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Paid Search Relationships: It’S Complicated Paid Search Relationships: It’s Complicated Elizabeth Marsten CommerceHub Image Source: iStock • Senior Director, E-Commerce Growth Services • Seattle, WA • 10 years in the search industry • PPC, Social, SEO, Analytics, Content • Speaker: SMX Adv/East/West, Mozcon, @ebkendo Searchfest, State of Search, HeroCon • Author: Lynda.com, All in One Web Marketing for Dummies • And… @ebkendo Mommy Image Source: @ebkendo One Connection DEMAND GENERATION NORTH AMERICA’S LARGEST RETAILERS, MARKETPLACES AND SEARCH ENGINES ASSORTMENT EXPANSION DELIVERY WAREHOUSES, STORES, DROP-SHIPPERS, NATIONAL CARRIERS, REGIONAL BRAND MANUFACTURERS CARRIERS, LOCAL CARRIERS Demand Solutions Delivery Solutions Supply Solutions Profitably acquire new customers Optimize consumer shipping through Increase product offering and grow through search, social and real-time decisions on cost-effective revenue through “virtual inventory” marketplace channels delivery methods that meet the consumer’s delivery date Integrate with any trading partner Push product catalog to channels or order fulfillment source where consumers seek new Extend the reach of rapid delivery products programs by geographically Maintain branding and complete distributing inventory to partner 3PLs control over fulfillment process Manage and optimize digital advertising spend across channels Our Story Today: Not Friends Google Amazon Facebook Competition is High, But Thriving • At least online and thanks to mobile • Mobile advertising was 84% of total ad revenue for Facebook* • CPC is down Q4 2016 (Google)** • But number of paid clicks is up 43% • Brick and mortar and retail stores are shrinking*** • Macy’s closing about 15% of their locations • Sears, Kmart, CVS expected to close locations as well *https://techcrunch.com/2017/02/01/facebook-q4-2016-earnings/ **http://www.businessinsider.com/alphabet-reports-q4-2016-earnings-2017-1 ***http://www.businessinsider.com/stores-closing-macys-kohls-walmart-sears-2016-12 Is There Room for Anyone Else? Pinterest Polyvore Bing Ads Connexity There is so much crossover…don’t think about it by channel Product Search Product Product & Discovery Promotion Ownership Images: iStock Search & Discovery Image Source: iStock GTIN Requirement on Google – Why? • Ad spend efficiency and user experience improvements • Knowing exactly which product is which • Competition from marketplaces and Facebook • Leaving “ownership” of the customer and the experience to retailers and brands who want it Personalization to Make it Sticky Google knows my favorite color is blue and my clothing and shoe sizes. They just haven’t used it against me yet… Image: Google Shopping The New Exact (Actual) Match Keyword? Shopping Insights tool - ability to serve very specific versions of PLAs? Image: Google Shopping Insights Searches Start in Amazon It’s estimated half of people start their online shopping search in Amazon. Data/Image Source: Business Insider Discovery Shopping Image: iStock The initial activity or reason for the site/platform/app is not to search or sell but to discover and be inspired. Polyvore - Owned by Yahoo • Polyvore is… • A social / commerce site • 84% female users • 70% female users of whom 50% of are under 34 (“Millenials”) • A high AOV channel for luxury apparel retailers • 3 million sets created every month Image/Data Source: Polyvore Pinterest – The Up and Comer • 2 billion+ monthly “idea searches”* • 40% of new Pinterest users are men** • 93% of Pinners used Pinterest to plan for or make purchases*** • 72% of Pinners have seen something on Pinterest & made a purchase offline https://blog.pinterest.com/en/2-billion-monthly-idea-searches-and-counting* https://business.pinterest.com/en/blog/how-pinterest-drives-purchases-online-and*** https://www.internetretailer.com/2016/10/17/40-new-pinterest-users-are-men** Connexity & Social Influencers Highly Curated Editorial Content • Engaging with social agencies and influencers • A “marketplace” connecting retailers and influencers • YouTube, Pinterest, Twitter, Instagram, Messaging Image Source: Connexity Product Promotion Purchases on Google A Product Listing Ads enhancement on mobile. https://adwords.googleblog.com/2015/07/winning-shopping-micro-moments.html Purchases on Google • Still running on a % of eligible traffic across Android and iOS • Only certain products (at your control) show the buy button • Learned that everything before the buy button is what leads to it being used or not • Built a huge infrastructure, 150k+ active retailers and 500m products to understand a shopper’s intent UGG – 50% increase in conversion rates on mobile PLAs with POG and a 25% decrease in cost per conversion. https://adwords.googleblog.com/2016/05/ways-to-be-useful-for-mobile-shoppers.html Sponsored Products on Amazon • Ads that stay on Amazon.com • Surface up products that aren’t easily found or are new • Have to win the Buy Box to display Image Source: Amazon Sponsored Products on Amazon • Keyword based (automatic and manual) • Double dip cost model – CPC and product category % fee with Amazon if the product sells • Very similar to a simple Google AdWords • Potential to take keywords from Sponsored from search and vice versa – especially when doing dynamic search ads on Google • Using (most often) ACos/ROAS Image Source: Amazon Walmart & eBay are Buying PLAs for Marketplace Sellers Image Source: Google And now Amazon is too Image Source: Google So What Does That Do to the SERP? Enter Facebook Now What: • Company utility is based on daily active users • Per FB, slowing growth in Q4 2016 due to available inventory to show ads* • Expanding ads to Messenger, Instagram Stories, Audience Network • Revenue up 51% YoY for Q4 2016 * *https://techcrunch.com/2017/02/01/facebook-q4-2016-earnings/ Dynamic Product Ads CH – What we’ve seen: • Average monthly performance • Return on Ad Spend: up to 1,200% • Product Catalog Size: up to 1,000 Products • Added Dynamic Ads for Broad Audiences • Conversion rate is high, volume lower than search, it is remarketing after all Source: CommerceHub Image: Facebook Enter Pinterest • Added visual search (Lens tool) • Added visually similar results • Updated their feed to be more like Google and do bulk operations for promoted pins http://www.businessinsider.com/how-to-use-pinterest-visual-search-2016-6 Image: Business Insider Pinterest – Shopping & Search Campaigns • Limited to direct partners that run campaigns through Kenshoo • 97% of search terms on Pinterest are unbranded https://https://business.pinterest.com/sites/business/files/a_new_take_on_search_0.pdf Image Source: Pinterest Polyvore – Plus, Sponsored Image Source: Polyvore Product Ownership Google Manufacturer Center • Alternative images can be added • Reported increase conversion rate • Bosch, 4% lift • Will not override PLA product titles • Fill in missing information or clarify like “cordless” or weight Image Source: Google Curated from multiple sources and specifically pulled in Google Manufacturer Center – Best Practices Image Source: CommerceHub Google Manufacturer Center • Prescriptive action items in the UI • Action items pertain to Google and your business in general • It’s free to submit • Why would a brand or manufacturer want to enroll in this program? Image Source: CommerceHub eBay Structured Data Image Source: eBay Who is the Seller of Record? Image Source: iStock So What? • Competition increasing in Google Shopping • Especially in home goods, furnishings, electronics • Google is expanding where Product Listing Ads show • Local/maps, Google Now, Knowledge Panel • Facebook is expanding where ads show • Enhancements to dynamic ads • Messenger, marketplace Now What? • Expect to diversify your budget… • New ways of discovering your catalog or new ad types • 80/20 rule applies to your product assortment • Exclusives. Demand is a powerful thing. • Product data quality – own what is yours Thank You! Image Source: @ebkendo.
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