Google Local Inventory Ads:Key to Omni-Channel Success & Holiday Foot

Traffic

October , 2014

Research Background: Google/Ipsos MediaCT/Sterling Brands, Digital Impact on In-Store Shopping, March-May 2014. Survey conducted among 6,000 smartphone users aged 18-54 who have influence in the purchase decision making process of Retail, CPG or Tech products and have used the Internet to look for shopping-related information.

in-store shoppers look for information related to their purchase (such as availability, local store info, reviews) before they visit a store.

9 in 10

Research Background: Google/Ipsos MediaCT/Sterling Brands, Digital Impact on In-Store Shopping, March-May 2014. Survey conducted among 6,000 smartphone users aged 18-54 who have influence in the purchase decision making process of Retail, CPG or Tech products and have used the Internet to look for shopping-related information.

of shoppers are more likely to visit a store if they could check the availability of an item online before heading to the retailer.

83%

Research Background: Google/Ipsos MediaCT/Sterling Brands, Digital Impact on In-Store Shopping, March-May 2014. Survey conducted among 6,000 smartphone users aged 18-54 who have influence in the purchase decision making process of Retail, CPG or Tech products and have used the Internet to look for shopping-related information.

of in-store shoppers say they were prompted to visit a retailer after checking product availability online or locating a nearby retailer who carries the product -- information made available through LIAs.

32%

250,000 impressions

10,000 clicks

600 in-store visits 360 orders $18,000 in

sales

1.8 direct mobile to in-store

ROI

$10,000 spend

Example:

Google Confidential and Proprietary

Shopper’s experience

Google Confidential and Proprietary

Shopper Joe needs a tent - so he does a Google search to help him find the right one

Google Confidential and Proprietary

Joe sees a potential fit that is available at a store within driving distance of him

The ad is dynamically created using the data you submit

Clicking the “in store” link takes Joe to the advertised retailer’s Local Storefront where he can learn more about the product and the store.

Google Confidential and Proprietary

Joe’s click takes him to retailer’s Local Storefront where he learns more about what’s in stock

Bargain Buys

Google Confidential and Proprietary

Ideally, you want to show your products to all relevant shoppers across devices

5% higher average CTR

on multichannel PLA ads than on online only ads

94% of smartphone shoppers search for local

information on their phones1

Google Confidential and Proprietary

On desktops, there are 3 possible ad types

Shows products sold... Click directs to...

Multichannel PLA Online & in-store 1) Online store or2) Local Storefront (via In store link)

Online PLA Online Online store

Local inventory ad In-store Local Storefront

Google Confidential and Proprietary

Mobile devices use 2 of these ad types

Shows products sold... Click directs to...

Online PLA Online Online store

Local inventory ad In-store Local Storefront

Note: Multichannel ad units do not show in mobile devices.

Enabling LIA’s with Mercent

Local Shopping Feed Components

Online PLA Data Components

Online Product Feed (Current)

LIA Data Components

Local Price & Inventory

Local Product Feed (optional)

Store Listings(sync)

Online Price & Inventory (optional)

Mercent Local Integration Architecture

Mercent Retail’s New Local Shopping Dashboard

• Create content rules and product filters to manage Local Inventory Ads

• Sync with Google Places to manage local store data

• View product availability by store

Best Practices for LIA’s this Holiday

1. Leverage LIA to Improve Mobile Conversion

LIA Mobile Performance Model (example)

• 41% hypothetical increase in mobile PLA efficiency (ROAS)

• Offline AOV and Conversion Rate are commonly much higher than online

• Campaign Conversion Rate and ROAS increase from attributing direct offline actions

Multichannel - Online Multichannel - Local Local Only LIA Blended Total

Clicks 22,500 7,500 20,000 50,000 Average CPC 0.44$ 0.33$ 0.25$ 0.35$ Store Visit Rate 5.00% 5.00%Store Visits 375 1,000 1,375 Store CR% 20.00% 20.00% 20.00%Store AOV 145.00$ 145.00$ 145.00$ Online CR% 1.00%Online AOV 120.00$ Sales 27,000.00$ 10,875.00$ 29,000.00$ 66,875.00$ ROAS 274% 446% 580% 387%

2. Extend Your Holiday Selling Window with LIAs

Qty = 4$129.00

Local Store 5 miles from

shopperOnline Store

22DECEMBER

3. Target Peak Store Hours with LIA’s

10:00 pm

4:00 pm

Shopping Campaign Ad Schedule Modifiers

Recap: Local Inventory Ad Benefits

Improve PLA performance on mobile

Drive traffic to your stores

Help shoppers discover related products

Let Mercent help you make it happen

Q & A

hello@mercent.com

206-832-3971