Google Shopping Outperforms Google Product Search

April 16, 2013

Digital Marketing ChannelAdvisor By ChannelAdvisor

Recently we compared
US Google Shopping March 2013 numbers against Google Product Search results
from March 2012.  We looked across our clients
for which we are tracking their Google Shopping campaigns and found that their revenue
soared, averaging 3X more revenue with Google Shopping in 2013 versus with Google
Product Search in 2012.

ChannelAdvisor calculates
these trends based on the gross merchandise value (GMV) processed through the
ChannelAdvisor platform by CSE customers that have been using ChannelAdvisor
software for at least a year, removing any customer additions or attrition.

There are several
factors that have contributed to these results:

1)
More PLAs on main search results

Google has focused on
delivering more Product Listing Ads (PLAs) on Google.com.  PLAs show up for more queries, in more page
locations, and frequently in greater number than prior to the change.  If you are not in the US, you are probably
experiencing this now.

2)
Amazon is not advertising on PLAs

Amazon certainly
commanded a lion’s share of Google Product Search traffic in the US.  Now, that traffic has been distributed to
other retailers.

3)
More difficult economics for other
marketplaces

In addition to Amazon,
other marketplaces had a lot of shelf space in the free Google Product
Search.  Now that they have to pay, the
margin may not be there to pay for placement for many of their listings.

4)
Less competition due to fewer retailers

How many retailers
never made the change to the paid model, either by choice or the inability to
get started? Further, how many retailers just put one low bid on All Products
to earn the Google incentive but have never optimised their data or bids?

Adding it up:

With more overall
traffic and less competition, opportunities are there for retailers with a
budget and the means to manage it.  A
good product target strategy and tools to monitor performance and adjust bids
have been key tools for successful retailers.

We’ll keep an eye on
how our retailers continue to perform and report interesting information as it
arises.

Blog post by Jim Dechow, ChannelAdvisor Product Manager


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