How Important is Google Shopping for Retailers?
Just how important is Google Shopping for retailers? At first, the immediate response is usually going to be that as it is connected to Google that you simply cannot afford to miss out on it for the sake of your business. However, how accurate is that statement in itself?
To get a better understanding, we need to look at a few stats, and also explain more about what Google Shopping offers the retailer.
Their approach is to use something called ‘Product Listing Ads’ or PLA’s for short, which is the preferred approach for all shopping comparison engines. Unfortunately for the smaller shopping search engines, there is no doubt that Google has swamped the market with it now being seen that people simply search on Google for a product and then examine these PLA’s. In other words, the search percentage shows that potential customers are primarily using Google to locate a product, so a retailer cannot afford to miss out by ignoring what the search engine behemoth has to offer.
Also, to further stress the growing importance, we can look at a few stats.
Back in 2015, this branch of Google was seen as being responsible for somewhere in the region of 5% of all sales for your average retailer. In mid-2017, that average had jumped to 14% which is in itself pretty impressive.
This increase has been linked to advertisers placing more of an emphasis on ad placement on the Google network. Not only that, but with competition increasing there have been signs of businesses starting to further optimize their placement ads in order to drive more searches towards them.
But then, why is Google Shopping so important?
If we look beyond the sheer volume of traffic that Google brings in naturally, we can examine other areas of what it offers that may also prove to be attractive to retailers. In doing so, what we see is that the retailer listing their products via this option is faced with a very easy to use interface that opens up a number of possibilities.
For example, while other shopping comparison search options throw you in with everyone else, there is the possibility of limiting your PLA’s to be shown only to those from certain locations, the device they are using to check out the ads and a number of other key factors that can have an impact on conversion rates.
This is important as it does mean that a retailer is going to be able to get a better return on their investment, which is always key when you are spending money on advertising. Considering the potential for wasting money on methods and markets that are not your main focus, then being able to laser in, cut your spending, and seek a bigger return is clearly a major draw.
So, to answer the question, we have to state that it is indeed extremely important for retailers, and this importance is only growing year on year. With this form of Product Listing Ads being seen as an effective form of targeted advertising, the potential for a retailer to actually see a return on their investment is high.
If you were able to place an advert for your product in a newspaper and in such a way that it was only able to be seen by those that are within your market then wouldn’t you go for it? In that respect, this is no different which is why the average retailer cannot afford to miss out on the opportunity.