Google Shopping 101

Confidential & Proprietary

Digital is make or break for every retailer

86% of shoppers
influenced by digital
 Proprietary + Confidential

The growth of Google Shopping

+30%

82%
Text Ads Shopping
Conversion Rate

Google Shopping ads now Google Shopping ads

generate 82% of non-brand paid conversion rates are
search clicks 30% higher than Text ads

Source: Merkle Digital Marketing Report (Q1:14-Q1:18)

 Proprietary + Confidential

The growth of Google Shopping

As of Q3 2019, 62%
of retail search clicks
come from Google Shopping

Source: Merkle Digital Marketing Report (Q1:14-Q3:19)

The growth of Google Shopping

>55%
of Google Search spend by the top
25 US retailers is currently invested
into Shopping

Google top 25 US retailers ranked by Search (Text + Shopping) investment. Excludes non-evergreen and paused retailers
 Proprietary + Confidential

Understanding shopping query behavior

Product Queries

Category Queries
Other

Pure Brand

Queries with Retailer

Source: Google Shopping internal data

 Google enables retail growth in three ways

Connect Drive action Accelerate

with shoppers at each step by removing friction Your business with insights
and automation

Increase Traffic Increase Sales Increase Profits

#1 driver of retail site traffic Voice, Image recognition Billions of product, local,
video searches
 Proprietary + Confidential

Why Google Shopping?

+
 A retailer’s product data is the foundation

Retailer Product Catalog Google Merchant Center Feed Shopping Campaigns in

Google Ads
 What is a Google Shopping ad?

Visual with product imagery

Requires product catalogue Shopping Ads

Product group bidding vs keywords

Increase coverage on “Digital Shelf”
Text Ads

Organic Results

Proprietary & Confidential

 How the right product is chosen

Product Predicted
Relevancy CTR
Served Ad

Data Quality Bid

Unique identifiers:
(GTIN, brand, MPN)
Title, description
The price/offer
 Shopping Ads

ikea farm sink

Desktop carousel
Mobile carousel

For mid-funnel/brand-plus queries on mobile

 “Showcase” Shopping Ads

Desktop Showcase Ads

Mobile, for Retailers

For broad/upper funnel queries.
 Local Inventory Shopping Ads

Supporting BOPIS/”pickup” For hyperlocal searches (“near me”) “See what’s in store”
 Leverage Google data to sell more competitively

Product Price Promotion Place

Product Suggestions Price Benchmarks Assortment Waterfall Store Analytics

Products x, y, z are in 20% of queries for

26% of high-demand 11% of high-demand
high-demand, but Product X are located
SKUs are priced higher SKUs are dormant in
missing from your within 5 miles of your
than your competitors your Shopping feed
product assortment stores

- 7%

$280 $300
 Proprietary + Confidential

Google Shopping ad formats

+
Co-op Shopping Ads Now Next

Scale your vendor

funded programs +
capture brand budgets.
with manufacturers of all
sizes, both on Google
Shopping with
Co-funded Shopping
Ads and on your digital
property with Sponsored
Product Ads
 Shopping with Augmented Reality Now Next

“Shop Similar Products”

Uses Google Lens tech
Query the world
Shoppable images
Image recognition ML
 Shoppable Video Now Next

Search Partners Network

PLAs/LIAs on 3P videos
Inventory expansion underway

TrueView for Shopping

Link products to 1P video ads

Search Partners Network TrueView for Shopping

 Shopping Actions Now Next

Seamless shopping on the Google Buy with Google across surfaces Merchant specific basket building
Assistant & fast checkout

“OK Google, buy Up & Up laundry

detergent”

Okay, I found something from Target

on Google Shopping. I can get Up &
Up liquid laundry detergent for
$6.99. Should I add that to your cart?

“Yes, please.”

I've added it to your Google

Shopping cart.

“OK Google, add toner to

my shopping list.”

Added.
 Reduce friction to your stores
Proprietary + Confidential

Local Inventory Ads Surface your store inventory

On Google Maps On the Assistant

Thank you!