Google Shopping on the rise

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1 Google Shopping on the rise v Mastering advertising campaigns in st October 2015 Ι Gaël De Vos

2 About Twenga Advanced traffic acquisition solutions for e-commerce 2006 Founded 4000 Clients in 15 countries 150 Employees in United Kingdom, France, Germany, Spain and Italy 15,000,000 Funding raised Two lines of products: Smart LEADS, a multi-channel traffic acquisition solution Smart SEM, a suite of management solutions for AdWords and Google Shopping campaigns 30,000,000 Monthly Unique Visitors on our properties & partners 400,000,000 Products indexed

3 Let s get started 1. What challenges are advertisers facing in 2015? 2. How is search marketing changing? 3. Going beyond traditional optimizations 4. Case studies 5. Questions

4 What challenges are advertisers facing in 2015? Advertising for retail is becoming more and more complex: More platforms More formats Multiple touch points Multiple devices Multiple solutions providers

5 What challenges are advertisers facing in 2015? At the same time, advertisers face a «scissor effect» Acquisition costs are on the rise, and margins are decreasing, all due to increased competition This pressure, added to the increased complexity, makes it almost mandatory to have a sophisticated approach to acquisition. Old receipes no longer work!

6 Paid search growth slowing Search Engine Marketing YOY spend increase Adobe Q2 2015

7 and retail is taking the lead Global SEM spend growth by sector Adobe Q2 2015

8 Google continues to dominate paid search Google 73.6% Others 5.7% Predicted search marketing share in 2015 Baidu 11.9% Bing 5.7% emarketer, March 2015 As share of the top 5 Yahoo 3.1%

9 and Google Shopping growth is soaring +118% PLA integrations for universal searches Available inventory on Google Shopping has more than doubled in one year Global YOY Google Shopping adspend growth 7% to 16% Share of keywords with at least one PLA integration in 1 year Search Metrics Adobe Q2 2015

10 How is Search Marketing changing? 1 Google has gradually opened more & more keywords to Shopping Saving the best quality traffic for Shopping Retailers saw a drop in overall AdWords conversion rates

11 It s about better traffic quality for e-commerce Google shopping vs. Adwords traffic: -16% less bounce rate + 201% increase in average visit duration % increase in viewing at least three website pages +162% in page views. Explore Consulting (2015 report) In 2014 retailers spent 47% more on Google s shopping ads and 6% less on text ads Forbes January 2015

12 How is Search Marketing changing? Local Inventory Ads Prioritised over traditional ads in the US Online retailers will need to get ahead of bricks and mortar stores

13 How is Search Marketing changing? Highly-speculated Buy Now Button is coming as Google Purchases Launched on mobile for selected retailers Google will essentially own the entire shopping experience Retailers need to rank as high as possible in search results

14 Search Marketing in 2016 : Our vision 1 Focusing on Google Shopping : Success on this platform is no longer simple. 2 Know your products At first, ROI was quite easy to get. Now CPCs have risen, and competition has increased. 4 Here are, according to us, the keys to success on Google Shopping Data exploitation 3 Google Shopping know-how

15 More granular bidding is a must Products Google Shopping allows you to bid at product level Data exploitation GS know-how Yet most advertisers bid at a higher level complexity of this method & lack of data Common sense is that among a category performance is very diverse

16 Costs optimisation Products Bid distribution Data exploitation GS know-how More opportunities to optimise bids (or products from your catalogue) Possibility to adjust bids dynamically according to purchase opportunities 0,15 1,20 0,60 0,95 1,05 0,20

17 From Data to Smart Data Products Data exploitation GS know-how 1. Score your products N product pages displays N products placed in shopping basket N sales. 2. Hyper segment your audience 3 layers: basic remarketing / CRM data / Calculated Segments

18 Hyper segment your audience Products Data exploitation GS know-how 1. Basic Remarketing Homepage Category pages Product pages Shopping cart Purchase pages 2. CRM Data Location Gender Age 3. Calculated Segments From audience-based to behaviour-based segmentation

19 From Data to Smart Data how? Products Data exploitation 1 Data collection on-site Identify performance of each product in the catalogue and analyse user behaviour 2 Dynamic user profiling Using RLSA, build custom audiences and segments, which can be operated easily in the campaign GS know-how From Insights to Smart Actionable data 3 Bidding algorithms Use value prediction engines for real time bid optimisation, at keyword level, continuously improving ROI

20 Search Marketing is becoming specialized Products Feed changes Retailers Data exploitation Product Feed Management Sales targets CoS targets Data Collection/ Analytics / Attribution GS know-how Bidding optimisation Key challenges Reactivity Feedback loop can be complex Unified vision key to performance Product category information Help structure campaigns Conversions (most of the time)

21 Case study: LePape LePape is a leading premium sports equipment retailer, expanding its presence online through Search Marketing Goal: to boost PLA spending with a stable Cost of Sales (30%) Twenga Solutions entirely rebuilt PLA campaigns for LePape

22 Case study: LePape Dramatic revenue growth from Google Shopping campaigns at stable COS We were looking to increase our sales on Google Shopping without compromising our Cost of Sales. Since activating Smart FEED, we have noticed a decrease in our CoS and an increase in revenue. - Stéphane Gognet, Head of paid acquisition at LePape

23 Case study: LePape Campaign optimisation From 1 product group for several items All items with the same max CPC To 1 product group per item Bids defined per item

24 Case study: LePape Hyper audience segmentation From Lists managed through bid modifiers RLSA used only to bid on audience (in a very rough way) To One remarketing list per adgroup Bids defined per product + audience

25 Advertising in 2016: Audience-oriented marketing Are your Google Shopping campaigns reaching their full potential?

26 Twenga s approach to mastering Google Shopping in 2016 Leveraging all available data on a real-time basis to combine product-level bidding with hyper audience segmentation is key Know your products Data exploitation Google Shopping know-how

27 Download our whitepaper

28 Stay in touch! v linkedin.com/company/twenga PARIS LONDON BERLIN MADRID

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