How To Use Competitive Intelligence to Get More Revenue From Google Shopping
Learn how you can optimize PLAs and see more revenue from Google Shopping.Shopping ads are extremely popular among retailers, making them highly competitive. Conversion rates for Google Shopping ads are significantly higher than non-branded text ads, so advertisers are investing heavily in them. At the end of last year, advertiser investment in Shopping grew 33% in the quarter, compared to just 3% growth for text ads.
The ultra-competitive landscape of Google Shopping Ads means advertisers need to be strategic and use every tool they can to squeeze as much revenue out of the channel as possible. Here’s how:
1.Determine your Share of Voice (SOV)
Why it matters: Knowing how your site's share of voice for PLAs for your monitored keywords compares to a selected set of competitors allows you determine the likelihood of your PLAs appearing on certain keywords.
What to look for: Trend your SOV over time, and across multiple keywords and keyword groups to make sure you are getting the most out of your shopping ads, and to identify opportunities to adjust your bids.
2.Understand seller reach
Why it matters: Manufacturers rely heavily on sellers to promote their products. While the manufacturer might receive sales reports from their sellers, they don’t know how effectively these dollars are being used to achieve visibility for their products. The main problem is transparency.
What to look for: Use seller reach data to incentivize sellers with the most reach, or alert sellers with low reach and provide information on how they can improve their reach. You’ll gain much-needed transparency into the manufacturer-seller relationship that you can use to drive more sales.
3.Monitor for Minimum Advertised Price (MAP) compliance
Why it matters: MAP violations create a domino effect. A single MAP violator will steal share from all other resellers, and other resellers have no choice but to fight back with below-MAP pricing. If you let your retailers battle each other for the lowest prices, you quickly create a race to the bottom, where you’re only competing on price and your brand equity quickly erodes.
What to look for: When looking at MAP compliance, ask: Which product(s) is it happening on? How long has it been going on? How many sellers are doing this? What percentage of your sellers do this? Any repeat offenders? Immediately contact the MAP-offenders to adjust their prices. Take more serious actions with repeat offenders.
4.Maximize the use of special offers
Why it matters: Utilizing Special Offers in Google Shopping ads boosts your visibility and can help your listing stand out from the competition. This field lets retailers highlight specific promotions and sales for their listed products, not just the product’s basic details.
What to look for: You want your special offer promotion to include a strong call-to-action, complete with a sales message, expiration date, promo code, and Shop button. Look at what offers your competitors are running to ensure your offer is at least comparable to what they offer, if not much more compelling.
Still not sure what offers to run in this prominent field? Start by viewing this list of the most popular Google Shopping Special Offers run by advertisers.
Google Shopping has proven to be an essential channel for retailers. The data shows that won’t be changing anytime soon and it will only get more competitive. Use the tools outlined above to get the most revenue out of your Shopping Ads.