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It's not too late! Optimize your Google Shopping campaigns in time for the Holidays.


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Andreas Reiffen ( and Kirk Williams (ZATO) teach you how to optimize your Google Shopping PLAs in time for the Holiday season.

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It's not too late! Optimize your Google Shopping campaigns in time for the Holidays.

  1. 1. Thursday, November 10, 2016 1:00 EST (10:00 PST) Speakers: Kirk Williams, Owner, ZATO Marketing Andreas Reiffen, CEO, Crealytics It’s Not Too Late! Maximize Your Google Shopping in Time for the Holidays
  2. 2. Turn Off Pop-Up Blockers Technical difficulties? Click on “Help?” link Use Q+A box Submitting questions to speaker Q+A session at end of webcast Use “Ask a Question” box to submit questions Send questions at any time #DMDwc Viewing Tips
  3. 3. Kirk Williams Owner (and minion), ZATO Marketing @PPCKirk Andreas Reiffen CEO, Crealytics @AndreasReiffen Today’s Presenters
  4. 4. Topics, we’ll cover today … Google Shopping: Why you should care… How to segment Google Shopping campaigns to capture high quality shoppers Speak your customers’ language and write more compelling product titles Why you can’t win in Google Shopping when you fail in pricing What image testing could add to your Google Shopping campaigns
  5. 5. My entire screen on a 13” Macbook
  6. 6. Crealytics: Shopping = 56% Spend Share
  7. 7. Merkle: Shopping = 46% Click Share hot snot, look at that trend!
  8. 8. A look at the future of Ecom SERPs
  9. 9. But how is Shopping growing like this?
  10. 10. For starters, people just like clicking them. Price Image Info
  11. 11. Words! Reading! Work! Abort, Abort, Abort!
  12. 12. Pictures! Prices! Data! Buy, Buy, Buy!
  13. 13. Andy Taylor
  14. 14. Andy Taylor
  15. 15. Andy Taylor (him!)
  16. 16. July 2015 Micro-Moments in Shopping (i.e., mobile)
  17. 17. August-ish 2015 BIG retailers showing more PLAs
  18. 18. September 2015 YouTube Shopping Ads (Search Partners)
  19. 19. September 2015 YouTube Shopping Ads (Search Partners)
  20. 20. September 2015 Massively Large Shopping Ads on Mobile
  21. 21. December 2015 Shopping Ads in Image Search “Heck, what else can we monetize?” - Google Boardroom Convo
  22. 22. March 2016 PLA Imp Up 174% YOY
  23. 23. But also, Google has invested heavily in Shopping changes
  24. 24. April 2016, New GMC Feed Rules
  25. 25. May 2016, GTINs Required
  26. 26. Keeping up with the Joneses Amazon.
  27. 27. July 2016, Showcase Shopping Ads
  28. 28. August 2016, YUUUGE GMC Overhaul
  29. 29. Finally... PLA placement matters! Shopping in its infancy circa 2013
  30. 30. PLA placement matters Shopping as 2016 ends
  31. 31. and a variant... PLA placement matters
  32. 32. So, whatever you may think about SERPs...
  33. 33. 33 Google Shopping campaign segmentation
  34. 34. 34 Different intents disrupt bidding by product [designer + product name] [designer + category] 2.5x 1.4x base CR [category] Typical differentials: [nike + mercurial] [shoes] [nike + shoes] Example: $1.00 A B Nike Mercurial Superfly Soccer Shoes Different intents, but identical product bid Compare conversion rates by specificity
  35. 35. 35 A B Nike Mercurial Superfly Soccer Shoes Designer queries Generic queries $2.50 $0.45 Bid higher for the best performing queries Segment your shopping campaigns by specificity of search queries. Use campaign priorities and negatives to allocate traffic. Bid higher for your best queries. Segment traffic by designers vs generics How to game AdWords
  36. 36. 36 Semantic segmentation drives performance We kept sales stable and decreased CPO by 27% 14.0 10.4 8.4 10.2 8.1 7.3 Week 1 Week 2 Week 3 -27% testcontrol Segmentation allows us to set bids beyond product averages. Queries with a high conversion probability get more exposure. We save money on low quality queries. CPO ($) on campaigns split up by specificity vs normal Explanation
  37. 37. 37 Use negatives to segment your campaigns and to control where search queries are assigned to Generics Designers Designer + Product name high medium low Designer names Product names Product names n/a Campaigns NegativesPriorities
  38. 38. 38 Campaign priority itself has no impact Priorities allow you to direct traffic to specific campaigns We scheduled campaigns to run intermittently throughout the day. Only a single campaign was running. We set different priorities. 101.4%99.8%100.0% Medium LowHigh Clicks Traffic per campaign setting Test method
  39. 39. 39 Impressions (in k) before / after Key insights CPCs are difficult to control and vary without segmentation bid = 1.50 5.4 4.3 0.7 2.1 0.6 0.4 bid = 0.50 1.3 generic terms designer terms designer only term CPC 0.22 0.09 0.40 0.85 0.63 0.25 We tested a designer-only term which is stable in impressions. CPC for the same queries increased by +186%. Spike in generic queries affects traffic quality and ROI.
  40. 40. 40 Outcome of raising bids depends on where bid is positioned on the Google Shopping S-curve Budgetbidding Designer-only term Generics term +17% CPC +286% Imps +320%Imps +213%CPC Shopping query elasticity CPC and imps change
  41. 41. 41 Key take-aways Segment your Shopping Campaigns by specificity of search queries to get much better results. For the most effective bid management try to identify the tipping point by starting with the highest bid you are willing to afford and then decrease your bids gradually. Constantly monitor CPCs and search query impressions to find out where the cliff is. Segment by specificity Constant monitoringS-curve bidding
  42. 42. 42 Product title optimization
  43. 43. 43 Optimizing product titles by including top- performing search queries Do search query impressions related to party dresses increase? Lipsy Lace Panel Body- Conscious Dress – Navy Title after Title before Party Dresses Navy Blue Lipsy Lace Panel Body- Conscious
  44. 44. 44 Party dresses query volume increased 18,552 18,115 4,023 title changed 18,971 419 original 22,138 on other products on product Party dresses query volume before and after title change Key insights Title modification allows you to direct traffic to specific products. Adding search queries to titles improves the overall traffic.
  45. 45. 45 Specifics about the Google algorithm to keep in mind for title modification The first words SynonymsThe word order Words at the beginning of a title are considered more important If people search for ‘green shoes,’ your title should ideally contain these two words in the same order (instead of ‘shoes green’) If a dress could be called ‘party dress’ or ‘evening dress,’ make sure that you don’t use the same term across this product category.
  46. 46. 46 Speak your customers‘ language and make your titles similar to what they search Product Dynamic title inspired by real search queries Rule-based title <brand> <category> <color> Columbia Down Jacket Black … Columbia Down Jacket Dusty Purple … Black Down Coat Columbia … Columbia Jacket – Purple, Down, Feather Fill … columbia jacket
  47. 47. 47 We use thousands of data points from different sources to come up with the optimal title Optimized product titles Data source OutcomeUsed data AdWords Accounts Search query performance Product performance Merchant Center Product details (produdct ID, brand, title, taxonomy, color, size, gender, price, URLs, ...) Semantic Database (or a human brain) Similarity of attributes (brands, categories, colors, gender, material)
  48. 48. 48 The result including performance uplift are displayed in the camato user interface
  49. 49. 49 Identify important keywords which are missing completely in product titles 1-grams women (1,618,221) mens (1,415,367) outerwear (68,645) ugly (1,415,367) gifts (34,851) pregnancy (23,035) hoodies (21,959) onesies (21,876) sale (19,899) discount (16,458) dressy (13,454) 3-grams2-grams Manually add the n-grams to the right products Shown data are impressions (last 30 days) jewelry shoes (708,111) women dresses (690,700) athletic shoes (415,769) women's sneakers (218,281) maternity clothes (34,851) timberland boots (171,002) mens clothing (129,003) women jeans (79,965) camel coat (46,703) party dresses (41,059) second hand (684) masquerade ball gowns (149,619) plus size clothing (130,983) thigh high boots (93,429) wedding guest dresses (34,119) overalls for men (32,109) casual white dresses (28,235) plus size lingerie (27,739) white maternity dress (27,240) lace up flats (24,606) used evening gowns (458) cheap shoes for (284)
  50. 50. 50 Google Shopping & competitive pricing
  51. 51. 51 Impressions and clicks in Google Shopping are often very sensitive to price changes 0 20 40 60 80 100 120 0 5 10 15 20 25 30 35 40 45 50 55 +5% Price in $ Clicks Product price Clicks Time in days Clicks drop off after product price increase Chart Info Google product category: Apparel & Accessories > Shoes > Sneakers Brand: 5% price increase coincides with a 60% decrease in clicks
  52. 52. 52 We compared cheap vs. expensive products and used a test setup to guarantee meaningful results We compared: • cheap products (below avg. price) • with expensive products (above avg. price) • At least six competitors • Available at all times • Similar products (all sneakers) • Products were excluded from normal shopping activity • Results were not influenced by regular bidding activities Setup TestCriteria
  53. 53. 53 For all products we often see S-shaped curves, but cheap products generate traffic much earlier 0 500 1,000 1,500 2,000 0.0 0.2 0.4 0.6 0.8 1.0 1.2 Max CPCImpressions per product 5/16/165/12/16 5/14/165/11/16 5/13/16 5/17/165/15/16 cheap products Max CPCexpensive products Imps. of differently priced products while bidding up Key insights Impression volume for expensive products significantly lower Cheap products hit Impression limit after 5 days
  54. 54. 54 Average CPC is higher for products with prices above average market price 0.0 0.2 0.4 0.6 0.8 1.0 1.2 5/15/165/13/16 -13% Max CPC 5/16/165/12/16 5/14/165/11/16 5/17/16 -4% -6% -12% -8% -30% expensive products Max CPCcheap products Avg. CPCs of differently priced products while bidding up Key insights Avg. CPC of expensive products is about 15% higher despite same bids
  55. 55. 55 Cheap products generate the lion‘s share of total traffic Imps 1.828.412 4.282.611 +134,2% 44.122 +135,3% 103.803 Clicks 2.047 +9,1%1.876 # of products expensive products cheap products Traffic of similar products within one shop Key insights Cheap products generated much more traffic despite similar number of products in both groups
  56. 56. 56 Despite getting more traffic, the performance of the cheaper products is much more efficient 40 28 -29,5% CPO +280% Conversions 274 1,042 +61,3% CR 0,6% 1,0% expensive products cheap products Traffic of similar products within one shop Key insights Number of orders through cheap products almost 3 times higher Higher CR resulting in CPO being ~30% lower Cheap products generate 280% more conversion
  57. 57. 57 There is not really a long tail A small number of products drive the majority of the sales 50 15 10 45 180 5 40 55 0 Top 10% products = 58% conversions *Only products with conversions (448) Expensive Cheap Conversions per product (UK multi brand retailer) Key insights More significantly than in search, shopping conversions are driven by just a few products Concentrate on those products for account optimization.
  58. 58. 58 How to optimize pricing for Google Shopping $.47$.47 Expensive products Price vs Bid managementSelective discounts Don’t overbid on expensive products, rather consider price changes Discounting only a few select products to bring traffic to your site could be a killer strategy Price and bid management will be merged one day
  59. 59. 59 Product image testing
  60. 60. 60 Ad copy split testing is one of the fundamentals of paid search optimization 1 3 Write additional ad copy Gather data + Delete/pause the loser ad 2
  61. 61. 61 Although everyone has several alternative images available, nobody is split testing images There are always several images available in the shop However, we just use one and let it run forever Who guarantees us that this image is the best? ASOS Christmas Sweater
  62. 62. 62 Challenge 1: Google doesn‘t necessarily show your image Search Engine Results Page Shopping tab Products sold by multiple retailers can be aggregated in the Shopping tab. Although you get a click, your product image may not have shown up. There is currently no way to distinguish clicks from the SERP page and the Shopping tab.
  63. 63. 63 Challenge 2: Google doesn‘t change the images immediately Average result of several live tests with few changes at once. Search Tab Shopping Tab up to 1 hour 1-3 hours 2-4 hours Google needs time to index the new images • Up to 72 hours when URLs are changed • Up to 6 weeks if URLs remains the same (server-side image swap) During the first hours after the image change, Google may not serve the product at all in the SERPs
  64. 64. 64 Short-term solution: Test model shots vs. product shots across entire product categories Product shot vs. model shot Bulk split testing Testing images on a product level is difficult today • no tools on the market yet to support image split testing • technical challenges We recommend that you pick a few product categories where you are using e.g. model shots and replace them all with product shots vs.
  65. 65. 65 In the future, the responsibilities of Paid Search managers will go beyond managing campaigns $.47$.47 How to name products? How to merchandize?What price? Paid Search managers will influence what product information is provided, especially how products are named. Google Shopping can be used as tool to test price elasticities of individual products. Today, merchandizing is often driven by gut feeling. Google Shopping allows for a more data-driven approach.
  66. 66. 66 Thank You! Questions? $.47$.47 #DMD