Google launched Product Listing Ads (PLAs) as a paid advertising format in October 2012. PLAs differ from traditional text ads in that they contain a picture of a product along with some basics about it, such as price and rating. A PLA links directly to a product page on an ecommerce site and appears in response to transactional queries. Text ads serve a wider range of searches and contain more information.
According to a new eMarketer report, “Product Listing Ads: Google Dives into Comparison Shopping,” retailers quickly embraced PLAs to drive ecommerce sales. Digital marketing agency RKG estimated that roughly half of all clicks for nonbranded retail searches resulted from PLAs.
Data from IgnitionOne showed PLAs appeared 380% more often in Q4 2013 than they did a year earlier and produced 312% more clicks. At the same time, the success of PLAs led retailers to bid on them more aggressively, which drove up their costs 618%.
Until now, advertisers have managed their campaigns through AdWords and their Google Merchant Center account. Google is forcing all PLA advertisers to shift the management of their campaigns to Google Shopping by the end of August, meaning they will now have to set up product feeds through Google Shopping. But the feeds are better integrated with AdWords, giving advertisers greater insight into the overall performance of their search campaigns.
Many advertisers who have looked into the new interface have found Google Shopping will give them better control over the product categories, product feeds and analytics than the old system did. “Google Shopping will allow advertisers to combine performance and inventory data across channels, allowing more relevant and engaging ads in both product and keyword advertising,” said Jeff Campbell, managing director at Resolution Media.
Advertisers managing campaigns through Google Shopping will be able to see the results for individual products and product attributes in AdWords, whereas beforehand, they could only see how a broader category performed.
Google Shopping will also let advertisers benchmark their bids by seeing the cost per click and clickthrough rate of similar products. It still doesn’t show ranking, but it provides search managers more information—and more incentive to bid higher.happy wheels
Aug 28, 2014 0