Nowadays customers want personalized offers that are specifically tailored to their needs and wishes. Since no two customer journeys are alike, retailers are faced with the challenge of fulfilling this level of desired personalization.
How can advertisers meet the high demands of customers?
When shopping online, online retailers have to convince users with appealing ads. Users want to visually perceive ads as pleasant and have the essential product details displayed very clearly and compactly.
The key to success in online marketing for shops is the focus on the individual customer journey. Many online shoppers get inspiration online before making a purchase, they look for current products and trends and then research where they can buy the desired product and at what price. For online shops, it is crucial to be present in the research phase and not just when making a direct purchase.
How can Google Shopping help retailers?
Google Shopping ads help to target relevant users in the different phases of the user journey thanks to different formats and with the least possible wastage.
In general, the Shopping Ads format accompanies users throughout their entire user journey across multiple platforms. Relevant ads are shown not only on Google, but also on YouTube and other platforms that support shopping ads.
With the “Image Search” format, shopping ads can now also be placed there. So Google Shopping has a lot of reach on all relevant Google websites and is one of the reasons why it is so attractive for online retailers.
What options are there for manufacturers in Google Shopping?
With the help of the Manufacturer Center, brand manufacturers have the option of managing their product presentation, such as images, descriptions and product details, more easily.
In this way, manufacturers can ensure a uniform brand experience on Google and on the Internet. The tool also provides information on the performance of shopping ads and offers help for optimization.
What role do data and automation play in shopping ads in particular?
Thanks to the shortened learning phase, the Smart Bidding strategies now also work for seasonal products and sales promotions. Smart bid strategies based on relevant data are therefore now the preferred solution for shopping ads.
Online shops typically use the target ROAS bid strategy (“Return On Ad Spend”). With this smart bidding strategy, the bids are automatically set in such a way that the advertiser achieves the highest possible conversion value with his target ROAS, taking into account the defined average ROAS. an ROAS of 800% would mean € 8 value / revenue for € 1 advertising costs. The bids are automatically optimized through machine learning.
What should retailers look out for when implementing a target ROAS strategy?
By far the most common mistake is an under-measured ROAS goal. Dealers should consider the actual value of a customer relationship in order to arrive at a realistic ROAS target. A ROAS of over 1000% is the exception in industries with a lot of competition.
