What The New Paid Google Shopping Program Means To You

Getting Started with the New Paid Google Shopping Program

As many of you already know huge changes are on the horizon for the online shopping world as Google prepares to launch its new shopping platform later this month. The platform, which employs a completely commercial model, means big changes to the way customers shop and how online sellers can reach those customers.

Instead of its previously free, organic method, Google will now base its shopping platform wholly on Product Listing Ads, paid product listings similar to pay-per-click search ads. As part of the new format, products will be listed on the main page of search results in an above-the-fold box labeled “Sponsored” on the right-hand sidebar. Users may recognize this area as the spot where paid search ads usually lie. [insert plaexample.png]

In announcing the change to the program, Sameer Samat, Vice President of Product Management stated that the company "believe[s] that having a commercial relationship with merchants will encourage them to keep their product information fresh and up to date. Higher quality data—whether it’s accurate prices, the latest offers or product availability—should mean better shopping results for users, which in turn should create higher quality traffic for merchants."

To get placement within the featured box, online retailers will need to set bids for each product listing ad, as well as list certain related attributes for each of the product. The new platform is expected to be in full-force by October 17th.

What it Means for You

The new system revises the ranking algorithm from being solely based on organic ranking factors to one that will be based by budget, bid and relevance of your product listing ads, essentially leveling the playing field for new merchants who previously haven't listed on Google Shopping because you can always increase your bids to get qualified traffic.

With that said the new platform means you'll really need to be on top of your game. Outdated prices, out-of-stock items and other faux pas won't be an option anymore. Since you're paying for every product listing you want showing up on Google, you'll need to ensure that data is current and up-to-date, otherwise you risk wasting your hard-earned money.

What it Means for your Customers
According to Google, the new platform was designed with the customer in mind. Because it is paid, retailers will need to be more mindful of their data, taking steps to ensure it’s up-to-date and reflective of the most current information. This means better, higher quality results for customers.

In addition, the new platform will allow users to better compare products. With a side-by-side layout above the fold, users can easily visualize and compare prices, images and product details, better informing them for their purchase. On the downside, however, the commercial format essentially eliminates small-budget retailers from the mix. This means less variety and pricing options for customers.

Getting Started with the New Platform
In order to get started with the new Google Shopping platform, you'll first need to have an Google AdWords account and a Google Merchant Center Account. If you've ever done PPC ads as a part of your marketing campaign or if you listed your products in Google's old shopping system, you likely already have these accounts. They are both free to sign up for.

Once you’re all set up, you will need to create ads for the each of the products you want to see listed. These ads will include the title of your product, the price and your store's name. You can even include a line of promotional text that you can use to announce sales, special deals and more.

Ads are placed in a "sponsored" box on the right-hand side of the search results. Placement and order in this box is determined on a cost-per-click basis, so you'll need to set a bid amount for each of your ads, determining the maximum amount you'd like to pay for each product to be clicked on. Additionally, you'll need to assign attributes to each of your products; similar to keywords in PPC ads, these help determine relevance to a user’s search.

Final placement is determined by considering relevance, as well as your CPC bid.

Tips for Success
Though Google's new shopping system does pose some hurdles for online retailers, it doesn't mean all hope is lost. There are ways to see success with the new platform; try out these quick tips:

·Strategize - Have a strategy in place for bidding. Even if you can't afford to compete for the top spot in listings, at least bid the minimum $.01 amount. Then, you may still have a shot at sponsored placement. Remember, the new format allows for better comparison of products, so just because you're not listed at No. 1, doesn’t mean you can’t still have a shot at making that sale. Just create an offer and listing that can't be turned down!

·Optimize - Make sure your data feed is fully optimized. Check to ensure all prices, images and inventory numbers are current, and see that all product descriptions are up-to-date. Watch for warnings within your Merchant Account indicating that there's a problem with one of your listings; resolve these issues quickly and upload new feeds as soon as possible to avoid losing out on a sale.

·Consider the Trusted Store Program - Google's Trusted Stores program[insert googletrustedstores.png] recognizes online retailers that provide superior shopping experiences. As part of the program, you can place Google's Trusted Store logo on your website, and alert customers that you have Google's backing. Google even offers purchase protection for sites on its Trusted Stores list. Become a part of the Trusted Stores program and it could win you favor in Google's eyes, garnering you higher placement in searches.

With the launch of Google’s new shopping platform just around the corner, we could see huge changes in the online shopping landscape. Better quality data, more comparison opportunities and a more competitive market will serve to alter the way customers search, shop and purchase online. Smaller retailers may find issue in competing with big brand advertising budgets, though with the right strategy, success with the new tool is possible.

About the Author

Nii is COO of CPC Strategy, a shopping feed management agency and is responsible for day-to-day business operations as well as the long term strategic planning for the company. He has been with CPC Strategy since January of 2007. Prior to working with CPC Strategy, Nii was a product manager at eBay working on algorithmic merchandising and reviews and guides.