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Why Companies Need A Product Listing Ad

(PLA) Strategy

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Today’s Presenters

Anita AvramStrategic Partner Manager

Google

Dice NakamuraBusiness Development Manager

Vertical Nerve

Ernie CotePresident

Vertical Nerve

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Agenda

• The Retail Landscape• The New Google Shopping• Why Product Listing Ads?• Set Up• Optimization• Q & A

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Before We Begin

• Fast paced and relevant

• Plenty of time for your questions

• Submit questions using Chat feature in GoTo Mtg

• Should be great questions, great group on the call

• >100 online and ecommerce companies represented

• Automotive, CPG, Fashion, Food, Furniture, Jewelry, Medical, Sports/Fitness, Technology, Tools, Utilities

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Google/Vertical Nerve PartnershipOur goal today is to educate the online retail space on how advertisers can best leverage Product Listing Ads (PLAs) to generate sales for their business!

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Booth 659 – Discount Attendee Codes Available

A few clients we’ve helped recently

Vertical Nerve, a national leader in Search Marketing & Digital Analytics

Speaking at Chicago & Boston

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Registration Poll: Does your company have an SEM Strategy?

SEO/PPC/PLA

One Strategy

No Strategy

0% 20% 40% 60% 80%

Results

Results

1/3 using 1 strategy, SEO, PPC or PLA

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The Changing Retail LandscapeAnita Avram

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First Moment of

Truth

Second Moment of

Truth

Stimulus

purchase motivator

in-store experience

post-purchase

Traditionally, We Followed a 3-step Mental Model of Marketing

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The New “Many Moments” Mental Model looks like a Flight Map

Stimulus Stimulus

FMOT

Source: Google/Shopper Sciences, Purchase Funnel Analysis, April 2012. N = 3,000

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Everyone and Everything is OnlineThere are over 2B web users worldwide, with another billion coming online by the end of 2015

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The New Path to Purchase

61% of Internet users research online about products and services prior to purchase

Sources: IAB/TNS/Google, Consumer Barometer, Worldwide, May 2012. Motorola Solutions, June 2012

69% of those who research online use a search engine before purchase

48% search offers while in-store

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Connect people to the products and brands they love at the moment that they’re searching with Google Shopping

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The New Google Shopping

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Google Shopping snapshot

100 billion+ queries per month

1 billion+ products

100K+ sellers

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Product listing ads – your store shelf on Google

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Product Listing Ads

Nov 2010 to Dec 2011

PLA

Tra

ffic

Since launching to all US advertisers in Nov 2010, Product Listing Ads have seen significant growth with advertiser adoption and product improvements

+600% traffic growth YoY globally

2X CTR vs. text ads

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Product listing ads power google.com/shopping

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Product Listing Ads for shoppers on the go

Google.com Google.com/shopping

Shopper app

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360 degree imagery

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Product-level bidding made easy

• Requires no changes to your feed• Target subsets of your products to promote more heavily• Quickly bid on new or top selling holiday items• Increase bids on products that are not selling fast enough

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Enhanced campaigns for Product Listing Ads

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Why Use Product Listing Ads?

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Why use Product Ads?

1Better Clickthrough Rates (CTRs)Because Product Ads are more attractive and engaging than standard text ads, they offer better CTRs.

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Why use Product Ads?

2

Better Lead Quality and Conversion RatesProduct Ads give users information (merchant, price and picture) before they click through, so they are better informed and more likely to complete a sale when they arrive on your site.

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Why use Product Ads?

3Easy TargetingGoogle automatically selects the most relevant products to show from your Merchant Center account when a user enters a related query.

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Why use Product Ads?

4No riskWhen Product Listing Ads are priced on a CPA basis, you only pay when someone makes a purchase after clicking on one of your ads.

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Success stories

Electronics ↑

↑

50% Click thru rate100% Conversion rate

↑ 73% Cost per click

Outdoor↑ 10x Sales ✔ Kept target ROAS

↑

↓

55% Click thru rate11% Cost per click

↓36% Cost per acquisition

Outdoor Appliances

↑

↑

12% Conversion rate8% Revenue

↓↑

10% Bounce rate129% Site visits

Hardware Tools

↑

↑

50% Traffic50% Conversion rate

↑↑

15% Order value“Dead product” sales

Travel↑

↑

200% Sales from Google40x Sales from PLAs

✔100% of products in PLA

RETAILER GOOGLE SHOPPING HIGHLIGHTS

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Getting Started

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In order to participate in Product Ads, you must link your AdWords and Google Merchant Center accounts.

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Create a new Campaign by selecting “Search Network Only”. Then select “Product Listing Ads” as the Campaign type.

Step 1: Campaign Creation

Select Product

Listing Ads

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Specify your bidding strategy of CPC or CPA%. CPA% is only available to white-listed customers in the US.

Step 2: Bids

Note: Only New Campaigns can be set to CPA%.

CPC Option

CPA%

Option

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Step 3: Associate your Google Merchant Center account to the campaign.

Note: This option will only appear after you connect your Merchant Center Account to AdWords.

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Step 4 (Optional): Indicate a Promotional Message for your PLAs (i.e. “Free Shipping”)

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Step 5: Do notice that the “All Products” Product Target is default checked in. This means that all the products in the feed should be promoted. You can change this later.

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Optimizing PLAsDice Nakamura

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Poll Results: How are you bidding across your catalogue?

Bidding Strategies

Formulaic

Manufacturers Name & Price

One Bid for all Products

Not Using Bid Strategies

45%!

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The PLA Success Plan

Step 1: Start Right Away• Category-level PLAs using your

existing data

• Optimize Google product data feed

• Investigate click costs for your products/industry with low budgets and low CPCs

Learn how to be successful with PLAs

• Build account history to receive lower CPCs

Step 2: Maximize ROI• Product-specific PLAs

• Control bids for individual products

• Manage ROIs & costs for each product

• Pause unprofitable products

• Market your most competitive products

Poll Result: 41% are NOT removing under-performing SKUs

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Step 1 – Submit better product data

a. Re-upload data feed often

b. Get the most out of feed attributes

c. Check for feed errors

d. Use the Data quality tab

e. Work on product titles

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Step 2 – create better structure

a. Use an All products target

b. Target high value product segments

c. Find new segments to break out

d. Facilitate traffic flow

e. Bid strategically

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Q & AWant to talk more?

Dice Nakamurae: dicen@verticalnerve.com | p: 214-206-

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