It’s Not Just About Google. Well, it is, sort of. Elizabeth Marsten Sr. Director, e-Commerce Growth Services Image: Pixabay
It’s Not Just About Google. Well, it is, sort of.
Elizabeth Marsten Sr. Director, e-Commerce Growth Services
Image: Pixabay
@ebkendo
• Senior Director, E-Commerce Growth Services
• Seattle, WA• 11 years in the search industry• PPC, Social, SEO, Analytics, Content• Speaker: SMX Adv/East/West, Mozcon,
PPC Masters, Friends of Search, HeroCon• Author: Lynda.com, All in One Web
Marketing for Dummies• And…
@ebkendo
Sears, JCPenny, Macy’s, Kohl’s
Recent Initiatives
• Closing some stores
• Adding categories online and expanding to in-store
– for the first time since 1983, Penney is selling appliances, beginning with a 22-
store pilot project(1)
• Executive hiring shifts
• Using store floor space for services, like hair salons or tires
– JCPenny salons generate 5% of sales(1)
(1) http://fortune.com/j-c-penney-reinvention/
Getting Exclusive
• Exclusive deals with brands
– Target’s “Made to Matter” initiative with key in-store placements(2)
• Exclusives and extras
– Taylor Swift’s new album, but with Target exclusive additional content(1)
– Christian Louboutin exclusive “taupe” color at Saks
• Creating private label brands of their own
– This year, Target will launch four in home and apparel(3)
– Kohl’s first was in 1988, added 5 more since(4)(1)https://corporate.target.com/article/2017/08/taylor-swift-reputation-exclusive(2)http://adage.com/article/cmo-strategy/target-secured-a-pipeline-exclusive-innovations/292573/(3)https://www.cnbc.com/2017/07/01/target-prepares-to-roll-out-fresh-apparel-home-furnishing-brands.html(3)https://corporate.kohls.com/content/dam/kohlscorp/non-press-release-pdfs/2017/2017_Q1_Factbook_FINAL.pdf
Then come the celebrities
• Expansion with celebrity brands
– Melissa McCarthy at HSN, Macy’s and Nordstrom
– Martha Stewart at Home Depot, Macy’s and Michael’s
• Exclusive deals with celebrity brands
– Carrie Underwood’s CALIA at Dick’s Sporting Goods(1)
– David Beckham at H&M
– J. Lo at Kohl’s
(1)https://www.wsj.com/articles/dicks-kicks-adidas-off-shelves-to-make-space-for-idol-ware-1425403031
They’re getting hit hard too
Closed in 2017
• Alfred Angelo
• The Limited
• BCBG Max Azria
• Jaeger
• Bebe
http://clark.com/shopping-retail/major-retailers-closing-2017/
Closing in 2018
• Teavana
Marketplaces
49%of units purchased on Amazon
were from marketplace sellers in 4Q16(1)
(1) http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-newsArticle&ID=2241835
(2) Data provided by eBay
(3) Data provided by Walmart
(4) https://techcrunch.com/2016/08/08/confirmed-walmart-buys-jet-com-for-3b-in-cash/
167MActive buyers worldwide(2)
4MTotal customers in just the first
year of operation(4)
#1Largest retail chain
in the world(3)
How Much Do You Know About Amazon?
For every NEW dollar spent online last year – Amazon took…
• Bullet
– Lorem Ipsum
• Bullet
– Lorem Ipsum
http://www.businessinsider.com/amazon-drives-more-than-half-us-ecommerce-growth-2016-2017-2Image: Pixabay
Amazon: for PPC People
• 1st party vs. 3rd party
– Amazon sells vs. you sell
– Fulfillment: Amazon or you sends the product(s) out
• Selling fees
– Category % fee
– Program/store fee
– Storage (FBA)
• Seller metrics
– Fulfillment/shipping time, returns, exchanges, customer service
• Price
– Race to the bottom
Amazon: The Buy Box
The equivalent of being on the first page of a Google SERP
vs.
being on the second page
And you care…because
$1.6 billion
$27 billion
$80 billion
http://www.businessinsider.com/amazons-advertising-business-rumbles-on-2017-4
The “Danger” of Amazon Advertising
• Volume
– 300 million active customer accounts(1)
– 64% of Americans are Prime members(2)
• Data
– Desktop, mobile app, geography, basket size, similar products, wishlist, search filters,
reviews, etc.
(1) http://www.businessinsider.com/amazons-advertising-business-rumbles-on-2017-4
(2) https://www.forbes.com/sites/shephyken/2017/06/17/sixty-four-percent-of-u-s-households-have-amazon-prime/#6121d7244586
Amazon Ad Types
• Sponsored Products
– Campaigns, ad groups, keywords with match types and negatives
– Have to be winning the Buy Box
• Headline Search Ads
– Campaigns, ad groups, keywords
– Auction based system
– Do not have to be winning the Buy Box
• Product Display Ads
– Campaigns, ad groups, keywords with match types and negatives
What does this mean?
Diversification of your skill set
• Time and budget management
• Tool knowledge
• Search engine differences
• Increased competition
Budgeting for the future
• Ad spend by channel
– Fluidity and dynamic needs
– 80/20 rule
• Tool costs
– 3rd party bid management keyword/PLA tools
– Keyword research
– Repricing tools for marketplaces
– Offline to online attribution
Borrowing. Stealing. Making it yours.
What can you steal from paid search?
• Budget
• Inventory
• Pricing
• Keywords
• Ad copy
What doesn’t translate to paid search
Marketplace advertising and search advertising are NOT 1:1
• ACoS (average cost of sale) vs. ROAS
• Returns
– Processing and reviewing true ROAS
• Search behavior and results
• Traffic volumes
– Impressions, clicks, CTR, CPC
Don’t forget about Facebook
Hyper Local Marketplaces
• Facebook is making their Craigslist-like mark
Expansion
• Per FB, slowing growth in Q4 2016 due to available
inventory to show ads(1)
• Expanding ads to Messenger, Instagram, Stories,
Audience Network
• Revenue was up 51% YoY for Q4 2016(1)
(1) https://techcrunch.com/2017/02/01/facebook-q4-2016-earnings/ Image: Facebook
Dynamic Product Ads
Source: CommerceHub
Image: Facebook
CH – What we’ve seen:
• Average monthly performance
- Return on Ad Spend: up to 1,200%
- Product Catalog Size: up to 1,000 Products
• Added Dynamic Ads for Broad
Audiences
• Conversion rate is high, volume lower
than search, it is remarketing after all
A Google Marketplace?
Google Express
• Free delivery, per store
minimum
• Same day – 3 day delivery
• Still earn loyalty program
points/rewards
• Stores change by zip code
• Google Home ordering
Image: CommerceHub
Google Express + Walmart
“The two companies said Google would start offering Walmart
products to people who shop on Google Express, the company’s
online shopping mall. It’s the first time the world’s biggest retailer
has made its products available online in the United States
outside of its own website.”-Daisuke Wakabayashi and Michael Corkery, 8/23/17
New York Times
https://www.nytimes.com/2017/08/23/technology/google-walmart-e-commerce-partnership.html?mcubz=3
Google Manufacturer Center
• Alternative images can be added
• Reported increase conversion rate
-Bosch, 4% lift
• Will not override PLA product titles
• Fill in missing information or clarify like
“cordless” or weight
Image Source: Google
https://adwords.googleblog.com/2016/04/google-manufacturer-center-helps-brands.html
Google Manufacturer Center
Image Source: CommerceHub
• Prescriptive action items in the UI
• Action items pertain to Google and
your business in general
• It’s free to submit
• Why would a brand or manufacturer
want to enroll in this program?
GTIN Requirement on Google
• Ad spend efficiency and user experience improvements
• Knowing exactly which product is which
• Competition from marketplaces and Facebook
• Leaving “ownership” of the customer and the experience to
retailers and brands who want it
Google on mobile
Purchases on Google
• Mobile PLAs (mpla) minimum
required
• Open interest form – US only
• Meant to reduce mobile conversion
friction
• Single item orders
Image: Google
Purchases on Google
• Still running on a % of eligible traffic across Android and iOS
• Only certain products (at your control) show the buy button
• Learned that everything before the buy button is what leads to it
being used or not
• Built a huge infrastructure, 150k+ active retailers and 500m
products to understand a shopper’s intent
UGG – 50% increase in conversion rates on mobile PLAs with POG and a 25% decrease in cost per conversion.
https://adwords.googleblog.com/2016/05/ways-to-be-useful-for-mobile-shoppers.html
Google’s Order Management System
“The new Orders API enables merchants to process orders
received through the Purchases on Google and Google Express
Merchant Direct programs in Google Shopping. Please note that
this program is only available to select partners while it’s in Beta
mode. Through this API, participating merchants are able to
receive and acknowledge new orders, reflect their progress
shipping them, and provide credits or refunds in response to
returns or other events.” – Google Developers, Content API for Shopping
https://developers.google.com/shopping-content/v2/orders-guide
Google’s Order Management System
Watch the developers pages for changes to the Orders APIhttps://developers.google.com/shopping-content/v2/orders-guide
How we’re
going to have to
think about it
How we’re used
to thinking
about it
Conversions
Shipped
Returns
Yep, it’s all still about Google
Google represents 33% of the world’s $223.7 billion in
digital ad revenue this year.
https://www.cnbc.com/2017/03/21/facebook-and-google-ad-youtube-make-advertising-in-2017.html
Now what for marketplaces
• Get familiar – YouTube
• Is it a service line you should be offering?
• Understand how fulfillment, delivery times and customer service
metrics like returns, responsiveness and complaints for yourself or
clients work
• Sign up for a couple of newsletters
Now what for search
• How are you optimizing budgets to stay within search? Or to
expand in a way that doesn’t hurt search?
• Learn more about Purchases on Google, Google Express and how
transactional marketplaces work
• Learn more about data feeds in general – where they go, how they
get there and what’s in them
Thank YouKeep Growing
Copyright © 2017 CommerceHub Technologies, LLC – Confidential
CommerceHub, the CommerceHub logo, OrderStream, and ProductStream are registered
trademarks, and DemandStream is a trademark of Commerce Technologies, LLC.
Other product names, logos, and brands are the property of their respective owners.
Resources
• Amazon Media Services YouTube Channel – watch the videos
• Feedvisor – Buy Box Bible – download the PDF
• Seller Labs – Amazon specific
• Marketplace Pulse – subscribe for all marketplaces
• Purchases on Google interest form – US only
• Google Express interest form – US only