How Product Pricing Is the Key to Success with Google Shopping
2/22/2017 11:48 AM Posted in News By Alex Hoff
Research indicates a large number of consumers using Google Shopping do not purchase the products they click on and view. Only about one-third of the products bought through Google Shopping correspond to the product advertisement consumers actually viewed. The data also reveals that slightly less than one-third of Google Shopping users purchase an item by the same designer but in a different product category, and just over one-third of the users purchase a product from an entirely different company.
For advertisers, it is important to recognize the connection between which products consumers click on and what they end up buying. This allows businesses to increase bids on the advertisements that generate sales of the products they want to move.
Pricing of Products Is Important to Success
Changing prices appears to have an interesting effect on Google Shopping implementation. It is clear that products priced less than the median market price receive plenty of views in product streams. Impressions, generated each time your advertisement is shown on a Google search result page, and clicks created by inexpensive products are significantly higher than those produced by more expensive items.
When prices of products are increased, a striking effect on impressions occurs. Although bids remain the same, impressions decreased 70 percent. To maintain the same number of viewers, bids need to increase significantly.
Thus, product pricing is important to success with Google Shopping because it appears Google penalizes you if your items are more expensive.
Effective Bidding and Pricing
To effectively utilize Google Shopping, you need to view the bidding and pricing simultaneously.
Although bidding may be the key component of Google Shopping, ultimately pricing is the controlling motivator. Google disallows participation if they believe you set non-competitive prices.
An effective strategy that permits advertisers to reach preset goals is to sell exclusive products. By doing so, and minimizing or eliminating competition, you build a strong brand.
Using lower-end products as entry points to build traffic is another creative strategy. You can then upsell higher-end products to consumers that visit your site.
Utilize Price to Your Benefit
Knowledge of the combination of price susceptibility and consumer behavior offers interesting potential for implementing advanced processes within the Google Shopping outlet. Pricing is an essential motivating feature. Advertisers must use correct pricing to succeed.
Consumers do not always purchase products they click on. Savvy advertisers will sell only a few choice items within a particular assortment at a very low price. This process uses these items as access points for consumers using Google to persuade them to purchase the higher-end products.
Advertisers can influence bids and product prices to produce the greatest value for their business. They can do so by studying available data.
For example, the results may suggest that ultimately bidding and pricing could be combined into a large retail enhanced platform. A business could boost advertising and inventory concurrently. This would help control cash flow and increase your bottom line.
Tips for Effective Google Shopping Feed Optimization
Google Shopping campaigns do not allow you to select the keywords that reveal your advertisements. Google automatically matches the titles in your Google Shopping feed to searches in Google and allows your advertisements to appear when relevant.
Google also looks at your total data feed quality and decides when your advertisements should appear. This is done through matching search queries with your product headings. Consequently, it is vital you establish your data feed with the relevant keywords prior to optimizing your product headings.
Optimize Your Data Feed Product Headings
Depending on the type of products you market, you most likely only use the product name for the title. Add the brand name of your product, since some of the best converting keywords include the brand name. Including the brand name in the product title will increase performance.
Include specifics about your product in the title. This is another way to ensure receiving impressions from search queries will lead to sales. These specifics can include size, color, and type of material.
In addition, adding commercial-intent words, such as coupon or promotion, can be a means of ensuring you receive impressions from these much sought-after searches. Include these words for product groups where you can compete on price. This has been shown to be particularly effective.
Once you have the basics down, you can further optimize each individual product in more detail. This is where in-depth keyword research is helpful.
When you are equipped with the data from your keyword research, you can revise product titles in your product feed.