The past decade or so has seen the most significant single shift in consumer habits perhaps ever to occur.
Online shopping has grown so much that traditional high street retailers still don’t know how to handle the fallout. Today, people can shop for whatever they want, whenever they want and from wherever they want, with mobile devices already outstripping desktops as most consumers’ shopping avenue of choice.
What this means for retailers is a need to get products in front of consumers at precisely the right time. And that means retailers must submerge themselves in more than one online shopping channel.
Shopping Ads & Comparison Shopping Services
Due to recent changes in Google’s Shopping ads approach – thanks to a hefty EU fine – European retailers can now place Shopping ads with different comparison shopping services and still expect a fair amount of Google traffic.
The step-change from Google means that any retailer has to place ads via a CSS – which could include Google Shopping itself – to conduct a Shopping ads campaign. But finding the right CSS for a particular retailer’s needs might be a challenge initially, as different platforms offer different functionalities, features and so forth. Some only charge commission on ads post-sale, while others charge per click.
One approach that many retailers are taking and seeing real results from is working with multiple comparison shopping services at the same time, finding the right mix of strategies to benefit their particular business.
What About Costs?
It’s understandable to assume that working with multiple CSSs will mean higher CPC costs from Google. But this isn’t the case.
Simply put, advertisers on the Shopping ads platform pay for ads depending on the next best competitor bid. That means if a CSS a retailer works with wins a bid, Google works out the click cost from the next best competitor bid. So, if a retailer works with multiple CSSs and they bid, the CPC costs paid in-auction don’t go up.
However, the ultimate cost for retailers comes from the agreement they have in place with the CSS they work alongside. Some only charge in the event of a sale, while others add a mark up when they secure CPCs.
As above, the best approach is to work with multiple CSSs and find the elements that work best for the retailer in question. From there, retailers can pare down or boost their approach depending on results.