and promotes search results that he likes. Images are more attractive Those are paid results with high CTR
  13. 13. 13 Getting the Basics Right Semantic Advertising TechnologyEcommerce Expo Prague 2018
  14. 14. 14 Google Shopping account structure The optimal account structure depends on your size and your goals Semantic Advertising TechnologyEcommerce Expo Prague 2018 We usually use brands as campaigns Product categories/types become ad groups Products are grouped in a single product group within an ad group We split out products once they hit a certain threshold of clicks (e.g. 10 clicks) Lorem ipsumDifferent account levels How does it work? Product Group Product Group Product Group Product Group Product Group Product Group Product Group Product Group
  15. 15. 15 How to optimize your product feed Semantic Advertising TechnologyEcommerce Expo Prague 2018 Comply with Google Shopping guidelines Check your product feed regularly Enable notifications If products get disapproved, check the disapproval reason to identify mistakes in your data Increase the relevance of your product feed to improve your Google Shopping performance Name products in a way people search for them Do not “over-optimize” titles to avoid they differ too much from the landing pages Use the available space Differentiate your products from competitors’ products Include product ratings Never stop optimzing you product feed! Highlight your USPOptimize feed contentAvoid disapproved products
  16. 16. 16 Introduction to Audience Targeting Targeting the right consumers will save you a lot of money Semantic Advertising TechnologyEcommerce Expo Prague 2018 Why targeting? Targeting possibilities Allows you to adjust bids according to conversion probability of audiences Possibility to align campaign specifically to a distinct target group Reduce wasted ad spend Performance improves as chance for conversion increase With increasing specification the amount of people/traffic declines Situation of usage • Device (Mobile, Desktop, Tablets) • Language • Countries/Location • Time/Day Targeting group • Former interactions (visits, cart abandoners, purchases) • Demography (age, gender) • New Customers • Existing Customers
  17. 17. 17 RLSA & Customer Match Increase profitability by targeting a well-known user group Semantic PPC Advertising Technologycrealytics presentation Target customers based on previous interactions with your website Create remarketing audience groups in AdWords • You need to add the remarketing tag on every website, it collects users and adds them to a certain list Common RLSA strategies • Probability – bid higher on audiences which are likely to convert / lower bids for non-converters • Keyword strategy – bid on terms that are performing well in general • ‘Head Term’ Campaign – to reach users who have been on your site already, you can bid on generic terms like ‘fashion’ or ‘sale’ RLSA (Remarketing Lists for Search Ads) Customer Match Target (or exclude) people based on their email addresses • Advertisers have to upload customer email lists into AdWords that can be matched against signed-in Google accounts Top Strategies for using Customer Match • Profitability – reduce bids for customers with a low average basket value • Reach – use similar audiences to target additional prospective customers • Reactivation – promote a special offer to customers who have gone cold as an incentive for re-engagement • Upselling – use complimentary product information to upsell to customers who have already bought
  18. 18. 18 Advanced Strategies Semantic Advertising TechnologyEcommerce Expo Prague 2018
  19. 19. 19 Impressions before / after Key insights 0.6 0.7 bid = 0.50 5.4 2.1 1.3 bid = 1.50 0.4 4.3 designer only termdesigner termsgeneric terms On Google Shopping, you bid on products, not keywords When you raise bids, a product starts to behave like a broad keyword The designer-only term, chi chi london, is stable in impressions CPC for the same queries increased by +186% Spike in generic queries affects traffic quality and ROI CPC 0.22 0.09 0.40 0.85 0.63 0.25 (k impressions) Semantic Advertising TechnologyEcommerce Expo Prague 2018 Increase of all Chi Chi London bids by 200% What happens after increasing bids by 200%?
  20. 20. 20 Birkenstock Arizona Black 1,127 0.50 1.50 1,018 +11% 0.750.36 204 5,534 0.50 1.50 +2,613% 200 1,500 +650% 0.50 1.50 0.720.28 CPC 0.760.29 Impressions Bids Semantic Advertising TechnologyEcommerce Expo Prague 2018 We raised bids by 200% and evaluated traffic Chi Chi London Lace Midi Prom Dress Diesel (Designer) These results do not seem consistent at all. And now?
  21. 21. 21 740,0 4,400 204 actual increase cannibalised impressions +363% 5,140 nominal increase baseline 0.720.28 0.30 Net impression increase (after cannibalisation) Explanation Higher bids attracted the generic query, birkenstock, that matched to other products before. A large part of traffic increase was internal cannibalisation. Semantic Advertising TechnologyEcommerce Expo Prague 2018 Impressions increase on the product … but cannibalize search query impressions of other products
  22. 22. 22 Semantic Advertising TechnologyEcommerce Expo Prague 2018 Budget Revenue Bidding Bandwidth Overbidding Search Shopping Shopping - specific bid management Shopping Efficiency Curve Explanation Crealytics uses machine learning to identify the ideal bid range for each product listing From a certain bid level, traffic increases very quickly – at very high bid levels, traffic will plateau The challenge for bid management is to stop bidding up when you reach the plateau
  23. 23. 23 Optimize for the right KPIs Semantic Advertising TechnologyEcommerce Expo Prague 2018
  24. 24. 24 Semantic Advertising TechnologyEcommerce Expo Prague 2018 Ineffective, short-sighted budget allocation Optimizing campaigns for new customer acquisition yields better results 10 13 3 First purchase revenue Repeat purchases Total revenue after one year 9 15 6 Repeat purchases Total revenue after one year First purchase revenue Short-term Focus (ROAS) Long-term Focus (CLV) Advertisers who focus on LTV make about 15% more revenue in the first year. $1M Advertising Budget
  25. 25. 25 To optimize your advertising campaigns you require an advanced set of target KPIs Ecommerce Expo Prague 2018 Every order is treated equally, no matter whether the order value is high or low, margins and new customers estimated based on averages Focus on revenue without taking into account that different products have different margins Products with high margins are promoted more aggressively, repeat purchases from new customers are ignored Lifetime Value optimization takes into account exact margins and repeat purchases from new customers Low Data Quality High Data QualityHigh Data Quality Semantic Advertising Technology CLV CLV ROI Profit ROI Revenue ROAS / COS # Orders CPO
  26. 26. 26 Search Query Segmentation Semantic Advertising TechnologyEcommerce Expo Prague 2018
  27. 27. 27 Semantic Advertising TechnologyEcommerce Expo Prague 2018 Shoes Nike + Shoes Nike + Mercurial Typical differentials Nike Mercurial Superfly V FG Sportswear Men Platine Nike Mercurial Superfly V FG Sportswear Men Platine $202.99 from Nike $202.99 from Nike Soccer Shoes Nike Mercurial Superfly B) A) $1.00 Campaign segmentation With Google Shopping money is wasted on generic queries Identical product search, but different query intent Compare conversion rates by specificity 1.4x Brand + Category Category 2.5x Brand + Name
  28. 28. 28 Semantic Advertising TechnologyEcommerce Expo Prague 2018 Chanel Timeless Purse Product Names Brand/Designer Names Generics N/A High Medium Low Catch All Generics Designers Purse Chanel Purse Chanel Timeless Clutch Varies Automated Campaign Segmentation Crealytics automatically funnels traffic into campaigns based on intent Product PriorityCampaign Bid AmountNegatives
  29. 29. 29 Incrementality Semantic Advertising TechnologyEcommerce Expo Prague 2018
  30. 30. 30Ecommerce Expo Prague 2018 Semantic Advertising Technology What is the true value of RLSA campaigns? Google‘s retargeting campaigns are barely incremental Do not believe the numbers until you have challenged them! Excessive use of RLAS • Results look good on paper and nobody likes to challenge the data • Even if RLSA is not explicitly done, website visitors are always automatically being retargeted • Some smart advertisers bid low on RLSA Inflated value attribution • Overestimating the contribution value of remarketing campaigns • We expect incrementality to be at about 20% Understand that segments which show the highest efficiency are usually the ones with the lowest incrementality Test the results of your RLSA campaign to see the actual value contribution Common mistakes Strategies for improvement
  31. 31. 31 The Role Of Price Semantic Advertising TechnologyEcommerce Expo Prague 2018
  32. 32. 32 0 20 40 60 80 100 120 0 5 10 15 20 25 30 35 40 45 50 55 Price +5% clicksown price Days Clicks Price Semantic Advertising TechnologyEcommerce Expo Prague 2018 Google Product Category: Apparel & Accessories > Shoes > Sneakers Brand: 5% price increase coincides with a 60% decrease in clicks Price as an algorithmic signal Changes in pricing can massively impact your PLA performance Clicks drop off after product price increase Chart Info
  33. 33. 33 Semantic Advertising TechnologyEcommerce Expo Prague 2018 Products priced 5% lower than market average Products priced 5% higher than market average 1826 2047 134% 135% -29% 61% 280% Impression Volume Clicks CPO Conversion Rate Conversions To succeed include price as a signal Google includes price competitiveness as an algorithmic signal Pricing compared to market average Lower priced products drive performance Bidding high on products which are not priced competitively is a waste of money. (# products)
  34. 34. 34 Semantic Advertising TechnologyEcommerce Expo Prague 2018 Crealytics incorporates pricing information into bidding

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