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The future of shopping
e-Commerce, exponential technologies and human
experiences
Aleks Bozhinov
a.s.bozhinov@gmail.com
LinkedIn
Future market
Human
expectations
Technological
opportunities
Corporate
transformation
Past Now Soon Tomorrow Future
ARTIFICIAL
INTELLIGENCE
MOBILE
WEB
SMAC
ROBOTICS
Future market
Human
expectations
Technological
opportunities
Corporate
transformation
Opportunity
space
ARTIFICIAL
INTELLIGENCE
WEB
MOBILE
SMAC
ROBOTICS
Past Now Soon Tomorrow Future
Social Business with Crowdholding
Property of Aleks Bozhinov. To request access, email
a.s.bozhinov@gmail.com
7 Mass Market Trends on E-commerce CX
“Ecommerce has become the new standard in the way people purchase goods. And if
the past is at all suggestive of the future, then it’s safe to say that the future of
ecommerce looks bright.”
1. Mobile First –
Required!
“Quick, Easy and Mobile First!” The trends
that are here to stay.
1. Mobile First
• Look at your visitors as one single group – don’t divide them into mobile and desktop
users.
• Mobile devices cause more than half of web traffic – don’t underestimate them.
• Responsivity is must and mobile first is required next step.
• Always provide an excellent customer experience.
2. Rise of Local Drop-Off Points
“An online retail shopping experience can be severely limiting in
that a consumer doesn’t have the ability to interact, see, try
and touch the products like in a store.”
2. Rise of Local Drop-Off Points
• Small shops serve as showrooms, fitting rooms and drop-off points, all in one.
• Enable the customers to order, come to see and try on your products - all in the same
day at a local drop-off point of their choosing.
• If you sell in your own brick and mortar store, save customer’s time. Separate
entrances for grab-and-go goods and those who want to browse.
3. Data
Aggregators
“The more information there is available
about a product the less reluctant
people will be to buy it online.”
3. Data Aggregators
• Data aggregators compile information that help businesses get found on online
resources such as: Google Maps, Bing Local, Yahoo Local, Apple/Siri, Facebook,
Yellow Pages etc, and lead customers to find expected product.
• It improves your local search ranking (and SEO itself).
• Pictures, reviews, and comments are persuasive social proof for customers’ purchase
decision — in fact, 84% of people trust online reviews as much as a personal
recommendation.
4. Chatbots
“People will talk or write to
machines and they will
love it!”
4. Chatbots
• Fully automated chat agents are able to answer all customers questions, improve
their shopping experience, and provide personalised solutions to various issues.
• Additionally, chatbots can be programmed to do everything from suggesting sizes,
making fashion recommendations, and personalizing special offers.
• There are some companies already using chatbots (H&M, Sephora, Victoria’s Secret
etc.), and their usage will only become more prominent and widespread.
5. Free Quick Delivery
& Easy Return Policy
“81% of customers want an easier way of
returning products they just bought online.”
5. Free Quick Delivery & Easy Return Policy
• The same day or next day delivery is customers requirement that can make or break
their decision.
• Many online shoppers now expect free shipping as a critical element to their e-
commerce experience.
• Offering simple and no-hassle return policies helps to build trust with clientele and
secure a sense of quality assurance.
6. Design
“Originality, less text and
more images.”
6. Design
• The standing out landing page aiming for originality is a gate to success. There are
too many similar stores you don’t want to be interchanged with.
• Less content to wade through and more visual impulses increase the visitor’s desire
to buy your goods.
• Every image on your site matters. Make sure they are of high-resolution and perfect
quality (from both emotional and technical perspective)
• As a result, visual storytelling such as cinemagraphs, semi-flat design, and
illustrations will likely be huge hits in 2017.
7. Big Data Usage
“Big Data will help to transform the shopping experience by providing exclusively
designed offers for each customer.”
7. Big Data Usage
• The ability to offer personalised solutions is based on rich informational base of your
customers.
• In 2015, retailers who started using big data practices experienced a 60% average
increase in their business margins.
• Map easily your best customers, their spendings, favourite products, sources and
campaigns they came from, and what information they are looking for when deciding
on a purchase.
The 2017 Google
Shopping Guide
Data & Best Practices for Shopping
Advertisers
Available Google Shopping Countries
Available Google
Shopping Countries
Shopping ads only appear
on Google Search in:
Shopping ads are
in beta for:
Australia
Austria
Belgium
Brazil
Canada
Czechia
Denmark
France
Germany
Italy
US
Japan
Mexico
Norway
Poland
Netherlands
Russia
Spain
Sweden
Switzerland
Turkey
UK
Ireland
New Zealand
Singapore
South Africa
India
Argentina
Chile
Colombia
Hong Kong
Indonesia
Malaysia
Philippines
Portugal
Taiwan
United Arab Emirates
Introduction
More and more businesses are understanding
how important Google Shopping is to their
business and their overall success with traffic
generation.
The ability to almost exact-match target users’
queries, especially top performers, can reap
great performance gains and is practically
essential to compete in the growing competitive
Shopping landscape.
Remarketing Lists for Search Ads (RLSA)
Remarketing Lists for Search Ads (RLSA)
The evolution of RLSA & advancing the technology and strategy on RLSA was a big
talking point at the 2016 Search Marketing Expo & Conference.
Specifically, there was a lot of talk about whether you should be segmenting your
campaigns based on audiences and writing different ad copy for those people.
Remarketing Lists for Search Ads (RLSA)
Initially, the only way that we could use retargeting was on the Google Display Network. But
then Google released RLSA—and advertisers realized they could put their audience lists into
Search campaigns too.
For example, this could include people that viewed Men’s pages, or for someone who added
to cart but did not follow through with a purchase. If someone was on one of those RLSA
lists and they were doing a search on Google—we could bid “x” percent higher for them.
Introducing RLSA 2.0
Just applying RLSA lists into normal campaigns and putting bid modifiers on them (RLSA
1.0) could improve the performance of the existing campaign(s) — there are several other
ways advertisers can leverage advanced RLSAs to:
 Increase click-through rate
 Increase conversion rate
 Decrease cost-per click
Theory 1: Unique Ad Copy Experience for Dedicated RLSA Campaigns
Theory 2: Dynamic Search Ad Campaigns Targeting RLSA Lists
Theory 3: For Limited Budgets Try Running RLSA
Case Study: Ulmart
Goals
• Increase the impact of Google
Shopping campaigns
• Improve conversion rates and volume
Approach
• Target multiple audiences with the Google Shopping
campaigns
• Adjusting bidding to match the likelihood to convert of
each audience lists:
o -50% for Product Viewers
o +150% for Cart Abandoners
o +300% for Existing Customers
Results
Ulmart has been able to see an overall
13% increase in Google Shopping sales
with no impact on the average cost-per-
order.
Opportunity
Ulmart is now taking advantage of the 6.57% returning
visitors conversion rate as compared to 2.51% for new
visitors. Those users also offer an average 73% lower cost-
per-order.
Customer Match
Customer Match
Customer Match is a feature aimed to re-
engage loyal customers as they shop on
Google. It is a feature aimed to re-engage
loyal customers as they shop on Google.
The ad only shows to users who have a
Gmail account, and are logged into their
Google account, and searching for a
keyword/product eligible to trigger an
impression
Case Study: The Children’s Place
Goals
• Reach back-to-school customers who
hadn’t converted since the previous
season
• Increase in-store and online sales
• Improve cost efficiency
Approach
• Enabled Customer Match (CM) on tailored non-brand
campaigns
• Optimized keywords based on return on investment
(ROI)
Results
• 287% higher ROI
• 153% increase in conversion rate (CVR)
• 40% decrease in cost-per-click (CPC)
• 237% increase in click-through rate (CTR)
Opportunity
In an effort to continue bringing parents back to its
website year round, The Children's Place plans to use
Customer Match to reach other customer segments, like
its "Best Customers," The Children's Place credit card
holders, and recent purchasers.
Leveraging CRM Data
Match Rate
One big factor for your ad
success is the “match rate”—or
how
many of your CRM email
addresses will actually match up
to
those on Google or Facebook.
Although match rates vary by
advertiser, at CPC Strategy, we
work with retail clients and in
general, we’ve seen email match
rates that are consistently
higher on Facebook than on
Google.
CRM List Size
CRM targeting does give you the
ability to target an older
list of past customers or
subscribers, which can be great if
you are attempting to re-engage
that segment. However, in
general, the bigger and more
recent the audience, the better.
At the end of the day, you have
to weigh the pros and cons of
using Customer Match for your
particular brand.
CRM List Origin
The email that people use to
purchase with are more likely
to be the same email they’re
using to log into Facebook, as
opposed to the more stringent
matching requirements on
Google. But with Google, it’s a
slightly different story. In our
ecommerce marketing
experience, there’s a lack of
volume
and match rates skew lower than
Facebook.
Expert tips on how to use CRM data on Google
1. Know Where Google Properties Fall in the Funnel
2. Try Mirroring Your Campaigns for More Impact
3. Don’t Buy Lists
4. Test and Reallocate Budget
5. Generate “Similar” Audiences on Google
Auction Insights
Auction Insights
We have seen is a rise in competition. But with more competition, how can retailers take an
aggressive approach while maintaining—if not improving their profitability?
Leverage Auction Insights.
- Compare performance with other advertisers who are participating in the same auctions
- Make strategic decisions about bidding and budgeting choices
- See the impression share for some of your competitors & what the overlap rate is between you and
your competitors.
Best practices for structuring
Google Shopping Campaigns
Best practices for structuring Google
Shopping Campaigns
The product feed can be an intimidating domain for a retail marketer and is often
one of the most overlooked aspects of effective product advertising.
Product feeds remain the critical foundation to any successful product advertising channel—
especially Google Shopping.
Once a data feed has been uploaded, Google cross references the data feed with search. This
generates a “quality score,” which is multiplied by your bid to determine a product’s ad rank.
Better ad rank leads to improved product discoverability and likely an increase in sales.
Best practices for structuring Google
Shopping Campaigns
An optimized data feed takes into account:
 Query Volume
 Query Intent
 Competition
 Product Margin
 Search Term Performance (top-converters & non-converters)
 Site Performance
 Audience
 Inventory
Best practices for Bidding in Google
Shopping Campaigns
Unfortunately, a lot of advertisers don’t utilize rule-based bidding strategies to optimize their Google
Shopping campaigns as much as they should.
With rule-based bidding you can be very specific and customize your inputs.
Programmatic tech allows us to:
 Monitor SKU-level profitability
 Create bidding rules by product price, ROAS thresholds, profit margin, etc.
 Analyze and identify negative keywords in bulk, minimizing wasted spend
 Whitelist high-performing search terms to run aggressive, ultra-targeted PLAs
Best practices for Bidding in Google
Shopping Campaigns
Pulling Back on Wasted Ad Spend:
- This rule impacts any items with zero conversions.
Bid Increase Rule(s):
- The bid increase rule is for converters to gain more visibility. Bucket these bid increases into 3 classes including
“mid-range” converters, “top” converters, and “one-off” converters. Read more about these bid rules in our recent
blog post.
Bump Products With Zero impressions:
- The rule will increase bids on individual products up until they hit a certain impression threshold. The whole
point of this rule is to drive incremental growth via the rest of the catalog that doesn’t get much attention.
Reduce Bid on Bleeders:
- Bleeders are defined as items that get conversions but are not considered profitable, aka it costs too much to
acquire the customer.
Mobile
Performance on
Google Shopping
Introduction
When it comes to Google Shopping, most retailers still put their trust in desktop as the main
conversion device, not mobile. But according to Google, 60% of internet users in the US start
shopping on one device, but continue or finish on a different one.
Mobile search triggers nearly two follow-up actions, whether that’s a purchase or a store visit, and
55% of these actions happen within just 60 minutes.
Clicks
From 2014 - 2016 (Q1 2014 - Q1 2016), clicks for Google PLAs on mobile devices with
full browsers increased by 389.7%. By comparison, tablet clicks on Google Shopping
increased by just 57%.
Impressions
Impressions for PLAs on mobile devices with full browsers reached a total of about 1.1
billion by Q1 2016, while tablet impressions hovered around 341 million.
Cost per Click (CPC)
Now for the big question—are mobile CPCs getting more expensive? Overall, the CPC on
tablet increased from 50 cents in Q1 2014 to a high of 67 cents in Q4 2015 before dropping
off to 63 cents in Q1 2016. Mobile CPC, on the other hand, decreased by -7% from Q1
2014 to Q1 2016, reaching a low of 25 cents.
Cost per Click (CPC)
Now for the big question—are mobile CPCs getting more expensive? Overall, the CPC on
tablet increased from 50 cents in Q1 2014 to a high of 67 cents in Q4 2015 before dropping
off to 63 cents in Q1 2016. Mobile CPC, on the other hand, decreased by -7% from Q1
2014 to Q1 2016, reaching a low of 25 cents.
Conversion Rate
In Q1 2014, tablet conversion rates were 2.6%, while mobile was 1%, and a gap was
maintained between the two even through Q1 2016 (2.2% tablet, 1.6% mobile).
Cost per Conversion
Mobile cost per conversions dropped from $27.49 in Q1 2014 to a low of $15.56 in Q1 2016,
while the tablet cost per conversions increased from $19.78 in Q1 2014 to $28.47 in Q1 2016.
Return on Ad Spend
Mobile ROAS started at 208% (2:1) and ended at 441% (4:1), a 55% increase in return
on ad spend, while ROAS for tablet decreased slightly to 323% in Q1 2016.
Key shifts Mobile vs Desktop
Cost per Click
As shown in previous CPC data, mobile CPC decreased to just 25 cents in Q1 2016.
Desktop, on the other hand, remained relatively steady between 50-60 cents, averaging about
3x the cost of mobile CPCs in Q1 2016.
Desktop clicks
Mobile clicks
MOBILE & DESKTOP
Return on Ad Spend
Mobile ROAS started off at 208% in Q1 2014, under half the ROAS of desktop, which was
548%. By Q1 2016, mobile ROAS was over halfway to the desktop ROAS mark.
Desktop clicks
Mobile clicks
MOBILE & DESKTOP
Attribution for Mobile Shopping
Campaigns
One of the drawbacks of past online ad strategies was a heavy reliance on last-click attribution.
Our client data shows that Google Shopping mobile campaigns do a great job of driving assisted
conversions and assisted revenue.
Now that Google is adding cross-device attribution reports and benchmarks, we believe this will
show even more clearly.
Attribution for Mobile Shopping
Campaigns
Apparel Retailer, 30-day, 2+ path clicks
Strategy for Mobile Google Shopping
Set Up the Best Campaign Structure for Mobile
What’s a good basic campaign architecture and strategy to support traffic and boost ROAS for mobile?
You are missing out if:
- You don’t have a structure in place so you can track performance by device.
- You still use a regular bid modifier to adjust ad group or campaign level.
- You house mobile, desktop, and tablet in one campaign.
Another benefit of breaking out mobile campaigns vs. desktop and tablet is the ability
to break out search queries independently.
Device and Brand Segmenting (DABS)
Device and brand segmenting is especially powerful for original equipment manufacturers (OEMs).
The DABs strategy hinges on a list of terms you would deem “brand” or “high value”. This strategy
also involves combo of priority settings and negative keywords.
Within one account, an advertiser may segment campaigns into a branded desktop shopping
campaign, a non-branded shopping campaign, and mobile versions of both.
With the right segmentation, you will have more levers in place to control the bidding of your
mobile campaigns, and will be more likely to see great results.
Budget for Mobile
The key is to scale with Google—not outpace it at the expense of your budget.
Mobile may be poised to become a full-funnel conversion device, but we recommend sellers
do two things to start, particularly for less experienced AdWords users:
 Ensure your ecommerce site is mobile friendly (particularly fast-loading)
 Start small—with 20-25% of your budget
The order of these is important. Once you revamp your website and improve the mobile
experience, start with 20-25% of your budget. Mobile ads can bleed your budget quickly, so it’s
a good idea to start conservatively.
Logic and Psychology that influences a
Customer to Buy
52151252
Logic and Psychology that influences a
Customer to Buy
The “Love for shopping” is not the same for
customers as before …
Customers don’t
want to waste
their precious
time
They are exposed up to
3000 advertising
messages everyday that
includes signs,
billboards, flyers,
scented advertisements,
TV, film previews etc.
Returns, discounts,
offers and season
sales actually
influences their
buying behavior
Customers want
more convenience
& ease of purchase
What influences customers’ Love for Shopping”
today?
Consumer’s love
for malls or in-
store shopping
are declining
Customers prefer less
effort but superior
experience
They are more
comfortable with online
shopping accessibility
from anywhere, anytime
Customers are more
engaged through
cash back and
cashless economy
gaining momentum
So, what sets consumer’s mood to shop?
61% of customers will read reviews before shopping
People retain 65% of information from Visual ads unlike only 10% if they hear the info.
60-90% of customers choice depends on color psychology of the product that they decide within
90 seconds
A sense of urgency such as a timer or countdown, spin-the-wheel game, cuts the delay
in making customers react to boost up conversion rates significantly!
Shopping Styles, Personality Types &
Behaviours
• Economic Shoppers
• Bargain Hunters
• Sociable
• Situational Shopper
• Adventure of Mail lingerer
• Shopaholic
• Experimental
• Shop-phobic
• Price-insensitive
The Marketing Mantra
Customers are 60% through their
buying journey by the time they reach
out to sales rep. To see results from
your marketing strategy, apply this
marketing mantra –
STOP SELLING; INSTEAD TRY
BUILDING RELATIONSHIPS
Make the customer feel good…
Digital Shopper Psychology – 10 Principles
Sharp Marketers should Exploit
#1 Freedom of Choice
40-60% of customers are more likely to give
attention to a brand if offered a choice.
10 Principles Sharp Marketers should Exploit
10 Principles Sharp Marketers should Exploit
#2 Rewards & Gifts
Gifts act as motivational factor that marketers can
harness to make them complete a transaction or
registration task or behave in a certain way.
10 Principles Sharp Marketers should Exploit
#3 Less is more in pricing
Instead of a rounded price of suppose $10, using
a price of $9.99 leaves a gap between the real
value and perceived value which is all about
illusion of a good deal.
Consumers end up buying subconsciously not
much reacting to this difference while ignoring the
price structure.
10 Principles Sharp Marketers should Exploit
#4 The Power of Digital
Wallet
To win over customers, it’s a win-win strategy
where customers are charmed with VIP access to
beat the rush, store coupons & special offers
while for brands-get them share the deal with
friends and update wallet content.
10 Principles Sharp Marketers should Exploit
#5 Social Shopping
Use “Social feeds” to bring products directly in
front of the customer’s eye. Turn this retail
experience into a biggest driver of brand
revenues.
10 Principles Sharp Marketers should Exploit
#6 Optimized Product Search
Make your products exposed to customers once
they search for. Focus on SEO friendliness, Quora,
LinkedIn etc. Make sure that your product is
related to a variety of topics ranking higher than
average.
10 Principles Sharp Marketers should Exploit
#7 Personalized
Retargeting Campaigns
Don’t lose your abandoned customers because
they might be your hot prospects. To bring them
back, re-create their interest, remind them
through retargeted email campaigns that boost
them up to complete the purchase.
10 Principles Sharp Marketers should Exploit
#8 Customer Motivators
If your product does not delight the customer
from within, it’s likely that the customer will not
seek them out. Inspire delight by offering
moments of happiness to the customer to
remember & cherish. For example, ModCloth
allows their customers to upload photos of their
favorite styles and trends. It’s a fun experience!
10 Principles Sharp Marketers should Exploit
#9 Build Repo with
Customers
One-to-one relationship using consumer behavior
insight in the context of products can boost huge
customer loyalty and great ROI. Personalized
interactions with personal touch not only
optimizes product service but also retains
customers.
10 Principles Sharp Marketers should Exploit
#10 Provide Home Comfort
Purchasing a product directly sitting right at the
comfort of home eliminates the need to deal with
salesperson or rushing to complete shopping till
store hours. Give them countless choices to
explore, smooth transaction, basket choices or
access more time options.
10 Principles Sharp Marketers should Exploit
Remember
Customer Satisfaction + Endless Positive
Experience = Customer Buying Psychology
80% of shopping is mostly unplanned or
impulsive. It depends on how you design the
Psychological makeup of customer to set the
mood that can upsurge the chances of purchase!
Final Thoughts
• Mobile ROAS is on the rise, and CPCs are still reasonable
• Now is the time to invest in mobile site optimization, a critical component to getting mobile traffic to
be profitable
• Use new attribution tool in AdWords to measure success on tablet/mobile/desktop
• Use the separate AdWords bidding option (rolling out now)
• Customers are identified singularly by their online habits, rather than separately as desktop or mobile
users.
• Small shops that serve as showrooms, fitting rooms, and drop-off points will be on the rise.
• A shift toward a bigger demand for graphics and social proof such as pictures, reviews, and
comments.
Customer ❤= available, fast, reliable, accountable more than OTT (Over - the – top – content) -
Otherwise you’re only the product
ThankYou
Aleks Bozhinov
a.s.bozhinov@gmail.com
LinkedIn
www.crowdholding.com

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Alex Bozhinov - account manager, Google: Google shopping @ eCommCongress 2017

  • 1. The future of shopping e-Commerce, exponential technologies and human experiences Aleks Bozhinov a.s.bozhinov@gmail.com LinkedIn
  • 2. Future market Human expectations Technological opportunities Corporate transformation Past Now Soon Tomorrow Future ARTIFICIAL INTELLIGENCE MOBILE WEB SMAC ROBOTICS
  • 4. Social Business with Crowdholding Property of Aleks Bozhinov. To request access, email a.s.bozhinov@gmail.com
  • 5. 7 Mass Market Trends on E-commerce CX “Ecommerce has become the new standard in the way people purchase goods. And if the past is at all suggestive of the future, then it’s safe to say that the future of ecommerce looks bright.”
  • 6. 1. Mobile First – Required! “Quick, Easy and Mobile First!” The trends that are here to stay.
  • 7. 1. Mobile First • Look at your visitors as one single group – don’t divide them into mobile and desktop users. • Mobile devices cause more than half of web traffic – don’t underestimate them. • Responsivity is must and mobile first is required next step. • Always provide an excellent customer experience.
  • 8. 2. Rise of Local Drop-Off Points “An online retail shopping experience can be severely limiting in that a consumer doesn’t have the ability to interact, see, try and touch the products like in a store.”
  • 9. 2. Rise of Local Drop-Off Points • Small shops serve as showrooms, fitting rooms and drop-off points, all in one. • Enable the customers to order, come to see and try on your products - all in the same day at a local drop-off point of their choosing. • If you sell in your own brick and mortar store, save customer’s time. Separate entrances for grab-and-go goods and those who want to browse.
  • 10. 3. Data Aggregators “The more information there is available about a product the less reluctant people will be to buy it online.”
  • 11. 3. Data Aggregators • Data aggregators compile information that help businesses get found on online resources such as: Google Maps, Bing Local, Yahoo Local, Apple/Siri, Facebook, Yellow Pages etc, and lead customers to find expected product. • It improves your local search ranking (and SEO itself). • Pictures, reviews, and comments are persuasive social proof for customers’ purchase decision — in fact, 84% of people trust online reviews as much as a personal recommendation.
  • 12. 4. Chatbots “People will talk or write to machines and they will love it!”
  • 13. 4. Chatbots • Fully automated chat agents are able to answer all customers questions, improve their shopping experience, and provide personalised solutions to various issues. • Additionally, chatbots can be programmed to do everything from suggesting sizes, making fashion recommendations, and personalizing special offers. • There are some companies already using chatbots (H&M, Sephora, Victoria’s Secret etc.), and their usage will only become more prominent and widespread.
  • 14. 5. Free Quick Delivery & Easy Return Policy “81% of customers want an easier way of returning products they just bought online.”
  • 15. 5. Free Quick Delivery & Easy Return Policy • The same day or next day delivery is customers requirement that can make or break their decision. • Many online shoppers now expect free shipping as a critical element to their e- commerce experience. • Offering simple and no-hassle return policies helps to build trust with clientele and secure a sense of quality assurance.
  • 16. 6. Design “Originality, less text and more images.”
  • 17. 6. Design • The standing out landing page aiming for originality is a gate to success. There are too many similar stores you don’t want to be interchanged with. • Less content to wade through and more visual impulses increase the visitor’s desire to buy your goods. • Every image on your site matters. Make sure they are of high-resolution and perfect quality (from both emotional and technical perspective) • As a result, visual storytelling such as cinemagraphs, semi-flat design, and illustrations will likely be huge hits in 2017.
  • 18. 7. Big Data Usage “Big Data will help to transform the shopping experience by providing exclusively designed offers for each customer.”
  • 19. 7. Big Data Usage • The ability to offer personalised solutions is based on rich informational base of your customers. • In 2015, retailers who started using big data practices experienced a 60% average increase in their business margins. • Map easily your best customers, their spendings, favourite products, sources and campaigns they came from, and what information they are looking for when deciding on a purchase.
  • 20. The 2017 Google Shopping Guide Data & Best Practices for Shopping Advertisers
  • 21. Available Google Shopping Countries Available Google Shopping Countries Shopping ads only appear on Google Search in: Shopping ads are in beta for: Australia Austria Belgium Brazil Canada Czechia Denmark France Germany Italy US Japan Mexico Norway Poland Netherlands Russia Spain Sweden Switzerland Turkey UK Ireland New Zealand Singapore South Africa India Argentina Chile Colombia Hong Kong Indonesia Malaysia Philippines Portugal Taiwan United Arab Emirates
  • 22. Introduction More and more businesses are understanding how important Google Shopping is to their business and their overall success with traffic generation. The ability to almost exact-match target users’ queries, especially top performers, can reap great performance gains and is practically essential to compete in the growing competitive Shopping landscape.
  • 23. Remarketing Lists for Search Ads (RLSA)
  • 24. Remarketing Lists for Search Ads (RLSA) The evolution of RLSA & advancing the technology and strategy on RLSA was a big talking point at the 2016 Search Marketing Expo & Conference. Specifically, there was a lot of talk about whether you should be segmenting your campaigns based on audiences and writing different ad copy for those people.
  • 25. Remarketing Lists for Search Ads (RLSA) Initially, the only way that we could use retargeting was on the Google Display Network. But then Google released RLSA—and advertisers realized they could put their audience lists into Search campaigns too. For example, this could include people that viewed Men’s pages, or for someone who added to cart but did not follow through with a purchase. If someone was on one of those RLSA lists and they were doing a search on Google—we could bid “x” percent higher for them.
  • 26. Introducing RLSA 2.0 Just applying RLSA lists into normal campaigns and putting bid modifiers on them (RLSA 1.0) could improve the performance of the existing campaign(s) — there are several other ways advertisers can leverage advanced RLSAs to:  Increase click-through rate  Increase conversion rate  Decrease cost-per click Theory 1: Unique Ad Copy Experience for Dedicated RLSA Campaigns Theory 2: Dynamic Search Ad Campaigns Targeting RLSA Lists Theory 3: For Limited Budgets Try Running RLSA
  • 27. Case Study: Ulmart Goals • Increase the impact of Google Shopping campaigns • Improve conversion rates and volume Approach • Target multiple audiences with the Google Shopping campaigns • Adjusting bidding to match the likelihood to convert of each audience lists: o -50% for Product Viewers o +150% for Cart Abandoners o +300% for Existing Customers Results Ulmart has been able to see an overall 13% increase in Google Shopping sales with no impact on the average cost-per- order. Opportunity Ulmart is now taking advantage of the 6.57% returning visitors conversion rate as compared to 2.51% for new visitors. Those users also offer an average 73% lower cost- per-order.
  • 29. Customer Match Customer Match is a feature aimed to re- engage loyal customers as they shop on Google. It is a feature aimed to re-engage loyal customers as they shop on Google. The ad only shows to users who have a Gmail account, and are logged into their Google account, and searching for a keyword/product eligible to trigger an impression
  • 30. Case Study: The Children’s Place Goals • Reach back-to-school customers who hadn’t converted since the previous season • Increase in-store and online sales • Improve cost efficiency Approach • Enabled Customer Match (CM) on tailored non-brand campaigns • Optimized keywords based on return on investment (ROI) Results • 287% higher ROI • 153% increase in conversion rate (CVR) • 40% decrease in cost-per-click (CPC) • 237% increase in click-through rate (CTR) Opportunity In an effort to continue bringing parents back to its website year round, The Children's Place plans to use Customer Match to reach other customer segments, like its "Best Customers," The Children's Place credit card holders, and recent purchasers.
  • 31. Leveraging CRM Data Match Rate One big factor for your ad success is the “match rate”—or how many of your CRM email addresses will actually match up to those on Google or Facebook. Although match rates vary by advertiser, at CPC Strategy, we work with retail clients and in general, we’ve seen email match rates that are consistently higher on Facebook than on Google. CRM List Size CRM targeting does give you the ability to target an older list of past customers or subscribers, which can be great if you are attempting to re-engage that segment. However, in general, the bigger and more recent the audience, the better. At the end of the day, you have to weigh the pros and cons of using Customer Match for your particular brand. CRM List Origin The email that people use to purchase with are more likely to be the same email they’re using to log into Facebook, as opposed to the more stringent matching requirements on Google. But with Google, it’s a slightly different story. In our ecommerce marketing experience, there’s a lack of volume and match rates skew lower than Facebook.
  • 32. Expert tips on how to use CRM data on Google 1. Know Where Google Properties Fall in the Funnel 2. Try Mirroring Your Campaigns for More Impact 3. Don’t Buy Lists 4. Test and Reallocate Budget 5. Generate “Similar” Audiences on Google
  • 34. Auction Insights We have seen is a rise in competition. But with more competition, how can retailers take an aggressive approach while maintaining—if not improving their profitability? Leverage Auction Insights. - Compare performance with other advertisers who are participating in the same auctions - Make strategic decisions about bidding and budgeting choices - See the impression share for some of your competitors & what the overlap rate is between you and your competitors.
  • 35. Best practices for structuring Google Shopping Campaigns
  • 36. Best practices for structuring Google Shopping Campaigns The product feed can be an intimidating domain for a retail marketer and is often one of the most overlooked aspects of effective product advertising. Product feeds remain the critical foundation to any successful product advertising channel— especially Google Shopping. Once a data feed has been uploaded, Google cross references the data feed with search. This generates a “quality score,” which is multiplied by your bid to determine a product’s ad rank. Better ad rank leads to improved product discoverability and likely an increase in sales.
  • 37. Best practices for structuring Google Shopping Campaigns An optimized data feed takes into account:  Query Volume  Query Intent  Competition  Product Margin  Search Term Performance (top-converters & non-converters)  Site Performance  Audience  Inventory
  • 38. Best practices for Bidding in Google Shopping Campaigns Unfortunately, a lot of advertisers don’t utilize rule-based bidding strategies to optimize their Google Shopping campaigns as much as they should. With rule-based bidding you can be very specific and customize your inputs. Programmatic tech allows us to:  Monitor SKU-level profitability  Create bidding rules by product price, ROAS thresholds, profit margin, etc.  Analyze and identify negative keywords in bulk, minimizing wasted spend  Whitelist high-performing search terms to run aggressive, ultra-targeted PLAs
  • 39. Best practices for Bidding in Google Shopping Campaigns Pulling Back on Wasted Ad Spend: - This rule impacts any items with zero conversions. Bid Increase Rule(s): - The bid increase rule is for converters to gain more visibility. Bucket these bid increases into 3 classes including “mid-range” converters, “top” converters, and “one-off” converters. Read more about these bid rules in our recent blog post. Bump Products With Zero impressions: - The rule will increase bids on individual products up until they hit a certain impression threshold. The whole point of this rule is to drive incremental growth via the rest of the catalog that doesn’t get much attention. Reduce Bid on Bleeders: - Bleeders are defined as items that get conversions but are not considered profitable, aka it costs too much to acquire the customer.
  • 41. Introduction When it comes to Google Shopping, most retailers still put their trust in desktop as the main conversion device, not mobile. But according to Google, 60% of internet users in the US start shopping on one device, but continue or finish on a different one. Mobile search triggers nearly two follow-up actions, whether that’s a purchase or a store visit, and 55% of these actions happen within just 60 minutes.
  • 42. Clicks From 2014 - 2016 (Q1 2014 - Q1 2016), clicks for Google PLAs on mobile devices with full browsers increased by 389.7%. By comparison, tablet clicks on Google Shopping increased by just 57%.
  • 43. Impressions Impressions for PLAs on mobile devices with full browsers reached a total of about 1.1 billion by Q1 2016, while tablet impressions hovered around 341 million.
  • 44. Cost per Click (CPC) Now for the big question—are mobile CPCs getting more expensive? Overall, the CPC on tablet increased from 50 cents in Q1 2014 to a high of 67 cents in Q4 2015 before dropping off to 63 cents in Q1 2016. Mobile CPC, on the other hand, decreased by -7% from Q1 2014 to Q1 2016, reaching a low of 25 cents.
  • 45. Cost per Click (CPC) Now for the big question—are mobile CPCs getting more expensive? Overall, the CPC on tablet increased from 50 cents in Q1 2014 to a high of 67 cents in Q4 2015 before dropping off to 63 cents in Q1 2016. Mobile CPC, on the other hand, decreased by -7% from Q1 2014 to Q1 2016, reaching a low of 25 cents.
  • 46. Conversion Rate In Q1 2014, tablet conversion rates were 2.6%, while mobile was 1%, and a gap was maintained between the two even through Q1 2016 (2.2% tablet, 1.6% mobile).
  • 47. Cost per Conversion Mobile cost per conversions dropped from $27.49 in Q1 2014 to a low of $15.56 in Q1 2016, while the tablet cost per conversions increased from $19.78 in Q1 2014 to $28.47 in Q1 2016.
  • 48. Return on Ad Spend Mobile ROAS started at 208% (2:1) and ended at 441% (4:1), a 55% increase in return on ad spend, while ROAS for tablet decreased slightly to 323% in Q1 2016.
  • 49. Key shifts Mobile vs Desktop
  • 50. Cost per Click As shown in previous CPC data, mobile CPC decreased to just 25 cents in Q1 2016. Desktop, on the other hand, remained relatively steady between 50-60 cents, averaging about 3x the cost of mobile CPCs in Q1 2016. Desktop clicks Mobile clicks MOBILE & DESKTOP
  • 51. Return on Ad Spend Mobile ROAS started off at 208% in Q1 2014, under half the ROAS of desktop, which was 548%. By Q1 2016, mobile ROAS was over halfway to the desktop ROAS mark. Desktop clicks Mobile clicks MOBILE & DESKTOP
  • 52. Attribution for Mobile Shopping Campaigns One of the drawbacks of past online ad strategies was a heavy reliance on last-click attribution. Our client data shows that Google Shopping mobile campaigns do a great job of driving assisted conversions and assisted revenue. Now that Google is adding cross-device attribution reports and benchmarks, we believe this will show even more clearly.
  • 53. Attribution for Mobile Shopping Campaigns
  • 54. Apparel Retailer, 30-day, 2+ path clicks
  • 55. Strategy for Mobile Google Shopping
  • 56. Set Up the Best Campaign Structure for Mobile What’s a good basic campaign architecture and strategy to support traffic and boost ROAS for mobile? You are missing out if: - You don’t have a structure in place so you can track performance by device. - You still use a regular bid modifier to adjust ad group or campaign level. - You house mobile, desktop, and tablet in one campaign. Another benefit of breaking out mobile campaigns vs. desktop and tablet is the ability to break out search queries independently.
  • 57. Device and Brand Segmenting (DABS) Device and brand segmenting is especially powerful for original equipment manufacturers (OEMs). The DABs strategy hinges on a list of terms you would deem “brand” or “high value”. This strategy also involves combo of priority settings and negative keywords. Within one account, an advertiser may segment campaigns into a branded desktop shopping campaign, a non-branded shopping campaign, and mobile versions of both. With the right segmentation, you will have more levers in place to control the bidding of your mobile campaigns, and will be more likely to see great results.
  • 58. Budget for Mobile The key is to scale with Google—not outpace it at the expense of your budget. Mobile may be poised to become a full-funnel conversion device, but we recommend sellers do two things to start, particularly for less experienced AdWords users:  Ensure your ecommerce site is mobile friendly (particularly fast-loading)  Start small—with 20-25% of your budget The order of these is important. Once you revamp your website and improve the mobile experience, start with 20-25% of your budget. Mobile ads can bleed your budget quickly, so it’s a good idea to start conservatively.
  • 59. Logic and Psychology that influences a Customer to Buy
  • 60. 52151252 Logic and Psychology that influences a Customer to Buy
  • 61. The “Love for shopping” is not the same for customers as before … Customers don’t want to waste their precious time They are exposed up to 3000 advertising messages everyday that includes signs, billboards, flyers, scented advertisements, TV, film previews etc. Returns, discounts, offers and season sales actually influences their buying behavior Customers want more convenience & ease of purchase
  • 62. What influences customers’ Love for Shopping” today? Consumer’s love for malls or in- store shopping are declining Customers prefer less effort but superior experience They are more comfortable with online shopping accessibility from anywhere, anytime Customers are more engaged through cash back and cashless economy gaining momentum
  • 63. So, what sets consumer’s mood to shop? 61% of customers will read reviews before shopping People retain 65% of information from Visual ads unlike only 10% if they hear the info. 60-90% of customers choice depends on color psychology of the product that they decide within 90 seconds A sense of urgency such as a timer or countdown, spin-the-wheel game, cuts the delay in making customers react to boost up conversion rates significantly!
  • 64. Shopping Styles, Personality Types & Behaviours • Economic Shoppers • Bargain Hunters • Sociable • Situational Shopper • Adventure of Mail lingerer • Shopaholic • Experimental • Shop-phobic • Price-insensitive
  • 65. The Marketing Mantra Customers are 60% through their buying journey by the time they reach out to sales rep. To see results from your marketing strategy, apply this marketing mantra – STOP SELLING; INSTEAD TRY BUILDING RELATIONSHIPS Make the customer feel good…
  • 66. Digital Shopper Psychology – 10 Principles Sharp Marketers should Exploit
  • 67. #1 Freedom of Choice 40-60% of customers are more likely to give attention to a brand if offered a choice. 10 Principles Sharp Marketers should Exploit
  • 68. 10 Principles Sharp Marketers should Exploit #2 Rewards & Gifts Gifts act as motivational factor that marketers can harness to make them complete a transaction or registration task or behave in a certain way.
  • 69. 10 Principles Sharp Marketers should Exploit #3 Less is more in pricing Instead of a rounded price of suppose $10, using a price of $9.99 leaves a gap between the real value and perceived value which is all about illusion of a good deal. Consumers end up buying subconsciously not much reacting to this difference while ignoring the price structure.
  • 70. 10 Principles Sharp Marketers should Exploit #4 The Power of Digital Wallet To win over customers, it’s a win-win strategy where customers are charmed with VIP access to beat the rush, store coupons & special offers while for brands-get them share the deal with friends and update wallet content.
  • 71. 10 Principles Sharp Marketers should Exploit #5 Social Shopping Use “Social feeds” to bring products directly in front of the customer’s eye. Turn this retail experience into a biggest driver of brand revenues.
  • 72. 10 Principles Sharp Marketers should Exploit #6 Optimized Product Search Make your products exposed to customers once they search for. Focus on SEO friendliness, Quora, LinkedIn etc. Make sure that your product is related to a variety of topics ranking higher than average.
  • 73. 10 Principles Sharp Marketers should Exploit #7 Personalized Retargeting Campaigns Don’t lose your abandoned customers because they might be your hot prospects. To bring them back, re-create their interest, remind them through retargeted email campaigns that boost them up to complete the purchase.
  • 74. 10 Principles Sharp Marketers should Exploit #8 Customer Motivators If your product does not delight the customer from within, it’s likely that the customer will not seek them out. Inspire delight by offering moments of happiness to the customer to remember & cherish. For example, ModCloth allows their customers to upload photos of their favorite styles and trends. It’s a fun experience!
  • 75. 10 Principles Sharp Marketers should Exploit #9 Build Repo with Customers One-to-one relationship using consumer behavior insight in the context of products can boost huge customer loyalty and great ROI. Personalized interactions with personal touch not only optimizes product service but also retains customers.
  • 76. 10 Principles Sharp Marketers should Exploit #10 Provide Home Comfort Purchasing a product directly sitting right at the comfort of home eliminates the need to deal with salesperson or rushing to complete shopping till store hours. Give them countless choices to explore, smooth transaction, basket choices or access more time options.
  • 77. 10 Principles Sharp Marketers should Exploit Remember Customer Satisfaction + Endless Positive Experience = Customer Buying Psychology 80% of shopping is mostly unplanned or impulsive. It depends on how you design the Psychological makeup of customer to set the mood that can upsurge the chances of purchase!
  • 78. Final Thoughts • Mobile ROAS is on the rise, and CPCs are still reasonable • Now is the time to invest in mobile site optimization, a critical component to getting mobile traffic to be profitable • Use new attribution tool in AdWords to measure success on tablet/mobile/desktop • Use the separate AdWords bidding option (rolling out now) • Customers are identified singularly by their online habits, rather than separately as desktop or mobile users. • Small shops that serve as showrooms, fitting rooms, and drop-off points will be on the rise. • A shift toward a bigger demand for graphics and social proof such as pictures, reviews, and comments. Customer ❤= available, fast, reliable, accountable more than OTT (Over - the – top – content) - Otherwise you’re only the product

Editor's Notes

  1. The future of shopping e-Commerce, exponential technologies and human experiences
  2. 3. Future market Human expectations Technological opportunities Corporate transformation Opportunity space ARTIFICIAL INTELLIGENCE WEB MOBILE SMAC ROBOTICS
  3. NEW CUSTOMERS EXPERIENCE Chatbots as Concierge, Assistant & Scouts
  4. NEW CUSTOMERS EXPERIENCE Super-fast service delivery (via stores or logistics)
  5. Although there are still many companies running rudimentary Shopping campaigns, more and more are understanding how important Google Shopping is to their business and their overall success with traffic generation. The ability to almost exact-match target users’ queries, especially top performers, can reap great performance gains and is practically essential to compete in the growing competitive Shopping landscape. In the following guide, we share some of our recent findings on Google Shopping campaign structures, advanced RLSA tactics, how to better leverage CRM data, and an overall glimpse into 2016 Google Shopping data and trends.
  6. Remarketing lists for search ads (RLSA) is a feature that allows retailers to customize their search ad campaigns for people who have previously visited their site, and tailor their bids and ads to these visitors when they’re searching on Google. When potential customers leave a site, remarketing lists help retailers connect with those shoppers while they continue to search for what they need on Google. According to our in-house experts, the evolution of RLSA & advancing the technology and strategy on RLSA was a big talking point at the 2016 Search Marketing Expo & Conference. “Most advertisers simply apply their standard retargeting audiences within their search campaigns and put bid modifiers on them. But, that can be a very basic approach and there’s a lot more that advertisers should be doing to target their audiences within Google Search. Specifically, there was a lot of talk about whether you should be segmenting your campaigns based on audiences and writing different ad copy for those people.”
  7. Initially, the only way that we could use retargeting was on the Google Display Network. You would add the tracking code on your website and then—when people visited your site, Google would aggregate those cookies into audiences based on the rules that you set up. But then Google released RLSA—and advertisers realized they could put their audience lists into Search campaigns too. For example, this could include people that viewed Men’s pages (we would put them in a Men’s audience list), or for someone who added to cart but did not follow through with a purchase (we would put them in a cart abandoner audience list). If someone was on one of those RLSA lists and they were doing a search on Google—we could bid “x” percent higher for them.
  8. According to Lewis, if advertisers are just applying RLSA lists into their normal campaigns and putting bid modifiers on them (RLSA 1.0)—although that could improve the performance of the existing campaign(s)—there are several other ways advertisers can leverage advanced RLSAs to: Increase click-through rate Increase conversion rates Decrease cost-per click In the following blog post, “Why Advanced RLSA Audience Targeting Is Essential for Your Business”, we walk you through three different scenarios where leveraging advanced RLSA tactics can improve your campaign results including: Theory 1: Unique Ad Copy Experience for Dedicated RLSA Campaigns Theory 2: Dynamic Search Ad Campaigns Targeting RLSA Lists Theory 3: For Limited Budgets Try Running RLSA
  9. According to Lewis, if advertisers are just applying RLSA lists into their normal campaigns and putting bid modifiers on them (RLSA 1.0)—although that could improve the performance of the existing campaign(s)—there are several other ways advertisers can leverage advanced RLSAs to: Increase click-through rate Increase conversion rates Decrease cost-per click In the following blog post, “Why Advanced RLSA Audience Targeting Is Essential for Your Business”, we walk you through three different scenarios where leveraging advanced RLSA tactics can improve your campaign results including: Theory 1: Unique Ad Copy Experience for Dedicated RLSA Campaigns Theory 2: Dynamic Search Ad Campaigns Targeting RLSA Lists Theory 3: For Limited Budgets Try Running RLSA
  10. Customer Match is a feature aimed to re-engage loyal customers as they shop on Google. We covered the initial announcement introducing Google Customer Match to Search, Gmail, and YouTube, allowing advertisers to upload a list of email addresses, which can be matched to signed-in users on Google. Customer Match for Shopping allows advertisers to adjust bids across various segments of their known customers. Advertisers upload a list of email addresses into AdWords, that are matched to signed-in users on Google. Then they can create a remarketing list to reach these customers across campaigns. Although account performance has been strong, in general last year—we saw very limited volume and little discernible impact from Customer Match. One possible theory for the lack of impact is due to potential misalignment among “Match” rates and the exclusivity of the feature.
  11. Savvy brands and retailers have been using CRM data to increase sales via targeted ads to current and prospective customers for several years now. If you’re not currently taking advantage of this option, you could be missing out on sales. In 2015, Google started to allow advertisers to target their CRM audiences with relevant ads via “Customer Match” on the Google Display Network, YouTube TrueView ads, and Gmail native ads. Unfortunately, as we mentioned in the previous section of our guide—early results were not as promising as we had hoped.
  12. Customer Match is a feature aimed to re-engage loyal customers as they shop on Google. We covered the initial announcement introducing Google Customer Match to Search, Gmail, and YouTube, allowing advertisers to upload a list of email addresses, which can be matched to signed-in users on Google. Customer Match for Shopping allows advertisers to adjust bids across various segments of their known customers. Advertisers upload a list of email addresses into AdWords, that are matched to signed-in users on Google. Then they can create a remarketing list to reach these customers across campaigns. Although account performance has been strong, in general last year—we saw very limited volume and little discernible impact from Customer Match. One possible theory for the lack of impact is due to potential misalignment among “Match” rates and the exclusivity of the feature.
  13. The biggest, and perhaps most noticeable, of Google Shopping trends we have seen is a rise in competition. Shopping, often seen as a viable tool for a large majority of retailers, has become populated with sellers trying to take advantage of the exposure offered from the Google platform—particularly among big box retailers, such as Macy’s and Target. One approach our experts suggest is leveraging Auction Insights. The Auction insights report is available for both Search and Shopping campaigns. With this report retailers can compare their performance with other advertisers who are participating in the same auctions as them. This type of information can help retailers make strategic decisions about bidding and budgeting choices by showing specifically where they are succeeding and where they may be missing opportunities for improved performance. Auction Insights are not necessarily a new tactic, they are really important in Q4, because you can actually see the impression share for some of your competitors & what the overlap rate is between you and your competitors.
  14. The product feed can be an intimidating domain for a retail marketer and is often one of the most overlooked aspects of effective product advertising. Because of the technology involved, the issues that can arise, or perhaps the sheer appearance of thousands of rows in an Excel sheet, feed optimization is often neglected or underutilized. For this reason, the process can be viewed as a tedious, cumbersome, and monotonous responsibility. Despite all this, product feeds remain the critical foundation to any successful product advertising channel—especially Google Shopping. Once a data feed has been uploaded, Google cross references the data feed with search. This generates a “quality score,” which is multiplied by your bid to determine a product’s ad rank. Better ad rank leads to improved product discoverability and likely an increase in sales.
  15. An optimized data feed takes into account: Query Volume Query Intent Competition Product Margin Search Term Performance (top-converters & non-converters) Site Performance Audience Inventory It’s not very logical to assume that a sole practitioner can analyze all of this data, make the effective changes within the feed, and do so at scale. Feed tech is instrumental in processing and interpreting data from multiple inputs and what it means in terms of improvements to your product data. Fortunately, Google has made it easier to improve quality of feed, due to updates in their Google Merchant Center. In August 2016, Google introduced an updated version of Merchant Center with streamlined navigation and easier access to additional Shopping programs, as well as updates to existing features including feed rules, diagnostics, and currency conversions.
  16. Unfortunately, a lot of advertisers don’t utilize rule-based bidding strategies to optimize their Google Shopping campaigns as much as they should. It’s not feasible for a sole Shopping manager to analyze and optimize performance down the SKU-level for catalogs with over 100 products, for example. We combine programmatic bidding rules and human oversight to scale out SKU- level management. With rule-based bidding you can be very specific and customize your inputs, as opposed to algorithmic bidding—which can be a ‘cookie cutter’ type software that has to be able to work for businesses of all different shapes and sizes. Programmatic tech allows us to:
  17. Pulling Back on Wasted Ad Spend: This rule impacts any items with zero conversions, (ex: cross device conversions or direct on site conversions— depending on your campaign objectives). The rule is implemented to pull back on items that are above a certain spend threshold, over a certain number of days. Bid Increase Rule(s): The bid increase rule is for converters to gain more visibility. We bucket these bid increases into 3 classes including “mid-range” converters, “top” converters, and “one-off” converters. You can read more about these bid rules in our recent blog post. Bump Products With Zero impressions: For most catalogs, advertisers will push the majority of spend to the top converting products, which is expected, but that only covers a small range of the total catalog, typically anywhere from 5-20%. The rule will increase bids on individual products up until they hit a certain impression threshold. The whole point of this rule is to drive incremental growth via the rest of the catalog that doesn’t get much attention. Reduce Bid on Bleeders: Bleeders are defined as items that get conversions but are not considered profitable. One way to think of “bleeders” is that they are likely high performing items (when they convert) but in general they are kind of tough to deal with (lots of wasted ad spend), aka it costs too much to acquire the customer. For example, this could include items with a conversion or a ROAS less than 4. These are the items where we want to significantly decrease the bid.
  18. When it comes to Google Shopping, most retailers still put their trust in desktop as the main conversion device, not mobile. But according to Google, 6 in 10 internet users in the US start shopping on one device, but continue or finish on a different one. Additionally, Google’s research shows that on average, mobile searches on Google Shopping trigger nearly two follow-up actions, whether that’s a purchase or a store visit, and 55% of these actions happen within just 60 minutes. Generally, we take Google’s mobile ad research with a grain of salt. (After all, there is a bias that exists there for their products.) But this time, our AdWords data reflects this shift. It’s time to stop underestimating the part mobile plays in the Google Shopping purchase funnel, and prepare for a full-funnel mobile shopping future.
  19. From 2014 - 2016 (Q1 2014 - Q1 2016), clicks for Google PLAs on mobile devices with full browsers increased by 389.7%. By comparison, tablet clicks on Google Shopping increased by just 57%. The jump in clicks from Q3 2015 to Q4 2015 coincides with Google’s mobile makeover, indicating that the improved UX and SERP presentation for Google Shopping had a positive impact in the way these ads were seen and engaged with by users.
  20. Impressions for PLAs on mobile devices with full browsers reached a total of about 1.1 billion by Q1 2016, while tablet impressions hovered around 341 million. Again, this massive shift in impressions for mobile—a jump of about 667.67%—came around the time when Google made over PLAs for a better UX around the holidays in Q4 2015. This jump in impressions isn’t isolated to CPC Strategy’s clients. In 2015, Google reported that Shopping was growing 120% year-over-year, and predicted mobile would influence “more purchases than ever in Q4 2015”. Our data shows this assumption was correct.
  21. Now for the big question—are mobile CPCs getting more expensive? Overall, the CPC on tablet increased from 50 cents in Q1 2014 to a high of 67 cents in Q4 2015 before dropping off to 63 cents in Q1 2016. Mobile CPC, on the other hand, decreased by -7% from Q1 2014 to Q1 2016, reaching a low of 25 cents.
  22. Now for the big question—are mobile CPCs getting more expensive? Overall, the CPC on tablet increased from 50 cents in Q1 2014 to a high of 67 cents in Q4 2015 before dropping off to 63 cents in Q1 2016. Mobile CPC, on the other hand, decreased by -7% from Q1 2014 to Q1 2016, reaching a low of 25 cents. CPCs have plateaued, and at CPC Strategy, we’re noticing clients are getting more impressions and more clicks from mobile. This is likely due to the fact that Google is expanding ad inventory for Google Shopping ads on mobile devices. Here’s what we mean—on desktop, there are typically just six “boxes” advertisers can win. On mobile, shoppers can now scroll to the right to see up to 12 PLAs. We estimate our bids on these spots are keeping pace with Google’s mobile PLA inventory expansion.
  23. In Q1 2014, tablet conversion rates were 2.6%, while mobile was 1%, and a gap was maintained between the two even through Q1 2016 (2.2% tablet, 1.6% mobile). These conversion rate numbers for mobile (conversions/clicks) may not seem high, but if you consider the role that mobile has been playing so far in the buying process—as an initial top-of-the-funnel research device—the conversion rate makes more sense. Although numbers for conversions on tablet ended at a slightly higher conversion rate than mobile in Q4, CPC Strategy experts speculate that tablet is in decline from a Shopping perspective.
  24. Mobile cost per conversions dropped from $27.49 in Q1 2014 to a low of $15.56 in Q1 2016, while the tablet cost per conversions increased from $19.78 in Q1 2014 to $28.47 in Q1 2016. The point where mobile and tablets converge and ultimately end up on opposite sides of the scale is around Q3 2014, when advertisers tightened up their feed specifications to fit Google’s updated requirements. Overall, the lower mobile cost-per-conversion is in line with a decreased mobile CPC and an increase in conversion rates; further indicating that mobile is a good investment.
  25. Mobile ROAS started at 208% (2:1) and ended at 441% (4:1), a 55% increase in return on ad spend, while ROAS for tablet decreased slightly to 323% in Q1 2016. As our internal expertise around isolating mobile traffic has grown over the past few years, we’ve seen a huge return on ad spend. In the future, as we gain more abilities to segment out mobile ad campaigns, we anticipate even greater returns.
  26. Prior to 2013, when you created a campaign in AdWords, you could choose the devices you were bidding on separately. In 2013, when Google introduced enhanced campaigns, advertisers had to combine mobile and desktop in the same campaigns using only bid modifiers to adjust them. When that change happened, it gave advertisers a lot less control on mobile-specific spend.
  27. As shown in previous CPC data, mobile CPC decreased to just 25 cents in Q1 2016. Desktop, on the other hand, remained relatively steady between 50-60 cents, averaging about 3x the cost of mobile CPCs in Q1 2016. Unlike mobile, desktop CPCs are slightly increasing. Mobile is relatively cheap traffic, and this trend looks like it will continue. It’s a big opportunity for retailers who know how to isolate and make mobile traffic profitable. (More on actual strategies for mobile later.)
  28. Part of the rapidly closing gap in mobile and desktop ROAS could be due to Google’s additional PLAs in image searches and across the Search Partner network—even on Youtube videos. We expect mobile Google Shopping ROAS to increase as these additional ad spaces are rolled out.
  29. To illustrate this, we examined the data from one of our clients, an apparel retailer. We looked at ad conversion data from a 30-day time frame (July 15, 2016 - August 15, 2016), and filtered by 2+ path clicks.
  30. We’ve established that mobile CPCs have been declining, ROAS is getting higher, traffic is increasing, and mobile’s role in the purchasing process is becoming more transparent with Google’s changes to AdWords. As we mentioned before, Google is rolling out individual bid adjustments for mobile, tablet, and desktop—increasing our ability to target by device.
  31. Digital Shoppers Psychology-10 Principles Sharp Marketers should exploit The PPT attempts to explain the shopping psychology of today’s digital consumers and the behavioral science that works behind their shopping impulse. So, what makes the customer behave in a certain way or motivate them to buy a product? The PPT unveils 10 strong principles that are the driving forces behind the psychology of customer shopping behavior to influence their attitudes and beliefs. This will help marketers to identify & exploit sales opportunities and build strategies for transforming their business and generate more sales.   Keywords: Customer satisfaction journey, Customer Buying Psychology, consumer behavior insight, Personalized interactions, Personalized Retargeting Campaigns, email campaigns, Optimized Product Search, Digital Wallet, advertising, buying behavior, cashless economy, marketing strategy, Consumer psychology, Social media reviews, conversion rates, customers’ wallets.
  32. Digital Shoppers Psychology-10 Principles Sharp Marketers should exploit The PPT attempts to explain the shopping psychology of today’s digital consumers and the behavioral science that works behind their shopping impulse. So, what makes the customer behave in a certain way or motivate them to buy a product? The PPT unveils 10 strong principles that are the driving forces behind the psychology of customer shopping behavior to influence their attitudes and beliefs. This will help marketers to identify & exploit sales opportunities and build strategies for transforming their business and generate more sales.   Keywords: Customer satisfaction journey, Customer Buying Psychology, consumer behavior insight, Personalized interactions, Personalized Retargeting Campaigns, email campaigns, Optimized Product Search, Digital Wallet, advertising, buying behavior, cashless economy, marketing strategy, Consumer psychology, Social media reviews, conversion rates, customers’ wallets.
  33. Digital Shoppers Psychology – What influences Customers’ Love for Shopping Today? Customers want more convenience & ease od purchase Returns, discounts, offers and season sales actually influences their buying behavior They are exposed up to 3000 advertising messages everyday that includes signs, billboards, flyers, scented advertisements, TV, film previews etc. Customers don’t want to waste their precious time The “Love for shopping” are not the same for customers as before …
  34. Digital Shoppers Psychology – What influences Customers’ Love for Shopping Today? Customers are more engaged through cash back and cashless economy gaining momentum They are more comfortable with online shopping accessibility from anywhere, anytime Customers prefer less effort but superior experience Consumer’s love for malls or in-store shopping are declining
  35. Customer’s behaviors are fuzzy. It needs a deep in-depth understanding of the customer to make them act upon. Use Consumer psychology instead to attract them! Digital Shoppers Psychology – 10 Principles Sharp Marketers should Exploit To open customers’ wallets, apply these best marketing psychological moves or Principles to communicate with them! #1 Freedom of Choice: Always offer a freedom of choice to shoppers. 40-60% of customers are more likely to give attention to a brand if offered a choice. Digital Shoppers Psychology – Shopping Trends & Stats for Marketers to Follow So, what sets consumer’s mood to shop? Customer’s behaviors are fuzzy. It needs a deep in-depth understanding of the customer to make them act upon. Use Consumer psychology instead to attract them! 60-90% of customers choice depends on color psychology of the product that they decide within 90 seconds 61% of customers will read reviews before shopping Social media reviews , demos, reviews & more information about product act like social proof for customers to trust People retain 65% of information from Visual ads unlike only 10% if they hear the info. A sense of urgency such as a timer or countdown, spin-the- wheel game, cuts the delay in making customers react to boost up conversion rates significantly!
  36. Digital Shoppers Psychology – Shopping Styles, Personality Types & Behaviors Not even the Shopper types and their changing shopping natures… Experiential Adventure or Mall lingerer Shopaholic Shopaphobic Economic shoppers Price-insensitive Bargain hunter Sociable Situational Shopper
  37. Digital Shoppers Psychology – The Marketing Mantra Customers are 60% through their buying journey by the time they reach out to sales rep. To see results from your marketing strategy, apply this marketing mantra – STOP SELLING; INSTEAD TRY BUILDING RELATIONSHIPS Make the customer feel good…
  38. Rewards & Gifts: Behind any gift, there's a pleasure hidden for customer. Gifts act as motivational factor that marketers can harness to make them complete a transaction or registration task or behave in a certain way. Digital Shoppers Psychology – 10 Principles Sharp Marketers should Exploit To open customers’ wallets, apply these best marketing psychological moves or Principles to communicate with them!  #1 Freedom of Choice: Always offer a freedom of choice to shoppers. 40-60% of customers are more likely to give attention to a brand if offered a choice. #2 Rewards & Gifts: Behind any gift, there's a pleasure hidden for customer. Gifts act as motivational factor that marketers can harness to make them complete a transaction or registration task or behave in a certain way.
  39. Rewards & Gifts: Behind any gift, there's a pleasure hidden for customer. Gifts act as motivational factor that marketers can harness to make them complete a transaction or registration task or behave in a certain way. Digital Shoppers Psychology – 10 Principles Sharp Marketers should Exploit To open customers’ wallets, apply these best marketing psychological moves or Principles to communicate with them!  #1 Freedom of Choice: Always offer a freedom of choice to shoppers. 40-60% of customers are more likely to give attention to a brand if offered a choice. #2 Rewards & Gifts: Behind any gift, there's a pleasure hidden for customer. Gifts act as motivational factor that marketers can harness to make them complete a transaction or registration task or behave in a certain way.
  40. Digital Shoppers Psychology – 10 Principles Sharp Marketers should Exploit  #3 Less is more in pricing: Instead of a rounded price of suppose $10, using a price of $9.99 leaves a gap between the real value and perceived value which is all about illusion of a good deal. Consumers end up buying subconsciously not much reacting to this difference while ignoring the price structure.  #4 The Power of Digital Wallet: To win over customers, it’s a win-win strategy where customers are charmed with VIP access to beat the rush, store coupons & special offers while for brands-get them share the deal with friends and update wallet content.
  41. Digital Shoppers Psychology – 10 Principles Sharp Marketers should Exploit  #3 Less is more in pricing: Instead of a rounded price of suppose $10, using a price of $9.99 leaves a gap between the real value and perceived value which is all about illusion of a good deal. Consumers end up buying subconsciously not much reacting to this difference while ignoring the price structure.  #4 The Power of Digital Wallet: To win over customers, it’s a win-win strategy where customers are charmed with VIP access to beat the rush, store coupons & special offers while for brands-get them share the deal with friends and update wallet content.
  42. Digital Shoppers Psychology – 10 Principles Sharp Marketers should Exploit  #5 Social Shopping: Use “Social feeds” to bring products directly in front of the customer’s eye. Turn this retail experience into a biggest driver of brand revenues.  #6 Optimized Product Search: Make your products exposed to customers once they search for. Focus on SEO friendliness, Quora, LinkedIn etc. Make sure that your product is related to a variety of topics ranking higher than average.
  43. Digital Shoppers Psychology – 10 Principles Sharp Marketers should Exploit  #5 Social Shopping: Use “Social feeds” to bring products directly in front of the customer’s eye. Turn this retail experience into a biggest driver of brand revenues.  #6 Optimized Product Search: Make your products exposed to customers once they search for. Focus on SEO friendliness, Quora, LinkedIn etc. Make sure that your product is related to a variety of topics ranking higher than average.
  44. Digital Shoppers Psychology – 10 Principles Sharp Marketers should Exploit  #7Personalized Retargeting Campaigns: Don’t lose your abandoned customers because they might be your hot prospects. To bring them back, re-create their interest, remind them through retargeted email campaigns that boost them up to complete the purchase.  #8 Customer Motivators : If your product does not delight the customer from within, it’s likely that the customer will not seek them out. Inspire delight by offering moments of happiness to the customer to remember & cherish. For example, ModCloth allows their customers to upload photos of their favorite styles and trends. It’s a fun experience!
  45. Digital Shoppers Psychology – 10 Principles Sharp Marketers should Exploit  #7Personalized Retargeting Campaigns: Don’t lose your abandoned customers because they might be your hot prospects. To bring them back, re-create their interest, remind them through retargeted email campaigns that boost them up to complete the purchase.  #8 Customer Motivators : If your product does not delight the customer from within, it’s likely that the customer will not seek them out. Inspire delight by offering moments of happiness to the customer to remember & cherish. For example, ModCloth allows their customers to upload photos of their favorite styles and trends. It’s a fun experience!
  46. Digital Shoppers Psychology – 10 Principles Sharp Marketers should Exploit  #9 Build Repo with Customers: One-to- one relationship using consumer behavior insight in the context of products can boost huge customer loyalty and great ROI. Personalized interactions with personal touch not only optimizes product service but also retains customers.  #10 Provide Home Comfort: Purchasing a product directly sitting right at the comfort of home eliminates the need to deal with salesperson or rushing to complete shopping till store hours. Give them countless choices to explore, smooth transaction, basket choices or access more time options.
  47. Digital Shoppers Psychology – 10 Principles Sharp Marketers should Exploit  #9 Build Repo with Customers: One-to- one relationship using consumer behavior insight in the context of products can boost huge customer loyalty and great ROI. Personalized interactions with personal touch not only optimizes product service but also retains customers.  #10 Provide Home Comfort: Purchasing a product directly sitting right at the comfort of home eliminates the need to deal with salesperson or rushing to complete shopping till store hours. Give them countless choices to explore, smooth transaction, basket choices or access more time options.
  48. Digital Shoppers Psychology – 10 Principles Sharp Marketers should Exploit  #9 Build Repo with Customers: One-to- one relationship using consumer behavior insight in the context of products can boost huge customer loyalty and great ROI. Personalized interactions with personal touch not only optimizes product service but also retains customers.  #10 Provide Home Comfort: Purchasing a product directly sitting right at the comfort of home eliminates the need to deal with salesperson or rushing to complete shopping till store hours. Give them countless choices to explore, smooth transaction, basket choices or access more time options.
  49. We’ve established that mobile CPCs have been declining, ROAS is getting higher, traffic is increasing, and mobile’s role in the purchasing process is becoming more transparent with Google’s changes to AdWords. As we mentioned before, Google is rolling out individual bid adjustments for mobile, tablet, and desktop—increasing our ability to target by device.
  50. The future of shopping e-Commerce, exponential technologies and human experiences