The following post is from Isel Galvan, Web Marketing Analyst.
Welcome to the first retail-focused post on the Digital Compass blog. MICROS eCommerce offers a full spectrum of online marketing solutions for the hospitality and retail vertical. This update focuses on the new Google Shopping changes eCommerce retailers need to know about now!
Google recently announced a new initiative to improve shopping on the search engine. This summer, Google Product Search started transitioning to a new paid model based on Product Listing Ads, and the new experience will be known as Google Shopping.
Since May, Google has been testing their new product and phasing out their previously free model. The full switch over will occur October 1st at which point search results will be based upon both relevance and the bid price that merchants pay Google. The red arrow highlights the period in Google initiated testing, which illustrates the sharp drop in free traffic that retailers experienced.
Here is a rundown of why these changes are important to retailers and how you can take advantage of this opportunity.
What Are Product Listing Ads?
Product Listing Ads are AdWords ads that include rich product information, such as product image, price, and merchant name. Whenever a user enters a search query relevant to an item in your Merchant Center account, Google will automatically show the most relevant products along with the associated image, price and product name. Your Product Listing Ads are eligible to appear on both Google Search and Google Shopping, across computers, tablets and smartphones.
Before & After
Prior to announcements of change 
New model to be launched on October 1st 
Case Study
MICROS eCommerce launched a Product Listing Ad (PLA) program for one of our clients after Google’s initial announcement to start taking advantage of this new marketing channel before the competition.
Goals:
- To increase relevant traffic for long-tailed search queries
- Collect new consumer search behavior data to be applied to our paid search program
- Obtain an ROI of 5:1
Approach:
- Launched PLA campaign on Google Shopping
- Developed a strategic plan based on historic paid search data
Results:
Out With the Old, In With the New: Since testing the new paid Google Shopping model, we saw the average monthly performance surpass that of the previously free model.
- New Google Shopping PLA Model average monthly performance saw:
- +98% more revenue
- +295% higher AOV
- +50% higher conversion rate
- Initial goal of an ROI of 5:1 was surpassed by a 9:1 result
- PLA program proves to drive more qualified traffic
Benefits of new model
For Retailers:
- Control & predictability
- Opportunities to differentiate
- Attractive ads
- Less clutter
- Better quality traffic
For Consumers:
- Simple & intuitive
- Better data quality & accuracy
- Easier to identify trustworthy retailers
What does this mean for you? Retailers must take action of new marketing channel as it presents great immediate opportunities for growth and revenue.
For more information on MICROS eCommerce Retail services please visit our website.
Interested in ramping up your online strategy? Check out the full suite of MICROS eCommerce interactive marketing tools, send us an email, or give us a call +1 301.841.4700(US) | +44 (0)20 3004 9468(UK).
