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3 Strategies for Google Shopping's Product Listing Ads

January 2, 2013 By Amit Kumar
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Google's new bid-based Product Listing Ads (PLAs) are designed to be a richer advertising experience that increase clickthrough rates by including additional product information (e.g., product image, price and merchant name) without requiring additional keywords or text to be added by retailers. With the new Google Shopping, online merchants will also benefit from the ability to manage their feed advertising as well as the increased control over which products and categories to focus their ads on.

Unlike AdWords, no bidding on keywords is necessary. All the data comes directly from a merchant's product catalog and is automatically matched to the most relevant searches using that company's own target data. Businesses may also see a broader reach for their products, as it's possible for more than one PLA to be shown simultaneously for a given search term.

Impact on E-Commerce
Google's official good-bye to its free Product Search ads on Oct. 17 of last year left many smaller online retailers wondering where their traffic and revenues went. Many miss the results from free feeds and are now wondering just how much it will cost to pump them back up to previous levels.

Even if they're ready to pay, some online sellers just don't have the technical savvy or won't be able to transition quickly enough to take advantage of the new PLAs. While this new system does offer the chance at higher sales numbers, there's also a higher cost not only in clicks but also in development time on this more complicated model. Many merchants who aren't used to managing their own data feeds will have no applicable experience optimizing their product bids in their new campaigns. This demand for more marketing money and expertise might be a cost that some small business owners simply cannot afford to pay.

Google Shopping Strategies
Here are three tips for small online retailers to take advantage of Google's new PLAs:

 

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