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SMX London – Reverse Engineering Google Shopping

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Reverse Engineering Google Shopping

Google Shopping delivers great results, but many AdWords advertisers haven't found ways to differentiate themselves from the competition. So how to escape from mediocrity?

We setup tests, analysed data from Shopping Campaigns across the globe and will provide our results and actionable insights within these slide:

1. How does bidding impact the click volume, search query impressions, traffic quality and ROI?
2. How do Google Shopping campaign priorities influence your performance?
3. Should you really spend time optimising product descriptions in your feed?
4. How important is the correct categorisation of your products (Google Product Category) in the feed?
5. How does Shopping react when you rewrite your product titles?

Enjoy!

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SMX London – Reverse Engineering Google Shopping

  1. 1. May 20, 2015 Reverse Engineering Google Shopping Andreas Reiffen CEO crealytics @AndreasReiffen
  2. 2. searchmarketingexpo.com @AndreasReiffen #SMX #14B About … Search Shopping… me Andreas Reiffen, Founder & CEO, crealytics Data-driven online advertising strategist Entrepreneur 100 employees in Germany and the UK $750M in client sales 125M ads per week delivered 3 of the Top 10 European fashion retailers 20+ languages covered in-house
  3. 3. searchmarketingexpo.com @AndreasReiffen #SMX #14B 1. How does bidding impact the click volume, search query impressions, traffic quality and ROI? 2. How do Google Shopping campaign priorities influence your performance? 3. Should you really spend time optimising product descriptions in your feed? 4. How important is the correct categorisation of your products (Google Product Category) in the feed? 5. How does Shopping react when you rewrite your product titles? Reverse Engineering Google Shopping
  4. 4. searchmarketingexpo.com @AndreasReiffen #SMX #14B The impact of bid changes
  5. 5. searchmarketingexpo.com @AndreasReiffen #SMX #14B We raised bids by 200% and evaluated traffic Diesel (Designer) Chi Chi London Lace Midi Prom Dress Birkenstock Arizona Black 1,127 0.50 1.50 1,018 +11% 0.750.36 5,534 0.50 1.50 +2,613% 204 1,500 +650% 0.50 1.50 200 0.720.28CPC 0.760.29 Impressions Bids These results do not seem consistent at all. And now?
  6. 6. searchmarketingexpo.com @AndreasReiffen #SMX #14B 740 204 actual increase cannibalised impressions +363% 4,400 5,140 nominal increase baseline 0.720.28 0.30 Impressions increase on the product … but cannibalise search query impressions of other products 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.
  7. 7. searchmarketingexpo.com @AndreasReiffen #SMX #14B Impressions before / after Increase all Diesel bids by 200% Key insights 44.1 20.4 (32%) bid = 1.50 64.5 bid = 0.50 11.2 10.3 designer terms generic terms Raising bids leads to significant increase of impressions for designer terms. However, the share of generic terms increased from 8% to 32%, thereby affecting traffic quality and ROI. CPC 0.33 0.86 0.68 0.38 (k impressions)
  8. 8. searchmarketingexpo.com @AndreasReiffen #SMX #14B Impressions before / after Increase all Chi Chi London bids by 200% Key insights 0.6 0.7 bid = 0.50 5.4 2.1 1.3 bid = 1.50 0.4 4.3 designer only term designer terms generic terms 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 0.85 0.09 0.40 0.63 0.25 (k impressions)
  9. 9. searchmarketingexpo.com @AndreasReiffen #SMX #14B Impressions before / after Increase all adidas bids by 200%: Key insights bid = 1.50 19.8 15.0 0.7 1.2 bid = 0.50 4.7 adidas + category designer + product name Adidas products are now eligible for a massive number of product specific queries. They account for 76% instead of 58% of traffic. CPC increases but traffic quality as well! CPC 0.36 (k impressions) 0.62
  10. 10. searchmarketingexpo.com @AndreasReiffen #SMX #14B Impressions before / after Increase all Birkenstock bids by 200% Key insights 3.9 bid = 1.50 2.1 33.0 bid = 0.50 22.321.0 1.9 8.526.8 pure designer designer + product name designer + category For the pure designer term, birkenstock, CPC increases from 0.30 to 0.91 for almost the same traffic. The cluster designer+category (birkenstock sandals) gets only a little bit more traffic. CPC 0.30 0.31 (k impressions) 0.35 0.91 0.81 0.67
  11. 11. searchmarketingexpo.com @AndreasReiffen #SMX #14B Search High elasticity in a very small range Shopping Revenue Budget Revenue Budget bidding bidding
  12. 12. searchmarketingexpo.com @AndreasReiffen #SMX #14B Birkenstock adidas Different tipping points for different products Tipping points might also vary for different queries Shopping query elasticity CPC and impression change Budget Revenue bidding +147%CPC +23%Imps +1,475% +139%CPC Imps
  13. 13. searchmarketingexpo.com @AndreasReiffen #SMX #14B Like in search, you get more traffic with higher bids. Above a certain tipping point, raising bids leads to higher CPCs without increasing traffic. There is a minimum bid to be eligible for certain queries. With higher bids, you can direct traffic to certain products. This traffic will partly cannibalise traffic from other products. In contrast to bidding on exact match keywords, conversion rate tends to decrease with higher bids on products. Conclusions of our elasticity tests
  14. 14. searchmarketingexpo.com @AndreasReiffen #SMX #14B Different intents, but identical bid on product Compare conversion rates by specificity Different intents disrupt bidding by product 2.5x [designer + product name] [designer + category] 1.4x [category] base CR Typical differentials: [nike + mercurial] [nike + shoes][shoes] Examples: £1.00 A B Nike Mercurial Superfly Soccer Shoes
  15. 15. searchmarketingexpo.com @AndreasReiffen #SMX #14B 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. £2.50 £0.45 Designer Queries Generic Queries Segment traffic by designers vs generics How to game AdWords? A B Nike Mercurial Superfly Soccer Shoes
  16. 16. searchmarketingexpo.com @AndreasReiffen #SMX #14B Segmentation leads to much better results We kept sales stable and decreased CPO by 27% in week 3 10.4 8.4 -27% Week 2 Week 3 10.2 14.0 8.1 7.3 Week 1 control test CPO (£) on campaigns split up by specificity Explanation 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.
  17. 17. searchmarketingexpo.com @AndreasReiffen #SMX #14B Segment your Shopping Campaigns by specificity of search queries to get much better results. To identify the tipping point start 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. Key take-aways
  18. 18. searchmarketingexpo.com @AndreasReiffen #SMX #14B The influence of campaign priorities
  19. 19. searchmarketingexpo.com @AndreasReiffen #SMX #14B Best queries assigned to low priority Does this affect performance? Generics Designers Designer + Product Name NegativesPrioritiesCampaigns high medium low Designer names Product names Product names n/a
  20. 20. searchmarketingexpo.com @AndreasReiffen #SMX #14B Campaign priority itself has no impact Priorities allow you to direct traffic to specific campaigns Traffic per campaign setting Test method We scheduled campaigns to run intermittently throughout the day. Only a single campaign was running. We set different priorities. Medium 101.4% Clicks 100% Low 99.8% High 100.0%
  21. 21. searchmarketingexpo.com @AndreasReiffen #SMX #14B But Google takes liberties with priorities When bid differentials are high, priorities do not take effect red dress impressions maxi skirt impressions 966 276 594 0.31 0.17 0.67 CPC 1,046 3,776 860 0.24 0.19 0.82 partial traffic shift Designer queries LOW Priority Generic queries HIGH Priority
  22. 22. searchmarketingexpo.com @AndreasReiffen #SMX #14B Campaign priority itself does not impact traffic. Priorites come only into play when running multiple campaigns. High bid differentials can disrupt your campaign priority settings. Google jumps over the priority if you bid so low that you are not eligible any more for a given auction. Conclusions of the priority tests
  23. 23. searchmarketingexpo.com @AndreasReiffen #SMX #14B The impact of product descriptions
  24. 24. searchmarketingexpo.com @AndreasReiffen #SMX #14B Product and description Wrong descriptions did not affect performance Original: Dress by TFNC made from a sequinned fabric… Improved: Evening dress by TFNC made from a sequinned fabric… Destroyed: This baseball cap has been constructed in wool… 741758 702 destroyedimprovedoriginal Impact on clicks
  25. 25. searchmarketingexpo.com @AndreasReiffen #SMX #14B The impact of the Google product category
  26. 26. searchmarketingexpo.com @AndreasReiffen #SMX #14B Category changes The product category seems to not matter Original category: > Shoes Category destroyed: > Clothing > Outerwear > Rain Gear > Rain Suits There were no occurences of rain gear in the search queries 110% destroyed 93% original improved 100% Category improved: > Shoes > … > Athletic Shoes Impact on clicks
  27. 27. searchmarketingexpo.com @AndreasReiffen #SMX #14B The impact of product titles
  28. 28. searchmarketingexpo.com @AndreasReiffen #SMX #14B Title before: Lipsy Lace Panel Body-Conscious Dress - Navy Title after: Party Dresses Navy Blue Lipsy Lace Panel Body- Conscious Include top performing queries in titles Do search query impressions related to party dresses increase?
  29. 29. searchmarketingexpo.com @Andreas Reiffen #SMX #14B party dresses queries volume increase The title rewrite had an immediate impact Key insights 22,138 18,552 18,971 title changed 4,023 original 18,115 419 on other products on product Title modification allows you to direct traffic to specific products. Adding search queries to titles improves the overall traffic.
  30. 30. searchmarketingexpo.com @AndreasReiffen #SMX #14B Product titles play a major role and allow you to … • influence which product will be shown for certain queries • increase the traffic on relevant queries • increase shopping revenue and ROI significantly Conclusions of our product title tests Make sure that top search queries are included in multiple product titles!
  31. 31. searchmarketingexpo.com @Andreas Reiffen #SMX #14B

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