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

Mommy

Image Source: @ebkendo

The Paid Search Day

83%

11%

5% 1%

Google Excel Not Google CoffeeImage: CommerceHub

A Tale about Retail

Image: Getty Images

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

The Story of Brands

Image: Getty Images

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

They not only

know what you

searched for,

but what you

BOUGHT.

Image: Getty Images

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

Amazon Ad Types

Sponsored ProductsProduct Display Ads

Headline Search Ads

Images: CommerceHub

Now imagine that

Google is in the

auction with you.

Image: Getty Images

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

Google and the Retailers

Image: Getty Images

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

Walmart advertising gets revamped

Image:Walmart.com

Google and the Brands

Image: Getty Images

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

It’s Still All About Google

Image: Getty Images

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